Vast Resources PLC (LON:VAST) has reported a solid third quarter for its Pickstone-Peerless gold mine in Zimbabwe with tonnes mined and milled beating the record achieved in the last three-month period.
The mine delivered a 3% increase in tonnes of ore mined to 104,156 in the three months to September 30 from 100,855 in the second quarter.
Tonnes of ore milled rose 4% to 102,416 from 98,899 in the last quarter.
Gold production dipped 8% to 6,397 ounces (oz) from 6,955oz, correlating with a 7% reduction in the milled gold grade to 2.32 grams per tonne (g/t), but this is in line with the company’s strategy to ensure that none of the oxide ore is left behind in the pit.
READ: Vast starts drilling at Zagra in Romania
Processing the oxide and sulphide ore together is less efficient and recoveries are sub-optimal, the group explained. The company will be able to being processing higher-grade sulphide ore once the oxides are depleted.
Vast sold 6,519oz of gold from the mine in the quarter, down 8% from 7,087oz in the second quarter.
Chief executive Andrew Prelea said the work underway at Pickstone-Peerless to expose the sulphide ore will provide for a “more consistent gold head grade, which in turn will also augment the already very impressive gold production record achieved during 2018”.
Vast works to resolve issues at Manaila mine
At the Manaila polymetallic mine in Romania, copper and zinc production during the quarter was affected by high levels of pre-stripping with available equipment prioritised into waste stripping activity.
The company said this process has been dominate through most of the year and is likely to continue at the current open pit operations for the remainder of the calendar year as it looks to ensure a sustainable production from the enlarged Manaila complex. The complex includes the new pits in the Carlibaba extension.
The issues at Manaila were compounded by poor weather and pump failures, which has now been rectified.
Tonnes of ore mined at the project decreased 8% to 23,955 dry tonnes from 26,022 dry tonnes in the prior quarter and tonnes of ore milled fell 15% to 23,448 dry tonnes from 27,497 dry tonnes.
There was a 42% increase in the stripping ratio of waste versus ore to 17 x, compared to 11.9 x.
Production of copper concentrate dropped 32% to 615 dry tonnes from 911 dry tonnes and the grade fell to 15.8% from 17.9%,
Zinc concentration production declined 68% to 48 dry tonnes from 151 dry tonnes but the grade edged up to 35.1% from 34.8%.
“From Q1 2018, and in line with the company’s stated strategy to resolve this issue, the ratio of stripping to mining starts to reverse on an upward trend, however until the company takes delivery of the new dumpers and excavators in early 2019, the targeted increase in productivity will be delayed,” said Prelea.
“The board is confident that once the equipment is on-site the new fleet can focus on rectifying the five quarters of negative waste stripping and expose sufficient quantities of the correct ore grades while minimising dilution.”
Vast well funded
He added that the group’s recent fundraising initiatives, together with an expected US$5.5mln second tranche payment expected from Mercuria Energy Group, will support the execution of our development objectives at Manaila. It will support the portfolio of near-production assets, including the Baita Plai Polymetallic Mine.
“With this increased focus on our development assets, Vast will begin presenting periodic development updates covering its various other assets and interests, including the Baita Plai Polymetallic Mine, the Blueberry Project and the Piciorul Zimbrului and Magura Neagra licences, all located in Romania, together with the Eureka gold mine and Heritage Concession of the Marange diamond fields in Zimbabwe,” he said.
“We look forward to issuing the first of these updates in due course and detailing the progress of activities across our pre-production portfolio.”