TIDMTSG
RNS Number : 5686K
Trans-Siberian Gold PLC
23 April 2020
23 April 2020
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 2020 ("Q1" or the
"Period").
Alexander Dorogov, Chief Executive Officer of TSG,
commented:
" Our utmost priority at this uncertain time is the health and
well-being of our employees amidst the global pandemic. Having
implemented stringent precautionary measures, our operations
continue without disturbance. Moreover, we are beginning to incur
cost benefits driven by the lower oil prices as well as the
connected devaluation of the local currency.
In spite of the slowdown this quarter, we are trading in line
with management expectations and retain a positive outlook on our
annual production reiterating our full-year 2020 guidance of 38,000
- 42,000 ounces . Our drilling campaign is demonstrating some
exciting results, and we now expect to initiate production at Vein
25 sooner than planned. We look forward to providing an update on
this during the next quarter.
The results for this quarter must be put into perspective
against an exceptionally strong prior-year performance, which
remains the Group's record to date, and which we are hopeful to
outperform in the future. "
Q1 Highlights
-- Average realised gold price for the period rose by 22% YoY to $1,599 (Q1 2019: $1,312)
-- Average gold grade of 5.2 g/t (Q1 2019: 8.8 g/t)
-- Total revenues of $9.3million (Q1 2019: $16.2million)
-- Annual gold production guidance for 2020 of between 38,000 and 42,000 ounces maintained
-- Dividend base case of approximately $3 million per annum maintained
-- Delineation of +1Moz JORC Mineral Resource Estimate for the Rodnikova Gold Deposit
-- Significant progress at Vein 25 of the East Zone of Asacha,
with expectation of bringing this higher grade ore-body into
production shortly
-- 10,371m of the planned 25,000m of the 2019-2020 drill
campaign over the Asacha licence area completed during Q1
-- 5 minor lost-time injuries during the period
Covid-19
Currently there is no material impact to TSG's production from
the COVID-19 virus, and the Group has risk mitigation structures in
place.
Howev er, the C ompany notes that supply chains and logistics
for people, supplies and parts are under pressure and continually
changing. The Company's dollar-denominated revenue from gold sales
remains strong in a supportive gold price environment. The majority
of the Group's operational costs are rouble-denominated and have
fallen due to foreign exchange movements.
Outlook
The Group continues to deliver on its strategic priorities.
Shareholders can expect the Company to provide progress updates on
the following activities in due course:
-- Drilling results from Main and East Zones of the Asacha Gold Mine
-- Financial Results for the Financial Year ended 31 December 2019
-- Scoping Study for the Rodnikova Gold Deposit
-- Commencement of mining at the East Zone of the Asacha Gold Mine
2020 Guidance
The Company reiterates full year 2020 gold production guidance
of between 38,000 and 42,000 ounces, as announced in January.
Production Summary
Mining and production data for Q1 2020 at the Asacha Gold Mine
is shown in the following table:
Q1 2020
Metric Q1 Q1 Y-on-Y Q4 Q-on-Q
------------------
2019 2020 % Change 2019 % Change
------------------ --------- ------- ------- --------- ------- ---------
Mine development (m) 2,020 1,541 -23.7% 1,452 6.1%
Ore extracted (tonnes) 34,839 34,009 -2.4% 34,050 -0.1%
------------------ --------- ------- ------- --------- ------- ---------
Ore processed (tonnes) 44,746 44,221 -1.2% 48,573 -9.0%
Grade, gold (g/t) 8.8 5.2 -41.3% 6.0 -13.5%
Grade, silver (g/t) 27.7 19.2 -30.5% 22.4 -14.0%
Recovery, gold (%) 95.4 94.5 -0.9% 95.0 -0.5%
Recovery, silver (%) 81.0 78.6 -3.0% 76.0 3.4%
Gold in dore (oz) 12,345 6,859 -44.4% 8,970 -23.5%
Silver in dore (oz) 32,158 21,691 -32.5% 27,084 -19.9%
------------------ --------- ------- ------- --------- ------- ---------
Gold refined (oz) 11,857 6,035 -49.1% 9,287 -35.0%
Silver refined (oz) 30,874 22,205 -28.1% 24,429 -9.1%
------------------ --------- ------- ------- --------- ------- ---------
Gold sold (oz) 11,949 5,837 -51.2% 12,302 -52.6%
Silver sold (oz) 36,329 0 -100.0% 24,577 -100.0%
Gold price ($/oz) 1,312 1,599 21.9% 1,489 7.3%
Silver price ($/oz) 15.5 0.0 -100.0% 17.5 -100.0%
Gold Revenue* ($,000) 15,674 9,333 -40.5% 18,324 -49.1%
Silver Revenue* ($,000) 563 0 -100.0% 429 -100.0%
Total Revenue* ($,000) 16,238 9,333 -42.5% 18,753 -50.2%
------------------ --------- ------- ------- --------- ------- ---------
*Note: Unaudited figure
Totals may not add up due to rounding
Commentary
It has been a busy and productive start to the year delivering
against our priorities for 2020.
Mine production in Q1 2020 follows on from Q4 2019 as gold
mineralisation in the Main Zone becomes lower in grade and more
erratic at depth, as indicated in previous announcements. This
vertical zonation is typical of epithermal systems. Lower grade
stoping ore was required to be blended with existing stockpiled
ore, which resulted in a lower average mill feed grade. The mine
plan and management budget for 2020 anticipated lower grades in the
first half of the year. In line with our plan the Group expects to
commence mining in the East Zone of the Asacha Gold Mine, which
contains significantly higher grade ore, this year. There has been
significant mine development progress in the East Zone and the
Group is on track to bring this ore-body into production ahead of
schedule.
During Q1, 10,371m of the planned 25,000m of the 2019-2020
drilling campaigns at the Main and East zones of the Asacha Gold
Mine has been completed as of the end of Q1 2020. The first
drilling results from that campaign have been very positive, as
announced in January, and the Group intends to provide an update on
progress shortly.
In addition, the Group published a JORC-compliant Mineral
Resource Estimate for the Rodnikova deposit in Q1; total Indicated
& Inferred Resources of 6.3Mt at a grade of 5g/t gold, for
total contained +1Moz of gold.
The Group remains on track to deliver an initial scoping study
for the Rodnikova deposit by the end of Q2 2020. This study will
assist in de-risking the project by establishing the framework for
understanding the economics of future mine development scenarios
and will also provide guidance for near-term exploration programmes
to maximise the delineation of further economic mineralisation.
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)
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
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