Vast Resources plc Jorc Compliant Resource Published For Faneata Tailings Storage Facility, Romania
March 29 2017 - 2:00AM
UK Regulatory
TIDMVAST
Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
29 March 2017
Vast Resources plc
("Vast" or the "Company")
JORC Compliant Resource Published for
Faneata Tailings Storage Facility, Romania
Vast Resources plc, the AIM-listed mining company with interests in
Romania and Zimbabwe, is pleased to announce the maiden JORC Compliant
Mineral Resource Estimate for the Company's 80% owned Faneata Tailings
Storage Facility ("Faneata") in Romania. Faneata consists of more than
40 years' material from the proximal Baita Plai Polymetallic Mine
("Baita Plai").
Overview
-- Maiden internally generated JORC Compliant Mineral Resource Estimate
updating the previous resource estimated which was derived from public
domain information from work undertaken by El Dore in 2011:
-- Total Mineral Resource (Measured, Indicated & Inferred) of 3.0Mt
(Gross, being 2.4Mt net to Vast) at a grade of 0.05 g/t gold
('Au'), 8.65 g/t silver ('Ag'), 0.092% copper ('Cu'), 0.101% lead
('Pb'), 0.171% zinc ('Zn'), 0.013% bismuth ('Bi'), 0.006%
molybdenum ('Mo') and 0.017% tungsten ('W') at a 0.0 g/t and a
0.0% cut-off grade
-- Intention to utilise the Company's Baita Plai processing facility located
6.5km away
-- A Preliminary Economic Assessment ("PEA") undertaken by the Company at
Faneata on the operating costs indicates a break-even total processing
recovery of 25%
-- Metallurgical test work is commencing to determine the amenability of the
Faneata resource to pre-concentration and flotation
-- At an anticipated total processing recovery of 36% and based on a model
that assumes processing of the Faneata tailings at Baita Plai, Faneata
has the potential to deliver a 44% margin over a period of 16-20 months
before capital expenditure is considered
-- Feasibility Study underway and due for completion by end of Q2 2017 - the
Feasibility Study will define the parameters for development at Faneata
Roy Pitchford, Chief Executive of Vast, commented: "Our Faneata Tailings
Storage Facility, which constitutes a separate licence to the proximal
Baita Plai mine, is shaping up to have the potential to be a revenue
generator in its own right. Today's publication of a JORC Compliant
Resource Estimate is another step up the rung towards achieving low-cost
production at Faneata as we simultaneously advance negotiations to
secure the right to mine at Baita Plai.
"With an anticipated total processing recovery of 36%, Faneata has the
potential to deliver a 44% margin over a period of 16-20 months, before
capital expenditure, highlighting the ability for this project to
materially enhance financial performance in the near-term, supporting
Vast's wider expansion plans across Romania. Importantly, reprocessing
the tailings at Faneata will also have a positive impact from an
environmental standpoint; a central pillar of our Corporate Social
Responsibility programme in Romania.
"I look forward to the receipt of our metallurgical test work as we
identify the optimal pathway for development at Faneata."
Further Information
Vast holds an 80% interest in a prospecting licence over Faneata, which
is located 7km from the Baita Plai Polymetallic Mine. This licence
constitutes a separate right from the anticipated right to mine at Baita
Plai itself and Vast believes Faneata has the potential to be a
stand-alone mining operation when enhanced processing technologies, that
can enable the economic extraction of the metalliferous content of the
tailings, are used. Crucially, the mining and processing of Faneata
will also be of environmental value, with the reprocessing of the
tailings acting as a "greening" process of the dam. This is in
accordance with Vast's dedicated Corporate Social Responsibility
programme in Romania.
JORC Mineral Resource Estimate
The mineral resource estimate has been completed following the
principles of the 2012 edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves, the ("JORC")
code.
The subject of the mineral resource report is the declaration of a
maiden JORC compliant mineral resource estimate for Faneata. No
previous mineral resource declarations have been undertaken on Faneata
except for El Dore Mining Corporation ("EDMC") releasing an estimate of
contained metal within Faneata in July 2011.
This Report has been prepared based on technical reviews and information
gathered by Vast from August 2016 to February 2017. The effective date
of the mineral resource estimate is 28 March 2017.
