Vast Resources plc Quarterly Production Summary & Operations Update

 
TIDMVAST 
 
 
   Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining 
 
   24 April 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, presents its operational update and production 
summary for the three months ended 31 March 2017. 
 
   Overview: 
 
   During the quarter, extreme cold in Romania and very high rainfall in 
Zimbabwe adversely affected mining operations. 
 
   Manaila Polymetallic Mine ("Manaila") in Romania 
 
   (commissioned on 14 August 2015, Vast Ownership 50.1%.): 
 
 
 
   Despite conditions in Romania reaching lows of minus 30 degrees Celsius, 
that being approximately 10 degrees Celsius colder on average compared 
to the comparative quarter for the previous year (3 months ended 31 
March 2016), Vast managed to maintain its operations: 
 
 
   -- 21,901 tonnes ore mined (March 2016: 20,362 tonnes; December 2016: 
      25,269) 
 
   -- 20,291 tonnes ore milled (March 2016: 22,510 tonnes; December 2016: 
      29,439;) 
 
   -- Achieved a milled copper grade of 0.79% (March 2016: 0.96%; December 
      2016: 0.91%) and milled zinc grade of 0.76% (March 2016: 0.94% - this was 
      not a separate zinc concentrate and was a deleterious element within the 
      copper concentrate, which accordingly incurred a penalty.  The Company 
      now has a separate zinc line which provides an additional revenue stream; 
      December: 0.88%) 
 
   -- 526 tonnes copper concentrate produced at an average grade of 18.8% 
      (March 2016: 822 tonnes at an average grade of 17.2%; December: 889 
      tonnes at an average grade of 19.5%) 
 
   -- 132 tonnes zinc concentrate produced at an average grade of 26.3% (March 
      2016: 0 tonnes; December 2016: 165 tonnes at an average grade of 30.0%) 
 
   -- Calendar Q1 production levels are typically lower compared to the rest of 
      the year - the unusually cold temperatures experienced in Q1 2017 
      exacerbated the usual seasonal drop off in activity: 
 
          -- impeded the transport of ore to the Iacobeni Metallurgical 
             Complex; normal mining operations resumed at the end of March; 
 
          -- curtailed ore deliveries from the open-pit; 
 
          -- the ore stockpile at Iacobeni froze solid, preventing it being fed 
             to the crusher circuit; 
 
          -- the flotation circuits froze up to such an extent that their 
             operation would have resulted in mechanical damage to the 
             equipment 
 
   -- Additional operational developments impacted production rates: 
 
          -- the planned increase in the stripping ratio to 2.1 (December: 1.5) 
             to expose additional ore mining faces. 
 
          -- the larger mill experienced a breakdown in mid-March resulting in 
             reduced milling capacity by utilising the smaller of the two mills 
             - this has now been fixed. 
 
 
   -- Processing specialists Minxcon Group ("Minxcon") continue to work on 
      enhancing the quantity and quality of the zinc concentrate production, 
      which in the month of April has been consistently registering up to 45%. 
 
   -- A gravity recovery facility is being installed to recover the significant 
      gold and silver contained in the tailings, which will generate a third 
      revenue stream. The Company anticipates that this line will be 
      operational in H2 2017. 
 
   Baita Plai Polymetallic Mine ("Baita Plai") and Faneata Tailings 
Facility ("Faneata") in Romania 
 
   (Vast Ownership 80%): 
 
 
   -- Prospecting licence granted in May 2016 over the Faneata tailings dam 
      located 7km from Baita Plai. 
 
   -- Completed 825m drill programme at Faneata in November 2016. 
 
   -- An internally generated Maiden JORC Compliant Resource Estimate in March 
      2017 defined a total Mineral Resource of 3.0Mt (Gross, 2.4Mt being net to 
      Vast). 
 
   -- Intention to use Baita Plai processing facility 6.5km away. 
 
 
   -- Metallurgical test work has commenced to determine optimal processing 
      method. 
 
   -- A feasibility study to recover the contained metals is underway and due 
      for completion in H2 2017. A preliminary economic assessment indicates a 
      break even total processing recovery of 25%. 
 
   -- Continued progress towards obtaining the mining sub-licence for Baita 
      Plai in accordance with Romanian due process - 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%): 
 
 
 
 
   -- 51,102 tonnes ore milled (March 2016: 54,237; December 2016: 61,356). 
      High rainfall hampered open pit mining operations, and wet, sticky ore 
      restricted the crusher feed facilities. 
 
 
   -- 2,974 ounces gold produced (March 2016: 2,808; December 2016: 4,352). 
      Lower grade areas in the open-pit were mined as they remained accessible 
      and low-grade stockpiles were used to supplement volumes. 
 
   -- A milled grade of 2.06 grams per tonne was achieved (March 2016: 1.71; 
      December 2016: 2.41) notwithstanding the negative impact of the high 
      rainfall during part of the quarter 
 
   -- Construction of the sulphide processing plant is well underway. First 
      sulphide production is scheduled for Q3 2017 (calendar year). 
 
