AIM-listed mining company Vast Resources PLC says its two mines in Zimbabwe and Romania have achieved break-even status during the first reported production quarter.
BY TARISAI MANDIZHA
Vast has Pickstone-Peerless Gold Mine in Zimbabwe and Manaila Polymetallic Mine in Romania.
In a statement, the company said the costs and efficiencies were improving, adding that further improvements were possible and management in both Romania and Zimbabwe was focussed on reducing costs and improving mining and processing efficiencies.
The group said at Pickstone-Peerless Gold Mine the plant processed an average of 15 400 tonnes per month at an average plant head grade of 197g per tonne producing 2 601 ounces for the quarter to December 2015.
According to the group the strategy was to work towards achieving up to 20 000 tonnes per month.
In the period under review, head grades during the quarter were negatively impacted by the presence of artisanal miners in the shallower parts of the mine. It said with the assistance of the authorities, the artisanal miners have now been removed and the short-term mine plans are being reviewed in order to optimise the tonnage and mill feed grade.
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Vast said consideration was now being given to the future higher grade sulphide resources that are scheduled for future mining.
“Our evolution into a mining and production company is making strong headway, and it gives me great pleasure to report that both Manaila and Pickstone Peerless achieved operational break-even in their first quarter of production. It should be noted that this progress has been made during a period of sustained low commodity prices highlighting the inherent quality of the company’s assets, said chief executive officer Roy Pitchford.
“We have achieved a great deal from a standing-start and are now in the process of implementing optimisation programmes to improve grade control and plant efficiencies with the objective of significantly enhancing performance and profitability moving forward. In addition, with the positive cash flow generated from our producing mines, the company is well-placed to achieve its objective of becoming a mid-sized mining company in the short to medium-term.”
