Tectonic Gold Plc Initiation of Mining at Diamond JV

 
TIDMTTAU 
 
13 March 2019 
 
                               TECTONIC GOLD PLC 
 
                      ("Tectonic Gold" or the "Company") 
 
                      INITIATION OF MINING AT DIAMOND JV 
 
Tectonic Gold plc (TDIM: TTAU), the Intrusive Related Gold ("IRGS") exploration 
pioneer, is pleased to announce the successful initiation of mining under the 
joint venture agreement with VAST Mineral Sands Pty Ltd ("VAST"). The JV with 
VAST was announced on 18 February 2019 and is for a 50% economic interest in a 
diamond mining concession. Tectonic Gold plans to utilise revenues from this 
project to fund core gold exploration activities. 
 
Highlights: 
 
  * Initial mining fleet delivered 4 March 2019 
 
  * Start-up and working capital fully funded by Tectonic Gold 
 
  * VAST has been allocated a pre-stripped mining area suitable for immediate 
    production 
 
  * 88% locally hired ground team (expected to increase to over 90% at next 
    stage) 
 
  * Equipment training completed 
 
  * Vacuum mining rig and support fleet operational 
 
  * Negotiations already underway on financing of expansion fleet 
 
VAST took possession of a vacuum mining unit and support fleet on 4 March 2019 
and, following four days of standard maintenance, testing and safety checks, 
staff induction and equipment specific training, began initial mining 
operations on Friday, 8 March 2019. The first phase of deployment is vacuum 
mining and sweeping a pre-stripped and mine ready area. The Directors expect 
this to take the JV into immediate profitability after an eight to ten week 
production / sales cycle. Tectonic Gold has fully pre-funded all lease, staff 
and consumables costs for the first three months. 
 
Expanded operations are planned to increase production by a further 900+ carats 
per month with the deployment of earth moving, mining, screening and transport 
equipment to open a second mining area. 
 
Tectonic Gold expects to fully fund all gold exploration activities from 
completion of the second stage. 
 
The final stage of development for the JV will be opening an additional mining 
area and installing an independent processing plant alongside the mine to 
reduce concentrate trucking costs and increase efficiencies. 
 
Creating local employment is a key objective for VAST and Tectonic Gold and it 
is expected that the current 88% local staff weighting will increase to over 
90% at the next stage as the team is enlarged. 
 
As announced, Tectonic Gold has begun to explore with its financial adviser, 
VSA Capital, the possibility of a listing on the Main Market of the London 
Stock Exchange ("LSE") via a Standard Listing and plans are at an early stage 
of being formulated.  Further details will be provided in due course. 
 
About Tectonic Gold: 
 
Tectonic Gold is a specialist gold exploration company, focused on the 
identification and delineation of large-scale, multimillion-ounce Intrusion 
Related Gold System ("IRGS") assets. Tectonic Gold holds a number of gold 
discoveries in the New England Orogen in Eastern Australia, a prolific gold 
region that is home to Australia's two largest gold production companies, 
Newcrest Mining and Evolution Mining. 
 
A successful diamond drilling campaign in 2018 on the Company's flagship 
"Specimen Hill" project has confirmed a large diatreme IRGS system similar to 
regional multi-million ounce deposits such as Kidston and Mt Rawdon. Tectonic 
Gold intends to apply the cash flows from the diamond mining operations to 
further drilling at Specimen Hill under an existing drill for equity deal with 
Titeline Drilling. 7,500m of diamond drilling remains available on a 50% cash 
payment basis under this agreement. 
 
Funds will also be allocated to progressing the Company's Mt Cassidy prospect 
during the 2019 calendar year. 
 
Mr. Brett Boynton, Managing Director - Tectonic Gold Plc 
 
We are pleased to move into an operational mining status with our partners at 
VAST. This has been a quick run from due diligence late in 2018 to deal 
completion and initiation of operations and we hope to keep up this great 
momentum. 
 
Over the weeks and months ahead we will be expanding production in a staged 
approach with a view to fully internally funding all of our core gold 
exploration programs. As soon as we have this milestone in sight, we will push 
ahead with plans to move our listing to the main board of the London Stock 
Exchange as we have keen interest from offshore investors who want to see us on 
a major international exchange, 
 
Qualified Person: 
 
Mr Jonathan Robbeson - BSc (Hons1), MEconGeol, MMinEng, (CP Geo) is a full-time 
employee of Signature Gold Limited and is a registered Chartered Professional 
(Geology) with the Australian Institute of Mining and Metallurgy (AusIMM - 
304542). Mr Robbeson has sufficient experience that is relevant to the style of 
mineralisation and type of deposit under consideration and the activity being 
undertaken to qualify as a Competent Person as defined in the Note for Mining 
Oil & Gas Companies, June 2009, of the London Stock Exchange and the 2012 
Edition of the 'Australian Code for Reporting of Exploration Results, Mineral 
Resources and Ore Reserves' (JORC Code). Mr Robbeson consents to the inclusion 
in the release of the matters based on his information in the form and context 
in which it appears. 
 
The Directors of the Company accept responsibility for the contents of this 
announcement. 
 
For further information, please contact: 
 
Tectonic Gold plc                                             [phone] 
Brett Boynton 
Sam Quinn 
www.tectonicgold.com 
@tectonic_gold 
 
NEX Exchange Corporate Adviser and 
Broker                                                       [phone] 
Peterhouse Capital Limited 
Mark Anwyl 
 
Financial Adviser and Broker 
VSA Capital Limited                                          [phone] 
Andrew Raca - Corporate Finance 
Andrew Monk - Corporate Broking 
 
 
                                     Ends 
 
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. Upon the publication of this announcement via a Regulatory 
Information Service, this inside information is now considered to be in the 
public domain. 
 
 
 
END 
 

(END) Dow Jones Newswires

March 13, 2019 03:45 ET (07:45 GMT)