Baita Plai Project Production and Operational Cash Flow & Baita Plai General Mine Update

Vast Resources plc / Ticker: VAST / Index: AIM / Sector: Mining

7 September 2020

Vast Resources plc
(“Vast” or the “Company”)

Baita Plai Project Production and Operational Cash Flow
Baita Plai General Mine Update

Vast Resources plc, the AIM-listed mining company, is pleased to update the market on progress at its Baita Plai Polymetallic Mine “Baita Plai” in Romania.

PROJECT PRODUCTION & ASSOCIATED OPERATIONAL CASHFLOW

With the confirmatory drilling programme of the core area to be mined over the next three years, nearing completion, the completion of the metallurgical testwork program and the finalisation of the Company’s detailed mine planning on site at Baita Plai, the Company is now in a position to give shareholders the Company’s planned development & production schedule as well as an internal operational cashflow based on the plan and these results. This information will form part of the input for the JORC Reserve and Resource report for Baita Plai expected to be released during October 2020.

Photos of the production of concentrate and upgrades will be posted via social media.

Baita Plai development & production plan*:

		tonnes	metres
		Q3-Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021		Q1-Q3 2022
		Sept-Dec 20	Jan-Mar 21	Apr-Jun 21	Jul -Sep 21	Oct-Dec 21		Jan-Oct 22
DEVELOPMENT & EQUIPPING		to/m	to/m	to/m	to/m	to/m		to/m
WASTE BACKFILL METRES	m	300	-	-	-	-
EQUIPPING METRES	m	350	30	-	-	-
18 LEVEL - 19 LEVEL DECLINE PROJECT METRES	m	80	190	120	215	330		565
UNDERGROUND ORE MINED
ORE TONNES MINED 18 LEVEL ANTONIO + ANTONIO NORTH	t	13,230	26,210	33,696	35,112	30,964		18,390
ORE TONNES MINED 19A LEVEL ANTONIO	t				500	8,488		103,086
ORE TONNES MINED 19 LEVEL ANTONIO	t							8,993
TOTAL EXCAVATED ORE	t	13,230	26,210	33,696	35,612	39,452		130,469
PROCESSING PLANT
Tonnes Delivered (Fully Diluted)	t	14,116	27,966	35,954	37,998	41,028		139,210
CONCENTRATE TONNES
Copper	t	644	979	1,258	1,330	1,463		5,351
Zinc	t	204	405	520	550	593		2,008
Lead	t	94	186	239	253	273		923
TOTAL CONC. TONNES		942	1,570	2,018	2,133	2,330		8,282

* This development and production plan has been developed and compiled by Craig Harvey, the COO for Vast Resources PLC and a full-time employee and Director of the Company.

Baita Plai operational cashflow **:

		Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	10 mths to Oct 2022
		Oct20-Dec20	Jan21-Mar21	Apr21-Jun21	Jul 21-Sep21	Oct21-Dec21	Jan22-Oct22
		USD	USD	USD	USD	USD	USD
NET REVENUE		1,869,728	3,553,352	4,775,665	5,174,201	5,516,218	20,908,811
Variable direct & indirect costs		507,322	972,804	1,233,866	1,304,018	1,334,784	4,399,452
Fixed direct & indirect costs		838,221	848,410	956,501	982,361	999,581	3,292,836
TOTAL COSTS		1,345,543	1,821,214	2,190,366	2,286,379	2,334,365	7,692,288
SURPLUS / (DEFICIT) BEFORE DEVELOPMENT		524,185	1,732,138	2,585,299	2,887,822	3,181,853	13,216,523
Development costs		106,035	156,441	227,728	312,978	279,923	434,799
SURPLUS / (DEFICIT) AFTER DEVELOPMENT		418,149	1,575,697	2,357,571	2,574,844	2,901,930	12,781,724
Cu tonne equivalents sold @ $6,655/t		281	534	718	777	829	3,142
Cost / Cu equivalent tonne		5,167	3,704	3,370	3,343	3,154	2,587
Surplus / (deficit) Cu equivalent tonne		1,488	2,951	3,285	3,312	3,501	4,068

To view the Copper Production Cost & Margin curve chart, please click on the following link: https://ml-eu.globenewswire.com/media/28451d26-9ede-4581-82e5-0adc5cfd29d6/large/?v=09062020042500

**These internal cashflow projections have been compiled by the Company and are prepared from the development & production plan using market standard pricing assumptions on sales and the Company’s actual and forecasted operational costs.

