21 April 2021
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 2021 ("Q1" or the "Period").
Q1 Highlights
· Average gold grade up 26.8% YoY at 6.5 g/t (Q1 2020: 5.2 g/t)
· Average realised gold price of $1,732/oz, up 8.4% YoY (Q1 2020: $1,599/oz)
· Total revenues of $16.9 milion, up 80.8% YoY (Q1 2020: $9.3 million)
· Total gold doré production of 9,371 oz, up 36.6% YoY (Q1 2020: 6,859 oz)
· Gold recovery rate remained flat at 94.4% (Q1 2020: 94.5%)
· 2 fatalities in Q1 as a result of the rockfall accident at Vein 25
· Mining operations at Vein 25 resumed, all site repairs complete
Alexander Dorogov, Chief Executive Officer of TSG, commented:
"I am pleased to present the production results for the first quarter of 2021. Despite a very difficult start to the quarter, we have yielded solid operational results for the period, reporting total gold production of 9,371 oz, a 36% uplift on the prior year period.
We continue to work closely with RTN implementing the recommendations from their investigation and and to support the families of those affected by the accident in January. We are pleased to have resumed mining operations at Vein 25 at the start of March.
During the quarter, we were pleased to present the Scoping Study for the Rodnikova deposit and an updated mineral resource estimate at the Asacha mine."
Production Summary
Mining and production data for Q1 2021 at the Asacha Gold Mine is shown in the following table:
Q1 2021
| Metric |
|
| Q1 | Q1 | Y-on-Y |
| Q4 | Q-on-Q |
|
|
| 2021 | 2020 | % Change |
| 2020 | % Change | |
| Mine development | (m) |
| 625 | 1,541 | -59.5% |
| 695 | -10.1% |
| Ore extracted | (tonnes) |
| 37,172 | 34,009 | 9.3% |
| 51,138 | -27.3% |
| Ore processed | (tonnes) |
| 44,597 | 44,221 | 0.9% |
| 50,304 | -11.3% |
| Grade, gold | (g/t) |
| 6.5 | 5.2 | 26.8% |
| 10.3 | -36.7% |
| Grade, silver | (g/t) |
| 26.8 | 19.2 | 39.4% |
| 16.1 | 66.2% |
| Recovery, gold | (%) |
| 94.4 | 94.5 | -0.1% |
| 94.2 | 0.2% |
| Recovery, silver | (%) |
| 73.6 | 78.6 | -6.4% |
| 75.7 | -2.8% |
| Gold in dore | (oz) |
| 9,371 | 6,859 | 36.6% |
| 15,217 | -38.4% |
| Silver in dore | (oz) |
| 29,515 | 21,691 | 36.1% |
| 17,530 | 68.4% |
| Gold refined | (oz) |
| 9,454 | 6,035 | 56.7% |
| 15,559 | -39.2% |
| Silver refined | (oz) |
| 27,017 | 22,205 | 21.7% |
| 17,049 | 58.5% |
| Gold sold | (oz) |
| 9,349 | 5,837 | 60.2% |
| 15,620 | -40.1% |
| Silver sold | (oz) |
| 27,081 | 0 |
|
| 17,499 | 54.8% |
| Gold price | ($/oz) |
| 1,732 | 1,599 | 8.4% |
| 1,873 | -7.5% |
| Silver price | ($/oz) |
| 25 | 0 |
|
| 25 | -0.8% |
| Gold Revenue* | ($,000) |
| 16,196 | 9,333 | 73.5% |
| 29,255 | -44.6% |
| Silver Revenue* | ($,000) |
| 678 | 0 |
|
| 442 | 53.5% |
| Total Revenue* | ($,000) |
| 16,874 | 9,333 | 80.8% |
| 29,697 | -43.2% |
*Note: Unaudited figure
Totals may not add up due to rounding
Commentary
As previously announced, on 6 January 2021 the Company regretfully reported an accident that took place due to a rock fall at Asacha's Vein 25, tragically resulting in two fatalities. In accordance with normal protocols in Russia, a Federal Technical Inspection (RTN) investigation commission was established and commenced following the incident.
The RTN investigation has concluded that a hidden geological anomaly caused three fractures to form a wedge shape in the mine roof. These fractures filled with weaker material which deteriorated after contact with air and humidity as well as blasting works, resulting in the rock fall. Mining at Vein 25 was halted for 55 days. Substantial resources have been allocated to enhance ground support at both Vein 25 and the Main Zone of the Asacha Gold Mine.
During the period following the incident, the Main Zone at the Asacha Gold Mine remained fully operational and provided sufficient feed ore for the processing plant to run at full capacity. As announced on 5 March, TSG was granted full permitting approvals to resume mining operations at Vein 25.
During the Period, the Company announced the results of an independent Scoping Study for its 100% owned Rodnikova Project in Kamchatka. The Scoping Study has identified economically viable development options which justifies the advancement of the Project. The Company believes that the Project continues to have additional upside potential which it will evaluate through additional exploration and a Pre-Feasibility Study ("PFS"). The Mineral Resource Estimate is expected to increase in size and confidence through further exploration.
In March 2021, TSG published an updated Mineral Resource Estimate for the Asacha Gold Mine, including a significant upgrade to resources, with the Total Mineral Resource Estimate increasing to 645,000 oz Au as at 31 December 2020.
Takeover Offer
On 18 March 2021, TSG and Horvik Limited ("Horvik") announced that they had reached agreement on the terms of a recommended pre-conditional mandatory cash offer ("2.7 Announcement") to be made by Horvik for the TSG Shares not already held or agreed to be acquired (the "Offer").
Horvik has acquired 21,437,000 TSG Shares, representing 24.7 per cent. of the issued share capital of TSG (excluding any shares held in treasury) pro rata from each of the Selling Shareholders. The acquisition of the remaining 23,121,918 TSG Shares held by the Selling Shareholders is conditional only upon Horvik receiving clearance from the Russian Federal Antimonopoly Service ("FAS").
The making of the Offer by the publication of the Offer Document will take place as soon as reasonably practicable and in any event within 28 days (or such longer period as the Panel may agree) following the satisfaction of the FAS Pre-Condition which relates to the receipt of clearance from FAS.
Further updates will be made as appropriate.
Details of the Offer can be found in the 2.7 Announcement published on the Company's website: www.trans-siberiangold.com. Appendix IV of the announcement made on 18 March 2021 contains definitions of terms used above in the paragraph entitled "Takeover Offer".
ENDS
Contacts: | |
| TSG Stewart Dickson | +44 (0) 7799 694195 |
| Canaccord Genuity Limited (Nominated Adviser & Joint Corporate Broker) Henry Fitzgerald-O'Connor / James Asensio | +44 (0) 20 7523 8000 |
| Panmure Gordon (UK) Limited (Joint Corporate Broker) John Prior / Hugh Rich / Ailsa MacMaster | +44 (0) 20 7886 2500 |
| Hudson Sandler (Financial Public Relations) Charlie Jack / Katerina Parker / Elfie 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.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
