Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold producer in Russia, is pleased to announce that the Federal Agency for Subsoil Use ("Rosnedra") has issued a licence to ZAO Trevozhnoye Zarevo ("TZ"), TSG's wholly owned subsidiary for the development and exploration of the Rodnikova deposit, one of the largest gold fields in South Kamchatka, for a tenure of 20 years.

 

Highlights:

  • 20 year licence awarded
  • Located in close proximity (50km) to the Company's operating Asacha Gold Mine
  • GKZ Russian classified resource of 1Moz gold at 5.3 g/t and 8.3Moz silver at 44.6g/t
  • High-grade gold-silver deposit is one of the largest gold fields in South Kamchatka

Rodnikova is a high-grade gold and silver epithermal deposit located in close proximity to the Company's operating Asacha Gold Mine. In accordance with the Mineral Resources report approved by the Russian State Commission for Reserves ("GKZ"), the Rodnikova deposit is estimated to contain 1Moz of gold with an average grade of 5.3g/t.

The Company is currently devising its exploration field work programme to assess the full potential of the Rodnikova deposit and options to potentially initiate early stage production.

Taking into consideration the fact that the Asacha and Rodnikova deposits are believed to have similar geology, mineralogy and metallurgy, the Company will determine the suitability of utilising the existing processing techniques and plant at Asacha for the ore at Rodnikova.

Alexander Dorogov, Chief Executive Officer of TSG, commented:

"I am pleased to announce that following the successful bid for the Rodnikova licence, TSG is no longer a single asset miner. We believe that Rodnikova is a complementary asset which perfectly fits the TSG portfolio of epithermal deposits as well as our strategy of becoming a premier mid-tier gold producer and developer.

We see potential geographic and operational synergies, as Rodnikova is located at the heart of our operations in South Kamchatka, just 50km from the Asacha Gold Mine. TSG is ideally placed to develop the asset, as Rodnikova and Asacha have similar types of mineralisation and TSG's highly experienced management team has a deep understanding of the region and significant expertise of successfully bringing epithermal deposits into production."

Rodnikova Deposit

Geography

Situated in Yelizovo District of the Kamchatka region, the Rodnikova mineral deposit is located approximately 50km from TSG's operational Asacha Gold Mine and approximately 120km from Petropavlovsk. The project benefits from good infrastructure with sealed road access to within 5km of the site and is situated in close proximity to the Mutnovskaya Geothermal Power Station. The Mutnovskaya plant is believed to be the largest geothermal power plant in Russia and is operated by Geotherm JSC, a subsidiary of the RusHydro Group (MICEX:MOEX; LSE:HYDR).

Geology

The Kamchatka peninsula is well known for its abundant hydrothermal activity and rich underground mineralisation. The licence area comprises the Rodnikova deposit (south-eastern part), Carbonate (north-eastern part) and Vilyucha (western flank) ore occurrences. The Rodnikova deposit consists of low-sulfidation quartz adularia veins in a host rock of diorite.

Project History

Rodnikova was discovered by Soviet geologists in 1977 when initial mapping and evaluation works were conducted, which lasted until 1992. Following a tender held in 1994, the Kamchatka Department of the Geological Committee of the Russian Ministry for Natural Resources issued a licence to TZ. In 2011 a report on Rodnikova's Mineral Reserves & Resources was published and approved by the Kamchatka authorities. In September 2014, the Company announced that the licence had expired.

Resource Statement

In accordance with the Mineral Resources report, approved by the Russian State Commission for Reserves ("GKZ") as at 31 December 2013, Rodnikova deposit is estimated to contain 933koz of C1 & C2 reserves of gold with an average grade of 5.3g/t.

Resource Category

Resource Area

Au

(oz)

Au Grade

(g/t)

Ag

(oz)

Ag Grade

(g/t)

Cut off

(g/t)

C1 + C2

Rodnikova

818,000

4.9

7,159,000

42.8

2

C2

Vilyucha

175,000

9.3

1,144,000

60.9

2

C1 + C2

Total

993,000

5.3

8,303,000

44.6

2

ENDS

Contacts:

TSG
Stewart Dickson
+44 (0) 7799 69419

Arden Partners plc

Paul Shackleton / Alex Penney (Corporate Finance)
Tim Dainton / Fraser Marshall (Equity Sales)
+44 (0) 207 894 7000

Hudson Sandler (Financial PR)
Charlie Jack / Katerina Parker
+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.

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.

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.

Qualified Person review statement

Tatyana Babina has reviewed the technical information contained within this announcement in her capacity as a Qualified Person, as required under the AIM Rules for Companies.  Tatyana Babina is an employee of the Company and is an Expert member of good standing with the Russian Society of Subsoil Use Experts (OERN).

Technical Glossary

"C1" - Russian reserve category partly consistent with the Measured category and partly with the Indicated resource category of the JORC code.

"C2" - Russian reserve category predominately consistent with the Inferred category and partly with the Indicated resource category of the JORC code.

"cut-off grade" - the lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. May be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification.

"g/t" - grams per tonne

"GKZ" - Gosudarstvenaya Komisiya po Zapasam (State Commission on Mineral Reserves)

"Indicated mineral resource" - a part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed

"Inferred mineral resource" - a part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate   techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.

"JORC Code" - the code for reporting of the Australasian Joint Ore Reserves Committee, which is sponsored by the Australian mining industry and its professional organisations. The code is widely accepted as a standard for professional reporting purposes for reporting of mineral resources and ore reserves.

"M" - million

"Measured mineral resource" - a part of a Mineral Resource for which quantity, grade (or quality), densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and evaluation of the economic viability of the deposit.

"Mineral Resource" - a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

"Mineralisation" - the process or processes by which a mineral is introduced into a rock, resulting in a valuable or potentially valuable deposit.  It is a general term, incorporating various types; e.g., fissure filling, impregnation, and replacement.

"oz" - ounce

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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