Vast Resources plc Quarterly Production Summary & Operations Update

 
TIDMVAST 
 
 
   Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining 
 
   21 February 2017 
 
   Vast Resources plc 
 
   ("Vast" or the "Company") 
 
   Quarterly Production Summary & Operations Update 
 
   Vast Resources plc, the AIM listed mining company with operations in 
Romania and Zimbabwe, is pleased to report an operational update and 
production summary for the three months ended 31 December 2016. 
 
   Overview: 
 
   Manaila Polymetallic Mine ("Manaila") in Romania 
 
   (commissioned on 14 August 2015, Vast Ownership 50.1%.): 
 
 
 
 
   -- Significant improvement in the production profile of Manaila despite the 
      challenges associated with the severe weather conditions of the winter 
      quarter: 
 
          -- 44% increase in copper concentrate produced to 889 tonnes at an 
             average 19.5% Cu (September 2016: 616 tonnes) 
 
          -- 371% increase in zinc concentrate produced to 165 tonnes at an 
             average 30% Zn (September 2016: 35 tonnes) 
 
          -- 23% increase in copper-only concentrate sales price to US$1,237 
             per tonne (September 2016 US$1,003 per tonne) 
 
          -- 12% increase in combined copper and zinc concentrate sales price 
             to US$1,120 per tonne (September 2016: US$1,003 per tonne) 
 
          -- 40% decrease in operating costs per tonne of concentrate produced 
             to US$901 (September 2016: US$1,504 per tonne) 
 
          -- 3% decrease in operating costs per tonne milled to US$32 
             (September 2016: US$33) 
 
          -- 9% decrease in ore mined to 25,269 tonnes (September 2016: 27,848 
             tonnes) due to a temporary cessation of operations occasioned by 
             extreme weather 
 
          -- 8% increase in ore milled to 29,435 tonnes (September 2016: 27,274 
             tonnes) 
 
   -- Ongoing activities to improve operational efficiency and enhance 
      Manaila's production profile underway 
 
   Baita Plai Polymetallic Mine ("Baita Plai") and Faneata Tailings 
Facility ("Faneata") in Romania 
 
   (Vast Ownership 80%): 
 
 
 
 
   -- Prospecting licence granted in May 2016 over the estimated 4.6Mt Faneata 
      tailings dam located 7km from Baita Plai 
 
   -- Completed 825m drill programme at Faneata in November 2016 - results to 
      support a maiden JORC Compliant Resource Estimate due to be finalised by 
      the end of Q1 2017 
 
 
   -- A feasibility study to recover the contained metals is planned for H2 
      2017 
 
   -- Continued progress towards obtaining the mining sub-licence for Baita 
      Plai in accordance with Romanian due process has been made - the granting 
      of this mining-licence will allow for commissioning of the Company's 
      third mine 
 
   Pickstone-Peerless Gold Mine ("Pickstone-Peerless") in Zimbabwe 
 
   (commissioned on 20 August 2015, Vast ownership 50% (25.01% when SSCG 
Africa Holdings Ltd financing conditions precedent are fulfilled as per 
announcement on 30 January 2017): 
 
 
 
 
   -- 14% decrease in operating cost per tonne milled to US$44 (September 2016: 
      US$51) 
 
   -- 10% decrease in operating cost per ounce produced to US$619 (September 
      2016: US$686) 
 
   -- 6% decrease in ore milled to 61,355 tonnes (September 2016: 65,573 
      tonnes) 
 
   -- 11% decrease in gold production to 4,356 ounces (September 2016: 4,910 
      ounces) - high rainfall restricted mining and milling in December 
 
   -- US$2.5 million on deposit with banks and institutions at end of period - 
      cash will be retained in Zimbabwe to fund expenditure on the sulphide 
      plant expansion and the development of the Giant Gold Mine 
 
   -- Construction of the sulphide processing plant required for the next phase 
      of mining has commenced - first sulphide production is scheduled for Q3 
      2017 
 
   -- Evaluation of the nearby Giant Gold Mine ("Giant Mine"), which has a 
      current JORC-compliant inferred resource of 500,000oz of gold, is 
      on-going 
 
   -- A Joint Venture agreement for a toll treatment plant to recover gold from 
      nearby artisanal mining activities has been concluded and construction 
      has commenced 
 
 
   Roy Pitchford, Chief Executive of Vast, commented: 
 
   "I am delighted to report that the turnaround of operations at Manaila 
has continued, despite the extreme weather conditions experienced at 
site.  With this in mind, the achievements of the period are even more 
notable, however we are not resting on our laurels and are introducing 
systems by which to alleviate these problems in future years.  In 
particular, heating systems are being installed in the flotation 
circuits in order to enhance recoveries from now on.  These initiatives, 
in addition to the utilisation of spare processing capacity at the 
Iacobeni Metallurgical Complex, should improve operations throughout the 
rest of the current quarter. 
 
