Big Picture – A Deep Dive Examination of 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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Chief Executive Officer
Andrew has been involved with Vast since 2013 and has spearheaded the development of the Company’s Romanian portfolio. Beginning his career in the early 1990s as a bulk iron ore and steel trader in Romania, he then went on to develop his career in the property and earthmoving sector in Australia before returning to Romania in 2003, initially to focus on the development of properties for the Romanian Ministry of Defence and latterly, private sector developments. Throughout his 26 year career, Andrew has developed extensive investor and public relations experience and has advised the Romanian government on wide ranging high-level topics including social housing and economic policy. He has built a strong network of contacts across the mining and metals industries and Europe and southern Africa, in addition to policy makers and governmental authorities.
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.
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.
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.
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 Financial Officer
Paul has 25 years’ experience working in the commodity and financial services industries. He has held a variety of senior international finance and operational roles in trading, processing, and financial businesses in the US, Europe, and Asia, most recently with Bunge, the US agribusiness and food company, as Global CFO & Controller of Bunge Financial Services, a Bunge group business unit providing financing and risk management solutions, and as Treasury and Trading Product Line Controller. Prior to joining Bunge, Paul held various senior roles within Cargill's energy business and internal audit, PepsiCo Snacks and KPMG.
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
Nominated and Financial Adviser
Strand Hanson Limited
26 Mount Row
London W1K 3SQ
Brandon Hill Capital
1 Tudor St
London EC4Y 0AH
Peterhouse Corporate Finance Ltd
New Liverpool House
15 Eldon St
London EC2M 7LD
Daniel Stewart & Company plc
36 Old Jewry
London EC2R 8DD
Legal Advisers to the Company
Duane Morris LLP
10 Chiswell Street
London EC1Y 4UQ
Charles Russell LLP
5 Fleet Place
London EC4M 7RD
Auditors to the Company and Reporting Accountants
Crowe Clark Whitehill
St. Bride’s House,
10 Salisbury Square
London EC4Y 8EH
Registrar Capita Registrars
34 Beckenham Road
Beckenham Kent BR3 4TU
Standard Bank Isle of Man Limited
Standard Bank House
1 Circular Road Douglas
Isle of Man 1M1 1SB
Financial Public Relations & Investor Relations
St Brides Partners Limited
3 St Michael’s Alley
London EC3V 9DS