Vast Resources plc Quarterly Production Summary & Operations Update

 
TIDMVAST 
 
 
   Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining 
 
   28 July 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 June 2017 ('Q2 2017'). 
 
   To view a presentation, which presents the Q2 2017 results together with 
the previous four quarters, please visit the Company's website: 
www.vastresourcesplc.com. 
 
   Production Overview: 
 
   Q2 2017 was a solid quarter for Vast, which saw operations at the 
Manaila Polymetallic Mine ("Manaila") in Romania and the 
Pickstone-Peerless Gold Mine ("Pickstone-Pickstone") in Zimbabwe improve 
significantly over the previous quarter in terms of tonnes mined, tonnes 
milled and overall production profile.  Importantly, performance post 
period end has also been encouraging at both mines, confirming an 
improved trend compared to previous quarters. 
 
   Manaila Production Summary 
 
   (commissioned on 14 August 2015, Vast Ownership 100%.): 
 
   Results for the quarter demonstrate a considerable improvement over Q1 
2017.  An acceleration of this improving trend was evidenced in a marked 
upturn in performance in the last two weeks of June, continuing Q3 2017. 
 
   Summary of Q2 2017 Production: 
 
 
   -- 41% increase in tonnes of ore mined from Q1 2017 to 27,707 dry tonnes (Q1 
      2017: 19,711 dry tonnes*) 
 
   -- 54% increase in tonnes of ore milled from Q1 2017 to 28,082 dry tonnes 
      (Q1 2017: 18,262 dry tonnes*) 
 
   -- 57% increase in copper concentrate produced from Q1 2017 to 828 dry 
      tonnes (Q1 2017: 526 dry tonnes) 
 
   -- Copper concentrate grade maintained above 18% threshold at 18.2% (Q1 
      2017: 18.8%) 
 
   -- 19% increase in zinc concentrate produced from Q1 2017 to 157 dry tonnes 
      (Q1 2017: 132 dry tonnes) 
 
   -- 51% increase in zinc concentrate grade from Q1 2017 to 39.8% (Q1 2017: 
      26.3%) 
 
   -- Inaugural concentrate production from test phase of the Knelson 
      Concentrator extracting a pyrite concentrate containing gold credits - 5 
      dry tonnes at a grade of 45g/t produced since commissioning on 25 April 
      2017 
 
   Pickstone-Peerless Production Summary 
 
   (commissioned on 20 August 2015, Vast ownership 25%): 
 
   Production at Pickstone-Peerless has recovered from the slowdown in 
open-pit mining operations occasioned by the high rainfall experienced 
during Q1 2017.  A return to mining higher grade areas in the open-pit 
has also facilitated an increase in production over the prior quarter. 
 
 
   -- 33% increase in tonnes of ore mined from Q1 2017 to 68,659 tonnes (Q1 
      2017: 51,660 tonnes) 
 
   -- 15% increase in tonnes of ore milled from Q1 2017 to 58,923 tonnes (Q1 
      2017: 51,102 tonnes) 
 
 
   -- 36% increase in gold production from Q1 2017 to 4,037 ounces (Q1 2017: 
      2,974 ounces) 
 
 
   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 
 
 
   -- 10-hole drill programme for 1,000 metres nearing completion at the 
      Carlibaba prospect located adjacent to the current Manaila open pit 
 
   -- Objective to prove up potential to support a second open pit mining 
      operation at Manaila and establish an enlarged mining complex that will 
      utilise a centralised metallurgical processing facility 
 
   -- Full results from Carlibaba drill programme anticipated for release in H2 
      2017 together with an outline of Carlibaba's development path 
 
   -- Planning of prospecting 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 
 
 
   -- Prospecting licence granted in May 2016 over the Faneata tailings dam 
      located 7km from the Baita Plai Polymetallic Mine - intention to use 
      Baita Plai processing facility 6.5km away 
 
   -- An internally generated Maiden JORC Compliant Resource Estimate in March 
      2017 defined a total Mineral Resource of 3.0Mt (Gross, 2.4Mt being net to 
      Vast) 
 
 
   -- Metallurgical test work has commenced to determine optimal processing 
      method 
 
