REG-Quarterly Production Summary & Operations Update <Origin Href="QuoteRef">VAST.L</Origin>

Vast ResourcesAnnouncement

16/10/2017 07:05

For best results when printing this announcement, please click on link below:
http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20171016:nGNE5s1KqN


Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining

16 October 2017
Vast Resources plc
("Vast" or the "Company")

Quarterly Production Summary & Operations Update
                                         

Vast Resources plc, the AIM listed mining company with operations in Romania
and Zimbabwe, presents its operational update and production summary for the
three months ended 30 September 2017 ('Q3 2017').

To view a presentation, which presents the Q3 2017 results together with the
previous four quarters, please visit the Company's website:
www.vastresourcesplc.com.

Production Overview:

Q3 2017 was a record quarter for Vast, which saw operations at the Manaila
Polymetallic Mine in Romania ("Manaila") and the Pickstone-Peerless Gold Mine
in Zimbabwe ("Pickstone-Peerless") outperform the previous quarter in terms of
tonnes mined, tonnes milled, copper concentrate produced and gold produced.

Manaila Production Summary
(commissioned on 14 August 2015, Vast interest 100%.): 

Results for the quarter demonstrate a considerable improvement over Q2 2017. 
In respect of volume related metrics, Q3 2017 reflects an exceptional
performance.  This result is unsurpassed since commissioning of the mine by
Vast.

Summary of Q3 2017 Production:
* 46% increase in tonnes of ore mined from Q2 2017 to 40,462 dry tonnes
(Q2 2017: 27,707 dry tonnes(*))
* 39% increase in tonnes of ore milled from Q2 2017 to 39,135 dry tonnes
(Q2 2017: 28,082 dry tonnes(*))
* 31% increase in copper concentrate produced from Q2 2017 to 1,082 dry tonnes
(Q1 2017: 828 dry tonnes)
* 2% decrease in copper concentrate grade from Q2 2017 to 17.9% 
(Q2 2017:18.2%)
* 25% decrease in zinc concentrate produced from Q2 2017 to 118 dry tonnes (Q2
2017: 157 dry tonnes)
* 6% increase in zinc concentrate grade from Q2 2017 to 42.3% (Q2 2017: 39.8%)
* 50% increase in gold concentrate from Q2 2017 to 7dry tonnes (Q2 2017: 5 dry
tonnes)
* 30% decrease in gold concentrate grade from Q2 2017 to 31.4g/t (Q2 2017:
45g/t)
Pickstone-Peerless Production Summary
(commissioned on 20 August 2015, Vast interest 25%):

Ore mined and milled at Pickstone-Peerless rose in the quarter to their
highest levels since the June 2016 quarter.  Operations are being managed at
maximum milling capacity ahead of commissioning of the new sulphide plant.
* 4% increase in tonnes of ore mined from Q2 2017 to 71,553 tonnes (Q2 2017:
 68,659 tonnes)
* 16% increase in tonnes of ore milled from Q2 2017 to 68,431 tonnes (Q2 2017:
58,923 tonnes)
 * 17% increase in gold production from Q2 2017 to 4,738 ounces (Q2 2017:
4,037 ounces) 
 * 3% increase in milled gold grade from Q2 2017 to 2.41g/t (Q2 2017: 2.35g/t)
             

Development Overview:

The production summary should be read in concert with the development
initiatives underway in Romania and Zimbabwe.  The purpose of these
development initiatives is to increase and optimise production, lower
operating costs and build a portfolio of long term sustainable mining
operations.