   -- Evaluation of the nearby Giant Gold Mine, which has a current 
      JORC-compliant inferred resource of 500,000oz of gold, is ongoing. 
 
   -- Construction of the toll treatment plant to process ore from nearby 
      artisanal mining operations commenced during the quarter and was 
      commissioned during the current quarter. 
 
   Roy Pitchford, Chief Executive of Vast, commented: 
 
   "This has undoubtedly been a challenging quarter for the Company from an 
operational perspective.  In Romania, the months of January-March are 
generally considered to be the most difficult operationally with many 
mines opting to close their operations.  The fact that we managed to not 
only maintain production during this period but also achieved it during 
a year that experienced such extreme lows is a significant achievement. 
In Zimbabwe, we were presented with a different set of challenges due to 
the unusually high rainfall. 
 
   Whilst seasonal changes are to be expected these extreme weather 
occurrences are unusual and of course temporary.  Accordingly, we remain 
confident that the underlying quality and value prospects of our mines 
are excellent and expect production rates to increase going forward. 
 
   "The quantity and quality of the zinc concentrate production has already 
improved, with production during April consistently registering grades 
up to 45% at Manaila.  Furthermore, remedial actions taken in March and 
capital expenditure planned for the current quarter will facilitate a 
consistent 15,000 tonnes per month mill feed during the September 
quarter.   Positive progress has also been made to install the gold and 
silver recovery circuit and once operational, targeted for H2 2017, will 
contribute to Manaila's revenue.  Additionally, the experience gained 
during the period will be factored into future operational plans and the 
proposed new metallurgical complex to be sited at the Manaila open-pit 
mine. 
 
 
 
   "Production at Pickstone-Peerless is returning to normal levels and 
additional gold production is expected from the artisanal gold 
processing facility that has recently been commissioned.  Continued good 
progress on the sulphide processing facility promises further increased 
gold production at Pickstone-Peerless in Q3 2017, and longer-term, the 
development of the Giant Gold Mine provides the Company with the ability 
to be a growing gold producer.  We remain confident of the future 
opportunities ahead." 
 
   March 2017 Quarterly Production Summary 
 
 
 
 
Operational data: 
                                                        Mar'16 
Manaila              Units           Mar'17 Quarter     Quarter     Dec'16 Quarter 
Ore mined            Tonnes                     21,901   20,362                 25,269 
Waste mined          Cubic Metre                45,143  130,925                 38,538 
Stripping ratio      Times                         2.1      6.4                    1.5 
Ore milled           Tonnes                     20,291   22,510                 29,435 
Milled Grade - Cu    Percentage                  0.79%    0.96%                  0.91% 
Milled Grade - Zn    Percentage                  0.76%   0.94%*                  0.88% 
Concentrate 
 produced - Cu       Dry tonnes                    526      822                    889 
 Percentage                                      18.8%    17.2%                  19.5% 
Concentrate 
 produced - Zn       Dry tonnes                    132        0                    165 
 Percentage                                      26.3%       0%                  30.0% 
Concentrate sold - 
 Cu                  Dry tonnes                    321    1,010                    889 
Concentrate sold - 
 Zn                  Dry tonnes                      0        0                    200 
Concentrate in 
 stock at period 
 end Cu              Dry tonnes                    206       78                      0 
Concentrate in 
 stock at period 
 end Zn              Dry tonnes                    132        0                      0 
 
Operational data: 
                                                         Mar'16 
Pickstone-Peerless   Units              Mar'17 Quarter  Quarter         Dec'16 Quarter 
Ore mined            Tonnes                     51,660   63,825                 70,930 
Waste and low-grade 
 ore mined           Tonnes                    546,126  244,855                435,083 
Stripping ratio      Times                        10.6      3.8                    6.1 
Ore milled           Tonnes                     51,102   54,237                 61,356 

                     Grams per 
Milled Grade          Tonne                       2.06     1.71                   2.41 
Gold produced        Ounces                      2,974    2,808                  4,352 
Gold sold            Ounces                      2,873    2,475                  4,706 
Gold in stock at 
 period end          Ounces                        710      556                    609 
 
 
   *This was not a separate zinc concentrate and was a deleterious element 
within the copper concentrate, which accordingly incurred a penalty. 
The Company now has a separate zinc line that provides an additional 
revenue stream. 
 
   Quarterly Conference Call 
 
   Roy Pitchford, Chief Executive of Vast, will host a conference call for 
shareholders at 10.00 a.m. today. 
 
   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 7061153# when prompted to do so.  Please note 
that all lines will be muted except for 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 959 041 582 followed by the 
password, 'Vast': 
 
   https://sbmf.webex.com/sbmf/onstage/g.php?MTID=e62d8ea047bc3c39f5cbcd22c52d93335 
 
 
   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 [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. 
 
   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 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

April 24, 2017 03:00 ET (07:00 GMT)

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