Trans-Siberian Gold PLC Q1 2019 Production Update (3233X)

TIDMTSG

RNS Number : 3233X

Trans-Siberian Gold PLC

29 April 2019

29 April 2019

Trans-Siberian Gold plc

("TSG" or the "Company")

Q1 Production Update

Trans-Siberian Gold plc (TSG.LN) announces its production update at the Asacha Gold Mine for the three months ended 31 March 2019 ("Q1" or the "Period").

Q1 Highlights

-- 52% increase YoY in gold production to 12,345 oz (Q1 2018: 8,100oz), driven by higher grades and better recoveries

   --     On track to meet full year production guidance 
   --     105% increase YoY in total silver production to 32,748 oz (Q1 2018: 15,662oz) 
   --     45% increase YoY in average quarterly gold grade of 8.8 g/t (Q1 2018: 6.1g/t) 
   --     31% increase YoY in silver revenue to $563,000 (Q1 2018: $431,000) 

-- 7% increase QoQ in gold and silver realised prices at $1,312/oz and $15.5/oz respectively (Q4 2018: $1,228 and $14.5)

   --     Two lost-time injuries during the quarter 

Alexander Dorogov, Chief Executive Officer of TSG, commented:

"Following record-breaking production in Q4 2018, I am pleased to report that TSG has enjoyed a solid start to 2019. We continue to focus on optimising our processing efficiency, and reaffirm our 2019 production target of 40,000 - 44,000oz of gold."

Production Summary

Mining and production data for Q1 2019 at the Asacha Gold Mine is shown in the following table:

 
          Metric               Q1       Q4      Q-on-Q      Q1      Y-on-Y 
------------------------- 
                              2019     2018    % Change    2018    % Change 
-------------------------   -------  -------  ---------  -------  --------- 
 Mine development            2,020    1,769     14.2%     1,549     30.4% 
 (m) 
 Ore extracted               34,839   41,006    -15.0%    47,081    -26.0% 
 (tonnes) 
 Ore processed               44,746   47,530    -5.9%     44,395     0.8% 
 (tonnes) 
 Grade, gold                  8.8      9.1      -3.7%      6.1      44.6% 
 (g/t) 
 Grade, silver                27.7     28.6     -3.3%      15.4     80.0% 
 (g/t) 
 Recovery, gold               95.4     95.2      0.2%      94.4      1.0% 
 (%) 
 Recovery, silver             81.0     76.1      6.5%      75.9      6.7% 
 (%) 
 Gold in dore                12,345   13,069    -5.5%     8,100     52.4% 
 (oz) 
 Silver in dore              32,158   32,748    -1.8%     15,662    105.3% 
 (oz) 
 Gold refined                11,857   14,541    -18.5%    11,343     4.5% 
 (oz) 
 Silver refined              30,874   35,186    -12.3%    21,127    46.1% 
 (oz) 
 Gold sold                   11,949   16,399    -27.1%    11,311     5.6% 
 (oz) 
 Silver sold                 36,329   29,333    23.9%     25,345    43.3% 
 (oz) 
 Gold price                  1,312    1,228      6.8%     1,343     -2.3% 
 ($/oz) 
 Silver price                 15.5     14.5      6.9%      17.0     -8.9% 
 ($/oz) 
 Gold Revenue ($,000)*       15,674   20,135    -22.2%    15,191     3.2% 
 Silver Revenue ($,000)*      563      426      32.3%      431      30.6% 
 Total Revenue ($,000)*      16,238   20,560    -21.0%    15,622     3.9% 
--------------------------  -------  -------  ---------  -------  --------- 
 

*Note: Unaudited figure

Totals may not add up due to rounding

Commentary

During Q1, a total of 11,949 oz of gold was sold at an average price of $1,312/oz. Gold recoveries during the quarter remained stable at 95.4%. Silver recoveries increased by 6.5% to 81%.

In line with our previous guidance, the construction of the underground de-watering pumping facilities is on track for completion for May 2019.

TSG has commenced underground exploration drilling works, and additional rig and surface exploration drilling is due to start in June 2019.

In February 2019 the Company changed refineries and now refines its dore at the Novosibirsk refinery (instead of the Krasnoyarsk refinery). This change has resulted in a substantial decrease in lab variances as compared to under the previous refining contract.

TSG expects to provide a production update for Q2 2019 in July 2019.

ENDS

 
 Contacts: 
 TSG 
  Stewart Dickson                                   [phone] 
 Arden Partners plc 
  Paul Shackleton / Alex Penney (Corporate 
  Finance) 
  Tim Dainton / Fraser Marshall (Equity Sales)    [phone] 
 Hudson Sandler (Financial PR) 
  Charlie Jack / Katerina Parker                  [phone] 
 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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April 29, 2019 02:01 ET (06:01 GMT)