Manaila Expansion & Regional Metallurgical Complex Romania
* 18-hole drill programme for 2,200 metres completed at the Carlibaba prospect
located adjacent to the current Manaila open pit 
* Results from first phase of 1,000 metre drilling programme at Carlibaba
confirmed the mineralised zones and geological structures as expected 
* Assayed values appear to support the development of a second open pit
operation at Manaila with the construction of a metallurgical processing
facility on site, thereby significantly reducing the cost of ore transport
incurred at the current operation 
* For Phase 2 drilling, a total of nine surface drill-holes are  now
completed totalling a further 1,200 metres of core 
* The phase 2 drilling intersected the defined mineralised zones identified
from historic drilling and the Phase 1 drilling at depth and serve to verify
the continuation of the zones at depth 
* In conjunction with the significant data obtained from historic sources the
data is being collated and modelled in-house by Vast and will result in a JORC
compliant mineral resource for Manaila being reported in due course now that
Phase 2 drilling is completed 
* Commencement of soil and rock sampling activities at Piciorul Zimbrului and
Magura Neagra licences underway - exploration licences will be applied for
once prospecting work is complete
Faneata Tailings Facility ("Faneata") Romania
* Application has been made for an exploitation right over the tailings dam in
anticipation of positive feasibility results
* However, in view of the likelihood of the award of an association licence
for Baita Plai, options are being re-assessed regarding priority use of the
Baita processing 
facilities which may result in a postponement of the exploitation of the
tailings dam

Pickstone-Peerless & Giant Gold Project Zimbabwe
* Construction of sulphide plant progressing - expected to be completed by the
end of December 2017 
 * Significant increase in installed primary milling capacity anticipated once
sulphide plant is commissioned to 35,000 tonnes per month from the current
~22,800 tonnes per month
* Mill grade expected to increase from ~2.31g/t gold ('Au') to between 3.00g/t
Au and 4.00g/t Au over a 6 to 9-month period as higher-grade sulphide ore is
mined and processed, resulting in a significant increase in production
* Evaluation of the Giant Gold Project - located 28km from Pickstone-Peerless,
which has a current JORC-compliant inferred resource of 500,000oz of gold, is
ongoing
* Progress has been made in relocating artisanal miners from the Giant Gold
Project licence area 
Roy Pitchford, Chief Executive of Vast, commented:
"It is pleasing to be able to report improved quarterly production statistics
as the Company strives to become overall cash generative.  It is of equal
importance that our development initiatives at both Manaila, namely the
drilling programme at Carlibaba ahead of the proposed second open pit and new
metallurgical complex, and Pickstone-Peerless, specifically the advancement of
the sulphide plant, have both made considerable progress.  This work is a
crucial component of long term strategy to become a profitable mid-tier
producer. 

"Separately, the progress on the Baita Plai association licence and the
anticipation of recommencing mining and processing operations at this mine
during the current quarter are both encouraging and we will continue to report
of developments as appropriate."

Production Statistics

September 2017 Quarterly Production Summary

 Operational data:                                                                                                        
 Manaila                                Units             Sep'17 Quarter  June'17 Quarter  Mar'17 Quarter  Dec'16 Quarter 
 Ore mined                              Tonnes                    40,462           27,707          19,711          23,905 
 Waste mined                            Cubic Metre              119,003           53,267          45,143          38,538 
 Stripping ratio                        Times                        2.9              1.9             2.3             1.6 
 Ore milled                             Tonnes                    39,135           28,082          18,262          26,786 
 Milled Grade - Cu                      Percentage                 0.70%            0.73%           0.79%           0.91% 
 Milled Grade - Zn                      Percentage                 0.70%            0.74%           0.76%           0.88% 
 Concentrate produced - Cu              Dry tonnes                 1,082              828             526             889 
                                        Percentage                 17.9%           18.20%          18.80%          19.50% 
 Concentrate produced - Zn              Dry tonnes                   118              157             132             165 
                                        Percentage                 42.3%           39.80%          26.30%          30.00% 
 Concentrate produced - Au              Dry tonnes                     7                5                                 
                                        Grams per tonne             31.4             45.0                                 
 Concentrate sold - Cu                  Dry tonnes                 1,079              995             321             889 
 Concentrate sold - Zn                  Dry tonnes                    92              252               0             200 
 Concentrate in stock at period end Cu  Dry tonnes                    41               38             206               0 
 Concentrate in stock at period end Zn  Dry tonnes                    63               37             132               0 
                                                                                                                          
