TIDMTSG
RNS Number : 1129Z
Trans-Siberian Gold PLC
08 January 2020
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8 January 2020
Trans-Siberian Gold plc
("TSG", the "Company", or the "Group")
Mineral Resource Update - Asacha Gold Mine
Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold
producer in Russia, announces an update of the Mineral Resource
Estimate for the Asacha Gold Mine in Kamchatka, Far East
Russia.
The mineral resource at Asacha occurs in two zones: Main zone
(currently being mined) and East zone (not yet mined). The Main
zone hosts six defined veins, with the majority of the resource
contained in two of these, QV1 and QV2. Three veins have been
defined in the separate East zone. The Main zone has a strike
length of approximately 1,500m, whilst the East zone is
approximately 400m.
The Mineral Resource Estimate ('MRE') for the Asacha Gold Mine
was updated by Seequent UK Ltd ("SUKL") as at 01 December 2019.
SUKL has updated the Asacha deposit's MRE at the end of every year
from 2012. The purpose of these updates is to incorporate new data
available from exploration, drilling, mining development and to
account for mining depletion.
The focus of the MRE has been to incorporate new resource
drilling on QV1 and QV2 in the Main zone and QV25 in the East zone.
As reported on 19 September and 22 October 2019, preliminary
internal estimates indicated that the existing in-situ resource may
have been overestimated. A complete re-analysis of the MRE model
inputs has now been undertaken, resulting in a reduction to the
MRE, due to multiple contributing factors such as new drilling
data, updated vein interpretations, revision of estimation
parameters (in particular top capping), additional mine induced
sterilisation and a change to reporting by linear cut-off grade.
SUKL's full report is available on the Company's website at:
www.trans-siberiangold.com
Alexander Dorogov, Chief Executive Officer of TSG,
commented:
"I am pleased with the work that the team at Asacha has done to
update the Mineral Resource Estimate. We have invested heavily in
improving our understanding of the ore body through a significant
drilling campaign which confirms our expectations and provides the
basis for better mine planning out to 2024. The resource will be
supplemented by additional ounces targeted in an accelerated
exploration programme as well as existing stockpiles. A new
drilling campaign of approximately 8,000m around Vein 25 in the
East Zone is already underway. We are confident that we have the
time, capital and skills to upgrade the mineral resource at Asacha.
Formal guidance for 2020 will follow shortly, but at this stage we
anticipate annual gold production to be in line with recent
years."
Mineral Resource Estimate
The Mineral Resource Estimate, classified according to the
guidelines of the JORC Code (2012), for the Asacha Gold Mine as at
01 December 2019 is shown in the following table:
Classification Zone '000 tonnes Au Ag Au Ag
(g/t) (g/t) ('000oz) ('000oz)
---------------- ------ ------------ ------- ------- ---------- ----------
Measured Main 72 12 37 28 85
Indicated Main 124 10 48 40 193
Indicated East 43 31 39 42 54
Total M&I 239 14 43 111 332
Inferred Main 101 14 30 45 98
Inferred East 211 23 36 157 245
Total Inferred 313 20 34 202 343
------------------------ ------------ ------- ------- ---------- ----------
Notes:
1. Resources are reported above 4m*g/t Au cut-off grade
2. Resources are reported after mining depletion
3. Tonnage and grades have been rounded to reflect an appropriate level of precision
4. Rounding may mean that columns do not sum exactly
5. Mineral Resources are classified according to the definitions of the JORC Code
Year-on-Year Comparison
The total (Measured + Indicated + Inferred) declared Mineral
Resource Estimate has decreased from 553,000oz Au and 1,314,000oz
Ag reported as at 31st December 2018 to 313,000oz Au and 675,000oz
Ag as at 01 December 2019.
The following table illustrates the change in the gold estimates
for the Main zone and East zone:
Description Au
(oz)
------------------------------------------------- --------
Resource Estimate as at 31 December 2018 553,052
Mining depletion -58,048
Sterilisation -78,937
Rockfall -2,522
Difference due to new data and interpretation -84,448
Difference due to revised estimation parameters -16,539
Resource Estimate as at 20 December 2019 312,558
------------------------------------------------- --------
Mining depletion, Sterilisation & Rockfall
The Main zone was depleted in the usual manner and consistent
with previous estimates. Additionally, this included areas that TSG
considered will not be mined due to stability issues and areas that
are deemed uneconomic. In previous estimates, SUKL have included
some remnant areas of mineralisation around the periphery of the
upper levels of the mine. However, following the collapse of the
older workings on Main zone there is no longer any realistic
prospect that these areas of remnant mineralisation can be safely
recovered due to geotechnical instability.
