Big picture - Why invest in Vast Resources PLC
Vast Resources PLC Snapshot
VVast Resources has transitioned from an exploration company to a mining company, with a portfolio of high quality assets. In the short-term, the Company is focused on optimising mining operations at the Manaila Polymetallic Mine in Romania and exploring and developing the proximal area with the objective of establishing a multi-pit mining operation and new metallurgical processing complex. In addition, the Company intends to commission the Baita Plai Polymetallic Mine, also in Romania, once the relevant approvals are granted.
The Board sees that the Manaila and Baita Plai mines will serve as a test case for future developments in Romania, which includes pursuing the Company’s relationship with Remin SA., amongst other interesting prospects.
Additionally, the Company intends to retain its interest in certain interests in Zimbabwe, including its current controlling 25% interest in the Pickstone-Peerless Gold Mine, which was commissioned in 2015, and the proximal Giant Gold Mine Project, where recommencement of operations is now being evaluated. Vast continues to actively manage its Zimbabwean gold portfolio and intends to retain its controlling interest in the Pickstone-Peerless Gold Mine.
The Company also has a pipeline of additional assets at various stages in the development curve, from deposit discovery to previously producing mines; the Board aims to realise these assets within a sensible time frame. In the interim, the Company is committed to keeping a low-cost base and generating revenues.
Baita Plai Key Headlines:
Skarn deposit comprising several veins in calcareous sediments in eight distinct pipes
1,800,000 tonne copper-silver-zinc-lead- gold-tungsten-molybdenum ore body at 6% copper equivalent (Russian Reserves and Resources Reporting System) within the mining licence area
Unmeasured resources in other pipes and substantial exploration upside
Vast’s subsidiary, African Consolidated Resources SRL (AFCR), has been selected by Baita SA, the holder of the head licence at Baita Plai, to be granted the right to mine polymetallic ore under mining licence 999/1999
Vast is now awaiting execution of the final association licence, subject to normal due process, which includes a Ministerial Agreement, regulatory approvals from the Romania’s National Agency for Mineral Resources and final negotiations of terms and conditions of the association licence
AFCR is planning to commence operations at Baita Plai before the end of 2017
Baita Plai will be Vast Resources’ third mine
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Manaila Polymetallic Mine
100% interest in the Manaila Polymetallic Mine, northern Romania
Production commenced 14 August 2015 – four weeks after Vast assumed operating control
Currently producing a copper concentrate, zinc concentrate and gold and silver concentrate
Total JORC Compliant Mineral Resources of:
Open Pit: (Indicated & Inferred) of 2.6Mt at a grade of 1.0% copper (‘Cu’), 0.4% lead (‘Pb’) and 0.9% zinc (‘Zn’) at a 0.25% Cu cut-off
Underground: (Indicated & Inferred) of 310,000t at a grade of 1.7% Cu, 0.4% Pb and 0.5% Zn at a 1.00% Cu cut-off
Exploration Target defined for:
Open pit: 4.45Mt-11.88Mt with grades up to 2.3% Cu, 0.5% Pb and 1.1% Zn
Underground: 5.92Mt-15.78Mt with grades up to 2.6% Cu, 2.0% Pb and 2.6% Zn
Phase 1, open pit, has a projected life of mine of three years at a mining rate of 10,000 tonnes per month, with significant further upside
Phase 2 and Phase 3 operations are currently planned to be underground mines – further detailed work may reveal that an open pit mine is feasible on portions of the Phase 2 or Phase 3 ore body
Vast Resources owns a 100% interest in the Sinarom Mining Group SRL, which owns the Manaila Polymetallic Mine in Suceava County, northern Romania where economic mineralisation is comprised of copper, lead, zinc, gold and silver. The mine is located 26km from the town of Iacobeni, where the project’s current metallurgical complex is located. Infrastructure at the complex consists of crushing, milling and flotation circuits.
Manaila historically produced a 13% copper concentrate and a 3g/t gold concentrate, with excessive zinc content that resulted in penalties and therefore low prices per tonne of concentrate. Since taking operational control, Vast has successfully improved the quality of the copper concentrate in addition to commissioning a separate zinc concentrate line and a Knelson concentrator to produce a gold and silver concentrate.
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Pickstone-Peerless Gold Mine
Vast Resources has a 25% indirect interest in the Pickstone-Peerless Gold Mine, and mining claims surrounding the former Giant Gold Mine, in Zimbabwe, over both of which it retains Board control.
