TIDMTSG
RNS Number : 9492T
Trans-Siberian Gold PLC
24 July 2020
24 July 2020
Trans-Siberian Gold plc
("TSG", the "Company" or the "Group")
Q2 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 30 June 2020 ("Q2" or the
"Period") and the first six months of 2020 ("H1").
Q2 Highlights
-- Total gold doré production rose by 66.5% QoQ to 11,419 oz (Q1 2020: 6,859 oz)
-- Average gold grade 46.9% higher QoQ at 7.6 g/t (Q1 2020: 5.2 g/t)
-- Average realised gold price increased by 8.7% QoQ to $1,738/oz (Q1 2020: $1,599/oz)
-- Total gold sales rose by 94.6% QoQ to 11,357 oz (Q1 2020: 5,847 oz)
-- Gold revenue increased by 111.5% QoQ to $19.7 million (Q1 2020: $9.3 million)
H1 Highlights
-- Total gold doré production of 18,278 oz in H1 2020 (H1 2019: 21,899 oz)
-- Average gold grades of 6.4 g/t (H1 2019: 8.6 g/t)
-- Gold revenue remained stable at $29 million (H1 2019: $29 million)
-- Gold recovery rate remained consistent YoY at 94.2% (H1 2019: 95.3%)
-- On track to meet full year production guidance
The Company is deeply saddened to report a non-operational
fatality during Q2 as a result of an off-site road accident that
occurred during low visibility weather conditions. TSG remains
wholly committed to achieving a zero-harm rate, and a thorough
investigation has been undertaken following the incident.
Additional safety training and education has been provided to
employees and assistance given to the employee's family.
Alexander Dorogov, Chief Executive Officer of TSG,
commented:
"We made solid operational progress in the first half of 2020.
In spite of lockdown measures being implemented around the world
due to the COVID-19 pandemic, we have managed to maintain our
operations without interruption.
In addition, the second quarter of 2020 saw a return to
substantially higher average gold grades as we began to process
high-grade ore extracted from Vein 25 in the East Zone. We have
made considerable progress in our mine development works at Vein 25
during the period, and these remain ahead of schedule. There is
significant potential to explore additional areas around the East
Zone and within close proximity to the Asacha Gold Mine.
We deeply regret the fatal accident which occurred in Q2 2020.
The health and wellbeing of our people remains our absolute
priority, and we remain committed to ensuring a safe working
environment for all of our employees. "
Production Summary
Mining and production data for Q2 and H1 2020 at the Asacha Gold
Mine is shown in the following tables:
Q2 2020
Metric Q2 Q1 Q-on-Q Q2 Y-on-Y
---------------------
2020 2020 % Change 2019 % Change
--------------------- --------- ------- ------- --------- ------- ---------
Mine development (m) 1,510 1,541 -2.0% 1,864 -19.0%
Ore extracted (tonnes) 43,497 34,009 27.9% 39,017 11.5%
--------------------- --------- ------- ------- --------- ------- ---------
Ore processed (tonnes) 50,316 44,221 13.8% 37,058 35.8%
Grade, gold (g/t) 7.6 5.2 46.9% 8.4 -9.9%
Grade, silver (g/t) 19.8 19.2 3.0% 26.4 -24.9%
Recovery, gold (%) 94.0 94.5 -0.5% 95.2 -1.3%
Recovery, silver (%) 79.3 78.6 0.8% 84.0 -5.6%
Gold in doré (oz) 11,419 6,859 66.5% 9,544 19.6%
Silver in doré (oz) 25,774 21,691 18.8% 27,629 -6.7%
--------------------- --------- ------- ------- --------- ------- ---------
Gold refined (oz) 11,114 6,035 84.2% 11,298 -1.6%
Silver refined (oz) 26,062 22,205 17.4% 32,683 -20.3%
--------------------- --------- ------- ------- --------- ------- ---------
Gold sold (oz) 11,357 5,837 94.6% 10,113 12.3%
Silver sold (oz) 47,989 0 32,937 45.7%
Gold price ($/oz) 1,738 1,599 8.7% 1,313 32.4%
Silver price ($/oz) 17.7 0.0 14.7 20.3%
Gold Revenue* ($,000) 19,740 9,333 111.5% 13,276 48.7%
Silver Revenue* ($,000) 849 0 484 75.2%
Total Revenue* ($,000) 20,588 9,333 120.6% 13,761 49.6%
--------------------- --------- ------- ------- --------- ------- ---------
H1 2020
Metric H1 H1 Y-on-Y H2 H-on-H
---------------------
2020 2019 % Change 2019 % Change
