Trans-Siberian Gold PLC Q3 2018 Production Update (5846F)

TIDMTSG

RNS Number : 5846F

Trans-Siberian Gold PLC

30 October 2018

Trans-Siberian Gold plc

("TSG" or the "Company")

Q3 Production Update

Trans-Siberian Gold plc (TSG.LN) announces its production update at the Asacha Gold Mine for the three months to 30 September 2018 ("Q3" or the "Period").

Q3 Highlights

   --      26% increase in quarterly gold dore production of 11,698 oz (Q2 2018: 9,260 oz) 
   --      24% increase in average quarterly gold grade of 7.8 g/t (Q2 2018: 6.3g/t) 
   --      September recorded highest monthly average gold grade YTD: 9.0 g/t 

-- 48,626 oz of silver sold during the Period (Q2 2018: 5,444 oz) arising from a significant increase in production and partial carry over of sales from Q2 2018

-- YTD 2018 total gold production of 29,059 oz in line with full year total gold production guidance of 36,000 - 40,000 oz for 2018.

Alexander Dorogov, Chief Executive Officer of TSG, commented:

"It is pleasing to report our third quarter results which illustrate some significant operational improvements. The gold grade is steadily increasing which in turn is reflected in the increased production for the Period. It was a pity that this coincided with a weaker gold price. However, we believe the outlook is promising and we are well positioned to continue to produce high-grade gold competitively".

Production Summary

Mining and production data for Q3 2018 at the Asacha Gold Mine is shown in the following table:

 
       Metric         3Q'18    2Q'18     Q-on-Q     3Q'17     Y-on-Y 
                                         % change             % change 
-------------------  -------  -------  ----------  -------  ---------- 
 Mine development, 
  m                   1,844    1,253       47%      1,499       23% 
 Ore extracted, 
  tonnes              37,073   48,437     -23%      48,663     -24% 
 Ore processed, 
  tonnes              49,948   47,822      4%       47,504      5% 
 Grade, gold, 
  g/t                  7.81     6.31       24%       7.40       6% 
 Grade, silver, 
  g/t                 24.25    22.42       8%       13.30       82% 
 Recovery, gold, 
  %                   95.06    94.47       1%       94.53       1% 
 Recovery, silver, 
  %                   78.06    76.64       2%       78.62       -1% 
 Gold in dore 
  (oz)                11,698   9,260       26%      10,573      11% 
 Silver in dore 
  (oz)                30,203   26,456      14%      15,703      92% 
 Gold refined 
  (oz)                10,814   9,355       16%      9,006       20% 
 Silver refined 
  (oz)                26,853   25,025      7%       14,219      89% 
 Gold sold (oz)       9,085    9,161       -1%      8,987       1% 
 Silver sold (oz)     48,626   5,444      793%      14,097     245% 
 Gold price, $/oz     1,201    1,300       -8%      1,287       -7% 
 Silver price, 
  $/oz                 14.5     16.4      -12%       16.4      -12% 
 Gold revenue, 
  $000*               10,911   11,906      -8%      11,566      -6% 
 Silver revenue, 
  $000*                703       89       688%       231       204% 
 Total revenue, 
  $000*               11,614   11,995      -3%      11,797      -2% 
 

* Note: Unaudited figure

Commentary

Underground work in Q3 was focused on mine development at Level 100 and the advanced stages of construction of the main pumping station at Level 150. Both are important to support sustainable production in the future. Mine development increased 47% compared to Q2 2018. Ore extracted reduced by 23% compared to Q2 2018 and was compensated by supplementing with ore from stockpiles.

The plant feed grade has improved 24% to 7.8 g/t compared to 6.3 g/t in Q2. The plant demonstrated an excellent processing monthly rate of 16,650 tonnes and exceeded 17,000 tonnes in September. The Company remains on track to achieve its 2018 production plan.

TSG intends to provide a production update for Q4 2018 in January 2019.

 
  Contacts TSG 
 Stewart Dickson             [phone] 
 
                                 [phone] 
 Cantor Fitzgerald Europe                   7000 
 David Porter 
 

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.

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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October 30, 2018 03:00 ET (07:00 GMT)