Tajikistan – Aprelevka Update
11/06/2024 07:00
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Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
11 June 2024
Vast Resources plc
(‘Vast’ or the ‘Company’)
Tajikistan – Aprelevka Update
Production Update
The Company wishes to update its report on gold production at the four
Aprelevka mines for May 2024 given in the announcement of 4 June 2024 where
the production had been estimated based on a calculation of throughput and
grade. Following completion of the smelting, the actual production for May
2024 showed an increase from 933oz as had been estimated to 1,059oz –
significantly higher than the April production of 805oz and March production
of 643oz.
Formin Reports on mines at Aprelevka
The Company is pleased to announce that further to the announcement of 15 May
2024, which gave details of an update resource report by Formin on the mine
with the specific name Aprelevka, Formin has now provided Gulf International
Minerals Ltd ‘(Gulf’) with updated Resource Reports based on the SRK
produced wireframes, collated historic data and the 2019-2022 drilling results
on the other three active mines in the Aprelevka group, namely Burgunda,
Ikkizelon and Kyzylcheku (the ‘Reports’). The full Reports can be found on
the Company’s website using the links set out in an Appendix to this
announcement. The Reports include updated NAEN code-compliant MREs. Russia is
a member of CRIRSCO (Committee for Mineral Reserves International Reporting
Standards), as are 14 other countries including Australasia, Canada, Europe,
South Africa and the USA. However, these national/regional codes are not
identical and the Russian code, NAEN, is neither directly comparable with
other codes that are frequently used to calculate reserves and resources such
as JORC nor is it commonly used by AIM companies. Accordingly, caution should
be taken in interpreting these NAEN resources if used for investment purposes.
The Company’s mineral reporting standard remains JORC, and it remains
committed to reporting MREs under JORC.
As outlined in the announcement of 19 October 2023, the Company will manage
the mining and development activities of the mines in the Aprelevka group
referenced above for a 5-year period. In consideration, Vast will be entitled
to a 10% share of the earnings before interest, tax and depreciation that Gulf
receives from its 49% interest in Aprelevka. Vast will also have the right at
any time from 1 January 2025 until the end of the 5-year management period (i)
to convert its earnings share entitlement into a 10% equity interest in Gulf
and (ii) to acquire up to 20% of the share capital of Gulf at market value at
the time of acquisition, market value to be determined by the auditors in
default of an agreement between the parties.
The financing required to carry out the present intended development at the
mines will be arranged by Gulf International Minerals ltd, under regular
banking terms and conditions repayable in priority to any dividends being paid
by Aprelevka. The Operator of Aprelevka is the local management team in
conjunction with Vast Resources PLC who is designated under its management
agreement to engage third party contractors to undertake the day-to-day
activities of the mining operation.
The following is the text of the Executive Summary of the Report on Burgunda:
“Introduction
Formin SA. has been requested by Gulf International Minerals Ltd, hereinafter
also referred to as the “Company” or the “Client”) to prepare a
digitization of historical data, provide a 3D geological model and an resource
evaluation, for Burgunda Mine located in the Northern part of Tajikistan.
Property Description
The Burgunda project consists of an open pit operation and a nearby insitu
leaching project. The deposit is located near the border with Uzbekistan and
appropriately 20km west of Uzbek city of Almalyk. It lies almost 90km by
paved, rutted, and unpaved road northnorthwest of the Kansai Mill.
Ore description and Resource estimation
The ore is represented by two main quartz veins with a high grade of gold and
silver.
The resource estimate results are presented below:
Average Value Material Content
Resource classification Ore Density Mass Au Ag Au Ag
g/cm³ t g/t g/t t t
Measured Vein 1 2.80 2,201.92 1.36 8.36 0.00 0.02
Vein 3 2.80 10.953.60 10.14 19.32 0.11 0.21
Total 2.80 13,155.52 8.67 17.49 0.11 0.23
Indicated Vein 1 2.80 31,913.28 2.12 19.31 0.07 0.62
Vein 3 2.80 19,120.64 11.36 18.81 0.22 0.36
Total 2.80 51,033.92 5.58 19.12 0.29 0.98
Inferred Vein 1 2.80 100,027.20 2.45 15.15 0.25 1.52
Vein 3 2.80 46,220.16 11.47 19.64 0.53 0.91
Total 2.80 146,247.36 5.30 16.57 0.78 2.42
Total Vein 1 2.80 134,142.40 2.35 16.03 0.32 2.15
Vein 3 2.80 76,294.40 11.25 19.38 0.86 1.48
Total 2.80 210,436.80 5.58 17.25 1.17 3.63 “
The following is the text of the Executive Summary of the Report on Ikkizelon:
“Introduction
Formin SA. has been requested by Gulf International Minerals Ltd, hereinafter
also referred to as the “Company” or the “Client”) to prepare a
digitization of historical data, provide a 3D geological model and an resource
evaluation, for Ikkizelon Mine located in the Northern part of Tajikistan.