   "A primary focus in this and future quarters will be the continued 
ramping up of zinc production and grade.  We are currently producing 
approximatley 80 tonnes per month of zinc concentrate, however our 
objective is to increase this by up to 85% and to achieve a grade of 
over45%, which would greatly enhance revenue per tonne moving forward. 
 
   "The period also saw severe weather impact our operations in Zimbabwe, 
where unusually high rainfall in December and January resulted in lower 
milling and production at the Pickstone-Peerless Gold Mine.  Despite the 
operational challenges experienced during the period, the mine still 
delivered production of 4,356 ounces of gold at an impressively low cost 
of US$619/oz versus an average sales price of US$1,231/oz. 
 
   "The Pickstone-Peerless mine has now returned to normal production 
levels and we remain optimistic about future production, which is being 
conducted in conjunction with the construction of the sulphide 
processing plant.  This will enable production from the high-grade 
sulphide pit in addition to the oxide pit." 
 
   Quarterly Conference Call 
 
   Roy Pitchford, Chief Executive of Vast, will host a conference call for 
shareholders at 10.00 a.m. today in conjunction with this Quarterly 
Production Summary & Operations Update. 
 
   To participate in this conference call, please dial 0808 109 0701, or 
[phone] if you are calling from outside of the UK, and 
enter participant code 8163920# when prompted to do so.  Please note 
that all lines will be muted with the exception of Vast's management, 
however the Company invites shareholders to submit questions to its 
public relations adviser, St Brides Partners Ltd, ahead of the call via 
email to [e-mail] or through the 
online chat function. 
 
   To access the online chat function, please use the link below and log in 
as a participant using the event number 952 745 377 followed by the 
password, 'vast': 
 
   https://sbmf.webex.com/sbmf/onstage/g.php?MTID=e8c3f37aaf4d187aaf13e63c0181b7cce 
 
 
   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 course of 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 [e-mail] 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. 
 
   Further Information 
 
   Manaila Polymetallic Mine 
 
   The Manaila Mine performed encouragingly during the quarter despite 
extreme cold weather, which necessitated the cessation of operations in 
December.  Normal operations resumed at the end of January and it is 
anticipated that the utilisation of spare processing capacity at the 
Iacobeni Metallurgical Complex should allow for the decreased January 
production to be recovered in February and March. 
 
   The following production and sales figures were achieved during the 
quarter ended 31 December 2016: 
 
 
   -- 9% decrease in ore mined to 25,269 tonnes (September 2016: 27,848 tonnes) 
      - the decrease was due to a cessation of operations in December 
      occasioned by extremely cold weather. Normal mining operations resumed at 
      the end of January and heating systems for the flotation circuits are to 
      be installed in order to reduce or eliminate future stoppages caused by 
      the extreme cold weather. 
 
   -- 8% increase in ore milled to 29,435 tonnes (September 2016: 27,274 
      tonnes). The increase in milled tonnages was achieved notwithstanding 
      extremely cold conditions at the Iacobeni Metallurgical Complex. 
 
   -- 44% increase in copper concentrate produced to 889 tonnes (September 
      2016: 616 tonnes) due to a greatly improved throughput in the copper 
      float line. Production was also augmented by 165 tonnes of zinc 
      concentrate produced in the quarter equating to a 371% increase 
      (September 2016: 35 tonnes). 
 
   -- 12% increase in sales price of US$1,120 per tonne achieved for combined 
      copper and zinc sales (September 2016: US$1003 per tonne); copper only 
      concentrate sales price of US$1,237 reflected a sustained improvement in 
      concentrate grades produced rising 23% in sales per tonne achieved 
      (September 2016 $1,003 per tonne). Average monthly copper sales prices of 
      US$1,204 per tonne at a grade of 19.8%, US$1,254 per tonne at a grade of 
      19.2% and US$1,218 per tonne at a grade of 19.6% were realised in October, 
      November and December respectively. A zinc concentrate grade of circa 30% 
      was achieved on zinc sales in December. 
 
   -- Operating costs decreased by 3% to US$32 per tonne milled (September 
      2016: US$33), but declined by 40% to US$901 per tonne of concentrate 

      produced (September 2016: US$1,504 per tonne). 
 
   -- The decrease in cost per tonne milled was due to the higher throughput at 
      the plant. 
 
