Trans-Siberian Gold upbeat on latest drilling at Vein 25

Low-cost, high-grade gold producer Trans-Siberian Gold updated the market on exploration at Vein 25 North (V25N) on Monday, which was discovered in September following a successful drilling campaign.

The AIM-traded firm said V25N is located about 400 metres north of Vein 25 within the East Zone of its operating Asacha Gold Mine.

It said “extensive” drilling had enabled the definition of V25N over at least 500 metres laterally and 200 metres vertically, adding that it was still open at depth and to the north, and just 100 metres from Vein 25 South (V25S).

“Excellent” progress had been made with the planned 2019-2020 drilling campaign over the Asacha licence area, with 10,371 metres of the scheduled 25,000 metres completed during the first quarter.

A total of 11,441 metres had been drilled on V25N, since its discovery in September.

The board said “highly encouraging” selected results from recent surface drilling indicated high grade mineralisation, including 235 grams of gold per tonne and 134 grams of silver per tonne over 1.4 metres in hole C2012, and 56 grams per tonne of gold and 366 grams per tonne of silver over 5.6 metres in hole C2037.

Other highlights included 51 grams per tonne of gold and 55 grams per tonne of silver over 5.5 metres in hole C2020, 49 grams per tonne of gold and 98 grams per tonne of silver over 5.4 metres in hole C2050, and 61 grams per tonne of gold and 176 grams per tonne of silver over four metres in hole C2047.

At hole C2053 it reported 18 grams per tonne of gold and 229 grams per tonne of silver over 8.1 metres, while at hole C2043 there was 83 grams per tonne of gold and 231 grams per tonne of silver over 1.2 metres, and at hole C2049 it said there was 38 grams of gold per tonne and 450 grams of silver per tonne over 2.1 metres.

Finally, it said there was 35 grams of gold per tonne and 225 grams of silver per tonne over 1.4 metres at hole C2045, 10 grams of gold per tonne and 90 grams of silver per tonne over 4.8 metres on hole C2022, 30 grams of gold per tonne and 255 grams of silver per tonne over 1.3 metres at hole C2035, and 26 grams of gold per tonne and 21 grams of silver per tonne over 1.2 metres at hole C2011.

The company said it would update its existing geological modelling with the results of the drilling campaign to date, while the drilling programme was ongoing with two full-time rigs being used.

It said that, during the first quarter of 2020, its drilling programme had been focused on V25N, which was discovered in September and had produced “very positive” drilling results to date.

The auriferous zone was now at least twice as large as V25S, and extended to within 50 metres of the existing adit that was dug to reach that area.

“We are highly encouraged by this consecutive set of exciting drilling results from the drill campaign successfully carried out at the promising East Zone of Asacha,” said chief executive officer Alexander Dorogov.

“These findings continue to demonstrate high-grade mineralisation and the potential substantially to expand the in-situ mineral resources.”

Dorogov said that, thanks to the “excellent results”, the company was planning to expand the drilling programme, and now expected to start production at Vein 25 ahead of schedule this year.

“We are very excited about the potential of the East Zone and look forward to updating the market on further progress in due course.”

At 1109 BST, shares in Trans-Siberian Gold were up 14.86% at 82.7p.