16th Jul 2012 07:00
Trans-Siberian Gold plc
Asacha mining and production update
US$781,000 Shareholder loans
LONDON: 16 July 2012 - Trans-Siberian Gold plc ("TSG" or the "Company") (TSG.L) reports that mine development activities at Asacha in the second quarter of 2012 comprised approximately 1,046 metres, while ore extraction (including ore from stoping and mine development) amounted to 30,090 mt. The ore stockpile at the end of June 2012 comprised approximately 63,400 mt.
In the same period, an average 10,988 mt per month was processed through the Asacha plant. Plant throughput reached 12,394 mt in June 2012 (99.1% of the production level envisaged in the plant's design documentation).
TSG reported on 22 June 2012 that plant performance in April and May 2012 had continued to be affected by the low grade of ore, principally due to dilution. In June 2012, measures taken in the mine to improve the quality of ore delivered to the plant resulted in a 30% increase in gold grade to 7.40 g/t.
The additional drilling rig purchased to improve the quality of geologic sampling in the mine has now been delivered.
Mining and production at Asacha in the first half of 2012 is shown in the following table.
| 1st quarter 2012 | April 2012 |
May 2012 |
June 2012 | 2nd quarter 2012 | Year to date |
Mine development (m) | 1,023 | 357 | 317 | 373 | 1,047 | 2,070 |
Ore extracted (mt) | 33,525 | 10,927 | 9,153 | 10,010 | 30,090 | 63,615 |
Ore processed (mt) | 28,877 | 8,645 | 11,924 | 12,394 | 32,963 | 61,840 |
Average gold grade (g/t) | 7.03 | 5.78 | 5.61 | 7.40 | 6.33 | 6.66 |
Gold recovery rate (%) | 95.14 | 94.78 | 95.30 | 96.36 | 95.48 | 95.39 |
Gold in dore (oz) | 6,689 | 1,606 | 2,026 | 2,830 | 6,462 | 13,151 |
Gold refined (oz) | 6,281 | 2,549 | 1,369 | 2,509 | 6,427 | 12,708 |
Silver refined (oz) | 6,975 | 2,735 | 2,147 | 3,515 | 8,397 | 15,372 |
TSG will report Asacha's third quarter 2012 gold production in October 2012.
TSG's major shareholders UFG Asset Management (UFG) and AngloGold Ashanti (AGA) have agreed to provide the Company with short term loan finance, of US$500,000 and US$281,000 respectively, on commercial terms. Each loan is repayable 90 days after drawdown. All or part of the loans may be repaid by TSG without penalty at any time before the scheduled repayment. The loan funds will be used to provide the Company with short-term working capital.
While UFG and AGA are substantial shareholders in the Company, the loans are not disclosable related party transactions (as defined under the AIM Rules). However, the Company's Board (except for Florian Fenner and Charles Ryan who are connected to UFG) consider the terms of the UFG loan to be fair and reasonable insofar as the shareholders of TSG are concerned. Similarly, the Board consider the terms of the AGA loan to be fair and reasonable insofar as the shareholders of TSG are concerned.
Ends
Contacts
TSG |
|
Simon Olsen | + 44 (0) 1480 811871 + 44 (0) 7770 484965 |
|
|
Seymour Pierce Ltd | +44 (0) 207 107 8000 |
Stewart Dickson / David Foreman (Corporate Finance) |
|
Jeremy Stephenson (Corporate Broking) |
|
Related Shares:
TSG.L