Trans-siberian Gold (LSE:TSG)
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RNS Number : 8503C

Trans-Siberian Gold PLC

22 October 2020

22 October 2020

Trans-Siberian Gold plc

("TSG", the "Company" or the "Group")

Q3 Production & Operations Update

Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold producer in Russia, announces its production update at the Asacha Gold Mine for the three months ended 30 September 2020 ("Q3" or the "Period") and for the first nine months ("9M") of 2020.

Q3 Highlights

   --      Total gold doré production of 11,570 oz. (Q2 2020: 11,419 oz.) 
   --      Average gold grade stable at 7.4 g/t (Q2 2020: 7.6 g/t) 
   --      September 2020 recorded an average gold grade of 8.9 g/t 
   --      Average realised gold price increased by 9.2% QoQ to $1,899/oz. (Q2 2020: $1,738/oz.) 
   --      Gold revenue increased by 6.5% QoQ to $21.0 million (Q2 2020: $19.7 million) 
   --      Limited impact of COVID-19 on operations; protective and sanitary measures remain in place 
   --      1 minor lost-time injury during the period 

9M Highlights

   --      Total gold doré production of 29,848 oz. (9M 2019: 34,509 oz.) 
   --      Average gold grades of 6.8 g/t (9M 2019: 8.5 g/t) 
   --      Gold revenue increased by 16.7% to $50.1 million (9M 2019: $42.9 million) 
   --      Gold recovery rate stable YoY at 94.2% (9M 2019: 95.3%) 
   --      On track to meet full year production guidance 

Eugene Antonov, Chief Operating Officer of TSG, commented:

"As we proceed with the transition to the East Zone of our flagship Asacha mine, we are pleased to report strong average grades of 7.4 g/t. Test mining at Vein 25 is continuing and contributing significantly to grade quality, as seen in the previous quarter. We have achieved record revenues for the first nine months of 2020 of $51.3 million, supported by the continued strong performance of the gold price.

In addition, we are progressing with a near-mine exploration programme to identify potential step-out targets at Asacha and have completed an aeromagnetic survey over the licence area. We expect to provide an update in due course.

With nearly 30,000 oz of gold produced in the first nine months of 2020, we are firmly on track to meet our guidance for the full year of 38,000-42,000 oz . "

Production Summary

Mining and production data for Q3 and 9M 2020 at the Asacha Gold Mine is shown in the following tables:

Q3 2020

 
      Metric                      Q3       Q2      Q-on-Q      Q3      Y-on-Y 
------------------ 
                                 2020     2020    % Change    2019    % Change 
------------------  ---------  -------  -------  ---------  -------  --------- 
 Mine development      (m)       801     1,510     -47.0%    1,903     -57.9% 
 Ore extracted       (tonnes)   41,274   43,497    -5.1%     34,245    20.5% 
------------------  ---------  -------  -------  ---------  -------  --------- 
 Ore processed       (tonnes)   51,385   50,316     2.1%     48,996     4.9% 
 Grade, gold          (g/t)      7.4      7.6      -1.8%      8.3      -10.5% 
 Grade, silver        (g/t)      10.2     19.8     -48.7%     18.4     -44.8% 
 Recovery, gold        (%)       94.2     94.0      0.1%      95.2     -1.1% 
 Recovery, silver      (%)       80.5     79.3      1.6%      80.7     -0.2% 
 Gold in dore          (oz)     11,570   11,419     1.3%     12,620    -8.3% 
 Silver in dore        (oz)     13,880   25,774    -46.1%    24,686    -43.8% 
------------------  ---------  -------  -------  ---------  -------  --------- 
 Gold refined          (oz)     11,130   11,114     0.1%     11,291    -1.4% 
 Silver refined        (oz)     15,357   26,062    -41.1%    21,866    -29.8% 
------------------  ---------  -------  -------  ---------  -------  --------- 
 Gold sold             (oz)     11,070   11,357    -2.5%     9,417     17.6% 
 Silver sold           (oz)     14,843   47,989    -69.1%    21,959    -32.4% 
 Gold price           ($/oz)    1,899    1,738      9.2%     1,485     27.9% 
 Silver price         ($/oz)     23.6     17.7     33.2%      17.0     38.3% 
 Gold Revenue*        ($,000)   21,021   19,740     6.5%     13,984    50.3% 
 Silver Revenue*      ($,000)    350      849      -58.8%     374      -6.5% 
 Total Revenue*       ($,000)   21,370   20,588     3.8%     14,359    48.8% 
------------------  ---------  -------  -------  ---------  -------  --------- 
 

