TIDMVAST
Vast Resources plc / Ticker: VAST / Index: AIM / Sector:
Mining
12 April 2023
Vast Resources plc
('Vast' or the 'Company')
Baita Plai Q1 Production Report and Update
Tajikistan 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 CaF 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.
Cu conc
Inventory
Quarterly Tons Conc Conc Conc Avg.Conc at end of
Report Mined Produced Produced Conc Sold Sold Grade 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 (CaF )
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 CaF 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 Notices
This 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.
**S**
For further information, visit www.vastplc.com or please
contact:
Vast Resources plc www.vastplc.com
Andrew Prelea (CEO) +44 (0) 20 7846 0974
Andrew Hall (CCO)
Beaumont Cornish -- Financial http://www.beaumontcornish.com
& Nominated Advisor www.beaumontcornish.com
Roland Cornish +44 (0) 20 7628 3396
James Biddle
Shore Capital Stockbrokers Limited www.shorecapmarkets.co.uk
-- Joint Broker +44 (0) 20 7408 4050
Toby Gibbs / James Thomas (Corporate
Advisory)
Axis Capital Markets Limited -- www.axcap247.com
Joint Broker +44 (0) 20 3206 0320
Kamran Hussain
St Brides Partners Limited http://www.stbridespartners.co.uk
Susie 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 Refers to the tonnage minus humidity to determine
(DMT) 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 Usually quoted in terms of production for shipping
(WMT) terms
-------------------- --------------------------------------------------------
CaF Calcium Fluoride
-------------------- --------------------------------------------------------
Competent Person
The 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 Industry
-- General Association of Romanian Engineers
-- Romanian National Committee of Mining Engineers
Nicolae 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.
(END) Dow Jones Newswires
April 12, 2023 02:00 ET (06:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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