TRANS-SIBERIAN GOLD PLC
30 June 2014
Annual General Meeting
TRANS-SIBERIAN GOLD
TSG Company history
• Established in 2000
• Listed on LSE (AIM) in November 2003
• AngloGold Ashanti subscribed for 29.9%
shares in 2004 and 2005, now 31.17%
• UFG acquired 25% in February 2006, now
55.24%
• Sale of Veduga and Bogunay for $40 million
in June 2007
• Gold production at Asacha commenced in
September 2011
• Asacha license extended in 2013 to
1 September 2018
ASACHA – Underground Mine
2011
2012
2013
Q1
2014
April
2014
May
2014
YTD
2014
3,481
4,124
2,672
867
302
306
1475
34,537
127,646
185,573
48,682
15,708
17,152
81,542
Mine
development
(metres)
Ore extracted
(tonnes)
TRANS-SIBERIAN GOLD
ASACHA Processing plant
2013
1Q
2014
April
2014
May
2014
YTD
2014
30,308 136,154 155,215
35,365
14,068
14,645
64,078
2011
Ore processed
(tonnes)
Gold grade
(g/t)
2012
9.35
6.54
6.29
7.05
7.01
7.22
7.08
15.66
11.79
10.45
12.90
11.07
11.48
12.17
Gold recovery
(%)
94.2
95.41
94.43
94.25
94.84
94.39
94.41
Silver
recovery (%)
61.8
68.49
75.44
76.47
76.71
67.99
74.69
Gold in dore
(oz)
7,833
27,920
29,666
7,431
2,994
3,225
13,650
Silver in dore
(oz)
8,596
35,924
39,136
11,033
3,725
3,613
18,371
Silver grade
(g/t)
ASACHA Refining and sales
2011
2012
2013
1Q
2014
Gold
refined
(oz)
6,539
27,588
29,670
6,057
4,200
1,723
11,980
Silver
refined
(oz)
7,189
35,110
39,026
8,785
6,209
2,015
17,009
Gold
sales
US$mill
11.7
43.9
43.3
7.6
3.8
4.2
15.6
Silver
sales
US$mill
0.2
1.0
0.9
0.2
0.1
0.1
0.4
TRANS-SIBERIAN GOLD
April
2014
May
2014
YTD
2014
JORC Resource Estimate
• 11,000 metres drilled on Asacha’s flanks in
2012
• Resource estimate updated in 2013 by QG Pty
Ltd shows the Company’s properties contain
approximately 1.2 million oz. of gold and
about 4.9 million oz. of silver. The estimate
incorporates
new
data
from
mining
development
and
accounts
for
mining
depletion during 2013
TRANS-SIBERIAN GOLD
JORC Gold Resource as at 31 December 2013
PROPERTY
MEASURED
+
INDICATED
Oz (000)
MEASURED,
INDICATED &
INFERRED
Oz (000)
Asacha
567
868
20.0
4.0
Rodnikova
137
347
8.0
4.0
TOTALS
704
1,215
-
-
GRADE
g/t
(Au equiv.)
CUT-OFF
g/t
Asacha mine
• Average monthly output of more than 15,000
tonnes of ore in 2013 and more than 16,000
tonnes of ore in 2014 ensures continuous
operation of the plant
• Processing plant throughput averaged 12,935
tonnes per month in 2013 and more than 14,000
tonnes per month in March-May 2014
• The main operational issue is high dilution,
reducing the grade of ore. However, in 2014 the
situation has been steadily improving
Asacha mine in operation
Low grades and dilution at underground mine
Main measures
taken in 2012-2013
Main improvements
• Blasting scheme revision (shallow
hole blasting where appropriate,
reduced diameter of drill holes,
etc.)
• Stoping methods chosen
thoroughly for areas of fractured
rock
• Additional support introduction
• Appropriate equipment
purchased
• Experienced personnel hired
• Working schemes optimised
• Dilution steadily improved:
January-May 2014 – 53.7%,
January-May 2013 – 62.6%
• Dilution in March 2014 was
47.2%, the best monthly
figure in 2013/2014
• Gold grades for JanuaryMay 2014 were 7.08 g/t; for
the same period of 2013 –
6.41 g/t
Commissioning of objects at site
Key facilities commissioned in 2013:
• Processing plant
• First phase of the tailings storage facility with
sludge pipeline
• Water supply network
• Fuel storage facility (including fuel tanks and
pipelines, refuelling station and lubrication oils
storage)
• Cold storage facilities
Key facilities commissioned earlier:
•
•
•
•
Cyanide storage
Explosives storage
Power unit and power supply system
The camp
TRANS-SIBERIAN GOLD
Underground mine, including the mine ventilation unit, is a
priority for commissioning in 2014-2015
Loan restructuring
• Between September 2011 and midyear 2013
US$16.5 million of the US$43 million loan
facilities were repaid
• US$26.5 million (due to be repaid by midyear
2014) rescheduled, now to be repaid by the
end of 2018
• US$1.3 million due for repayment in 2014
Negative events at the site
• A fatal accident in the plant on 22 February
2014
• Rockfalls in February- March 2013, due in part
to the earthquake on 1 March 1 2013
Rodnikova Deposit
•
Federal authorities prescribed the
implementation by April 2014 of
two provisions of the Licensing
Agreement:
– Finalisation of the design
documentation
– Commencement of work at the
deposit
•
•
The pre-feasibility study finalised in
2013 indicated that exploitation of
the deposit would not be
economically justified because of
the low gold prices
In May 2014 the Company applied
to the Russian federal authorities
for a license extension to evaluate
the cost-effectiveness of various
technical solutions
TRANS-SIBERIAN GOLD