   -- A feasibility study to recover the contained metals is underway 
 
   -- Application has been made for an exploitation right over the tailings dam 
      in anticipation of positive feasibility results 
 
   -- Preliminary economic assessment indicates a break even total processing 
      recovery of 25% 
 
 
   Pickstone-Peerless & Giant Gold Project Zimbabwe 
 
 
   -- Construction of sulphide plant progressing on time and on budget ahead of 
      commissioning during the coming quarter 
 
 
   -- 75% increase in installed primary milling capacity anticipated once 
      sulphide plant is commissioned to 35,000 tonnes per month from the 
      current 20,000 tonnes per month 
 
   -- Mill grade expected to increase from 2.35g/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 
 
   Roy Pitchford, Chief Executive of Vast, commented: 
 
   "Manaila has delivered a significant improvement in performance compared 
to the previous quarter, and this upturn in operations is anticipated to 
continue throughout Q3 2017 demonstrating a clear upward trajectory in 
our production profile.  This improvement has been delivered through our 
Romanian operational team's efficient and effective attention to 
remedial actions undertaken during Q1 and Q2 2017 to resolve persistent 
open-pit and production issues, and will support the delivery of a 
consistent 15,000 tonnes per month mill feed from September. 
 
   "The quantity and quality of the zinc concentrate production at Manaila 
has improved dramatically, with production during calendar consistently 
registering grades over on average 40% at Manaila.  Positive progress 
has also been made with concentrate production from test phase of the 
Knelson Concentrator, which extracts a pyrite concentrate containing 
gold credits.  Work is on-going to optimise production from the Knelson 
Concentrator with the objective of this contributing to Manaila's 
revenue and enhancing our overall production profile.  The important 
lessons learnt from turning around the performance at Manaila will be 
factored into future operational plans and the proposed new 
metallurgical complex to be sited at our Carlibaba prospect, located 
near to our Manaila open pit. 
 
   "Looking now to Zimbabwe, mining, processing and production levels at 
Pickstone-Peerless have recovered from the previous quarter, and 
importantly, progress in the construction of the sulphide processing 
facility is progressing on schedule ahead of commissioning in Q3 2017. 
The sulphide plant is a critical development for Pickstone-Peerless and 
should increase production capacity by approximately 75%, promising a 
significant increase in ounces produced. 
 
   "We remain confident that the underlying quality and value prospects of 
our mines in both Zimbabwe and Romania are excellent and expect 
production rates to be further enhanced going forward." 
 
   Further Information 
 
   Romanian Interests 
 
   Manaila Mine 
 
   The operational focus during the period has been on deploying remedial 
capital expenditure to resolve persistent mining and production issues 
experienced at Manaila to increase the flows and measurement of ore fed 
into the mill.  This work has delivered a significant improvement in 
Manaila's production profile in Q2 2017 and improvements in this regard 
are expected to continue to be realised in Q3 2017. 
 
   The refurbishment of the Manaila milling and flotation circuits has been 
largely completed to allow for 15,000tpm to be processed and a tertiary 
crusher has been ordered and pending delivery will allow for the 
crushing circuit to comfortably provide sufficient mill feed tonnage at 
the correct particle size.  The Company's objective is to achieve a 
consistent run rate of 15,000tpm by September 2017. 
 
   Planned maintenance work, including the relining of the primary mill, is 
being undertaken at the mine currently.  This will result in reduced 
operations for a brief period whilst the necessary work is completed. 
Nonetheless, thanks to a strong start to July, with an average milled 
rate of 464 tonnes per day, production is expected to resume and 
continue at the improved levels achieved over recent weeks. 
 
   The gravity line was commissioned during the quarter to recover a pyrite 
concentrate which has gold and silver associated with it.  The gravity 
line is producing the expected concentrate grade but has yet been unable 
to deliver the expected mass on a consistent basis.  Work is ongoing at 
the open pit and the plant to understand the effects of the various ore 
types on the gravity line recovery. 
 
   Zinc is being produced at grades which are attracting increased unit 
sales prices and the quantities produced are steadily increasing. 
 