Locality, Infrastructure and Environment
Faneata is located in the Bihor County of Romania, approximately 80km to
the south west of the city of Oradea. The tailings dump is adjacent to a
secondary tarred road in the region which links the town of Stei in the
west with the major city of Cluj-Napoca to the east.
The processing facilities of Baita Plai are located approximately 6.5km
to the west. The metallurgical processing facility comprises crushing,
milling, and flotation and was last operated in approximately 2012. The
facility has been on care and maintenance since that time to present
under the auspices of Vast.
The prospecting licence, number 19101/11.05.2016, is 0.169km(2) in
extent. The licence was awarded on 11 May 2016 and granted Vast
prospecting activities and the right to evaluate the metal content of
Faneata over a period of one year from the date of grant. Once the
Feasibility Study is completed, which is targeted for the end of Q2
2017, the Company will apply for a permit to operate at Faneata.
History, Exploration and Mining
Faneata served as the tailings deposition site for Baita Plai since the
1960s until the mine was put on care and maintenance in 2012. There is
a second smaller tailings storage facility located approximately 1.0km
to the east which served as a depositional site for Baita Plai in the
years prior to this. This tailings storage facility is completely
rehabilitated.
Vast drilled a total of 33 drill holes in the dump during November 2016.
The samples were sent to the soil geochemical laboratories of SGS in
Ankara, Turkey.
Mineral Resources
A mineral resource estimate has been compiled for Faneata. A full
geological model has been constructed, constraining the tailings
material to the surveyed surface topography and the end of hole depths
of the 33 drill holes. Due to rising footwall topography, the estimated
volume of Faneata was reduced from 3,600,000m(3) to 2,400,000m(3) .
A combination of Inverse Distance Squared ("ID2") and Nearest Neighbour
("NN") estimation was carried out, interpolating values for gold, silver,
copper, lead, zinc, tungsten, molybdenum and bismuth into a
three-dimensional constrained geological block model. The ID2 method
was selected as the value to report the mineral resource estimate.
Density values were obtained from five surface pits on Faneata.
Mineral resource categorisation was undertaken by assigning confidence
categories to the interpolation search volumes. The search volumes were
orientated horizontally with a 1.5 metre vertical search radius in order
to constrain the sample search to reflect the horizontal depositional
environment of Faneata.
The mineral resource estimate is tabulated in Table 1 for the metal
content and the in Table 2 for the metal grades.
Table 1: Mineral Resource Estimate (Metal Content) for the Faneata
Tailings Storage Facility (Gross)
Resource
Category Tons METAL CONTENT
Au Ag Bi Cu Mo Pb Zn
(kg) (kg) (t) (t) (t) (t) W (t) (t)
Measured 2,396,889 127 21,122 285 2,212 138 2,604 397 3,904
Indicated 532,460 21 4,303 83 489 24 384 97 1,060
Total M &
I 2,929,349 148 25,425 368 2,701 163 2,988 493 4,964
Inferred 85,477 4 652 18 80 3 46 17 192
Total 3,014,826 152 26,077 386 2,782 166 3,034 510 5,157
* as at 31 March 2017 (topographic surface)
* No cut-off grade applied
Table 2: Mineral Resource Estimate (Metal Grades) for the Faneata
Tailings Storage Facility
Resource
Category Tons METAL GRADES
Au Ag
g/t g/t Bi % Cu % Mo % Pb % W % Zn %
Measured 2,396,889 0.053 8.81 0.012 0.092 0.006 0.109 0.017 0.163
Indicated 532,460 0.039 8.08 0.016 0.092 0.005 0.072 0.018 0.199
Total M &
I 2,929,349 0.051 8.68 0.013 0.092 0.006 0.102 0.017 0.169
Inferred 85,477 0.048 7.63 0.021 0.094 0.004 0.054 0.020 0.225
Total 3,014,826 0.050 8.65 0.013 0.092 0.006 0.101 0.017 0.171
* as at 31 March 2017 (topographic surface)
* No cut-off grade applied
Conclusion
The Board believe that Faneata represents an opportunity to utilise the
current metallurgical facilities at Baita Plai, which are currently
under care and maintenance by Vast. Notably, the Baita Plai
metallurgical facility is not attached to the Baita Plai underground
mining licence and the infrastructure can be utilised to process
material from an alternative source, which is fully permitted.
