Trans-Siberian Gold plc (TSG.LN) announces its production update at the Asacha Gold Mine for the three months to 31 December 2017 ("Q4") and for the 12 months ended 31 December 2017 ("FY17").
- Record quarterly gold production of 12,244oz
- 33.3% increase in gold production (Q4 2016: 9,188oz)
- 16.2% increase in grade: 8.6g/t (Q4 2016: 7.4g/t)
- 15.1% increase in ore extracted: 55,992 tonnes (Q4 2016: 48,658 tonnes)
- Two (minor) lost time injuries in Q4
- Total gold production slightly exceeded FY2017 production guidance: 36,714oz
- Total gold produced stable Y-on-Y (FY16: 36,225oz)
- Significant Y-on-Y increases in mine development and ore processed
- Estimated gold sales amounted to $42.7million
- Favourable estimated average selling price of $1,262/oz vs. average gold price of $1,266/oz1 for 2017
- Three (minor) lost time injuries in FY17. Notwithstanding TSG maintains its strong track record of operating one of the safest gold mining operations among its peers.
1 Source: World Gold Council
Dmitry Khilov, Chief Executive Officer of TSG, commented:
"Having faced a few operational challenges during the year I am pleased that we have slightly exceeded our production guidance. We are continuing to work hard at the Asacha Gold Mine to efficiently mine this high grade ore body. We look forward into 2018 with confidence to continue to deliver stable gold production at low cost levels".
Mining and production data for Q4 and FY17 at the Asacha Gold Mine is shown in the following table:
|Mine development (m)||1,656||1,499||10.4%||1,498||10.5%||4,926||5,780||17.3%|
|Ore extracted, tonnes||55,992||48,663||15.1%||48,658||15.1%||179,258||198,349||10.6%|
|Ore processed, tonnes||46,752||47,504||-1.6%||40,765||14.7%||162,892||184,433||13.2%|
|Grade, gold, g/t||8.6||7.4||16.5%||7.4||17.0%||7.2||6.6||-9.1%|
|Grade, silver, g/t||17.6||13.3||32.3%||15.2||15.6%||12.7||12.3||-3.5%|
|Recovery, gold, %||94.7||94.5||0.2%||95.2||-0.5%||95.2||94.4||-0.8%|
|Recovery, silver, %||81.2||78.6||3.3%||83.9||-3.2%||81.7||78.7||-3.7%|
|Gold in dore (oz)||12,244||10,573||15.8%||9,188||33.3%||36,225||36,714||1.3%|
|Silver in dore (oz)||1,291||15,703||35.6%||16,666||27.8%||54,595||57,072||4.5%|
|Gold refined (oz)||9,858||9,006||9.5%||8,356||18.0%||35,366||33,872||-4.2%|
|Silver refined (oz)||16,315||14,219||14.7%||14,262||14.4%||51,428||52,745.72||2.6%|
Refined gold production for the year was slightly down as adverse weather conditions at the mine site prevented most of the gold produced in December being sent to the refinery. It is expected that the metal will be refined and sold in January as soon as the weather conditions become more favourable.
TSG expects to report Asacha's first quarter 2018 gold production in April 2018.
Potential Environmental Claim
The Company's wholly owned subsidiary, ZAO Trevozhnoye Zarevo ("TZ") has 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. Having taken appropriate advice, the management believe that they have a strong legal position and as such, dispute the claim made by RPN. The claim could potentially amount to approximately $2.5m. Further announcements will be made as appropriate.
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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.
|g/t||grammes per tonne|
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