Tri-star Resources PLC (LON: TSTR) have seen their shares jump after the firm reported that progress had been made in its Oman operations.
Tri-star shares jumped 23.23% on Tuesday afternoon, to 38p. 19/11/19 13:25BST.
Tri-star gave shareholders a positive update when they alluded to the production of antimony metal at world standard commercial grade. The discovery was made at the Port of Sohar Freezone processing facility in Oman.
This comes at a good time for Tri-star where competitors have reported mixed results, and this discovery will allow the firm to stay with the pack.
Established names such as Hoschchild (LON: HOC) Mining have given strong reassurance to shareholders amidst an uncertain trading update. Whilst Serabi Gold (LON: SRB) reported a strong third quarter performance as they update shareholders.
Additionally, Thor Mining (LON: THR) and Avesoro (LON: ASO) saw their shares sink following modest trading updates.
Tri-star said that they wanted to focus on the rapid scaling of production at the plant, and the facility is operated by Strategic & Precious Metals Processing LLC.
Tri-star hold a 40% stake in Strategic & Precious Metals Processing LLC.
The firm has a target capacity to produce over 50,000 ounces of gold, and 20,000 onnes in combined antimony metal and antimony trioxide per annum.
Tri-Star said it has “expressions of interest” from potential customers which would double the expected combined gold capacity from the plant.
Tri-Star Chair Adrian Collins said: “I am delighted that the major milestone of producing antimony metal at a grade of 99.65% has been passed; this proves the metallurgy of the process and enables us now to focus on full-scale commercial production.
“To this end, we are advancing offtake agreements with potential buyers keen to diversify away from their reliance on the current dominant Chinese suppliers.”
Tri-Star said the plant is the largest antimony roaster outside China.
Collins added: “Additionally, the gold circuit is working well, and the first sales of gold have now been made; SPMP is continuing to improve the grade and is now producing gold dore at a grade in excess of 25%.
“Given the robust market fundamentals for our products including high-grade antimony ingots, antimony trioxide and gold dore together with the planned ramp up of production, SPMP is at a tipping point, which we believe will see shareholders rewarded for their support.”
