Vast Resources PLC (LON:VAST) expects to process the first sulphide ore at a new processing plant at Pickstone-Peerless in Zimbabwe on schedule in the third quarter.
The upgrade will result in a 100% increase in installed primary milling capacity to 40,000 tonnes per month at the gold mine, while grade is predicted to rise from 2 g/t to between 3 g/t and 4 g/t over nine months.
As well as ore from the mine, the new plant will handle material dug up by local artisanal miners on a custom mill basis.
WATCH: Vast Resources boss on Pickstone-Peerless ...
Roy Pitchford, Vast’s chief executive, said: “By utilising cash flow generated from production from the oxide cap zone of the mine, we are funding the expansion of the mine with the objective of doubling throughput and increasing the grade of ore by between 50%-100% to up to 4.00g/t Au.
“Obviously, this would provide enormous upside and further enhance the performance of Pickstone-Peerless, which produced an average of over 4,150oz Au per quarter over the past 12 months from the oxide cap alone.
"In addition, we have also been working with the artisanal miners operating on a tribute basis from the claims adjacent to Pickstone-Peerless.
“We see this as a natural and mutually beneficial relationship as the artisanal miners save on transport costs and gain immediate access to the free gold, whilst all of the residual gold is processed through Pickstone-Peerless' CIP facilities."
Shares rose 7% to 0.55p.