24 Apr 2012 07:00
Trans-Siberian Gold plc
Asacha mining and production update
LONDON: 24 April 2012 - Trans-Siberian Gold plc ("TSG" or the "Company") (TSG.L) reports that mine development activities at Asacha in the first quarter of 2012 comprised approximately 1,020 metres, compared to planned 900 metres. Ore extraction (including ore from stoping and mine development) amounted to approximately 33,500 tonnes (96.6% of planned 34,700 mt). The ore stockpile at the end of March 2012 comprised approximately 64,500 mt.
In the first quarter of 2012, an average 9,626 mt per month was processed through the Asacha plant (89% of planned 10,835 mt). Plant throughput at the beginning of the quarter was affected by problems with the size of the ore. This was initially addressed by use of an old crusher, pending delivery of a new crushing unit which has now arrived at site. Although February 2012 throughput was 11,281 mt, power supply problems in March restricted throughput to 9,075 mt.
Plant performance was affected in the period by the low grade of ore, principally due to dilution, although there was an improvement to 9.1 g/t in March. The mining method for the major stoping zone for 2012 has now been adjusted by the introduction of short blocks stoping, leaving recoverable horizontal and vertical pillars and we expect to receive further recommendations to reduce dilution from a technical audit of mining methods which has been undertaken by a Moscow design institute.
Problems with the non-availability of one of the trucks used to bring mined ore to the surface required the blending of low grade stockpile ore with stoping ore to ensure an adequate supply to the plant. The Company is currently negotiating the acquisition of an additional truck. Additional equipment has also been purchased to boost the capacity of the site laboratory to ensure more timely ore sampling and the Company plans to purchase an additional drilling rig to improve the quality of geologic sampling in the mine. It is expected that these measures will result in improved plant performance by the end of the second quarter of 2012.
September-December 2011 | January-March 2012 | |
Ore processed (mt) | 30,308 | 28,877 |
Average gold grade (g/t) | 9.36 | 6.97 |
Gold recovery rate (%) | 95.3 | 95.1 |
Gold in dore (oz) | 7,836 | 6,689 |
Gold refined (oz) | 6,539 | 6,281 |
Silver refined (oz) | 7,189 | 6,975 |
Refined amounts in the first quarter of 2012 included 1,285 oz gold and 1,377 oz silver from 2011 shipments of gold dore to the refinery at Novosibirsk.
TSG will report Asacha's second quarter 2012 gold production in July 2012.
Ends
Contacts
TSG |
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Simon Olsen | + 44 (0) 1480 811871 |
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Seymour Pierce Ltd | +44 (0) 207 107 8000 |
Stewart Dickson / David Foreman (Corporate Finance) |
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Jeremy Stephenson (Corporate Broking) |
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