GENERAL MINE UPDATE

The Company wishes to advise the market that there has been a safety issue at the railway bridge access point between the mine and the floatation plant that has caused a minor delay of three to four weeks to first sale of concentrate. The Company has already instructed the immediate replacement of this access point to the floatation plant and contractors are already engaged in fabricating an alternative steel structure. The Company has informed its offtake partner of this issue and would like to state to the market that this does not affect the current offtake agreement.

The Company would like to assure shareholders that it has reacted swiftly and decisively in response to this safety issue, and has conducted an audit which has resulted in immediate personnel changes.

The Company also announces that it has already 150 tonnes of prepared copper concentrate that will form part of the first sales to Mercuria which is now expected to be delivered in October.

The Company is further pleased to announce that Craig Harvey, COO & Chief Geologist has now been granted access into Romania from South Africa following a period of extended lockdown due to Covid-19. He will be arriving on site in September to physically manage operations on the ground at Baita Plai.

Andrew Prelea, Chief Executive Officer, Vast Resources PLC, Commented:

“As illustrated in the copper equivalent Cost & Margin curve chart above, following the completion at the end of 2021 of the current underground development down to the next level, Batia Plai is expected to be one of the lowest cost per ton copper producers globally. The low operating costs will ensure Baita Plai remains a viable commercial operation regardless of the potential future commodity market fluctuations.

Qualified Person

The information in this announcement is based on information compiled by Mr Craig Harvey, the Chief Operating Officer for Vast and a full-time employee and Director of the Company. Mr Harvey is a Competent Person who is a Member of the Australian Institute of Geoscientists and of the Geological Society of South Africa, a Recognised Professional Organisation included in a list that is posted on the ASX website from time to time.

Mr Harvey has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Harvey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

**ENDS**

For further information, visit www.vastplc.com or please contact:

Vast Resources plc Andrew Prelea (Chief Executive Officer) Andrew Hall	www.vastplc.com +44 (0) 20 7846 0974
Beaumont Cornish - Financial & Nominated Adviser Roland Cornish James Biddle	www.beaumontcornish.com +44 (0) 020 7628 3396
SP Angel Corporate Finance LLP – Joint Broker Richard Morrison Caroline Rowe	www.spangel.co.uk +44 (0) 20 3470 0470
Axis Capital Markets Limited – Joint Broker Richard Hutchison	www.axcap247.com +44 (0) 20 3206 0320
Blytheweigh Tim Blythe Megan Ray	www.blytheweigh.com +44 (0) 20 7138 3204

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”).

ABOUT VAST RESOURCES PLC

Vast Resources plc, is a United Kingdom AIM listed mining company with mines and projects in Romania and Zimbabwe

In Romania, the Company is focused on the rapid advancement of high quality projects by recommencing production at previously producing mines.

The Company’s Romanian portfolio includes an 80% interest in the Baita Plai Polymetallic Mine. Baita Plai is located in the Apuseni Mountains, Transylvania, an area which hosts Romania’s largest polymetallic mines. Work is now currently underway towards first concentrate production as well as efforts in place to establish a maiden Resource under the JORC code.

The Company also owns the Manaila Polymetallic Mine in Romania, which was commissioned in 2015, currently on care and maintenance. The Company has been granted the Manaila Carlibaba Extended Exploitation License that will allow the Company to re-examine the exploitation of the mineral resources within the larger Manaila Carlibaba license area

In Zimbabwe, the Company is focused on the commencement of the joint venture mining agreement on the Chiadzwa Community Concession Block of the Chiadzwa Diamond Fields in Zimbabwe.

Attachment

• RNS 07092020 Baita Update Final for Embargo (002)