TIDMTSG
RNS Number : 8503C
Trans-Siberian Gold PLC
22 October 2020
22 October 2020
Trans-Siberian Gold plc
("TSG", the "Company" or the "Group")
Q3 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 September 2020 ("Q3" or the
"Period") and for the first nine months ("9M") of 2020.
Q3 Highlights
-- Total gold doré production of 11,570 oz. (Q2 2020: 11,419 oz.)
-- Average gold grade stable at 7.4 g/t (Q2 2020: 7.6 g/t)
-- September 2020 recorded an average gold grade of 8.9 g/t
-- Average realised gold price increased by 9.2% QoQ to $1,899/oz. (Q2 2020: $1,738/oz.)
-- Gold revenue increased by 6.5% QoQ to $21.0 million (Q2 2020: $19.7 million)
-- Limited impact of COVID-19 on operations; protective and sanitary measures remain in place
-- 1 minor lost-time injury during the period
9M Highlights
-- Total gold doré production of 29,848 oz. (9M 2019: 34,509 oz.)
-- Average gold grades of 6.8 g/t (9M 2019: 8.5 g/t)
-- Gold revenue increased by 16.7% to $50.1 million (9M 2019: $42.9 million)
-- Gold recovery rate stable YoY at 94.2% (9M 2019: 95.3%)
-- On track to meet full year production guidance
Eugene Antonov, Chief Operating Officer of TSG, commented:
"As we proceed with the transition to the East Zone of our
flagship Asacha mine, we are pleased to report strong average
grades of 7.4 g/t. Test mining at Vein 25 is continuing and
contributing significantly to grade quality, as seen in the
previous quarter. We have achieved record revenues for the first
nine months of 2020 of $51.3 million, supported by the continued
strong performance of the gold price.
In addition, we are progressing with a near-mine exploration
programme to identify potential step-out targets at Asacha and have
completed an aeromagnetic survey over the licence area. We expect
to provide an update in due course.
With nearly 30,000 oz of gold produced in the first nine months
of 2020, we are firmly on track to meet our guidance for the full
year of 38,000-42,000 oz . "
Production Summary
Mining and production data for Q3 and 9M 2020 at the Asacha Gold
Mine is shown in the following tables:
Q3 2020
Metric Q3 Q2 Q-on-Q Q3 Y-on-Y
------------------
2020 2020 % Change 2019 % Change
------------------ --------- ------- ------- --------- ------- ---------
Mine development (m) 801 1,510 -47.0% 1,903 -57.9%
Ore extracted (tonnes) 41,274 43,497 -5.1% 34,245 20.5%
------------------ --------- ------- ------- --------- ------- ---------
Ore processed (tonnes) 51,385 50,316 2.1% 48,996 4.9%
Grade, gold (g/t) 7.4 7.6 -1.8% 8.3 -10.5%
Grade, silver (g/t) 10.2 19.8 -48.7% 18.4 -44.8%
Recovery, gold (%) 94.2 94.0 0.1% 95.2 -1.1%
Recovery, silver (%) 80.5 79.3 1.6% 80.7 -0.2%
Gold in dore (oz) 11,570 11,419 1.3% 12,620 -8.3%
Silver in dore (oz) 13,880 25,774 -46.1% 24,686 -43.8%
------------------ --------- ------- ------- --------- ------- ---------
Gold refined (oz) 11,130 11,114 0.1% 11,291 -1.4%
Silver refined (oz) 15,357 26,062 -41.1% 21,866 -29.8%
------------------ --------- ------- ------- --------- ------- ---------
Gold sold (oz) 11,070 11,357 -2.5% 9,417 17.6%
Silver sold (oz) 14,843 47,989 -69.1% 21,959 -32.4%
Gold price ($/oz) 1,899 1,738 9.2% 1,485 27.9%
Silver price ($/oz) 23.6 17.7 33.2% 17.0 38.3%
Gold Revenue* ($,000) 21,021 19,740 6.5% 13,984 50.3%
Silver Revenue* ($,000) 350 849 -58.8% 374 -6.5%
Total Revenue* ($,000) 21,370 20,588 3.8% 14,359 48.8%
------------------ --------- ------- ------- --------- ------- ---------
9M 2020
Metric 9M 9M Y-on-Y
------------------
2020 2019 % Change
------------------ --------- -------- -------- ---------
Mine development (m) 3,852 5,787 -33.4%
Ore extracted (tonnes) 118,779 108,101 9.9%
------------------ --------- -------- -------- ---------
Ore processed (tonnes) 145,922 130,800 11.6%
Grade, gold (g/t) 6.8 8.5 -20.1%
Grade, silver (g/t) 16.2 23.8 -31.8%
Recovery, gold (%) 94.2 95.3 -1.2%
Recovery, silver (%) 79.5 81.7 -2.6%
Gold in dore (oz) 29,848 34,509 -13.5%
Silver in dore (oz) 61,345 84,473 -27.4%
------------------ --------- -------- -------- ---------
Gold refined (oz) 28,279 34,446 -17.9%
Silver refined (oz) 63,625 85,422 -25.5%
------------------ --------- -------- -------- ---------
Gold sold (oz) 28,264 31,479 -10.2%
Silver sold (oz) 62,831 91,224 -31.1%
Gold price ($/oz) 1,772 1,364 29.9%
Silver price ($/oz) 19.1 15.6 22.4%
Gold Revenue* ($,000) 50,093 42,935 16.7%
Silver Revenue* ($,000) 1,199 1,422 -15.7%
Total Revenue* ($,000) 51,291 44,357 15.6%
------------------ --------- -------- -------- ---------
*Note: Unaudited figure
Totals may not add up due to rounding
Commentary
It has been another successful quarter for the Group, which has
recorded stable gold production and continued to progress with its
near-mine exploration programme.
During Q3, gold prices have remained very favourable with an
all-time record spot price recorded on 6 August 2020 . The average
realised gold price increased by 9.2% to $1,899/oz. which in turn
supported a 6.5% rise in revenue generated from gold sales to
approximately $21.0 million for Q3. Total revenue for the first 9
months of the financial year is approximately $51.3 million.
The Group's operational performance in Q3 was broadly in-line
with the previous quarter. Average mill feed gold grade was 7.4
g/t, which was in part supported by test ore extracted from Vein
25. The quality and consistency of Vein 25 is significantly
compensating for the lower and variable gold grades from the Main
Zone. Gold doré production was 11,570 oz. for the Period.
The Group has continued with exploration drilling near-mine and
proximal step-out targets in the vicinity of the Asacha Gold Mine.
Additionally, an aeromagnetic survey was completed over the Asacha
licence area with the objective of identifying new exploration
targets. The Company expects to report the outcomes of these
exploration activities shortly.
The Group continues to progress with a scoping study on the
Rodnikova deposit, and expects to finalise this in 2020.
As previously announced, the ongoing COVID-19 pandemic continues
to have a modest impact on the Group's operations. The Group
remains vigilant to the risks that the pandemic poses and continues
to implement strict measures to ensure the safety of our employees
and contractors, to maintain strong preparedness amid a second wave
of the virus.
Existing guidance for 2020 production estimates remains
unchanged.
TSG intends to provide a production update for Q4 2020 in
January 2021.
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.
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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.
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