Q2 2024 Production update and Operational updates
Vast Resources plc / Ticker: VAST / Index: AIM /
Sector: Mining
21 October 2024
Vast Resources plc
(‘Vast’ or the ‘Company’)
Q2 2024 Production update and Operational
updates
Vast Resources plc, the AIM-listed mining
company, is pleased to announce the Q2 2024 production report for
its Baita Plai Polymetallic Mine (‘Baita Plai’) in Romania, provide
an operational update following the reorganisation at the mine, and
provide an update on the Concentrate sale (as it has been
previously referred to). The Company is also pleased to
provide an update on production improvements at the Aprelevka mine
and the status of product deliveries at the Takob project in
Tajikistan.
Baita Plai Mine Operations
The Q2 period, as indicated in a previous
announcement, registered lower production both due to the factors
that led up to the reorganisation announced on 10 June 2024 and due
to the delay in financing which constrained production. The
reorganisation plan has targeted lower levels of production in the
short-term, the immediate reduction of the workforce, and
management’s focus on achieving positive operational cashflow as
soon as is possible.
The significantly reduced labour force and
reduced operational costs through improved working practices have
already been achieved; the workforce now numbers 162, down from
326, and further optimisation initiatives are being implemented,
including focussing on high grade areas to conserve the Company’s
cash resources, improve project outcomes, and provide a stable
platform for phased growth.
Management has calculated that the steps that
have been made possible as a result of the reorganisation process
have reduced the operating break-even production levels from around
275 dmt to 130dmt of Cu concentrate per month, without taking into
account processing income from the former Hanes Gold Mine (see
below).
For clarity, and to avoid any misunderstanding,
it is important to note that under Romanian law, although the
reorganisation of Vast Baita Plai SA, the Company’s wholly owned
Romanian subsidiary that holds the Baita Plai association licence,
is under a judicial court process, it is of a voluntary nature
under which administrators are appointed by the Company. Vast
Baita Plai SA, and with it Baita Plai, continue to be controlled by
and operated by the Company through Andrew Prelea as Special
Administrator, appointed under that judicial process. This
reorganisation has made it possible to reduce the labour force, to
redraw labour contracts and work practices, and at the same time
obtain up to four years repayment terms for its accrued debts and
eliminate nuisance claims. The process is ongoing with a Court date
set for 14 November 2024, at which the Company’s Judicial
Administrator will present the rejected creditors and argue the
merits for rejecting any creditors from the initial creditors
table, as well as presenting the progress made since entering
reorganisation, and present the initial step plan for the
reorganisation.
Baita Plai Production
Production for the quarter is provided below with a
comparison to previous quarters.
Period |
Tonnes mined |
Concentrate produced (DMT) |
Cu concentrate grade |
Q2 2024 |
10,239 |
229 |
20% |
Q1 2024 |
25,388 |
613 |
20% |
Q4 2023 |
24,178 |
562 |
18% |
Q3 2023 |
25,600 |
559 |
21% |
Q2 2023 |
23,372 |
468 |
21% |
Baita Plai processing – former Hanes
Gold Mine
Baita Plai, as part of its activities, has, as announced on 11
September 2024, also commenced processing the First Agreement
product derived from the former Hanes Gold Mine, that is
anticipated will generate long-term income for the Company. This
activity combined with the mine’s own production is calculated to
allow Baita Plai to be net cash generative towards the end of the
year. The initial results from first production of the First
Agreement material is a polymetallic concentrate containing in
excess of 10 g/t of Au and in excess of 1200 g/t of Ag.
500t Concentrate sale
The Company is awaiting final assays to enable the shipment of the
first consignment of the concentrate under the Second Agreement, as
announced on 11 September 2024. It was hoped that these would have
been received by now; but when they are received and assuming that
they are as expected satisfactory, the Company will update the
market upon shipment departure.
Aprelevka Mine Operations
Progress continues to be made at the Aprelevka mine (a joint
venture in which the Company has a 4.9% interest in income) which
the Company estimates has amounted to cost savings of approximately
25% of the production costs.
The Company now has increased the expat team to
include management, production, mining and geological personnel to
implement further improvements across the business, reduce costs,
and improve mining methods and safety.
