Vast Resources AIM:VAST the mining and exploration company with operations in Zimbabwe and Romania published an exploration update on its Baita Plai Polymetallic Mine in Romania today (27th February).
The AIM-listed miner said it has received a Technical Programme Report for Baita Plai setting out a plan for a drilling programme in order to establish an enlarged JORC-compliant mineral resource and an ore reserve for its licence renewal in August 2024.
The Technical Report means that Vast fulfils its agreement to potentially extend the mapped mine ore zone and open up a new mining area, which it has called Antonio, into the Baia Rosie Skarn.
Potential Upgrade
The management said: “A potential upgrade to the existing Mineral Resource at Baita Plai (Antonio plus Baia Rosie) with the inclusion of a JORC compliant Exploration Target of 11.65-12.65Mtn at 0.98% to 1.69%% Cu, 0.23% to 0.57% Pb, 0.17% to 0.62%Zn.”
The company plans a twelve-month drilling programme: “to confirm historic data and continuation of the previously mined areas.” The new exploration will drill a total of 15,870 drilling metres across 59 locations. 10,890 diamond drilling metres are planned in Baia Rosie from the surface via 18 holes and 9,900 metres from 14 underground of 990 metres.
The Maidstone-based mining company said that ore bodies proposed for investigation are constructed based on data from historical drillholes and level plans and have a total tonnage of 11.65 million tonnes (mT) to 12.65mT considered as the Exploration Target.
Preliminary Economic Assessment
Following the result of the drilling programme Vast intends to carry out a further study in order to produce a Preliminary Economic Assessment (PEA) of the further potential at Baita Plai revealed by the drilling programme.
Subject to the results of the PEA, the company said in its statement this morning that this would then potentially enable the recategorization of a portion of the Measured and Indicated Mineral Resources into Proved and Probable Ore Reserves.
The statement added: “Furthermore, as part of this process, the company has located an historic National Agency for Mineral Resources Polymetallic Registered Reserve of 1.489mT calculated until 220m depth.”
Andrew Prelea, Vast’s chief executive said in the statement: “The receipt of the recommendations and conclusions of the report is an important step in potentially extending the mining area at Baita Plai from its existing base and creating a much enlarged Mineral Resource.”
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He continued: “In the company’s announcement of 29th October 2020 we were able to report an Exploration Target of between 1.8mT and 3.0mT in a range of 0.50-2.00% Cu, 0.20-0.80g/t Au and 40-80g/t Ag. I am pleased to see that this Exploration Target is now well exceeded as a result of the new Exploration Target contained in the Report – a significant further step in securing the long-term future of the Baita Plai mine.”
Vast opened the morning at 0.695p and has offered a 362.6% year-to-date return. However, Vast was trading at 1.35p a year ago and has offered a -46.1% one year return. Shares have ranged between 0.15p and 2.65p over the last 52-weeks.
As previously reported the company is expecting a good year targeting increased production and profitability and hope that copper prices will remain strong as the world transitions from a hydrocarbons-based energysystem to renewables.
The company is aiming to produce 14,000 tonnes of copper concentrate a month from Baita Plai by 1H23 and is preparing its next shipment for the end of January. The Baita Plai mine is in the Apuseni Mountains in Transylvania, where the majority of Romania’s polymetallic and uranium resources are located.
Full mine infrastructure
Vast has developed Baita Plai’s infrastructure to include underground and surface mining operations as well as processing and tailings facilities. The main product from the mine is copper. November 2022 was Vast’s best month in terms of production and the quality of product is also increasing – the average copper grade achieved was 24%, representing an increase of 40% compared to 3Q22
As previously reported at the end of September 2022, Vast raised GBP656,000 through a placement of 164 million shares for operational purposes. In October the miner opened the Takob Mine Processing Project at the Takob Mine in Tajikistan, a polymetallic mine run in partnership with Korkhonai Boygardonii Takob, an indigenous joint stock company in Tajikistan. The company also announced that it had signed an exclusive offtake contract with Trafigura for the sale of bulk concentrates produced at Takob.
Non-ferrous royalties
The Takob Project, which is fully-financed, produces lead, zinc and fluoride. The targeted production of the mine is 7,000 tonnes of ore per month containing 1.5% to 2% lead, 1.2% to 1.4% zinc and 27% fluoride. The mine also has historic deposits of silver and gold. Trafigura will buy any lead, zinc, gold or silver, and Vast will receive a participation equivalent to a 12.25% royalty over all sales of non-ferrous concentrate and any other metals produced from the Takob Processing Project.
Vast also owns another mine in Romania, the Manaila Polymetallic Mine, which after a period under care and maintenance the company hopes to bring back into production.
However, Deshe Analytics remain unconvinced about Vast’s future prospects, rating the stock as ‘Underperform’.
The analyst noted: “The financials published by Vast for 3Q22 were weak and discouraging. Their growth, value, and income factors performance indicate that company management are not executing well their business plan. These results indicate a weak growth potential for Vast’s stock’s price moving forward. As such, Vast received an overall score of 58 and a ‘Underperform’ recommendation.”
