("Vast" or the "Company")
Quarterly Production Summary & Operations Update
To view a presentation, which presents the Q3 2017 results together with the previous four quarters, please visit the Company's website: www.vastresourcesplc.com.
Production Overview:
Q3 2017 was a record quarter for Vast, which saw operations at the
Manaila Production Summary
(commissioned on
Results for the quarter demonstrate a considerable improvement over Q2 2017. In respect of volume related metrics, Q3 2017 reflects an exceptional performance. This result is unsurpassed since commissioning of the mine by Vast.
Summary of Q3 2017 Production:
- 46% increase in tonnes of ore mined from Q2 2017 to 40,462 dry tonnes
(Q2 2017: 27,707 dry tonnes*)
- 39% increase in tonnes of ore milled from Q2 2017 to 39,135 dry tonnes
(Q2 2017: 28,082 dry tonnes*)
- 31% increase in copper concentrate produced from Q2 2017 to 1,082 dry tonnes (Q1 2017: 828 dry tonnes)
- 2% decrease in copper concentrate grade from Q2 2017 to 17.9%
(Q2 2017:18.2%)
- 25% decrease in zinc concentrate produced from Q2 2017 to 118 dry tonnes (Q2 2017: 157 dry tonnes)
- 6% increase in zinc concentrate grade from Q2 2017 to 42.3% (Q2 2017: 39.8%)
- 50% increase in gold concentrate from Q2 2017 to 7dry tonnes (Q2 2017: 5 dry tonnes)
- 30% decrease in gold concentrate grade from Q2 2017 to 31.4g/t (Q2 2017: 45g/t)
Pickstone-Peerless Production Summary
(commissioned on
Ore mined and milled at Pickstone-Peerless rose in the quarter to their highest levels since the
- 4% increase in tonnes of ore mined from Q2 2017 to 71,553 tonnes (Q2 2017: 68,659 tonnes)
- 16% increase in tonnes of ore milled from Q2 2017 to 68,431 tonnes (Q2 2017: 58,923 tonnes)
- 17% increase in gold production from Q2 2017 to 4,738 ounces (Q2 2017: 4,037 ounces)
- 3% increase in milled gold grade from Q2 2017 to 2.41g/t (Q2 2017: 2.35g/t)
Development Overview:
The production summary should be read in concert with the development initiatives underway in
- 18-hole drill programme for 2,200 metres completed at the Carlibaba prospect located adjacent to the current Manaila open pit
- Results from first phase of 1,000 metre drilling programme at Carlibaba confirmed the mineralised zones and geological structures as expected
- Assayed values appear to support the development of a second open pit operation at Manaila with the construction of a metallurgical processing facility on site, thereby significantly reducing the cost of ore transport incurred at the current operation
- For Phase 2 drilling, a total of nine surface drill-holes are now completed totalling a further 1,200 metres of core
- The phase 2 drilling intersected the defined mineralised zones identified from historic drilling and the Phase 1 drilling at depth and serve to verify the continuation of the zones at depth
- In conjunction with the significant data obtained from historic sources the data is being collated and modelled in-house by Vast and will result in a JORC compliant mineral resource for Manaila being reported in due course now that Phase 2 drilling is completed
- Commencement of soil and rock sampling activities at Piciorul Zimbrului and Magura Neagra licences underway - exploration licences will be applied for once prospecting work is complete
Faneata Tailings Facility ("Faneata")
- Application has been made for an exploitation right over the tailings dam in anticipation of positive feasibility results
- However, in view of the likelihood of the award of an association licence for Baita Plai, options are being re-assessed regarding priority use of the Baita processing
facilities which may result in a postponement of the exploitation of the tailings dam
- Construction of sulphide plant progressing - expected to be completed by the end of
December 2017
- Significant increase in installed primary milling capacity anticipated once sulphide plant is commissioned to 35,000 tonnes per month from the current ~22,800 tonnes per month
- Mill grade expected to increase from ~2.31g/t gold ('Au') to between 3.00g/t Au and 4.00g/t Au over a 6 to 9-month period as higher-grade sulphide ore is mined and processed, resulting in a significant increase in production
- Evaluation of the
Giant Gold Project - located 28km from Pickstone-Peerless, which has a current JORC-compliant inferred resource of 500,000oz of gold, is ongoing - Progress has been made in relocating artisanal miners from the
Giant Gold Project licence area
"It is pleasing to be able to report improved quarterly production statistics as the Company strives to become overall cash generative. It is of equal importance that our development initiatives at both Manaila, namely the drilling programme at Carlibaba ahead of the proposed second open pit and new metallurgical complex, and Pickstone-Peerless, specifically the advancement of the sulphide plant, have both made considerable progress. This work is a crucial component of long term strategy to become a profitable mid-tier producer.