The changes in crushing have also resulted in an
increase in throughput at the plant from 800 tonnes per day to 950
tonnes per day in Q2, and with further improvements is
expected to increase to 1,500 tonnes per day in Q4 and beyond
including, as already announced, a tertiary crushing system and new
processing equipment currently under construction, that will allow
the Company to reach up to 2,500 tonnes per day in Q2 2025. All
capex costs have been self-generated for the increase in
profitability that has been achieved.
The mine has re-commissioned the mills as
announced on 4 June 2024 and has commenced the reprocessing of
tailings in tandem with ore production to increase gold and silver
production yielding high recoveries from the tailings. The new
silver processing plant referred to in the Company’s announcement
of 11 September 2024 is currently being installed and is targeted
to be operational in Q4 2024, thus enabling the doubling of silver
production at the plant, up to 360kg per month.
The Company takes this opportunity to notify
that following the Company’s investment in Aprelevka, the Board was
informed that Andrew Prelea and Paul Fletcher had acquired
interests of 17.8% and 5% respectively in Gulf, International
Minerals Ltd, which has a 49% interest in the Aprelevka mines.
Aprelevka Production
Production for the quarter is provided below with a
comparison to previous quarters.
Period |
Tonnes Processed |
Au oz produced |
Recovery |
Q2 2024 |
77,371 |
2878 |
84.3% |
Q1 2024 |
72,850 |
1808 |
81.1% |
Q4 2023 |
75,643 |
2039 |
78.7% |
Q3 2023 |
69,332 |
2062 |
82% |
Takob
Full production has recommenced, and deliveries are expected in
November.
Historic Claim
The Company maintains its position as announced on 24 September
2024.
Investor Warning
Investors and other Market Participants
should note that the effectiveness of the measures referred to
above to improve performance at Baita Plai and Aprelevka will only
be known as and when the production results are achieved and can be
announced.
Competent Person
The technical information in this announcement
has been reviewed by, and the forward-looking technical views are
based on, information interpreted by Dr Marius Zlagnean. Dr Marius
Zlagnean has more than 30 years professional experience in the
mining industry and is currently a Technical Consultant for Vast
for the processing of ore in Romania and Tajikistan.
He is also Head of the Processing Techniques and Technologies
Department, and former Vice President of the Board of Directors, at
the Romanian National Institute of Research and Development for
Metals and Radioactive Resources.
Dr Zlagnean is a Qualified Person who is a
Member in good standing of the:
Balkan Mineral Processing Technical Academy;
National Association of Specialists in Geology and
Mining, Bucharest (Romania);
Executive Board of the XIII Balkanic Mineral Processing
Congress, Bucharest;
Scientific Committee of the journal "Buletin CENTIREM";
Scientific Council National Institute of Research and Development
for Metals and Radioactive Resources.
Dr Zlagnean is a mining engineer and has a PhD
in engineering in centrifugal concentration of gold-silver precious
metals at the University Petrosani. He is an accredited expert of
the National Agency for Mineral Resources of Romania.
**ENDS**
For further information, visit
www.vastplc.com or please contact:
Vast
Resources plc
Andrew Prelea (CEO)
|
www.vastplc.com +44 (0) 20 7846
0974 |
Beaumont
Cornish – Financial & Nominated Advisor
Roland Cornish
James Biddle
|
www.beaumontcornish.com
+44 (0) 20 7628 3396 |
Shore
Capital Stockbrokers Limited – Joint Broker
Toby Gibbs / James Thomas (Corporate Advisory)
|
www.shorecapmarkets.co.uk +44
(0) 20 7408 4050 |
Axis
Capital Markets Limited – Joint Broker Richard
Hutchinson
|
www.axcap247.com +44 (0) 20
3206 0320 |
St Brides
Partners Limited
Susie Geliher / Charlotte Page |
www.stbridespartners.co.uk
+44 (0) 20 7236 1177 |
ABOUT VAST RESOURCES PLC
Vast Resources plc is a United Kingdom AIM
listed mining company with mines and projects in Romania,
Tajikistan, and Zimbabwe.
In Romania, the Company is focused on the rapid
advancement of high-quality projects by recommencing production at
previously producing mines.
