Vast Resources PLC (LON:VAST) shares moved higher as it announced the maiden JORC-compliant mineral resource estimate for its Faneata tailings storage facility.
Faneata consists of more than 40 years' material from the proximal Baita Plai polymetallic mine in Romania.
The internally generated estimate puts the total mineral resource at 3mln tonnes, of which 2.4mln tonnes is attributable to Vast through its 80% stake in the facility.
WATCH: Faneata has "great potential", says Vast boss ...
Measured tonnes clocked in at 2.40mln; indicated at 532,460; and inferred at 85,477.
Grades were 0.05 grams per tonne (g/t) gold; 8.65 g/t silver; 0.092% copper; 0.101% lead; 0.171% zinc; 0.013% bismuth; 0.006% molybdenum; and 0.017% tungsten.
The company intends to use its Baita Plai processing facility 6.5km away to process the tailings.
"Our Faneata tailings storage facility, which constitutes a separate licence to the proximal Baita Plai mine, is shaping up to have the potential to be a revenue generator in its own right. Today's publication of a JORC-compliant resource estimate is another step up the rung towards achieving low-cost production at Faneata as we simultaneously advance negotiations to secure the right to mine at Baita Plai,” said Roy Pitchford, chief executive of Vast.
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"With an anticipated total processing recovery of 36%, Faneata has the potential to deliver a 44% margin over a period of 16-20 months, before capital expenditure, highlighting the ability for this project to materially enhance financial performance in the near-term, supporting Vast's wider expansion plans across Romania,” Pitchford continued.
“Importantly, reprocessing the tailings at Faneata will also have a positive impact from an environmental standpoint; a central pillar of our Corporate Social Responsibility programme in Romania,” he added,
“As you would expect in tailings, the grades are fairly low, compared to your resource when you mine it in situ,” Pitchford told Proactive Investors.
Pitchford said the grades could be improved through the concentration process.
“Because the material is on surface, it’s already been milled, the cost of processing it is a lot lower than processing virgin ore,” the chief executive explained.
“We believe it has great potential to be a money spinner for us, and possibly we could use that to get into production whilst we are looking at the underground operations and refurbishing them and getting the mining up to speed, but that’s just a thought,” Pitchford said.
Shares in Vast were down 2% at 0.554p in late trading on Wednesday.
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