"Separately, the progress on the Baita Plai association licence and the anticipation of recommencing mining and processing operations at this mine during the current quarter are both encouraging and we will continue to report of developments as appropriate."
Production Statistics
Operational data: | |||||
Manaila | Units | Sep'17 Quarter | June'17 Quarter | Mar'17 Quarter | Dec'16 Quarter |
Ore mined | Tonnes | 40,462 | 27,707 | 19,711 | 23,905 |
Waste mined | Cubic Metre | 119,003 | 53,267 | 45,143 | 38,538 |
Stripping ratio | 2.9 | 1.9 | 2.3 | 1.6 | |
Ore milled | Tonnes | 39,135 | 28,082 | 18,262 | 26,786 |
Milled Grade - Cu | Percentage | 0.70% | 0.73% | 0.79% | 0.91% |
Milled Grade - Zn | Percentage | 0.70% | 0.74% | 0.76% | 0.88% |
Concentrate produced - Cu | Dry tonnes | 1,082 | 828 | 526 | 889 |
Percentage | 17.9% | 18.20% | 18.80% | 19.50% | |
Concentrate produced - Zn | Dry tonnes | 118 | 157 | 132 | 165 |
Percentage | 42.3% | 39.80% | 26.30% | 30.00% | |
Concentrate produced - Au | Dry tonnes | 7 | 5 | ||
Grams per tonne | 31.4 | 45.0 | |||
Concentrate sold - Cu | Dry tonnes | 1,079 | 995 | 321 | 889 |
Concentrate sold - Zn | Dry tonnes | 92 | 252 | 0 | 200 |
Concentrate in stock at period end Cu | Dry tonnes | 41 | 38 | 206 | 0 |
Concentrate in stock at period end Zn | Dry tonnes | 63 | 37 | 132 | 0 |
Operational data: | |||||
Pickstone-Peerless | Units | Sep'17 Quarter | June'17 Quarter | Mar'17 Quarter | Dec'16 Quarter |
Ore mined | Tonnes | 71,533 | 68,659 | 51,660 | 70,930 |
Waste and low-grade ore mined | Tonnes | 1,039,570 | 1,035,785 | 546,126 | 435,083 |
Stripping ratio | 14.5 | 15.1 | 10.6 | 6.1 | |
Ore milled | Tonnes | 68,431 | 58,923 | 51,102 | 61,356 |
Milled Grade | Grams per tonne | 2.41 | 2.35 | 2.06 | 2.41 |
Gold produced | Ounces | 4,738 | 4,037 | 2,974 | 4,352 |
Gold sold | Ounces | 4711 | 3,992 | 2,873 | 4,706 |
Gold in stock at period end | Ounces | 782 | 755 | 710 | 609 |
Notes:
March 2017 Quarter: Tonnes mined and milled have been converted to dry tonnes. Previously reported: wet tonnes mined of 21,901 and wet tonnes milled of 20,291December 2016 Quarter: Tonnes mined and milled have been converted to dry tonnes. Previously reported: wet tonnes mined of 25,245 and wet tonnes milled of 29,776
Quarterly Conference Call
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 950 754 266 followed by the password, 'Vast':
https://sbmf.webex.com/sbmf/onstage/g.php?MTID=eb995e68fad2ab36bfaa6abd079336562
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
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
-ENDS-
For further information visit www.vastresourcesplc.com or please contact:
www.vastresourcesplc.com +44 (0) 20 7236 1177 | |
www.beaumontcornish.com +44 (0) 020 7628 3396 | |
www.brandonhillcapital.com +44 (0)20 3463 5016 | |
www.pcorpfin.com +44 (0) 20 7469 0936 | |
Susie Geliher | 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").
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
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