   Restricted capacity for the transportation of ore to the Iacobeni 
Metallurgical Complex was also addressed in Q2 2017 by increasing the 
number of ore transport vehicles. Further capacity will be arranged in 
Q3 2017 to improve deliveries from the open-pit. 
 
   Manaila Expansion & Regional Metallurgical Complex 
 

   Further to the announcement on 8 June 2017, the 10-hole drill programme 
for 1,000 metres at the Carlibaba prospect is now well advanced with six 
out of the eight drill holes currently completed.  All samples will be 
despatched to ALS analytical laboratories in Rosia Montana once drilling 
is complete. 
 
   To date, the drilling has intersected sulphide mineralisation close to 
the planned depths and has returned better than expected widths, further 
confirming the geological interpretation.  Full results and analysis is 
expected for publication in September 2017. 
 
   Once drilling at Carlibaba has been completed and the proposed 
investment outlined below has been finalised, the Company will begin to 
actively evaluate appraisal activities at Piciorul Zimbrului and Magura 
Neagra.  Further updates will be made available as appropriate. 
 
   Baita Plai Manaila Mine & Faneata Tailings Dam 
 
   The Board and management are aware of shareholders' frustrations 
regarding the timescales for the grant of the Baita Plai mining 
sub-licence. However, as reported previously, it would be imprudent for 
the Company to comment on the specifics of the process as there is 
currently no direct precedent for this situation. 
 
   However, the entire team at Vast would like to take this opportunity to 
reiterate the spirit of cooperation we have experienced with the 
Romanian authorities since Vast became active in the country.  Since 
2014, Vast, through its subsidiary companies, has been granted five 
licences - all promptly and without issue - highlighting that Baita Plai 
is certainly the exception to the rule. 
 
   The Board and management, together with the Romanian authorities, remain 
focussed on resolving the outstanding issues to deliver the mining 
sub-licence in as short a timeframe as practicable.  The Company will 
update shareholders of any developments as soon as we are able to do so. 
 
 
   Once granted, the Company anticipates that production could begin within 
six months and have forecast a capex budget of $1.2 million.  It is 
intended that this capex would be funded from the proposed investment of 
$10 million detailed below. 
 
   The licence at Baita Plai constitutes a separate right from the 
prospective licence over Faneata, which is located 7km from Baita Plai. 
Faneata has the potential to be a stand-alone mining operation and a 
Feasibility Study is currently being undertaken at the tailings dam to 
define the parameters for development.   The results of this study were 
anticipated towards the end of Q2 2017, however due to unforeseen delays 
with transport and custom clearance, the results are now anticipated 
during Q3 2017  In anticipation of positive results, application has 
been made for an exploitation right over the tailings dam. 
 
   Zimbabwean Operations 
 
   Pickstone-Peerless Gold Mine 
 
   The primary focus during the period has been on the advancement of the 
sulphide processing facility, which is due for commissioning during Q3 
2017, and is expected to double production capacity at 
Pickstone-Peerless.  During Q2 2017, the third mill was placed on its 
foundation plinths and the sulphide flotation units were delivered to 
the mine site and are in the process of being installed. The additional 
CIL tanks were approximately 50% complete at the end of the period.  The 
upgraded crushers are on site and being installed and post quarter end 
the upgraded crushing circuit has been commissioned. 
 
   We have been informed that production at the toll treatment plant, which 
was commissioned during Q1 2017, is progressing well.  Whilst we await 
formal confirmation of current production rates, artisanal recovery is 
expected to be 50% with the remaining 50% to be shared between Vast and 
the artisanal plant operator.  Accordingly, the plant is expected to 
generate a modest amount of gold for Pickstone-Peerless.  Nonetheless, 
the construction of the plant has significantly strengthened the 
Company's relationship with the local artisanal miners, the community 
and government. 
 
   Evaluation of the gold resource potential at Giant Gold Mine has 
commenced.  The objective is to define a larger gold resource to support 
an initial scoping study, which, if positive, would be followed with 
pre-feasibility/feasibility studies. A similar artisanal gold milling 
facility as installed at Pickstone-Peerless Gold Mine is anticipated to 
be installed at Giant. 
 