The Company's Romanian portfolio includes 100%
interest in Vast Baita Plai SA which owns 100% of the producing
Baita Plai Polymetallic Mine, located in the Apuseni Mountains,
Transylvania, an area which hosts Romania's largest polymetallic
mines. The mine has a JORC compliant Reserve & Resource Report
which underpins the initial mine production life of approximately
3-4 years with an in-situ total mineral resource of 15,695 tonnes
copper equivalent with a further 1.8M-3M tonnes exploration target.
The Company is now working on confirming an enlarged exploration
target of up to 5.8M tonnes.
The Company also owns the Manaila Polymetallic
Mine in Romania, which the Company is looking to bring back into
production following a period of care and maintenance. The Company
has also been granted the Manaila Carlibaba Extended Exploitation
Licence that will allow the Company to re-examine the exploitation
of the mineral resources within the larger Manaila Carlibaba
licence area.
Vast has an interest in a joint venture company
which provides exposure to a near term revenue opportunity from the
Takob Mine processing facility in Tajikistan. The Takob Mine
opportunity, which is 100% financed, will provide Vast with a 12.25
percent royalty over all sales of non-ferrous concentrate and any
other metals produced.
Vast has also been contractually appointed to
manage and develop the Aprelevka Gold Mines located along the Tien
Shan Belt that extends through Central Asia, producing at the time
of appointment approximately 11,600 oz of gold and 116,000 oz of
silver per annum. It is the intention to increase production closer
to historical peak production of 27,000 oz gold and 250,000 oz
silver. Vast is entitled to a 4.9% effective interest in the
mines with the option to acquire equity in the future.
The Company retains a continued presence in
Zimbabwe in respect of the Historic claims.
Beaumont Cornish Ltd
Beaumont Cornish Limited (“Beaumont Cornish”) is
the Company’s Nominated Adviser and is authorised and regulated by
the FCA. Beaumont Cornish’s responsibilities as the Company’s
Nominated Adviser, including a responsibility to advise and guide
the Company on its responsibilities under the AIM Rules for
Companies and AIM Rules for Nominated Advisers, are owed solely to
the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing
protections afforded to customers of Beaumont Cornish nor for
advising them in relation to the proposed arrangements described in
this announcement or any matter referred to in it.
The following is a summary of technical
terms:
Ag |
Silver |
Au |
Gold |
Cu |
Copper |
PGM |
Platinum Group Metals |
Grade |
Grade(s) means the quantity of ore or metal in a specified quantity
of rock |
Mineral Resource |
A 'Mineral Resource' is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade (or quality), and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade (or quality), continuity and other geological characteristics
of a Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge, including sampling.
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories. |
Inferred Mineral Resource |
An 'Inferred Mineral Resource' is that part of a Mineral Resource
for which quantity and grade (or quality) are estimated on the
basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade
(or quality) continuity. It is based on exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill
holes. |
Indicated Mineral Resource |
An 'Indicated Mineral Resource' is that part of a Mineral Resource
for which quantity, grade (or quality), densities, shape and
physical characteristics are estimated with sufficient confidence
to allow the application of Modifying Factors in sufficient detail
to support mine planning and evaluation of the economic viability
of the deposit. |
Exploration Target |
An Exploration Target is a statement or estimate of the exploration
potential of a mineral deposit in a defined geological setting
where the statement or estimate, quoted as a range of tonnes and a
range of grade (or quality), relates to mineralisation for which
there has been insufficient exploration to estimate a Mineral
Resource. |
Mineral Reserve |
An ‘Ore Reserve’ is economically minable part of a Measured and/or
Indicated Mineral Resource. It includes diluting materials and
allowances for losses, which may occur when the material is mined
or extracted and is defined by studies at Pre-Feasibility level as
appropriate that include application of Modifying Factors. Such
studies demonstrate that, at the time of reporting, extraction
could be reasonably justified. |
JORC Code |
Australasian Institute of Mining and Metallurgy Joint Ore Reserves
Committee code on mineral resources and ore reserves |
Mineralisation |
Process of formation and concentration of elements and their
chemical compounds within a mass or body of rock |
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