Vast Resources, a mining company with projects in Romania, Tajikistan, and Zimbabwe, announced positive drilling results from Phase 1 of the exploration programme at its flagship Baita Plai polymetallic mine in Romania.
Drilling results from Phase 1, representing 5% of the total planned exploration programme, include: 2.18% Cu from drill hole F5 from 44-45m; 3.69% Cu from drill hole F6 from 24.9m to 33m; and 2.10% Cu from drill hole F13 from 33-34m.
Overall, 164 samples were collected from 7 drill holes, with ore intercepted in 6 holes with a thickness from 1-10m and an average of 1.87% Cu. In the centre section of the ore, the initial thickness, based on historical data, was estimated at 6.7m. The actual intersected thickness, based on current drilling by Vast, is 14m. The best results were intercepted in abovementioned drill holes F6 at a thickness of 14m and average grade 1.8% Cu, and F5 at a thickness of 14.7m and an average grade 0.53% Cu.
Based on the performed economic composite, a total of 45m were classified as ore with an average of 0.71% Cu, and from the total 164m that were sampled, 27.4% or 45 metres is ore.
The current Phase 1 drilling stage has the purpose of confirming the extension of the orebody at higher depth and along strike. The upcoming Phase 2 will consist of infill drillholes with the aim of classifying a JORC-compliant resource ratified by a 3rd party.
In conclusion, these are exciting results from Baita Plai that further enhance the project’s already strong economics. The significant copper percentages found in the samples, along with the thickness of the ore intersected, exceed initial estimates and give the company and investors increased confidence in the potential to extend the mining area, prior to reporting a JORC-compliant mineral resource. The last is a crucial step for the company’s license renewal in August 2024.
Baita Plai is also pending a Q2 2023 production report, expected in the coming weeks, fully detailing current results from the exploration programme. Vast has already said that operational breakeven was achieved in June 2023 and that name plate capacity is now anticipated to be met in Q3 rather than H1 2023. The latest technical report from Baita Plai was positive, underpinning the potential for a resource upgrade following strong Q4 2022 and Q1 2023 production reports.
With the quarterly production report coming up, as well as Phase 2 of the programme, potential mine area extension, and JORC-compliant resource, investors have a lot to look forward to in the coming months. Markets reacted positively to today’s news, pushing VAST shares 4.11% higher as of time of writing.
Vast remains well-funded after raising £1.7m through a placing 10 days ago that provided additional working capital for potential expansion capex. Vast also reiterated its announcement from 4 July regarding the recovery of a historic parcel of 129,400 rough diamonds held in custody at the Reserve Bank of Zimbabwe, following a High Court Order in Vast’s favour. The company continues to liaise with the appropriate organisations regarding the procedure for the handover, however, there is no precise timeline for the recovery yet.
Source: Vox markets