Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
15 March 2017
Vast Resources plc
("Vast" or the "Company")
Update on Expansion of Pickstone-Peerless Gold Mine, Zimbabwe
Vast Resources plc, the AIM listed mining company with interests in Romania and Zimbabwe, is pleased to announce an update relating to the expansion of the Pickstone-Peerless Gold Mine in Zimbabwe ("Pickstone-Peerless").
OVERVIEW
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Significant progress made with construction of the sulphide processing plant, which will enable production from the high-grade sulphide pits in addition to the oxide pits currently being mined:
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Second primary mill on site and installed on plinth
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Majority of the sulphide concentrating equipment is on site and significant proportion is installed
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Foundations and bases for an additional five carbon-in-pulp ("CIP") / carbon-in-leach ("CIL") tanks being installed currently
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100% increase in installed primary milling capacity once sulphide plant is commissioned to 40,000 tonnes per month from the current 20,000 tonnes per month
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Mill grade expected to increase from ~2.00g/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
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Construction is progressing on time and on budget - first sulphide production is scheduled for Q3 2017
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Custom milling facility to be commissioned imminently to process artisanal workers` tributed production from proximal claims
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Photos showing the new sulphide plant will be available to view on the Company`s website: www.vastresourcesplc.com/gallery/pickstone-peerless-gold-mine
Roy Pitchford, Chief Executive of Vast, commented: "Pickstone-Peerless continues to deliver impressive results; by utilising cash flow generated from production from the oxide cap zone of the mine, we are funding the expansion of the mine with the objective of doubling throughput and increasing the grade of ore by between 50%-100% to up to 4.00g/t Au. Obviously, this would provide enormous upside and further enhance the performance of Pickstone-Peerless, which produced an average of over 4,150oz Au per quarter over the past 12 months from the oxide cap alone.
"In addition to directing our efforts towards the development of the sulphide plant, we have also been working with the artisanal miners operating on a tribute basis from the claims adjacent to Pickstone-Peerless. We see this as a natural and mutually beneficial relationship as the artisanal miners save on transport costs and gain immediate access to the free gold, whilst all of the residual gold is processed through Pickstone-Peerless` CIP facilities."