Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining
26 February 2021
Vast Resources plc
(‘Vast’ or the ‘Company’)
Baita Plai update
Revision of Mining Plan
Vast Resources plc, the AIM-listed mining company, is pleased to update the market on developments at its Baita Plai Polymetallic Mine (‘Baita Plai’) in Romania.
As a result of experience gained since production commenced in October 2020, the Company is in the process of preparing a revised mining plan for Baita Plai incorporating a move away from the traditional labour intensive mining methods within the existing plan to a more “modern” mechanised mining method. This is designed to overcome various operational issues, to enhance productivity and efficiency and thus to optimise the in-situ metal value and take advantage of rising commodity prices.
The revised mining plan will supersede the previous mining plan, the targets for which were announced on 7 September 2020.
The production of concentrate at Baita Plai for Q4 2020* and anticipated for the rest of Q1 2021 is considerably lower than the targets set out in the previous plan. This shortfall is due principally to the lack of equipment reliability and supply chain and labour issues in part due to the COVID restrictions.
These issues are in the process of being rectified under the revised mining plan the results of which are expected to more than make up the shortfall in the period covered by the previous plan (i.e. the period up to Q3 2022). To prepare for the enhanced mechanisation under the revised plan, the Company has already acquired, and is currently awaiting delivery of, three additional underground LHDs and a Jumbo Face Drilling Rig with long hole capabilities.
The management of the mine has been made challenging by the fact that Craig Harvey, Chief Operating Officer of the Company, based in South Africa and who is the current manager of Baita Plai, was not able (as a result of COVID 19 restrictions) to be physically present in Romania from November 2020 to end of January 2021 thus necessitating remote management.
The Company’s new full time Mine Manager at Baita Plai, Marcus Brewster (see announcement 22 January 2021), will arrive on site shortly, and is already actively engaged in and identified with the formulation of the revised mining plan, including the equipment upgrades to enable the implementation of a more effective mechanised mining method.
The Company is aiming to complete and announce the revised mining plan around the end of March.
* 493 Cu concentrate produced from Q4 ore against a target of 644 tonnes Cu concentrate. Pb/Zn ore remains stockpiled and unprocessed (Q4 target Zn 204 tonnes, Pb 94 tonnes)
For further information, visit www.vastplc.com, follow the Company on Twitter @vast_resources and LinkedIn, or please contact:
Vast Resources plc
Beaumont Cornish - Financial & Nominated Adviser
SP Angel Corporate Finance LLP – Joint Broker
Axis Capital Markets Limited – Joint Broker
St Brides Partners Limited
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”).
ABOUT VAST RESOURCES PLC
Vast Resources plc is a United Kingdom AIM listed mining company with mines and projects in Romania 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 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 was commissioned in 2015, currently on care and maintenance. The Company has been granted the Manaila Carlibaba Extended Exploitation License that will allow the Company to re-examine the exploitation of the mineral resources within the larger Manaila Carlibaba licence area.
In Zimbabwe, the Company is focused on the commencement of the joint venture mining agreement on the Community Diamond Concession, Chiadzwa, in the Marange Diamond Fields.