Preliminary economic assessments of the viability of Faneata utilising
transport and processing costs from current operations in Romania have
indicated that an overall process recovery of 25% on the silver, copper
and zinc only is required for the project to be cost neutral. Vast is
targeting a 36% total processing recovery which would deliver a 44%
operating cost margin. Operating costs including transport and
processing costs, have been based on the Manaila Polymetallic Mine,
which Vast has operated since August 2015..
Metallurgical test work will be conducted to establish the optimum
method of pre-concentration for Faneata and to ascertain or affirm the
anticipated overall process recovery.
Competent Person
The information in this report that relates to Exploration Targets,
Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr Craig Harvey, the Chief Operating Officer for
Vast and a full-time employee of the Company. Mr Harvey is a Competent
Person who is a Member of the Australian Institute of Geoscientists and
of the Geological Society of South Africa, a Recognised Professional
Organisation included in a list that is posted on the ASX website from
time to time.
Mr Harvey has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as defined in
the 2012 Edition of the 'Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves'. Mr Harvey consents to the
inclusion in the report of the matters based on his information in the
form and context in which it appears.
**ENDS**
For further information, visit www.vastresourcesplc.com or please
contact:
Vast Resources plc www.vastresourcesplc.com
Roy Pitchford (Chief Executive Officer) +44 (0) 20 7236 1177
Beaumont Cornish - Financial & Nominated Adviser www.beaumontcornish.com
Roland Cornish +44 (0) 020 7628 3396
James Biddle
Brandon Hill Capital Ltd - Joint Broker www.brandonhillcapital.com
Jonathan Evans +44 (0) 20 3463 5016
Peterhouse Corporate Finance Ltd - Joint Broker www.pcorpfin.com
Duncan Vasey +44 (0) 20 7469 0936
St Brides Partners Ltd - Financial PR www.stbridespartners.co.uk
Susie Geliher +44 (0) 20 7236 1177
Charlotte Page
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").
Technical Glossary
Au Chemical symbol for gold
Ag Chemical symbol for silver
Bi Chemical symbol for bismuth
Cu Chemical symbol for copper
Feasibility Study Evaluation of a mineral Reserve/Resource to determine
whether it can be mined effectively and profitably
g/t Grams per tonne
Indicated Part of a Mineral Resource for which quantity, grade
or quality, densities, shape and physical characteristics,
can be estimated with a level of confidence sufficient
to allow the appropriate application of technical
and economic parameters, to support mine planning
and evaluation of the economic viability of the deposit
Inferred Part of a Mineral Resource for which quantity and
grade or quality can be estimated on the basis of
geological evidence and limited sampling, and reasonably
assumed, but not verified, geological and grade continuity
JORC The Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves
kg Kilogram
km Kilometre
km(2) Square kilometre
m(3) Cubic metre
Measured Part of a resource for which tonnage, densities, shape,
physical characteristics, grade and mineral content
can be estimated with a high level of confidence
Mo Chemical symbol for molybdenum
Mt Million tonnes
Pt Chemical symbol for lead
Resource A Mineral Resource as defined by The Australasian
Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves
t Tonnes
Tailings Storage The facility which stores waste product from mineral
Facility processing operations
W Chemical symbol for tungsten
Zn Chemical symbol for zinc
Notes
Vast Resources plc is an AIM listed mining and resource development
company focussed on the rapid advancement of high quality brownfield
projects and recommencing production at previously producing mines in
Romania.
Vast Resources currently own and operates the Manaila Polymetallic Mine
in Romania, which was commissioned in 2015. The Company's portfolio
also includes the Baita Plai Polymetallic Mine in Romania, where work is
currently underway towards obtaining the relevant permissions to start
developing and ultimately commissioning the mine.
The Company also has interests in a number of projects in Southern
Africa including a 25 per cent. interest(*) in the producing
Pickstone-Peerless Gold Mine in Zimbabwe.
(*) Vast ownership is currently 50% (25.01% when SSCG Africa Holdings
Ltd financing conditions precedent are fulfilled as per announcement on
30 January 2017).
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
http://www.acrplc.com/
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March 29, 2017 03:00 ET (07:00 GMT)
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