Difference due to data and interpretation (including
drilling)
The mineral resource model has been updated to incorporate new
diamond drilling on QV1 and QV2 in the Main zone and QV25 in the
East zone.
On the Main Zone, 94 core drill holes for 6,894m were drilled
underground from the 100m to infill below 100m, targeting vein
extensions on both QV1 and QV2. This represents a large increase in
the amount of drilling available on Main Zone targets below the
100m level. In addition, 329.8m of channel sampling in 136 separate
channels were collected, mainly from the north end of the Main Zone
on QV1 at the 100m level, and from the southwards extensions of
development on QV2 between 100 and 150m. In the Main Zone, gold
mineralisation is becoming weaker and more erratic with depth, with
an increase in the presence of base-metals minerals. This vertical
zonation is typical of epithermal systems.
On the East Zone, 21 diamond drill holes targeted two veins,
QV18 and QV25. Infill drilling on QV25 consisted of 19 drill holes
totalling 4,752.5m and on QV18 two drill holes testing along strike
vein extents totalling 450m. QV25 is a priority for TSG, as it is
regarded to have the potential for exploitation in the near
future.
Summary of 2019 drilling campaigns:
Area Target Hole Type Hole Diameter No. of Total
Veins holes (m)
------- ------------ ----------- --------------- ------- ---------
East QV25, QV18 Diamond HQ 21 5,202.5
Main QV1, QV2 Diamond HQ 94 6,894.1
Main QV1, QV2 Channel n/a 136 329.8
Total 251 12,426.4
--------------------------------------------------- ------- ---------
Figure 1. Long section looking west of 2019 drilling and sample
data for Main Zone.
Notes:
1. Red collars indicate 2019 data, blue pre-2019. 2019 drillhole
traces in solid purple originating from100m.
Figure 2. 2019 Drilling on the East Zone, red collars indicate
2019 campaigns.
Notes:
1. Red collars indicate 2019 data.
Figure 3. Long section view of QV25 showing true width and grade
of intersections.
Notes:
1. 2019 drill hole traces in purple.
Difference due to estimation parameters
Top caps have historically been applied to the MRE to allow for
the highly skewed grade distributions that typically occur in
epithermal deposits, with annual reconciliation against production
used to validate the choice of cap value. Over the previous 12
months, as mining progressed into less well drilled and lower grade
parts of the Main Zone below the 150m level, more localized
reconciliation against production sampling indicated that mineral
resources were locally overestimated, likely due to insufficient
constraint on high grade samples. A complete re-analysis of
estimation parameters for all veins was undertaken, in particular
the treatment of extreme grades through top-capping. Consequently,
a more stringent top capping has been used for this estimate than
in previous models.
Cut-off Grade
Previously SUKL have reported the in-situ resource using an Au
grade cut-off of 4g/t. In the lower levels of the mine, veins are
thinner, and it is more appropriate to apply a dual cut-off on both
contained metal (linear grade=grade*thickness) and grade. The
updated MRE is reported above a dual cut-off of 4m*g/t (vein
thickness*Au grade) and 4 g/t Au. The effect of this change is
minimal.
2020 Exploration
The Group will be conducting both underground and surface
drilling campaigns during 2020. A total of approximately 22,000m of
surface drilling will target the lateral extents of the Main zone
and QV25. A further 2,000m of underground drilling will be
conducted on the Main zone at depth.
SKUL have classified QV18 and QV25 as Exploration Targets[1]
with the potential for ranges of:
-- QV18: 33,000t to 270,000t at a grade of between 3.5g/t and 5g/t; and
-- QV25: 30,000t to 60,000t at a grade of between 15 to 35g/t
The potential quantity and grade of the Exploration Target
material is conceptual in nature, there has been insufficient
exploration to estimate a Mineral Resource and it is uncertain if
further exploration will result in the estimation of a Mineral
Resource.
