Vast Resources drilling programme 'appears' to support secondary mine
Results from Vast Resources' drilling programme in Romania seemed to support the development of a second open pit mine within its wholly owned Manaila licence area.
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Vast Resources said final results of the 2,150m drilling programme "appear" to confirm the Carlibaba prospect's suitability for an additional open pit mine, as well as a new metallurgical processing facility on the site, reducing OPEX costs by as much as 25%, the cost of which had already been included in the company's previously announced $10m strategic funding requirement.
A total of nine additional drill holes were cored during the second phase of the drilling program, returning silver grades as high as 93.33 grams per tonne (g/t), as well as gold at grades of 1.47g/t.
Roy Pitchford, chief executive of Vast, said, "The results from the now completed drilling programme at Carlibaba have validated the historic assay dataset and provided significant support to our assertion that this prospect will become the second open pit mine operation at our Manaila licence, in addition to the site of our new metallurgical complex."
"The development of these twin objectives, which we are looking to fund through off-take debt finance, is expected to increase throughput volumes at Manaila considerably and also materially reduce operating costs - which should significantly enhance profitability in Romania moving forwards," he added.
As of 1350 GMT, shares had fallen back 2.61% to 0.56p