--------------------- --------- ------- ------- --------- ------- ---------
Mine development (m) 3,051 3,884 -21.4% 3,355 -9.1%
Ore extracted (tonnes) 77,506 73,856 4.9% 68,295 13.5%
--------------------- --------- ------- ------- --------- ------- ---------
Ore processed (tonnes) 94,537 81,804 15.6% 97,569 -3.1%
Grade, gold (g/t) 6.4 8.6 -25.2% 7.1 -9.8%
Grade, silver (g/t) 19.6 27.1 -27.8% 20.4 -4.1%
Recovery, gold (%) 94.2 95.3 -1.1% 95.1 -0.9%
Recovery, silver (%) 79.0 82.3 -4.0% 78.4 0.8%
Gold in doré (oz) 18,278 21,889 -16.5% 21,589 -15.3%
Silver in doré (oz) 47,466 59,787 -20.6% 51,770 -8.3%
--------------------- --------- ------- ------- --------- ------- ---------
Gold refined (oz) 17,149 23,155 -25.9% 20,578 -16.7%
Silver refined (oz) 48,267 63,557 -24.1% 46,294 4.3%
--------------------- --------- ------- ------- --------- ------- ---------
Gold sold (oz) 17,194 22,062 -22.1% 21,719 -20.8%
Silver sold (oz) 47,989 69,266 -30.7% 46,536 3.1%
Gold price ($/oz) 1,691 1,312 28.9% 1,488 13.7%
Silver price ($/oz) 17.7 15.1 16.9% 17.3 2.5%
Gold Revenue* ($,000) 29,072 28,951 0.4% 32,308 -10.0%
Silver Revenue* ($,000) 849 1,048 -19.0% 803 5.7%
Total Revenue* ($,000) 29,921 29,998 -0.3% 33,112 -9.6%
--------------------- --------- ------- ------- --------- ------- ---------
*Note: Unaudited figure
Totals may not add up due to rounding
Commentary
TSG is pleased to report another busy and productive quarter, in
which the Group has recorded significant production and exploration
successes.
The Group achieved significant improvements in production
performance from Q1 2020 despite gold mineralisation in the Main
Zone becoming lower-grade and more erratic at depth. The average
grade of the mill feed increased to 7.6 g/t which was in part
supported by high-grade test ore extracted from Vein 25. Since
April 2020, approximately 9,488 tonnes of ore with an average gold
grade of 19.8 g/t has been extracted from Vein 25 and processed to
produce approximately 6,028 oz of gold.
As announced on 10 July 2020, significant mine development work
was completed at Vein 25 during the Quarter. The Group remains on
track to commence commercial mining in the East Zone of the Asacha
Gold Mine, which contains significantly higher grade ore, next
year. Bulk sampling will continue for the remainder of 2020.
The planned 25,000 metres of exploration drilling over the
Asacha licence area was completed during the Period. This has been
a very successful campaign delineating additional mineral resources
(see RNS announcement dated 16 June 2020) and identifying new
exploration targets around the East Zone and within close proximity
to the Asacha Gold Mine. Building on the successful drilling to
date, a further 11,600 metres is planned to be drilled at Vein 25
North during the remainder of 2020.
In addition, the Group continues to progress with the evaluation
of, and scoping study for, the development of the Rodnikova
deposit, and expects to provide an update in the second half of
this year.
As previously announced, the ongoing COVID-19 pandemic continues
to have a limited impact on the Group's operations. Managing the
health of the Group's staff is increasingly challenging as
lock-down measures are eased. The Group remains vigilant, and
strict protective and sanitary measures remain in place at our
operations.
Existing guidance for 2020 production estimates remains
unchanged.
TSG expects to publish unaudited interim financial results for
H1 2020 in September 2020.
S
Contacts:
TSG
Stewart Dickson +44 (0) 7799 694195
Arden Partners plc
Paul Shackleton (Corporate Finance)
Tim Dainton / Fraser Marshall (Equity Sales) +44 (0) 207 614 5900
Hudson Sandler (Financial PR)
Charlie Jack / Katerina Parker / Elfreda
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.
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 rns@lseg.com or visit www.rns.com.
END
DRLSEIFUDESSESW
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