Asacha mining and production update

Trans-Siberian Gold plc

Asacha mining and production update

LONDON: 24 April 2014 - Trans-Siberian Gold plc ("TSG" or the "Company") (TSG.L) reports that mine development activities at Asacha in the first quarter of 2014 comprised approximately 867 metres, while ore extraction (including ore from stoping and mine development) amounted to 48,682 metric tonnes, the second highest quarterly total to date. Plant throughput averaged 11,788 tonnes per month (94.3% of planned 12,500 tonnes), reflecting a maintenance and repair period during February which reduced that month's throughput to 7,691 tonnes. Average dilution was 54.6% in the first quarter (2013 first quarter: 64.9%). Ore dilution in March 2014 was 47.2%, the best monthly figure in 2013/14 and the Company remains cautiously optimistic that dilution can be reduced further through the continued implementation of the previously reported adjustments in mining methods.  

Mining and production data at Asacha in the first quarter of 2014 is shown in the following table.

TSG regrets to report a fatal accident in an agitator in the Asacha plant on 22 February 2014. A welder, who had been carrying out repairs in another part of the plant, entered the agitator with the assistance of a mechanic who was undertaking planned external maintenance on that equipment. The entry was unauthorised and neither employee had donned the mandatory breathing protection equipment, both actions being strictly prohibited by the plant safety instructions. The two employees were overcome by cyanide fumes and although both were quickly brought out of the agitator and resuscitation techniques applied, including cyanide antidote treatment, the welder could not be revived. The mechanic survived and was transported by emergency helicopter to a hospital in Petropavlovsk-Kamchatskiy. The case is now being investigated in detail by the authorities. 

TSG intends to report Asacha's second quarter 2014 production in July 2014.

Ends