Property Description
The Ikkizelon gold vein deposit occupies an area of 0.7km(2) extending in a
south-eastern direction between the headwaters of Shakarbulak, Shorbulak and
Kuruk in the central part of the Kalkanat Mountains. The area belongs to the
Matchinsk region of Khujand province.
Ore description and Resource estimation
The ore is represented by 14 main quartz veins with a high grade of gold and
silver.
The resource estimate results are presented below
Average Value Material Content
Resource class Density Mass Au Ag Au Ag
g/cm³ t g/t g/t t t
Measured 2.80 127,939.32 10.12 23.82 1.29 3.05
Indicated 2.80 130,005.13 9.45 25.60 1.23 3.33
Inferred 2.80 146,026.42 7.14 20.46 1.04 2.99
Total 2.80 403,970.86 8.83 23.18 3.57 9.36 “
The following is the text of the Executive Summary of the Report on
Kyzylcheku.
“Introduction
FORMIN S.A. has been requested by GULF INTERNATIONAL MINERALS LTD, hereinafter
also referred to as the “Company” or the “Client”) to prepare a the
digitization of historical data, provide a 3D geological model and an resource
evaluation, for Kyzylcheku Mine located in the Northern part of Tajikistan.
Property Description
The Kizil Cheku deposit is situated in the headwaters of the Aktash-sai
(Aktash stream) on the southern slopes of the Kuramin Ridge, 13 km east of the
Kansai concentrator at an elevation of 1,450 m. It is accessible by a good
all-season dirt road from Kansai.
Ore description and Resource estimation
The ore is represented by six main quartz veins with a high grade of gold and
silver.
The resource estimate results are presented below:
Average Value Material Content
Resource class Density Mass Au Ag Au Ag
g/cm³ t g/t g/t t t
Measured 2.80 201,734.87 1.34 103.47 0.27 20.89
Indicated 2.80 300,191.65 1.34 105.49 0.40 31.67
Inferred 2.80 245,906.86 1.44 120.80 0.35 29.71
Total 2.80 747,833.38 1.38 110.01 1.03 82.27 “
Total Vast attributable value including Aprelevka as announced on 15 May 2024
Vast Attributable Value Ore Au oz Ag oz
Measured 77,496 9,263 98,773
Indicated 60,108 6,896 91,972
Inferred 81,970 9,879 116,117
Total 219,573 26,070 306,846
Qualified Person
Vlad Andrei Negru, who has signed the report on behalf of Formin, is a
'Certified Person' from the National Agency for Mineral Resource
in Romania. He is a geologist with more than 12 years' experience in
Mineral Resource estimation. He has worked for a large number of projects in
Romanian and also as an SRK consultant. Mr Negru consents to the inclusion
of his name in this announcement in the form and context to which it appears.
**ENDS**
For further information, visit www.vastplc.com or please contact:
Vast Resources plc Andrew Prelea (CEO) www.vastplc.com + 44 (0) 20 7846 0974
Beaumont Cornish – Financial & Nominated Advisor Roland Cornish James Biddle www.beaumontcornish.com +44 (0) 20 7628 3396
Shore Capital Stockbrokers Limited – Joint Broker Toby Gibbs / James Thomas (Corporate Advisory) www.shorecapmarkets.co.uk +44 (0) 20 7408 4050
Axis Capital Markets Limited – Joint Broker Richard Hutchinson www.axcap247.com +44 (0) 20 3206 0320
St Brides Partners Limited Susie Geliher www.stbridespartners.co.uk +44 (0) 20 7236 1177
ABOUT VAST RESOURCES PLC
Vast Resources plc is a United Kingdom AIM listed mining company with mines
and projects in Romania, Tajikistan, and Zimbabwe.
In Romania, the Company is focused on the rapid advancement of high-quality
projects by recommencing production at previously producing mines.
The Company's Romanian portfolio includes 100% interest in Vast Baita Plai SA
which owns 100% of the producing Baita Plai Polymetallic Mine, located in the
Apuseni Mountains, Transylvania, an area which hosts Romania's largest
polymetallic mines. The mine has a JORC compliant Reserve & Resource Report
which underpins the initial mine production life of approximately 3-4 years
with an in-situ total mineral resource of 15,695 tonnes copper equivalent with
a further 1.8M-3M tonnes exploration target. The Company is now working on
confirming an enlarged exploration target of up to 5.8M tonnes.
