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

Vast ResourcesAnnouncement

08/02/2016 07:00

Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining 
 8 February 2016 
 Vast Resources plc 
 ("Vast" or the "Company") 
 
 Quarterly Production Summary 
 
 Vast Resources plc, the AIM listed mining company with operations in Romania
and Zimbabwe, is pleased to report an operational update and production
summary for the three months ended 31 December 2015. 
 
 Overview: 
 
 * Vast's inaugural quarterly production summary following the commissioning
of its initial two mines: 
 * Manaila Polymetallic Mine in Romania commissioned on 14 August 2015   
 * Pickstone-Peerless Gold Mine in Zimbabwe commissioned on 20 August 2015 
 
 
 * Break-even status achieved at both mines within first production quarter 
 *  Optimisation programmes underway to improve grade control and plant
efficiencies to enhance profitability 
 * Production ramping up at both mines - target of 20,000 tonnes at each site
by end of H1 2016 
 * Continued progress towards obtaining mining sub-licence for Baita Plai
Polymetallic Mine in accordance with Romanian due process post-merger
(announced 30 November 2015) - grant of mining-licence will allow for
commissioning of the Company's third mine 
 
 
 Roy Pitchford, Chief Executive of Vast, commented: 
 
 "Our evolution into a mining and production company is making strong headway,
and it gives me great pleasure to report that both Manaila and Pickstone
Peerless achieved operational break-even in their first quarter of
production.  It should be noted that this progress has been made during a
period of sustained low commodity prices highlighting the inherent quality of
the Company's assets.  We have achieved a great deal from a standing-start
and are now in the process of implementing optimisation programmes to improve
grade control and plant efficiencies with the objective of significantly
enhancing performance and profitability moving forward. In addition, with the
positive cashflow generated from our producing mines, the Company is well
placed to achieve its objective of becoming a mid-sized mining company in the
short to medium term." 
 
 Quarterly Production Summary 
 
 This first quarterly production report is another milestone in the journey of
Vast's development into a mining and production company, following
commissioning of the Manaila Polymetallic Mine and Pickstone-Peerless Gold
Mine in August 2015.   
 
 Operationally the two mines have achieved break even status during the first
reported production quarter.  Costs and efficiencies are improving and as
always in mining projects, further improvements are possible and management in
both Romania and Zimbabwe are focussed on reducing costs and improving mining
and processing efficiencies. 
 
 Manaila Polymetallic Mine ("MPM") 
 
 At MPM the mining rate averaged in excess of 11,200 tonnes of ore per
month.  During the quarter the existing operational mill was still ramping up
to its design capacity of 10,000 tonnes per month and has undergone a full
refurbishment, including new liners.  The second mill, currently
non-operational, is being refurbished and is expected to be in production from
April 2016 onwards.   With both mills operational, the mine will have an
installed milling capacity of 20,000 tonnes per month.   
 
 In conjunction with the increased processing capacity, a second flotation
line is being installed enabling MPM to produce separate copper and lead/zinc
concentrates.  Metallurgical testwork undertaken by the Company indicates
that the second flotation circuit will increase plant recoveries resulting in
higher-grade concentrates.  In addition to the improved grade, moving away
from a bulk concentrate will increase the marketing flexibility of the product

 
      Operational data: Manaila            Unit                 Dec'15 Quarter     
  Ore mined                              Tonnes                     33,756              
  Ore milled                             Tonnes                     26,375              
  Concentrate produced                   Dry tonnes                   745              
  Concentrate sold                       Dry tonnes                   550              
  Concentrate in stock at period end*    Dry tonnes                   266              
  * Sold after 31 December 2015                                                       
                                                                                     
  Cash costs                             $/tonnes milled            30                  
  Cash costs                             $/tonnes of concentrate    1,064               
  Average sales price achieved           $/tonnes of concentrate    1,033               
 Pickstone-Peerless Gold Mine ('PPGM') 
 
 At PPGM the plant processed an average of 15,400 tonnes per month at an
average plant head grade of 1.97g/t producing 2,601 ounces for the quarter to
December 2015. The strategy is to now work towards achieving up to 20,000
tonnes per month.  Head grades during the quarter were negatively impacted by
the presence of artisanal miners in the shallower parts of the mine.  With
the assistance of the authorities the artisanal miners have now been removed
and the short term mine plans are being reviewed in order to optimise the
tonnage and mill feed grade. 
 
 Consideration is now being given to the future higher grade sulphide
resources that are scheduled for future mining. 
 
                                                                              
  Operational data: Pickstone-Peerless    Unit               Dec'15 Quarter     
  Ore mined                               Tonnes             46,285              
  Ore milled                              Tonnes             46,291              
  Gold produced                           Ounces               2,601            
  Gold sold                               Ounces              2,375             
  Gold in stock at period end*            Ounces               225              
  * Sold after 31 December 2015                                                
                                                                              
  Cash costs                              $/tonnes milled      47               
  Cash costs                              $/oz of gold         831              
  Average sales price achieved            $/oz of gold         1,080            
 **ENDS** 
 
 For further information visit www.vastresourcesplc.com or please contact: 
 
    Roy Pitchford (Chief Executive Officer)                                                 +40 (0) 372 988 988  (O) +40 (0) 741 111 900  (M) +44 (0) 7793 909985   
  Roy Tucker (Finance Director and Company Secretary)                                         +44 (0) 1622 816918 +44 (0) 7920 189012                                  
  Pierre Joubert (Chief Financial Officer)                                                    +40 (0) 72 829 0145 +27 (0) 835788054                                     
    Strand Hanson Limited - Financial & Nominated Adviser  James Spinney  James Bellman      www.strandhanson.co.uk  +44 (0) 20 7409 3494                          
    Daniel Stewart and Company plc - Joint Broker  Martin Lampshire David Coffman             www.danielstewart.co.uk  +44 (0) 20 7776 6550                         
    Dowgate Capital Stockbrokers Ltd - Joint Broker Jason Robertson Neil Badger                www.dowgatecapitalstockbrokers.co.uk +44 (0)1293 517744               
    St Brides Partners Ltd Susie Geliher Charlotte Heap                                        www.stbridespartners.co.uk  +44 (0) 20 7236 1177