TIDMTSG
RNS Number : 0914W
Trans-Siberian Gold PLC
21 April 2021
21 April 2021
Trans-Siberian Gold plc
("TSG", the "Company" or the "Group")
Q1 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 31 March 2021 ("Q1" or the
"Period").
Q1 Highlights
-- Average gold grade up 26.8% YoY at 6.5 g/t (Q1 2020: 5.2 g/t)
-- Average realised gold price of $1,732/oz, up 8.4% YoY (Q1 2020: $1,599/oz)
-- Total revenues of $16.9 milion, up 80.8% YoY (Q1 2020: $9.3 million)
-- Total gold doré production of 9,371 oz, up 36.6% YoY (Q1 2020: 6,859 oz)
-- Gold recovery rate remained flat at 94.4% (Q1 2020: 94.5%)
-- 2 fatalities in Q1 as a result of the rockfall accident at Vein 25
-- Mining operations at Vein 25 resumed, all site repairs complete
Alexander Dorogov, Chief Executive Officer of TSG,
commented:
" I am pleased to present the production results for the first
quarter of 2021. Despite a very difficult start to the quarter, we
have yielded solid operational results for the period, reporting
total gold production of 9,371 oz, a 36% uplift on the prior year
period.
We continue to work closely with RTN implementing the
recommendations from their investigation and and to support the
families of those affected by the accident in January. We are
pleased to have resumed mining operations at Vein 25 at the start
of March.
During the quarter, we were pleased to present the Scoping Study
for the Rodnikova deposit and an updated mineral resource estimate
at the Asacha mine. "
Production Summary
Mining and production data for Q1 2021 at the Asacha Gold Mine
is shown in the following table:
Q1 2021
Metric Q1 Q1 Y-on-Y Q4 Q-on-Q
------------------
2021 2020 % Change 2020 % Change
------------------ --------- ------- ------- --------- ------- ---------
Mine development (m) 625 1,541 -59.5% 695 -10.1%
Ore extracted (tonnes) 37,172 34,009 9.3% 51,138 -27.3%
------------------ --------- ------- ------- --------- ------- ---------
Ore processed (tonnes) 44,597 44,221 0.9% 50,304 -11.3%
Grade, gold (g/t) 6.5 5.2 26.8% 10.3 -36.7%
Grade, silver (g/t) 26.8 19.2 39.4% 16.1 66.2%
Recovery, gold (%) 94.4 94.5 -0.1% 94.2 0.2%
Recovery, silver (%) 73.6 78.6 -6.4% 75.7 -2.8%
Gold in dore (oz) 9,371 6,859 36.6% 15,217 -38.4%
Silver in dore (oz) 29,515 21,691 36.1% 17,530 68.4%
------------------ --------- ------- ------- --------- ------- ---------
Gold refined (oz) 9,454 6,035 56.7% 15,559 -39.2%
Silver refined (oz) 27,017 22,205 21.7% 17,049 58.5%
------------------ --------- ------- ------- --------- ------- ---------
Gold sold (oz) 9,349 5,837 60.2% 15,620 -40.1%
Silver sold (oz) 27,081 0 17,499 54.8%
Gold price ($/oz) 1,732 1,599 8.4% 1,873 -7.5%
Silver price ($/oz) 25 0 25 -0.8%
Gold Revenue* ($,000) 16,196 9,333 73.5% 29,255 -44.6%
Silver Revenue* ($,000) 678 0 442 53.5%
Total Revenue* ($,000) 16,874 9,333 80.8% 29,697 -43.2%
------------------ --------- ------- ------- --------- ------- ---------
*Note: Unaudited figure
Totals may not add up due to rounding
Commentary
As previously announced, on 6 January 2021 the Company
regretfully reported an accident that took place due to a rock fall
at Asacha's Vein 25, tragically resulting in two fatalities. In
accordance with normal protocols in Russia, a Federal Technical
Inspection (RTN) investigation commission was established and
commenced following the incident.
The RTN investigation has concluded that a hidden geological
anomaly caused three fractures to form a wedge shape in the mine
roof. These fractures filled with weaker material which
deteriorated after contact with air and humidity as well as
blasting works, resulting in the rock fall. Mining at Vein 25 was
halted for 55 days. Substantial resources have been allocated to
enhance ground support at both Vein 25 and the Main Zone of the
Asacha Gold Mine.
During the period following the incident, the Main Zone at the
Asacha Gold Mine remained fully operational and provided sufficient
feed ore for the processing plant to run at full capacity. As
announced on 5 March, TSG was granted full permitting approvals to
resume mining operations at Vein 25.
During the Period, the Company announced the results of an
independent Scoping Study for its 100% owned Rodnikova Project in
Kamchatka. The Scoping Study has identified economically viable
development options which justifies the advancement of the Project.
The Company believes that the Project continues to have additional
upside potential which it will evaluate through additional
exploration and a Pre-Feasibility Study ("PFS"). The Mineral
Resource Estimate is expected to increase in size and confidence
through further exploration.
In March 2021, TSG published an updated Mineral Resource
Estimate for the Asacha Gold Mine, including a significant upgrade
to resources, with the Total Mineral Resource Estimate increasing
to 645,000 oz Au as at 31 December 2020.
Takeover Offer
On 18 March 2021, TSG and Horvik Limited ("Horvik") announced
that they had reached agreement on the terms of a recommended
pre-conditional mandatory cash offer ("2.7 Announcement") to be
made by Horvik for the TSG Shares not already held or agreed to be
acquired (the "Offer").
Horvik has acquired 21,437,000 TSG Shares, representing 24.7 per
cent. of the issued share capital of TSG (excluding any shares held
in treasury) pro rata from each of the Selling Shareholders. The
acquisition of the remaining 23,121,918 TSG Shares held by the
Selling Shareholders is conditional only upon Horvik receiving
clearance from the Russian Federal Antimonopoly Service
("FAS").
The making of the Offer by the publication of the Offer Document
will take place as soon as reasonably practicable and in any event
within 28 days (or such longer period as the Panel may agree)
following the satisfaction of the FAS Pre-Condition which relates
to the receipt of clearance from FAS.
Further updates will be made as appropriate.
Details of the Offer can be found in the 2.7 Announcement
published on the Company's website: www.trans-siberiangold.com.
Appendix IV of the announcement made on 18 March 2021 contains
definitions of terms used above in the paragraph entitled "Takeover
Offer".
S
Contacts:
TSG
Stewart Dickson +44 (0) 7799 694195
Canaccord Genuity Limited
(Nominated Adviser & Joint Corporate Broker)
Henry Fitzgerald-O'Connor / James Asensio +44 (0) 20 7523 8000
Panmure Gordon (UK) Limited
(Joint Corporate Broker)
John Prior / Hugh Rich / Ailsa MacMaster +44 (0) 20 7886 2500
Hudson Sandler
(Financial Public Relations)
Charlie Jack / Katerina Parker / Elfie
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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END
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