The 584ha Pickstone-Peerless Gold Mine is located 100km south-west of Harare and has historically produced over 400,000oz gold. Pickstone-Peerless has a current JORC Resource of 62 million tonnes grading 1.8 g/t, containing 3.56 million ounces of gold. Included in this Resource is an open-pittable Ore Reserve of 16.6Mt grading at 1.9 g/t for 1.02 million ounces of gold.
Full mine infrastructure was commissioned in H1 2015 with production from the oxide cap commencing in September 2015. Gold production is close to 20,000 troy oz per annum with a cash cost per oz circa US$700.
Work is underway to construct a sulphide processing plant to treat the open cast sulphides, with first sulphide production scheduled for Q3 2017 to build up mining and processing rates to 35,000 tonnes per month at an average grade of 4g/t gold once the oxide resource is fully depleted. Gold production is expected to increase to approximately 50,000oz per annum.
Aside from Pickstone-Peerless, evaluation of the potential to redevelop nearby proximal gold interests continues, including the Giant Gold Mine, which has a JORC-compliant inferred resource of 500,00oz gold. Historically, Giant was a significant producer and like Pickstone-Peerless it is believed that a world-class resource could be delineated at this mine.
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Brian is a Chartered Accountant and former Senior Partner of Grant Thornton UK LLP, London; he formed Grant Thornton's Capital Markets Team which floated over 100 companies on AIM under his chairmanship. In December 2004, he retired from Grant Thornton UK LLP to concentrate on bringing new companies to the market. He specialises in natural resources companies, primarily in Africa, and was formerly chairman of Metal Bulletin plc, African Platinum plc and Chromex Mining plc as well as currently being chairman of several junior mining companies.
Chief Executive Officer (Group)
Roy is a Chartered Accountant and past President of the Chamber of Mines in Zimbabwe. His track record in Zimbabwe includes Cluff Resources, where he managed the Freda Rebecca Mine, the largest gold mine in the country, as well as a number of smaller mines. He also oversaw the development of the Ngezi Opencast Platinum Mine into production, the re-commission of the Selous Metallurgical Complex in 2011, and created a company with a platinum-group metals resource base in excess of 300 million ounces whilst at Zimplats, which was acquired by Implats, the world’s second largest producer of PGMs. As Chairman of Lesego Platinum, the company has completed a bankable feasibility study on a 39Moz PGM mine on the eastern limb of the Bushveld Complex. Lesego is now part of the Village Main Reef group where he was the former chairman. He remains a non-executive director of public and private mining companies.
Roy is a Chartered Accountant with 43 years of high level and broad spectrum professional and business experience. He has been the founder of a London banking group, served on bank boards and had a position as a major shareholder of a substantial London commodity house. He is also the founder of Legend Golf and Safari Resort in South Africa. He has substantial investment in the Romanian property sector.
Eric is a Chartered Accountant with many years’ experience in the mining and industrial landscape. Eric is the former CEO of Anglo American Ferrous Metals Divisions, and has served on numerous major listed and unlisted company boards, mainly associated with Anglo American. He is currently a member of the Bidvest Group and Aveng boards which are large South African listed companies with extensive international operations
Chief Operating Officer
Craig began his career with Gold Fields of SA in 1988 as a bursary student in Economic Geology where he worked on various gold, platinum, coal and exploration projects. At Harmony Gold he managed the mineral resources on various operations and was involved in due diligence on acquisitions. He joined Simmer and Jack with a focus on shallow hydro-thermal gold deposits in the Eastern Transvaal and later moved into a corporate role managing and auditing the mineral resource process across all gold and uranium operations. Craig spent 3 years in a Principal Consultant role for Ravensgate based in Perth, Australia, where he conducted numerous resource estimations, valuations and technical reports mainly in gold, uranium, copper and iron ore. Craig joined Vast Resources as a consultant in 2013 and became Chief Operating Officer in March 2017. During his tenure with Vast Resources, he has been heavily involved in both Zimbabwe and Romania.
Chief Financial Officer
Carl has held senior financial, managerial and board level posts for over 25 years in small to mid-sized companies internationally, including AIM quoted resources entities Island Oil and Gas Plc and Fastnet Oil and Gas Plc. He has significant transactional experience, including fund raisings, corporate restructuring, financial controls and planning, economic analysis, IFRS reporting, and strategic planning. He is an associate member of the UK's Institute of Chartered Management Accountants and also holds a degree in Economics and an M.B.A.
As of 3 November 2017
Name % Amount
Roy Tucker 0.67 31,607,029
Roy Pitchford** Nil Nil
Brian Moritz Nil Nil
Eric Diack Nil Nil
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