30 November 2018
Vast Resources plc
(“Vast” or the “Company”)
Quarterly Production Summary
Vast Resources plc, the AIM listed mining company with operations in
To view a presentation, which presents the Q3 2018 production results together with previous quarters, please visit the Company’s website: www.vastresourcesplc.com.
Q3 Production Overview:
- Solid quarter for the Pickstone-Peerless Gold Mine (“Pickstone-Peerless”) in
Zimbabwe :- 3% increase in tonnes of ore mined to 104,156 tonnes (Q2 2018: 100,855 tonnes*)
- 4% increase in tonnes of ore milled to 102,416 tonnes (Q2 2018: 98,899 tonnes)
- 8% decrease in gold production to 6,397 ounces (Q2 2018: 6,955 ounces**)
- 8% decrease in gold sold to 6,519 ounces (Q2 2018: 7,087 ounces**)
- 7% decrease in milled gold grade to 2.32g/t (Q2 2018: 2.48g/t)
- Performance and production at Manaila Polymetallic Mine (“Manaila”) in
Romania impacted due to a continued focus on pre-stripping:- 8% decrease in tonnes of ore mined to 23,955 dry tonnes (Q2 2018: 26,022 dry tonnes)
- 15% decrease in tonnes of ore milled to 23,448 dry tonnes (Q2 2018: 27,497 dry tonnes)
- 42% increase in the stripping ratio of waste versus ore to 17 x (Q2 2018: 11.9 x)
- 32% decrease in copper concentrate produced to 615 dry tonnes (Q2 2018: 911 dry tonnes)
- 12% decrease in copper concentrate grade to 15.8% (Q2 2018: 17.9%)
- 68% decrease in zinc concentrate produced to 48 dry tonnes (Q2 2018: 151 dry tonnes)
- 0.3% increase in zinc concentrate grade to 35.1% (Q2 2018: 34.8%)
* Figure listed as 101,706 tonnes in announcement of 4 July 2018 but later confirmed as 100,855 (a discrepancy of 0.8% which was deemed immaterial)
** June 2018 gold production and sales estimated in announcement of 4 July 2018 and later confirmed as total production of 6,955 ounces and sales of 7,087 ounces not 6,696 ounces and 6,754 ounces respectively as previously stated
Andrew Prelea, Chief Executive Officer, of Vast, commented:
“Our primary focus is on providing the means through which to ensure long term, consistent and reliable production at our operating assets both in isolation, and importantly, in the context of our growing development portfolio. This is a particularly notable when considering the development objectives that we have in place at Manaila and the Carlibaba extension and metallurgical complex, which we believe will radically transform throughput, grade and efficiency of our operations.
“From Q4 2016, a clear pattern of decreasing ore quality emerged at Manaila, the consequence of continued mining without the prerequisite waste pre-stripping which the Company was unable to conduct due to funding restraints at that time. From Q1 2018, and in line with the Company’s stated strategy to resolve this issue, the ratio of stripping to mining starts to reverse on an upward trend, however until the Company takes delivery of the new dumpers and excavators in early 2019, the targeted increase in productivity will be delayed. The Board is confident that once the equipment is on-site the new fleet can focus on rectifying the five quarters of negative waste stripping and expose sufficient quantities of the correct ore grades while minimising dilution.
“The work underway at Pickstone-Peerless to expose the sulphide ore will also provide for a more consistent gold head grade which in turn will also augment the already very impressive gold production record achieved during 2018.
“The recent fundraising initiatives undertaken by the Company, together with the anticipated
Pickstone-Peerless Production Summary
(commissioned on 20 August 2015, Vast ownership 25.01%):
Pickstone-Peerless continues to make solid progress with tonnes mined and milled marginally higher than the previous quarter’s then-record tonnages. The plant is currently processing at a steady state in excess of 34,000 tonnes per month, a level which is expected to continue into future quarters.
Gold ounces produced and sold decreased by 8%, correlating with a 7% reduction in the milled gold grade however this is in line with Company’s strategy to ensure that none of the oxide ore is left behind in the pit, as processing the oxide and sulphide ore together is less efficient and recoveries are sub-optimal. Once the oxides are depleted, the Company will commence processing the higher-grade sulphide ore.
Manaila Production Summary
(commissioned on 14 August 2015, Vast Ownership 100%.):
Copper and zinc production in Q3 2018 was adversely affected by high levels of pre-stripping with available equipment prioritised into waste stripping activity. This process has been dominant throughout most of 2018 and will likely continue at the current open pit operations for the remainder of the calendar year as the Company looks to ensure long-term sustainable production from the enlarged Manaila complex, which will include the new pits in the Carlibaba extension. The pre-stripping programme, which impacted production levels, was compounded by inclement weather and pump failures the latter of which has now been rectified.
The high level of necessary pre-stripping this quarter has placed further pressure on the current mining fleet, in terms of the ore mining capability, and the cumulative impact of this has placed Manaila behind schedule in meeting the concentrate volume requirements of the offtake agreement and funding offer concluded on 21 March 2018 with Mercuria.
The Board has been advised that the previously announced additional dumpers and excavators are expected to become operational during Q1 2019. Enhanced excavator capacity and transport assets will facilitate stripping at levels sustainably higher than hitherto achieved and will allow for improved utilisation of processing capacity at the Iacobeni metallurgical plant. The new equipment will also be required once we build the new plant at Manaila and the new open pits in the Carlibaba extension. Further announcements will be made regarding the delivery of the expanded mining fleet in due course.
