Vast Resources PLC (LON:VAST) unveiled a more efficient mine plan for its producing Baita Plai polymetallic mine in Romania as it shifts to mechanised mining and away from more labour-intensive methods.
The new plan presents a cost reduction of 21% in US$ per mined tonne with an operational efficiency of 63 tonnes per Total Employee Costed (TEC) at steady state, versus the previous plan efficiency metric of 43 tonnes per TEC.
“The capex required for this process is fully funded from existing resources and we expect to deliver a healthy revenue and cashflow from this asset during the 12 months from 1 April 2021, building considerably in the years thereafter,” said chief executive Andrew Prelea.
It anticipates net revenue of US$17.2mln in the year starting 1 April 2021, with this figure doubling by the year 1 May 2024 - 30 April 2025. Net operating cashflow is forecast to rise fourfold over the same period from US$4.9mln in the first year.
The cashflows support a valuation of Baita Plai in excess of US$100mln with the potential for further increases.
Mining capacity is expected to increase by 65% under the new mechanised plan compared with the old plan, the AIM-listed company said.
An investigation had revealed that ore from Baita Plai could be pre-concentrated, allowing for an increase in underground mining volumes.
It will used XRT (X-Ray Transmission) technology to identify both massive mineralisations as well as fine mineral inclusions to produce a high-grade pre-concentrate and eliminate non-grade containing waste material.
“This upgraded mine plan, made possible with the employment of a mechanised approach to mining and with the benefit of XRT technology which will produce a primary crushed high-grade pre-concentrate that will feed to the mills and will be implemented by our new team of mine managers who bring with them many decades of practical experience in mine expansion and optimisation,” said chief executive Andrew Prelea.
XRT implementation and processing plant upgrades will be completed by December 2021.