   The success of the Pickstone-Peerless Gold Mine has resulted in further 
gold mining opportunities being presented in Zimbabwe.  In conjunction 
with Vast's co-investors in Zimbabwe, these opportunities are being 
jointly evaluated with a view to significantly increasing gold 
production. 
 
   Corporate Update 
 
   As announced on 24 July, Vast has entered into a conditional head of 
terms relating to a proposed investment of up to US$10 million by a 
corporate finance and investment firm with significant experience in and 
investment in Romania. 
 
   If the proposed investment proceeds, following the satisfaction of the 
various criteria set out in the heads of terms announcement, the funds 
would be used for the Company's capital expenditure and working capital 
requirements, mostly for the expansion of the Romanian operations. 
 
   The Board sees this proposed investment as a highly encouraging and 
positive development, which would enable Vast to execute its strategic 
objectives in Romania.  The Board will provide further information on 
this proposed investment in the coming weeks. 
 
   Production Statistics 
 
   June 2017 Quarterly Production Summary 
 
 
 
 
Operational data: 
                                   June'17    Mar'17      Dec'16      Sep'16 
Manaila              Units         Quarter    Quarter    Quarter     Quarter 
Ore mined            Tonnes          27,707  19,711(1)   23,905(2)   25,620(3) 
Waste mined          Cubic Metre     53,267     45,143      38,538     117,558 
Stripping ratio      Times              1.9        2.3         1.6         4.6 
Ore milled           Tonnes          28,082  18,262(1)   26,786(2)   25,092(3) 
Milled Grade - Cu    Percentage       0.73%      0.79%       0.91%       0.71% 
Milled Grade - Zn    Percentage       0.74%      0.76%       0.88%       0.74% 
Concentrate 
 produced - Cu       Dry tonnes         828        526         889         616 
 Percentage                           18.2%      18.8%       19.5%       20.4% 
Concentrate 
 produced - Zn       Dry tonnes         157        132         165          35 
 Percentage                           39.8%      26.3%       30.0%       29.6% 
Concentrate sold - 
 Cu                  Dry tonnes         995        321         889         960 
Concentrate sold - 
 Zn                  Dry tonnes         252          0         200           0 
Concentrate in 
 stock at period 
 end Cu              Dry tonnes          38        206           0           0 
Concentrate in 
 stock at period 
 end Zn              Dry tonnes          37        132           0          35 
 
 
Operational data: 
                                    June'17     Mar'17      Dec'16      Sep'16 
Pickstone-Peerless   Units          Quarter    Quarter     Quarter     Quarter 
Ore mined            Tonnes          68,659     51,660      70,930      69,500 
Waste and low-grade 
 ore mined           Tonnes       1,035,785    546,126     435,083     497,840 
Stripping ratio      Times             15.1       10.6         6.1         7.2 
Ore milled           Tonnes          58,923     51,102      61,356      65,573 
                     Grams per 
Milled Grade          Tonne            2.35       2.06        2.41        2.57 
Gold produced        Ounces           4,037      2,974       4,352       4,910 
Gold sold            Ounces           3,992      2,873       4,706       5,025 
Gold in stock at 
 period end          Ounces             755        710         609         962 
 
   (1)           Converted to dry tonnes. Previously wet tonnes mined of 
21,901and wet tonnes milled of 20,291 
 
   (2)           Converted to dry tonnes. Previously wet tonnes mined of 
25,245 and wet tonnes milled of 29,776 
 
   (3)           Converted to dry tonnes. Previously wet tonnes mined of 
27,848 and wet tonnes milled of 27,724 
 
   Quarterly Conference Call 
 
   Roy Pitchford, Chief Executive of Vast, will host a conference call for 
shareholders at 11.00 a.m. today. 
 
   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 1109957# 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 957 679 072 followed by the 
password, 'Vast': 
 
   https://sbmf.webex.com/sbmf/onstage/g.php?MTID=e37f78826fd1b0f7ba83bfa32ffbbf087 
 
 
   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. 
 
   * In the previous Quarterly Production Summary, this figure was reported 
as wet tonnes however from April 2017 all tonnage measurement are 
reported as dry tonnes 
 
   ** Calculated as an average grade over the previous four quarters 
 
   -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

July 28, 2017 03:00 ET (07:00 GMT)

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