The low sulphidation epithermal style of mineralisation found at
the Asacha Gold Mine is favourable for high-grade deposits. The
Asacha licence area and the regional district more widely remains
under-explored which the Company believes presents an opportunity
to define local, near mine extensions to mineralisation and
exploration targets. As such, the Company expects to increase the
scope and scale of its exploration activities. Additional details
of the Company's exploration plan will be published shortly.
Rodnikova
The Rodnikova deposit is not reflected in this Mineral Resource
Estimate. The Company has engaged a different Competent Person to
prepare a Mineral Resource Estimate to be reported in accordance
with the JORC Code (2012), which should be complete in January
2020.
ENDS
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) +44 (0) 207 796 4133
Charlie Jack / Katerina Parker / Elfreda
Kent
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 Group 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
Qualified Person Review
The updated Mineral Resource estimate was prepared by Ms. Carrie
Nicholls (Senior Evaluation Geologist, SUKL).
The information in this release that relates to the updated
Mineral Resource estimate is based on, and fairly represents,
information, which has been compiled by Ms. Nicholls.
Ms. Nicholls is a geologist with more than 15 years of
experience in geo-statistical analysis, geological modelling and
resource estimation. She has extensive experience in open pit gold
mining operations in Africa and Venezuela and has undertaken
geo-statistical and geological modelling work for a variety of
deposits including gold, copper and niobium. She holds a B.Sc.
(Hons) degree in geology from Bristol University, UK and a M.Sc. in
Mineral Resources from the University of Wales, Cardiff, UK. She is
a member of the AusIMM and Geological Society of London.
Ms. Nicholls has sufficient experience relevant to the styles of
mineralisation and type of deposit under consideration and to the
activity that is being undertaken to qualify as a Competent Person,
as defined in the 2012 Edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves". Ms. Nicholls is a full time employee of SUKL and has
consented to the inclusion of the matters in this announcement
based on the information in the form and context in which it
appears.
Technical Glossary
"Au" the chemical symbol of gold
"Ag" the chemical symbol of silver
"cut-off grade" the lowest grade, or quality, of mineralised
material that qualifies as economically
mineable and available in a given deposit.
May be defined on the basis of economic
evaluation, or on physical or chemical
attributes that define an acceptable product
specification.
"Exploration Target" is a statement or estimate of the exploration
potential of a mineral deposit in a de
ned 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.
"g/t" grams per tonne
"Indicated mineral a part of a Mineral Resource for which
resource" tonnage, densities, shape, physical characteristics,
grade and mineral content can be estimated
with a reasonable level of confidence.
It is based on exploration, sampling and
testing information gathered through appropriate
techniques from locations such as outcrops,
trenches, pits, workings and drill holes.
The locations are too widely or inappropriately
spaced to confirm geological and/or grade
continuity but are spaced closely enough
for continuity to be assumed
"Inferred mineral a part of a Mineral Resource for which
resource" tonnage, grade and mineral content can
be estimated with a low level of confidence.
It is inferred from geological evidence
and assumed but not verified geological
and/or grade continuity. It is based on
information gathered through appropriate
techniques from locations such as outcrops,
trenches, pits, workings and drill holes
which may be limited or of uncertain quality
and reliability.
"JORC Code" the code for reporting of the Australasian
Joint Ore Reserves Committee, which is
sponsored by the Australian mining industry
and its professional organisations. The
code is widely accepted as a standard
for professional reporting purposes for
reporting of mineral resources and ore
reserves.
"Measured mineral A part of a Mineral Resource for which
resource" quantity, grade (or quality), densities,
shape, and physical characteristics are
estimated with confidence sufficient to
allow the application of Modifying Factors
to support detailed mine planning and
evaluation of the economic viability of
the deposit.
"Mineral Resource" a concentration or occurrence of material
of intrinsic economic interest in or on
the Earth's crust in such form, quality
and quantity that there are reasonable
prospects for eventual economic extraction.
The location, quantity, grade, geological
characteristics and continuity of a Mineral
Resource are known, estimated or interpreted
from specific geological evidence and
knowledge. Mineral Resources are sub-divided,
in order of increasing geological confidence,
into Inferred, Indicated and Measured
categories.
"Mineralisation" the process or processes by which a mineral
is introduced into a rock, resulting in
a valuable or potentially valuable deposit.
It is a general term, incorporating various
types; e.g., fissure filling, impregnation,
and replacement.
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.
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.
(1) Exploration Target values are not included in the Mineral
Resource Estimate.
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
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