11th May 2016 15:39
LONDON (Alliance News) - Vast Resources PLC, the AIM-listed mining company with operations in Romania and Zimbabwe, on Wednesday reported a quarterly increase in iron ore milled and gold production.
Later Wednesday the company said its 90%-owned Romanian subsidiary SC African Consolidated Resources SRL was granted a prospecting licence over the Faneata tailings dam, located 7 kilometres from the Baita Plai Polymetallic Mine in Western Romania. It will begin a confirmatory drill programme at the beginning of the third quarter of 2016.
The company reported a 17% increase in ore milled, to 54,237 tonnes, and 8% increase in gold production, to 2,808 ounces, in the three months ended March 31 compared to the previous quarter at the Pickstone-Peerless gold mine in Zimbabwe.
Chief Executive Roy Pitchford said the Pickstone-Peerless gold mine was the "standout front-runner" during the quarter.
"The mining currently underway represents only the first phase of production at PPGM, and we are busy planning and laying the foundations for the subsequent phases of development to ensure PPGM generates long-term sustainable cash flow for the group," Pitchford said.
At the Manaila polymetallic mine in Romania, Vast Resources said it focused on enhancing future production capacity, including mill relining and refurbishment, a flotation circuit upgrade, and associated mine preparation.
It undertook a production ramp-up, targeting up to 20,000 tonnes per month by commissioning the second mill and float line which occurred in April 2016.
A separate lead/zinc line is almost complete and commissioning is scheduled for the second quarter.
"Our dual focus this quarter has been to upgrade operations at MPM to increase capacity and enhance operational and financial performance in subsequent quarters. Whilst this process has been successful, with mill relining and refurbishment, flotation circuit upgrade and associated mine preparation completed, this work, together with the extreme weather conditions experienced in January and February, has resulted in lower production this quarter," Pitchford said.
"However the Vast team is confident that the work completed during the last few months, together with the separate lead/zinc line which should be completed in the coming weeks, stands MPM in a strong position to deliver increased mining capacity, increased concentrate production and enhanced financial performance over the next quarter and in subsequent periods," the CEO said.
Shares in Vast, which owns 50% of Pickstone-Peerless and 50.1% of Manaila Polymetallic, were up 20% at 0.371 pence Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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