                                                                                                                          
                                                                                                                          
 Operational data:                                                                                                        
 Pickstone-Peerless                     Units             Sep'17 Quarter  June'17 Quarter  Mar'17 Quarter  Dec'16 Quarter 
 Ore mined                              Tonnes                    71,533           68,659          51,660          70,930 
 Waste and low-grade ore mined          Tonnes                 1,039,570        1,035,785         546,126         435,083 
 Stripping ratio                        Times                       14.5             15.1            10.6             6.1 
 Ore milled                             Tonnes                    68,431           58,923          51,102          61,356 
 Milled Grade                           Grams per tonne             2.41             2.35            2.06            2.41 
 Gold produced                          Ounces                     4,738            4,037           2,974           4,352 
 Gold sold                              Ounces                      4711            3,992           2,873           4,706 
 Gold in stock at period end            Ounces                       782              755             710             609 

Notes:
1. March 2017 Quarter:  Tonnes mined and milled have been converted to dry
tonnes. Previously reported: wet tonnes mined of 21,901 and wet tonnes milled
of 20,291 
2. December 2016 Quarter: Tonnes mined and milled have been converted to dry
tonnes. Previously reported: wet tonnes mined of 25,245 and wet tonnes milled
of 29,776
Quarterly Conference Call

Roy Pitchford, Chief Executive of Vast, will host a conference call for
shareholders at 11.00 a.m.  today, 16 October 2017.

To participate in this conference call, please dial 0808 109 0701, or +44 (0)
20 3003 2701 if you are calling from outside of the UK, and enter participant
code 8748114# when prompted to do so.  Please note that all lines will be
muted except for Vast's management, however the Company invites shareholders
to submit questions to its public relations adviser, St Brides Partners Ltd,
ahead of the call via email to shareholderenquiries@stbridespartners.co.uk or
through the online chat function.

To access the online chat function, please use the link below and log in as a
participant using the event number 950 754 266 followed by the password,
'Vast':

https://sbmf.webex.com/sbmf/onstage/g.php?MTID=eb995e68fad2ab36bfaa6abd079336562
  

On the right-hand side of the screen you will find an option to submit
questions during the call.  The Q&A function will only be made live once the
call has commenced.

The management team will strive to answer as many questions as possible during
the call.  A recording of the call will also be made available on the
Company's website.

If you have any problems accessing the call, please contact St Brides Partners
Ltd on shareholderenquiries@stbridespartners.co.uk or call +44 (0) 20 7236
1177.

A copy of the presentation will also be uploaded to the Research, Media &
Presentations page of the website at www.vastresourcesplc.com shortly before
the call commences.

Competent Person's Review:
This announcement has been reviewed by Mr Craig Harvey, Chief Operating
Officer at Vast, and a member of the Geological Society of South Africa and
the Australian Institute of Geoscientists. Mr Harvey meets the definition of a
"qualified person" as defined in the AIM Note for Mining, Oil and Gas
Companies.

-ENDS-

For further information visit www.vastresourcesplc.com or please contact:

 Vast Resources plc Roy Pitchford (Chief Executive Officer)                    www.vastresourcesplc.com +44 (0) 20 7236 1177   
 Beaumont Cornish - Financial & Nominated Adviser Roland Cornish James Biddle  www.beaumontcornish.com                         
                                                                               +44 (0) 020 7628 3396                           
 Brandon Hill Capital Ltd - Joint Broker Jonathan Evans                        www.brandonhillcapital.com +44 (0)20 3463 5016  
 Peterhouse Corporate Finance Ltd - Joint Broker Duncan Vasey                  www.pcorpfin.com +44 (0) 20 7469 0936           
 St Brides Partners Ltd Susie Geliher Charlotte Page                           www.stbridespartners.co.uk                      
                                                                               +44 (0) 20 7236 1177                            

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ("MAR").
This announcement is distributed by Nasdaq Corporate Solutions on behalf of
Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein.
Source: Vast Resources plc via Globenewswire