   -- The decline in concentrate cost per tonne as compared to the September 
      quarter was due to the greatly increased production levels. Production 
      from the separate zinc concentrate line, commissioned during the previous 
      quarter, also enabled an improved recovery of processing overheads. 
 
   -- Processing specialists Minxcon Group is currently engaged to further 
      enhance the quantity and quality of the zinc concentrate and reduce 
      operational costs.  The planned heating of the flotation circuits should 
      assist in achieving this. 
 
   -- Currently approximately 80 tonnes per month zinc concentrate is being 
      produced. The Company's immediate objective is to increase zinc 
      production by up to 85% by June 2017 and to increase zinc concentrate 
      grades to >45%. 
 
          -- An increase in zinc grades will favourably impact sales revenue 
             per tonne for zinc concentrate in future quarters. 
 
   -- A gravity recovery circuit is being installed to increase gold and silver 
      recoveries. 
 
 
   Quarterly Production Figures 
 
   December 2016 Quarterly Production Summary 
 
 
 
 
Manaila              Units                  Dec'16 Quarter          Sept'16 Quarter      % Change 
Ore mined            Tonnes                              25,269                 27,848          -9% 
Waste mined          Tonnes                              38,538                117,558         -67% 
Stripping ratio      Times                                  1.5                    4.2 
Ore milled           Tonnes                              29,435                 27,274           8% 
Concentrate 
 produced - Cu       Dry tonnes                             889                    616          44% 
Concentrate 
 produced - Zn       Dry tonnes                             165                     35         371% 
Concentrate sold - 
 Cu                  Dry tonnes                             889                    960          -7% 
Concentrate sold - 
 Zn                  Dry tonnes                             200                      0 
Concentrate in 
 stock at period 
 end - Zn            Dry tonnes                               0                     35 
 
Cash costs**         (US$/t milled)                          32                     33          -3% 
Cash costs**         (US$/t of conc)                        901                  1,504         -40% 
Average Cu sales 
 price achieved*     (US$/t of conc)                      1,237                  1,003          23% 
Average Zn sales 
price achieved*      (US$/t of conc)                        600                      -            - 
Average sales price 
 achieved*           (US$/t of conc)                      1,120                  1,003          12% 
Average gross sales price achieved* Cu + Zn: excludes 
 a royalty of 4% 
Cash costs **: represent the cash 
 costs of production 
 
Operational data: 
Pickstone-Peerless   Units                       Dec'16 Quarter        Sept'16 Quarter     % Change 
Ore mined            Tonnes                              70,930                 69,500           2% 
Waste and low-grade 
 ore mined           Tonnes                             435,083                497,840         -13% 
Stripping ratio      Times                                  6.1                    7.2 
Ore milled           Tonnes                              61,356                 65,573          -6% 
Gold produced        Ounces                               4,352                  4,910         -11% 
Gold sold            Ounces                               4,706                  5,025          -6% 
Gold in stock at 
 period end          Ounces                                 609                    962 
 
Cash costs**         (US$/t milled)                          44                     51         -14% 
Cash costs**         (US$/oz Au)                            619                    686         -10% 
Average sales price 
 achieved*           (US$/oz Au)                          1,231                  1,338          -8% 
Average gross sales price achieved*: excludes fidelity 
 charges and royalty of 5% 
Cash costs **: represent the cash 
 costs of production 
 
   Competent Person's Review: 
 
   This announcement has been reviewed by Mr. Craig Harvey, Group Chief 
Geologist at Vast, and a member of the Geological Society of South 
Africa and the Australian Institute of Geoscientists. Mr Harvey meets 
the definition of a "qualified person" as defined in the AIM Note for 
Mining, Oil and Gas Companies. 
 
   **ENDS** 
 
   For further information visit www.vastresourcesplc.com or please 
contact: 
 
 
 
 
Vast Resources plc                                  www.vastresourcesplc.com 
 Roy Pitchford (Chief Executive Officer)             [phone] 
 
  Beaumont Cornish - Financial & Nominated Adviser    www.beaumontcornish.com 
  Roland Cornish                                      [phone] 
  James Biddle 
Brandon Hill Capital Ltd - Joint Broker             www.brandonhillcapital.com 
 Jonathan Evans                                      [phone] 
Peterhouse Corporate Finance Ltd - Joint Broker     www.pcorpfin.com 
 Duncan Vasey                                        [phone] 
St Brides Partners Ltd                              www.stbridespartners.co.uk 
 Susie Geliher                                       [phone] 
 Charlotte Page 
 
 
   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"). 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Vast Resources plc via Globenewswire 
 
 
  http://www.acrplc.com/ 
 

(END) Dow Jones Newswires

February 21, 2017 02:01 ET (07:01 GMT)

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