The Company also owns the Manaila Polymetallic Mine in Romania, which the
Company is looking to bring back into production following a period of care
and maintenance. The Company has also been granted the Manaila Carlibaba
Extended Exploitation Licence that will allow the Company to re-examine the
exploitation of the mineral resources within the larger Manaila Carlibaba
licence area.
The Company retains a continued presence in Zimbabwe.
Vast has an interest in a joint venture company which provides exposure to a
near term revenue opportunity from the Takob Mine processing facility in
Tajikistan. The Takob Mine opportunity, which is 100% financed, will provide
Vast with a 12.25 percent royalty over all sales of non-ferrous concentrate
and any other metals produced.
Also in Tajikistan, Vast has been contracted to develop and manage the
Aprelevka gold mines on behalf of its owner Gulf International Minerals Ltd
(“Gulf”) under which Vast is entitled, inter alia, to 10% of the earnings
that Gulf receives from its 49% interest in Aprelevka in joint venture with
the government of Tajikistan. Aprelevka holds four active operational mining
licences located along the Tien Shan Belt that extends through Central Asia,
currently producing approximately 11,600oz of gold and 116,000 oz of silver
per annum. It is the intention of the Company to assist in increasing
Aprelevka’s production from these four mines closer to the historical peak
production rates of approximately 27,000oz of gold and 250,000oz of silver per
year from the operational mines.
Beaumont Cornish Ltd
Beaumont Cornish Limited (“Beaumont Cornish”) is the Company’s Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish’s
responsibilities as the Company’s Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
Glossary
CRIRSCO (JORC/CIM/PERC/NAEN) Resource Measured Indicated Inferred Exploration Potential or Exploration Target
Reserve Proven Probable
Russian State Classification Reserve A, B and C1 B, C1 and C2 C2 and P1 P2 and P3
The following is a summary of technical terms:
Ag Silver
Au Gold
Cu Copper
Pb Lead
Zn Zinc
Mo Molybdenum
Bi Bismuth
W Wolfram (Tungsten)
Cut-off The cut-off grade is the lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. May be defined on the basis of economic evaluation, or on physical or chemical attributes that define an
acceptable product specification;
Economic composite This classifies drill data into ore and waste categories and takes into account grade thresholds, mining dimensions and allowable dilution. It is primarily an input into modelling the geometry of mineralisation rather than grade.
Grade Grade(s) means the quantity of ore or metal in a specified quantity of rock
Mineral Resource A 'Mineral Resource' is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction. The location,
quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of
increasing geological confidence, into Inferred, Indicated and Measured categories.
Inferred Mineral Resource An 'Inferred Mineral Resource' is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and
grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
Indicated Mineral Resource An 'Indicated Mineral Resource' is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient
detail to support mine planning and evaluation of the economic viability of the deposit.
Exploration Target An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade (or quality), relates to mineralisation for
which there has been insufficient exploration to estimate a Mineral Resource.
Mineral Reserve An ‘Ore Reserve’ is economically minable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility
level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could be reasonably justified.
JORC Code Australasian Institute of Mining and Metallurgy Joint Ore Reserves Committee code on mineral resources and ore reserves
NAEN Code Russian Code for the Public Reporting of Exploration Results, Mineral Resources and Mineral Reserves
Mineralisation Process of formation and concentration of elements and their chemical compounds within a mass or body of rock
APPENDIX
TECHNICAL PROGRAM FOR BURGUNDA MINE
PROJECT EXPLOITATION LICENCE
Prepared by Formin SA
Project Location:
Latitude N40°45’39.3” and Longitude E69°29’21.5”
Northern Tajikistan
Prepared for:
GULF INTERNATIONAL MINERALS LTD
For the full report, follow this link:
https://www.vastplc.com/wp-content/uploads/2024/06/burgunda-report.pdf
TECHNICAL PROGRAM FOR IKKIZELON MINE
PROJECT EXPLOITATION LICENCE
Prepared by Formin SA
Project Location:
Latitude N40°41’55” and Longitude E69°26’55”
Northern Tajikistan
Prepared for:
GULF INTERNATIONAL MINERALS LTD
For the full report, follow this link:
https://www.vastplc.com/wp-content/uploads/2024/06/ikkizelon-report.pdf
TECHNICAL PROGRAM FOR KYZYLCHEKU MINE
PROJECT EXPLOITATION LICENCE
Prepared by Formin SA
Project Location:
Latitude N40°31.05’9” and Longitude E69°48’39.5”
Northern Tajikistan
Prepared for:
GULF INTERNATIONAL MINERALS LTD
For the full report, follow this link:
https://www.vastplc.com/wp-content/uploads/2024/06/kyzylcheku.pdf