Trans-Siberian Gold plc (TSG.LN) announces its production update at the Asacha Gold Mine for the three months ended 31 March 2019 ("Q1" or the "Period").
- 52% increase YoY in gold production to 12,345 oz (Q1 2018: 8,100oz), driven by higher grades and better recoveries
- On track to meet full year production guidance
- 105% increase YoY in total silver production to 32,748 oz (Q1 2018: 15,662oz)
- 45% increase YoY in average quarterly gold grade of 8.8 g/t (Q1 2018: 6.1g/t)
- 31% increase YoY in silver revenue to $563,000 (Q1 2018: $431,000)
- 7% increase QoQ in gold and silver realised prices at $1,312/oz and $15.5/oz respectively (Q4 2018: $1,228 and $14.5)
- Two lost-time injuries during the quarter
Alexander Dorogov, Chief Executive Officer of TSG, commented:
"Following record-breaking production in Q4 2018, I am pleased to report that TSG has enjoyed a solid start to 2019. We continue to focus on optimising our processing efficiency, and reaffirm our 2019 production target of 40,000 - 44,000oz of gold."
Mining and production data for Q1 2019 at the Asacha Gold Mine is shown in the following table:
|Mine development (m)||2,020||1,769||14.2%||1,549||30.4%|
|Ore extracted (tonnes)||34,839||41,006||-15.0%||47,081||-26.0%|
|Ore processed (tonnes)||44,746||47,530||-5.9%||44,395||0.8%|
|Grade, gold (g/t)||8.8||9.1||-3.7%||6.1||44.6%|
|Grade, silver (g/t)||27.7||28.6||-3.3%||15.4||80.0%|
|Recovery, gold (%)||95.4||95.2||0.2%||94.4||1.0%|
|Recovery, silver (%)||81.0||76.1||6.5%||75.9||6.7%|
|Gold in dore (oz)||12,345||13,069||-5.5%||8,100||52.4%|
|Silver in dore (oz)||32,158||32,748||-1.8%||15,662||105.3%|
|Gold refined (oz)||11,857||14,541||-18.5%||11,343||4.5%|
|Silver refined (oz)||30,874||35,186||-12.3%||21,127||46.1%|
|Gold sold (oz)||11,949||16,399||-27.1%||11,311||5.6%|
|Silver sold (oz)||36,329||29,333||23.9%||25,345||43.3%|
|Gold price ($/oz)||1,312||1,228||6.8%||1,343||-2.3%|
|Silver price ($/oz)||15.5||14.5||6.9%||17.0||-8.9%|
|Gold Revenue ($,000)*||15,674||20,135||-22.2%||15,191||3.2%|
|Silver Revenue ($000)*||563||426||32.3%||431||30.6%|
|Total Revenue ($,000)*||16,238||20,560||-21.0%||15,622||3.9%|
*Note: Unaudited figure
Totals may not add up due to rounding
During Q1, a total of 11,949 oz of gold was sold at an average price of $1,312/oz. Gold recoveries during the quarter remained stable at 95.4%. Silver recoveries increased by 6.5% to 81%.
In line with our previous guidance, the construction of the underground de-watering pumping facilities is on track for completion for May 2019.
TSG has commenced underground exploration drilling works, and additional rig and surface exploration drilling is due to start in June 2019.
In February 2019 the Company changed refineries and now refines its dore at the Novosibirsk refinery (instead of the Krasnoyarsk refinery). This change has resulted in a substantial decrease in lab variances as compared to under the previous refining contract.
TSG expects to provide a production update for Q2 2019 in July 2019.
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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. 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.
g/t grammes per tonne
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