Vast Resources PLC (AIM:VAST) said refurbishment of the Takob processing plant in Tajikistan is nearing completion.
The processing plant and the Takob tailings project, both at the Takob fluoride and galena mine, are part of a joint venture project with OJSC Korkhanai Boygardonii Takob. Vast has an effective 24.5% indirect interest in the project.
“The Takob processing plant is in the final stages of refurbishment, with all major equipment on site ahead of planned commissioning by the end of July,” said Vast chief executive Andrew Prelea.
“It is very encouraging to see this ambitious development schedule being met, with the potential for material revenue to be generated for the company in a matter of weeks.
“We have two months of stockpiled ore ready to be processed now, and the intention is to blend this with fresh ore over the coming months.”
Vast will receive the equivalent of a 12.25% royalty over sales of non-ferrous concentrate and any other metals produced from the Takob processing project. This revenue will supplement the company’s revenue from concentrate sales at its Baita Plai polymetallic mine in Romania.
“With the potential to produce royalty equivalent revenues in the short term, and the prospect of large-scale tailings processing in the medium term, all delivered through a financing structure which insulates Vast shareholders from dilution, I am confident that our activities in Tajikistan will prove to be very rewarding for the company,” said Prelea.
The equipment planned for the second phase of plant production, which will focus on improving the quality and separation of metals, has already been ordered and is expected to arrive on site in the third quarter of 2022, said the AIM-traded company.
Vast also said it was making good progress on the Takob tailings project and will report on the surveying, soil sampling and preliminary drilling work being conducted there in due course.