Last checked at 12 Apr 2023 07:00
Baita Plai Q1 Production Report & Update, Tajikistan Update and Settlement UpdateVast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
12 April 2023
Vast Resources plc(‘Vast’ or the ‘Company’)
Baita Plai Q1 Production Report and UpdateTajikistan Update Settlement Update
Vast Resources plc, the AIM-listed mining company, is pleased to announce updates on Baita Plai Polymetallic Mine (‘Baita Plai’) (including the Q1 production report), on the Takob mine in Tajikistan, and on the settlement of the historic claim in Zimbabwe.
Highlights:
Baita Plai Tonnes mined in Q1 increased by 20% despite January and February being short months of production.Positive results from new drilling campaign indicate extension of the skarn at depth. Tajikistan Commercial production of CaF₂ has exceeded the minimum target thus fulfilling Takob contract performance condition.Pb/Zn commercial production at target grade has commenced. First commercial quantities are targeted for shipment in May. As announced on 3 May 2022 Vast will receive a participation equivalent to a 12.25 percent royalty overall sales of non-ferrous concentrate and any other metals produced from the Takob Processing Project. Zimbabwe Closure of the settlement process in Zimbabwe expected towards the end of April or first half of May.Baita Plai Production:
Production continued during the New Year period with minimal down time at the mine as the mine management and staff target reaching operational breakeven, and, by June 2023, name plate capacity of 14,000 tonnes per month.
Lower grades in the mine were encountered in March, partly as a result of intense development work in Level 17 and Level 18, and partly because of restriction of access to higher grade ore caused – following the new drilling results (see below) – by the development of the incline into the lower levels and preparation for drilling in Level 19. Had that not occurred, the Company is confident the mine could have reached operational breakeven in March.
Below are the production results for Q1 2023 together with comparisons for previous quarters. The reduction in concentrates sold is due to timing differences.
| Quarterly Report | Tons Mined | Conc Produced | Conc Produced | Conc Sold | Conc Sold | Avg.Conc Grade | Cu conc Inventory at end of Quarter |
| WMT | DMT | WMT | DMT | DMT | |||
| Q1 2022 | 12,561 | 257 | 229 | 263 | 234 | 19% | 6 |
| Q2 2022 | 13,020 | 295 | 268 | 201 | 183 | 22% | 91 |
| Q3 2022 | 15,673 | 340 | 309 | 154 | 140 | 17% | 260 |
| Q4 2022 | 17,343 | 498 | 453 | 546 | 488 | 23% | 225 |
| Q1 2023 | 20,728 | 539 | 475 | 516 | 459 | 23% | 241 |
Baita Plai Drilling:
The first two drill holes of the new underground drilling programme contained in the technical report as announced on 27 February 2023 (‘Technical Report’) have been completed.
The author of the Technical Report has confirmed that:
“Based on the data collected from the first two drilled holes, the extension of the skarn is confirmed.
The drill holes were from 45m below Level 18 and were of 136m and 94m. Both holes indicated mineralisation at depth. The ore that is being currently mined at Level 18 (45m), sub level 2, was identified in both drillholes with a thickness of 2.3m and 3m and another new layer has been identified with a thickness of 2m at further depth of 20m.”
This is consistent with achievement of the Exploration Targets as published on 27 February 2023.
A technical update on the drilling campaign will be published later this month.
Tajikistan:
Steady state production of a 95% minimum fluorite (CaF₂) concentrate has been achieved at the Takob mine in Tajikistan thus achieving satisfaction of a major performance condition of the contract with Korkhanai Boygardonii Takob.
Commercial production of a Pb and Zn concentrate with precious metal credits has now commenced and to date the Pb and Zn bulk concentrate quality has exceeded expectations. The Company together with our partners are preparing for the first commercial shipment in May to our strategic offtake partners Trafigura as per announcement dated 6 October 2022.
We look forward to advising the market with this milestone event.
Zimbabwe:
Further to the announcement of 31 March 2023, the Company has received a further communication from Government representatives, via our legal advisors, that indicates that the matter is expected to be finalised during the course of this month or in any event not later than the first half of May 2023.
Andrew Prelea, Chief Executive Officer at Vast Resources PLC, commented:
“Q1 production has seen a significant increase both in mining and in concentrate production as a result of the changes that have been implemented on site during H2 of 2022 and the ongoing upgrades and further development underground.
“Management strongly believes in Baita Plai’s increasing performance and our ability to reach the goal of name plate capacity in H1 2023. We expect to see the increased production trend continue throughout 2023.
“The new drilling programme at Baita Plai is already proving to show that the Technical Report published on 27 February 2023 is indicative of what the mine is capable of producing in terms of grade and ore tonnage. As stated, there is positive indication that the ore continues at depth and giving further scope for increasing the current resources.
“Tajikistan is now producing commercial quality and quantity of both CaF₂ and Pb/Zn concentrates and the Company is looking forward to updating the market once the first sales have been finalised.