Production Statistics
September 2018 Quarterly Production Summary
Operational data
Pickstone-Peerless | Units | Sept'18 Quarter | June'18 Quarter | Mar'18 Quarter | Dec'17 Quarter | Sep ’18 Quarter Net attributable to Vast† | ||||
Ore mined | Tonnes | 104,156 | 100,855* | 65,342 | 90,874 | - | ||||
Waste and low-grade ore mined | Tonnes | 1,789,092 | 1,583,680 | 1,596,078 | 1,311,329 | - | ||||
Stripping ratio | Times | 17.2 | 15.7 | 24.4 | 14.4 | - | ||||
Ore milled | Tonnes | 102,416 | 98,899 | 80,639 | 86,097 | - | ||||
Milled Grade | Grams per tonne | 2.32 | 2.48 | 2.78 | 2.46 | - | ||||
Gold produced | Ounces | 6,397 | 6,955 | 6,326 | 6,057 | 1,600 | ||||
Gold sold | Ounces | 6,519 | 7,087 | 6,549 | 5,729 | 1,630 | ||||
Gold in stock at period end | Ounces | 633 | 755 | 887 | 1,110 | 158 | ||||
† Calculated based on Vast’s 25.01% economic interest in Pickstone-Peerless | ||||||||||
Manaila | Units | Sept'18 Quarter | June'18 Quarter | Mar'18 Quarter | Dec'17 Quarter | |||||
Ore mined | Tonnes | 23,955 | 26,022 | 15,344 | 23,622 | |||||
Waste mined | Cubic Metre | 161,586 | 129,342 | 119,090 | 98,933 | |||||
Stripping ratio | Tonnes | 17 | 11.9 | 19.4 | 10.5 | |||||
Ore milled | Tonnes | 23,448 | 27,497 | 13,616 | 25,654 | |||||
Milled Grade - Cu | Percentage | 0.62 | % | 0.76 | % | 0.67 | % | 0.56 | % | |
Milled Grade - Zn | Percentage | 0.60 | % | 0.73 | % | 0.69 | % | 0.58 | % | |
Concentrate produced - Cu | Dry tonnes | 615 | 911 | 386 | 562 | |||||
Percentage | 15.8 | % | 17.9 | % | 17.3 | % | 16.3 | % | ||
Concentrate produced - Zn | Dry tonnes | 48 | 151 | 84 | 96 | |||||
Percentage | 35.1 | % | 34.8 | % | 30.4 | % | 37.1 | % | ||
Concentrate produced - Au | Dry tonnes | 0 | 0 | 0 | 6 | |||||
Grammes per tonne | 86.0 | |||||||||
Concentrate sold - Cu | Dry tonnes | 832 | 1,041 | 0 | 590 | |||||
Concentrate sold - Zn | Dry tonnes | 0 | 197 | 0 | 100 | |||||
Concentrate in stock at period end Cu | Dry tonnes | 51 | 268 | 398 | 12 | |||||
Concentrate in stock at period end Zn | Dry tonnes | 145 | 97 | 143 | 59 | |||||
Concentrate in stock at period end Au | Dry tonnes | 6 | 6 | 6 | 6 |
Quarterly Conference Call
Andrew Prelea, Chief Executive of Vast, will host a conference call for shareholders at 10.00a.m. (
To participate in this conference call, please dial 0808 109 0701, or +44 (0) 20 3003 2701 if you are calling from outside of the
To access the online chat function, please use the link below and log in as a participant using the event number 951 608 056 followed by the password, 'Resources':
https://sbmf.webex.com/sbmf/onstage/g.php?MTID=ed9194548d3d5d5d48581c80583fbc8c3
On the right-hand side of the screen you will find an option to submit questions during the call. The Q&A function will only be made live once the call has commenced.
The management team will strive to answer as many questions as possible during the call. A recording of the call will also be made available on the Company's website.
If you have any problems accessing the call, please contact St Brides Partners Ltd on shareholderenquiries@stbridespartners.co.uk or call +44 (0) 20 7236 1177.
A copy of the presentation will also be uploaded to the Research, Media & Presentations page of the website at www.vastresourcesplc.com shortly before the call commences.
Competent Person’s Review:
This announcement has been reviewed by Mr Craig Harvey, Chief Operating Officer at Vast, and a member of the Geological Society of
**ENDS**
For further information, visit www.vastresourcesplc.com or please contact:
Vast Resources plc Andrew Prelea (Chief Executive Officer) | www.vastresourcesplc.com +44 (0) 20 7236 1177 |
Beaumont Cornish - Financial & Nominated Adviser Roland Cornish James Biddle | www.beaumontcornish.com +44 (0) 020 7628 3396 |
Brandon Hill Capital Ltd – Joint Broker Jonathan Evans | www.brandonhillcapital.com +44 (0) 20 3463 5016 |
SVS Securities Plc – Joint Broker Tom Curran Ben Tadd | www.svssecurities.com +44 (0) 20 3700 0100 |
St Brides Partners Ltd Susie Geliher Juliet Earl | www.stbridespartners.co.uk +44 (0) 20 7236 1177 |
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”).
Notes
Vast Resources plc is an AIM listed mining and resource development company focussed on the rapid advancement of high-quality brownfield projects and recommencing production at previously producing mines in
Vast Resources currently owns and operates the Manaila Polymetallic Mine in
The Company also has interests in a number of projects in