Mining group, Vast Resources (AIM:VAST) , confirmed to investors this morning that production has recommenced at its Baita Plai Polymetallic Mine (“Baita Plai”) in Romania.
Vast, which holds an 80% interest in Baita Plai said daily blasting has been implemented on the mineralised horizon of the Antonio skarn between 17 level and 18 level.
The blasted ore is stored underground in both the working place silos and the surface silos.
It said transport of the ore from the surface silos to the flotation plant silos has started in preparation for the hot commissioning of the flotation plant which is expected to follow shortly.
In addition, the group said the incline project commenced on 18 level with daily blasts being achieved on the new underground development from 1 October 2020 according to plan.
‘The incline is designed to provide access to the continuation of the Antonio skarn from 18 level down to 19 level and will provide a production base for the next four years,’ it said.
Based on the success of recommencing mining activity, Vast told investors that it is on track to meet its October production and sales targets as outlined in the project production and associated operational cash flow forecasts announced on 7 September 2020.
Shares in Vast Resources have continued to trade between a tight range of 0.15p and 0.17p in the past month and closed Tuesday afternoon trading at 0.16p.
Vast detailed last month in its development and production plan that it expects to produce over 2,000 tonnes of concentrate by the second quarter of 2021 at Baita Plai, generating around $4.7m of net revenue and around $5.1m revenue by the third quarter of 2021.
To date, Vast has already produced 150 tonnes of prepared copper concentrate at the Baita Plai project in Romania. It said this will form part of the group’s first sales to commodity trading company, Mercuria, which is expected to be delivered at some point this month.
“The swift action our team took to reconnect the mine and flotation plant meant that production was able to resume quickly, resulting in minimal downtime and importantly, there is no expected impact on October production and sales targets,” said CEO, Andrew Prelea.
He added, “With potentially one of the lowest operating costs globally, and significant resource expansion opportunities, Baita Plai has significant commercial potential and we are focussed on realising this inherent value for all stakeholders.”
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