16th Jun 2020 11:47
(Alliance News) - Trans-Siberian Gold PLC on Tuesday said the most recent mineral resource estimate for its Asacha gold mine in Russia resulted in "a significant resource upgrade", including a 44% increase in contained gold.
Shares in Trans-Siberian were up 9.6% at 91.50 pence in London in late morning trading.
The total mineral resource estimate - measured, indicated, and inferred - rose to 452,000 ounces of gold and 1.2 million ounces of silver as at April 30 and there was a 44% overall rise in contained gold.
Measured and indicated resources, as determined by SRK Consulting Russia Ltd, tripled to 339,000 ounces at a higher grade of 16 grams per tonne of ore. Moreover, 75% of mineral resources at Asacha are now in the measured and indicated category.
Trans-Siberian explained that it was Vein 25 North, newly discovered within the East Zone of Asacha, that accounted for the substantial mineral resource estimate increase.
Given these increases, the expected operational life of the mine has been extended to around 2027 from 2024.
The company's entire mineral resource inventory has also increased to more than 1.5 million ounces when including Trans-Siberian's Rodnikova mine.
As a consequence of "excellent drilling results from current campaign", Trans-Siberian is expecting to conduct an extended drilling programme.
Chief Executive Officer Alexander Dorogov said: "This is a significant resource upgrade which comes as a direct result of our successful drilling campaign. It is pleasing to substantially increase the size of the overall mineral resource and also move our resources into higher confidence categories. Through our high impact drilling we have notably increased the scale of the high grade East Zone which we are on track to bring into production this year."
By Anna Farley; [email protected]
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