9M 2020

 
      Metric                      9M        9M       Y-on-Y 
------------------ 
                                 2020      2019     % Change 
------------------  ---------  --------  --------  --------- 
 Mine development      (m)       3,852     5,787     -33.4% 
 Ore extracted       (tonnes)   118,779   108,101     9.9% 
------------------  ---------  --------  --------  --------- 
 Ore processed       (tonnes)   145,922   130,800    11.6% 
 Grade, gold          (g/t)       6.8       8.5      -20.1% 
 Grade, silver        (g/t)      16.2      23.8      -31.8% 
 Recovery, gold        (%)       94.2      95.3      -1.2% 
 Recovery, silver      (%)       79.5      81.7      -2.6% 
 Gold in dore          (oz)     29,848    34,509     -13.5% 
 Silver in dore        (oz)     61,345    84,473     -27.4% 
------------------  ---------  --------  --------  --------- 
 Gold refined          (oz)     28,279    34,446     -17.9% 
 Silver refined        (oz)     63,625    85,422     -25.5% 
------------------  ---------  --------  --------  --------- 
 Gold sold             (oz)     28,264    31,479     -10.2% 
 Silver sold           (oz)     62,831    91,224     -31.1% 
 Gold price           ($/oz)     1,772     1,364     29.9% 
 Silver price         ($/oz)     19.1      15.6      22.4% 
 Gold Revenue*        ($,000)   50,093    42,935     16.7% 
 Silver Revenue*      ($,000)    1,199     1,422     -15.7% 
 Total Revenue*       ($,000)   51,291    44,357     15.6% 
------------------  ---------  --------  --------  --------- 
 

*Note: Unaudited figure

Totals may not add up due to rounding

Commentary

It has been another successful quarter for the Group, which has recorded stable gold production and continued to progress with its near-mine exploration programme.

During Q3, gold prices have remained very favourable with an all-time record spot price recorded on 6 August 2020 . The average realised gold price increased by 9.2% to $1,899/oz. which in turn supported a 6.5% rise in revenue generated from gold sales to approximately $21.0 million for Q3. Total revenue for the first 9 months of the financial year is approximately $51.3 million.

The Group's operational performance in Q3 was broadly in-line with the previous quarter. Average mill feed gold grade was 7.4 g/t, which was in part supported by test ore extracted from Vein 25. The quality and consistency of Vein 25 is significantly compensating for the lower and variable gold grades from the Main Zone. Gold doré production was 11,570 oz. for the Period.

The Group has continued with exploration drilling near-mine and proximal step-out targets in the vicinity of the Asacha Gold Mine. Additionally, an aeromagnetic survey was completed over the Asacha licence area with the objective of identifying new exploration targets. The Company expects to report the outcomes of these exploration activities shortly.

The Group continues to progress with a scoping study on the Rodnikova deposit, and expects to finalise this in 2020.

As previously announced, the ongoing COVID-19 pandemic continues to have a modest impact on the Group's operations. The Group remains vigilant to the risks that the pandemic poses and continues to implement strict measures to ensure the safety of our employees and contractors, to maintain strong preparedness amid a second wave of the virus.

Existing guidance for 2020 production estimates remains unchanged.

TSG intends to provide a production update for Q4 2020 in January 2021.

 
 Contacts: 
 TSG 
  Stewart Dickson                                  +44 (0) 7799 694195 
 Arden Partners plc 
  Paul Shackleton (Corporate Finance) 
  Tim Dainton / Fraser Marshall (Equity Sales)    +44 (0) 207 614 5900 
 Hudson Sandler (Financial PR) 
  Charlie Jack / Katerina Parker / Elfreda 
  Kent                                            +44 (0) 207 796 4133 
 

About TSG

TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia. The Company also holds the licence for the development and exploration of the Rodnikova deposit, one of the largest gold fields in South Kamchatka.

Additional information is available from the Company's website: www.trans-siberiangold.com

Market Abuse Regulations

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'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

Abbreviations

   g/t        grammes per tonne 
   oz        ounce 
   m         metre 

Disclaimer

This announcement contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets, fluctuations in interest and/or exchange rates and metal prices; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements.

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October 22, 2020 02:00 ET (06:00 GMT)