Significant Upside Remains For Russian Project
Trans-Siberian Gold plc (AIM:TSG) has released the results of an independent Scoping Study for the 100% owned Rodnikova Project in Kamchatka, Far East Russia prepared by SRK Consulting (Russia) Ltd.
Production Potential
- Life of mine (LOM) 14 years
- LOM is based on a Mineral Resource Estimate, reported in accordance with the JORC Code (2012), of 6.3 Mt at an average grade of 5.0 g/t gold
- LOM gold production of 517,000 oz. at an average grade of 4.03 g/t
- LOM silver production of 3,062,000 oz. at an average grade of 28.9 g/t
- Sub-level stoping and underground mining methods assessed to be optimal for the Project
- Conventional CIL processing plant with processing capacity of 500 kt per annum
- Gold recovery 94% Cut-off grade of 3.5 g/t, calculated based on US$1,250/oz gold price assumption
- Production schedule does not include any potential future exploration success and Mineral Resource growth
Project Costs and Economics
- LOM Revenue of US$715m
- LOM Free Cash Flow of US$126m
- LOM CAPEX US$133m of which US$82m is initial/construction CAPEX in year 1
CEO, Alexander Dorogov, said the company believes that the Project continues to have additional upside potential which it will evaluate through additional exploration and a Pre-Feasibility Study (PFS). The Mineral Resource Estimate is expected to increase in size and confidence through further exploration.
“The Rodnikova Project Scoping Study has delivered viable project economics based on cautious and conservative assumptions,” Mr Dorogov said.
“As with all Scoping Studies there is a significant amount of work to be completed before a definitive investment decision can be made. We are committed to progressing with the exploration and development required in order to advance towards a Pre-Feasibility Study.
“At this stage, we’re pleased with the positive economic indications and upside potential to enhance the project which if advanced would bring significant socio-economic benefit to the people of Kamchatka.”