“Due to the sensitive nature of the process the settlement in Zimbabwe has taken longer than the market has anticipated. However the settlement is following the path of consensual due process and we appreciate the Government’s continuing assistance in bringing this matter to a close.”
Important NoticesThis announcement contains 'forward-looking statements' concerning the Company that are subject to risks and uncertainties. Generally, the words 'will', 'may', 'should', 'continue', 'believes', 'targets', 'plans', 'expects', 'aims', 'intends', 'anticipates' or similar expressions or negatives thereof identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the Company's ability to control or estimate precisely. The Company cannot give any assurance that such forward-looking statements will prove to have been correct. The reader is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this announcement. The Company does not undertake any obligation to update or revise publicly any of the forward-looking statements set out herein, whether as a result of new information, future events or otherwise, except to the extent legally required.
**ENDS**
For further information, visit www.vastplc.com or please contact:
| Vast Resources plcAndrew Prelea (CEO)Andrew Hall (CCO) | www.vastplc.com+44 (0) 20 7846 0974 |
| Beaumont Cornish – Financial & Nominated AdvisorRoland CornishJames Biddle | www.beaumontcornish.com+44 (0) 20 7628 3396 |
| Shore Capital Stockbrokers Limited – Joint Broker Toby Gibbs / James Thomas (Corporate Advisory) | www.shorecapmarkets.co.uk +44 (0) 20 7408 4050 |
| Axis Capital Markets Limited – Joint Broker Kamran Hussain | www.axcap247.com +44 (0) 20 3206 0320 |
| St Brides Partners LimitedSusie Geliher | www.stbridespartners.co.uk+44 (0) 20 7236 1177 |
ABOUT VAST RESOURCES PLC
Vast Resources plc is a United Kingdom AIM listed mining company with mines and projects in Romania, Tajikistan, and Zimbabwe.
In Romania, the Company is focused on the rapid advancement of high-quality projects by recommencing production at previously producing mines.
The Company's Romanian portfolio includes 100% interest in Vast Baita Plai SA which owns 100% of the producing Baita Plai Polymetallic Mine, located in the Apuseni Mountains, Transylvania, an area which hosts Romania's largest polymetallic mines. The mine has a JORC compliant Reserve & Resource Report which underpins the initial mine production life of approximately 3-4 years with an in-situ total mineral resource of 15,695 tonnes copper equivalent with a further 1.8M-3M tonnes exploration target. The Company is now working on confirming an enlarged exploration target of up to 5.8M tonnes.
The Company also owns the Manaila Polymetallic Mine in Romania, which the Company is looking to bring back into production following a period of care and maintenance. The Company has also been granted the Manaila Carlibaba Extended Exploitation Licence that will allow the Company to re-examine the exploitation of the mineral resources within the larger Manaila Carlibaba licence area.
Vast has an interest in a joint venture company which provides exposure to a near term revenue opportunity from the Takob Mine processing facility in Tajikistan. The Takob Mine opportunity, which is 100% financed, will provide Vast with a 12.25 percent royalty over all sales of non-ferrous concentrate and any other metals produced. Processing of stockpiled ore on site is expected to commence in mid-2022.
In Zimbabwe, the Company is focused on the commencement of the joint venture mining agreement on the Community Diamond Concession, Chiadzwa, in the Marange Diamond Fields.
GLOSSARY
| Dry Metric Tonnes (DMT) | Refers to the tonnage minus humidity to determine sales price |
| Grade | The relative quantity or percentage of ore mineral content in an orebody. |
| Ore | The naturally occurring material from which a mineral(s) can be extracted at a reasonable profit. |
| Orebody | A continuous well-defined mass of material to sufficient ore content to make extraction economically feasible. |
| Skarn | Lime-bearing siliceous rock produced by the metamorphic alteration of limestone or dolomite |
| Wet Metric Tonnes (WMT) | Usually quoted in terms of production for shipping terms |
| CaF₂ | Calcium Fluoride |
Competent PersonThe technical views made in this announcement is based on information interpreted by Mr Nicolae Turdean, the Romanian Country Manager and a full-time employee of the Company. Mr Nicolae Turdean is a Qualified Person who is a Member in good standing of the:
Romanian National Association of Specialists in Mining IndustryGeneral Association of Romanian EngineersRomanian National Committee of Mining EngineersNicolae has 40 years’ experience in the Romanian mining industry. He was most recently President of the National Agency for Mineral Resources. Prior to this, Nicolae was the Chief Executive of Cupru Min SA, the Romanian state-owned copper producer. Nicolae has worked closely with the Ministry of Economy and Commerce, the Minister of Economy and Finance, and the World Bank, as well as serving on the Board of Administration for a number of companies. Nicolae holds both a Bachelor of Mining Science and a MSc. in the Management of Mining Activities from the Technical University of Petrosani in Romania.