Vast Resources (VAST) has received a Technical Programme Report for its Baita Plai Polymetallic Mine in Romania. The report outlines a drilling program to establish an enlarged JORC compliant Mineral Resource and Ore Reserve, allowing for the extension of the current mine ore zone and the opening of a new mining area.
The program includes a 12-month drilling plan with a total of 15,870 drilling metres planned across 18 surface and 14 underground holes at Baia Rosie and 27 underground holes at Antonio. The proposed exploration target is 11.65-12.65Mtn with varying percentages of copper, lead, and zinc (see table).
The company said drilling costs and associated reporting are to be funded from current cash balances, future funding and revenues over the coming 12 months.
After completing the drilling programme, Vast plans to conduct a study to create a Preliminary Economic Assessment (PEA) of the additional potential at Baita Plai discovered through the programme. Depending on the PEA's findings, there is a possibility that a portion of the Measured and Indicated Mineral Resources may be reclassified into Proved and Probable Ore Reserves.
Andrew Prelea, CEO of Vast Resources plc, commented: “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. 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.”
View from Vox
This latest technical report brings more good news for Vast’s shareholders, underpinning the potential for a resource upgrade following strong Q4 production report at Baita Plai released at the start of February, and news of the settlement around the release of a historic parcel of 129,400 carats of rough diamonds held in custody at the Reserve Bank of Zimbabwe.
Quarterly production at Baita Plai has been rising steadily (see chart), and we see no reason that the trend will not continue. Since 30 April, Vast has continued to implement a transition to mechanised mining at Baita Plai, and the mine is now active in four separate high productivity areas utilising Long Hole Stope methodology. The completion of Spiral number 3 will further increase production from Q2 2023. The presence of bismuth and molybdenum at Baita Plai further underscore its strategic value.
Overall, the economic fundamentals for Vast's polymetallic business remain strong. Increased demand for copper and tightness in supply have significantly lifted copper prices, and the forecast global growth in EVs will keep pressure on supply over the next decade, exacerbated by declining grades, water supply issues, and community resistance. Demand for other critical metals used in renewable tech will follow a similar trajectory.
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