Trans-Siberian Gold (LON: TSG) have given the market another update regarding their Asacha Gold Mine operations.
TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia.
The Company also holds the licence for the development and exploration of the Rodnikova deposit, one of the largest gold fields in South Kamchatka.
The firm said that its newly discovered zone, Vein 25 North is located 400 meters within the east zone of the Asacha mine.
Notably, Trans Siberian said that this new vein has delivered encouraging results.
The company said high-grade gold intersections were obtained in a more or less complex structural environment, with initial drilling results of 133 grams per tonne of gold and 57 grams per tonne of silver at over four meters.
The firm told shareholders that it will continue drilling over the next few months as it plans for a second drill to be mobilized adding to the site.
In addition to the north extension of Vein 25, five other target areas will be drill tested during the year.
To achieve this, the firm said that its board has approved a 2019/20 drilling program totaling 25,000 meters with the potential for further expansion.
Alexander Dorogov, CEO of Trans-Siberian Gold commented:
“We are very pleased with the strong operational performance delivered in 2019 and are accelerating our investment in the exploration and development of the Asacha Gold Mine. The recently conducted drilling programme has yielded some exciting, high grade mineralisation results at Vein 25; this is an important development target for the extension of resource mineralisation. We have an ambitious exploration programme planned in 2020 and with drilling continuing we look forward to updating the market on our progress.”
Trans-Siberian bounce back
Last week, the firm gave shareholders a disappointing update. The firm saw their shares fall when it said that analysis showed the resource at the Asacha gold mine had been overestimated.
The total measured, indicated, and inferred mineral resource for the Kamchatka-located mine has fallen to 313,000 ounces of gold and 675,000 ounces of silver as at the start of December 2019.
The estimate before the results were published was 553,000 ounces of gold and 1.3 million ounces of silver which showed a 43% and 93% drop respectively.
As Trans-Siberian Gold reported in September and October, preliminary internal estimates of Asacha “indicated the existing in-situ resource may have been overestimated”.
The Group will be conducting both underground and surface drilling campaigns during 2020.
A total of approximately 22,000m of surface drilling will target the lateral extents of the Main zone and QV25. A further 2,000m of underground drilling will be conducted on the Main zone at depth.
The update today shows the resilient nature of Trans Siberian to bounce back from last weeks update, and shareholders will hope that the Russian miner can strike gold across 2020.
“The resource will be supplemented by additional ounces targeted in an accelerated exploration programme as well as existing stockpiles. A new drilling campaign of approximately 8,000 metres around Vein 25 in the East zone is already underway. We are confident we have the time, capital and skills to upgrade the mineral resource at Asacha. Formal guidance for 2020 will follow shortly, but at this stage we anticipate annual gold production to be in line with recent years.”
Shares in Trans-Siberian Gold trade at 59p (+0.85%). 15/1/20 15:40BST.