Vast Resources PLC (LON:VAST) has highlighted “another record quarter” for the group’s Pickstone-Peerless gold mine in Zimbabwe, where overall gold production and sales increased by 4% and 14% respectively.
Pickstone-Peerless produced 6,326 ounces of gold in the quarter, up from 6,057 ounces in the preceding quarter. Gold sales rose by 14% to 6,549 ounces, compared to 5,729 ounces.
The milled gold grade also improved, up 13% to 2.78 grams per tonne from 2.46 grams per tonne in the preceding three months.
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Overall ore tonnes, meanwhile, reduced to 65,342 tonnes from 90,874 tonnes in the fourth quarter of 2017, and, there was a 6% reduction in ore milled down to 80,639 tonnes from 86,097 tonnes.
This was the result of a higher level of pre-stripping activity – to prepare for higher ore tonnages in future months – and the impact of heavy rainfall during February. Some mechanical problems in the plant also occurred during the period, though the company said these have been remedied.
Prepping Manaila for growth
Elsewhere, the company highlighted that activity at the Manaila mine, in Romania, has been focussed on pre-stripping and plant maintenance, with the aim of ensuring sustainable supply to satisfy a recently agreed offtake deal.
This was reflected in the mine’s performance metrics – with tonnes mined and milled decreasing significantly for the quarter whilst the stripping ratio shot up by 86%. Copper and zinc production volumes were accordingly lower in the three months.
Nonetheless, in the latter part of the quarter (15 days up to March 31) the milled copper grade increased substantially, to 0.84% from 0.56% whilst the copper concentrate grade rose to 19.2%.
“Our focus during recent months has been to ready ourselves for our next phase of growth - and I see our last couple of quarters as the deep breath before we plunge into unchartered waters,” said Andrew Prelea, Vast chief executive.
"This process has been most noticeable in Romania, where our efforts were redoubled to prepare the Manaila Mine to deliver a sustainable, long-term, high quality source of copper and zinc concentrate to satisfy our off-take agreement with Mercuria.
Improved deliveries from Manaila
“These efforts have certainly not been wasted as towards the end of the period, in the lead up to initial deliveries to Mercuria, Manaila has been delivering an excellent performance and I am confident that this will continue.
“Indeed, post-period end we achieved our largest delivery in terms of volume and monetary value and I believe we are set to meet, and potentially exceed our target for May deliveries.”
Prelea added: “The next phase of growth, which we mentioned earlier, is not limited to Manaila and Pickstone-Peerless; we have an expansive strategy for Vast and both Romania and Zimbabwe, we are actively looking at complementary assets and non-dilutive financing structures with which to build Vast into a mid-tier mining company.”
Notably, Prelea highlighted the recent acquisition of a 23.75% indirect stake in the Eureka gold mine which is presently on care and maintenance but is being targeted for recommissioning “in as short timeframe as possible”.