TIDMTSG
RNS Number : 4751M
Trans-Siberian Gold PLC
30 April 2018
Trans-Siberian Gold plc
("TSG" or the "Company")
Q1 Production Update
Trans-Siberian Gold plc (TSG.LN) announces its production update
at the Asacha Gold Mine for the three months to 31 March 2018 ("Q1"
or the "Period").
Highlights
-- Record quarterly revenue generation of $15.6m (Q1 2017: $9.6m)
-- 11.8% increase in gold production of 8,100oz (Q1 2017: 7,246oz)
-- Average gold grade: 6.1g/t (Q1 2017: 5.4g/t)
-- Delayed delivery of dore in Q4 2017 pushed refined gold 15% higher Q-on-Q
-- Estimated average selling price of $1,343/oz
-- Reduced mine development due to high underground water levels
-- One (1) fatality post-Period
Dmitry Khilov, Chief Executive Officer of TSG, commented:
"Having achieved record quarterly production in Q4 2017, we have
made a solid start to 2018. Whilst production is slightly lower
than anticipated, we are pleased to have generated record quarterly
revenue of approximately $15.6m. A weaker Ruble and higher gold
prices have had positive impacts on our profitability."
Production Summary
Mining and production data for Q1 2018 at the Asacha Gold Mine
is shown in the following table:
Metric Q1 Q4 Q-on-Q Q1 Y-on-Y
-----------------------
2018 2017 % Change 2017 % Change
----------------------- ------- ------- --------- ------- ------------
Mine development (m) 1,549 1,656 -6.5% 1,263 22.6%
Ore extracted, tonnes 47,081 55,992 -15.9% 46,155 2.0%
Ore processed, tonnes 44,395 46,752 -5.0% 44,320 0.2%
Grade, gold,
g/t 6.1 8.6 -29.6% 5.4 13.5%
Grade, silver,
g/t 15.4 17.6 -12.6% 9.0 71.2%
Recovery, gold, 94.4 94.7 -0.3% 94.2 0.2%
%
Recovery, silver, % 75.9 81.2 -6.5% 76.7 -1.0%
Gold in dore (oz) 8,100 12,244 -33.8% 7,246 11.8%
Silver in dore (oz) 15,662 21,291 -26.4% 10,148 54.3%
Gold refined (oz) 11,343 9,858 15.1% 7,644 48.4%
Silver refined (oz) 21,127 16,315 29.5% 12,356 71.0%
---------------------------- ------- ------- --------- ------- ----------
Commentary
During the Period, mining progress has been slowed by high
underground water levels. As a result, and to ensure processing
capacity is fully utilised, higher grade stoping ore has been
augmented by lower grade ore from stockpiles. So whilst the amount
of ore processed was stable, the amount of gold produced has fallen
quarter-on-quarter but is 11.8% higher on a comparative basis with
the same period in 2017. The average grade for the Period was 6.1
g/t.
The high levels of water in the geological structure are being
addressed by investment in mobile pumping equipment as well as the
construction of a permanent pumping station at 100m underground. It
is anticipated that Q2 2018 production levels will reflect the
continuation of high water levels whilst remedial activities take
place. Gold production in H2 2018 is expected to improve as the
effects of the installation of additional pumping equipment is
felt. Accordingly, the Company's total gold production guidance
range of 36,000-40,000oz for 2018 remains unchanged. The upper end
of the range represents a year-on-year increase of approximately 9%
in total gold production.
Regrettably a fatal accident occurred underground very recently
involving an employee. All of the relevant investigation procedures
have been initiated.
TSG intends to provide a production update for Q2 2018 in July
2018 and announce its Final Results for FY2017 in late May
2018.
Potential Environmental Claim Update
In January 2018, the Company announced that its wholly owned
subsidiary, ZAO Trevozhnoye Zarevo ("TZ") had received a claim from
the Federal Service for Supervision of Use of Natural Resources,
RosPrirodNadzor ("RPN") over the payments for disposal of waste
materials following a site inspection in 2016. The management of TZ
continue to dispute the claim made by RPN and are working hard with
all parties involved to clarify the situation in order to achieve a
satisfactory outcome.
Contacts TSG
+44 (0) 7799
Stewart Dickson 694195
+44 (0) 207
Cantor Fitzgerald Europe 894 7000
David Porter
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.
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 company news service from the London Stock Exchange
END
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April 30, 2018 02:01 ET (06:01 GMT)
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