Trans-Siberian Gold (LON:TSG) have seen their shares jump on Monday following developments made regarding their Russian operations.
The firm said that they had reported a mineral resource estimation of one million ounces of gold at their Rodnikova deposit.
Looking at the JORC-compliant estimate, this indicated a mineral resource estimate of 3.1 million tonnes at a grade of 5.3 grammes of gold per tonne, for 519,000 ounces of gold.
The estimate also found an inferred mineral resource of 3.2 million tonnes of gold at a grade of 4.8 grammes of gold per tonne, for 491,000 ounces of gold.
Alexander Dorogov, Chief Executive Officer of TSG, commented:
“It is pleasing to confirm a 1million ounce gold Mineral Resource Estimate at Rodnikova. The JORC Mineral Resource Estimate validates previous reported estimates under the GKZ classification and also the value-created following its cost-effective acquisition last year.
We remain on track to deliver an initial scoping study in Q2 2020. This study will assist in de-risking the project by establishing the framework for understanding the economics of future mine development scenarios and will also provide guidance for near-term exploration programmes to maximise the delineation of further economic mineralisation”.
Trans-Siberian’s Vein 25
A few weeks back the firm also updated the market on their Asacha Gold Mine operations.
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.
Strong start to 2020
Trans-Siberian Gold have started 2020 very well, despite a slowdown at the end of 2019.
The firm saw its shares in red after mineral estimation analysis 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.
Trans-Siberian have seen a few hits and bumps along the way, however today’s update has sent a positive message to shareholders.
The firm will hope that the good run can continue and continue to lift share price.
Shares in Trans-Siberian Gold trade at 58p (+6.42%). 10/2/20 14:51BST.