Vast Resources plc Quarterly Production Summary & Operations Update

 
TIDMVAST 
 
 
   Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining 
 
   16 October 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 30 September 2017 ('Q3 2017'). 
 
   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 Polymetallic Mine in Romania ("Manaila") and the 
Pickstone-Peerless Gold Mine in Zimbabwe ("Pickstone-Peerless") 
outperform the previous quarter in terms of tonnes mined, tonnes milled, 
copper concentrate produced and gold produced. 
 
   Manaila Production Summary 
 
   (commissioned on 14 August 2015, Vast interest 100%.): 
 
   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 20 August 2015, Vast interest 25%): 
 
   Ore mined and milled at Pickstone-Peerless rose in the quarter to their 
highest levels since the June 2016 quarter.  Operations are being 
managed at maximum milling capacity ahead of commissioning of the new 
sulphide plant. 
 
 
   -- 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 Romania and Zimbabwe.  The purpose of these 
development initiatives is to increase and optimise production, lower 
operating costs and build a portfolio of long term sustainable mining 
operations. 
 
   Manaila Expansion & Regional Metallurgical Complex Romania 
 
 
   -- 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") Romania 
 
 
   -- 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 
 
   Pickstone-Peerless & Giant Gold Project Zimbabwe 
 
 
   -- 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 
 
   Roy Pitchford, Chief Executive of Vast, commented: 
 
   "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 
 
   September 2017 Quarterly Production Summary 
 
 
 
 
Operational data: 
                                   Sep'17     June'17     Mar'17      Dec'16 
Manaila              Units         Quarter    Quarter    Quarter     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      Times              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: 
                                     Sep'17    June'17      Mar'17      Dec'16 
Pickstone-Peerless   Units          Quarter    Quarter     Quarter     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      Times             14.5       15.1        10.6         6.1 
Ore milled           Tonnes          68,431     58,923      51,102      61,356 
                     Grams per 
Milled Grade          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     Ounces             782 
 period end                                        755         710         609 
 
 
   Notes: 
 
 
   1. 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 20,291 
 
   2. December 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 
 
   Roy Pitchford, Chief Executive of Vast, will host a conference call for 

shareholders at 11.00 a.m.  today, 16 October 2017. 
 
   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 8748114# 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 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 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

October 16, 2017 02:00 ET (06:00 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.