Vast Resources begins exploration drilling at Zagra

Romania and Zimbabwe-focussed mining company Vast Resources announced on Monday that surface exploration drilling has begun at the Magura Neagra and Piciorul Zimbrului prospecting licenses, collectively known as Zagra, in northern Romania.

The AIM-traded firm said it has a minimum 90% interest in Zagra.

It said drilling there was part of its planned expenditure as detailed in the open offer announcement on 21 November last year, with reference made to the planned drilling programme during the fourth quarter in the strategic report contained in the company’s annual report on 28 September.

Vast said the 4,000m surface diamond drilling campaign followed previous exploration, which demonstrated both licences' prospectivity for polymetallic mineralisation.

It said previously-reported estimates by the Romanian state exploration company, IPEG Cluj, indicated an exploration target of up to 3,000Mt of ore to a depth of 600m, at grades ranging from 0.4% copper and 0.3g/t gold, up to 0.8% copper and 0.5g/t gold at Magura Neagra.

Six veins of associated copper and gold mineralisation were also previously identified at Piciorul Zimbrului through underground development, Vast claimed.

The drilling campaign was expected to be completed by the end of December, with all core samples to be submitted to the ALS laboratories in Rosia Montana for copper, lead, zinc, molybdenum, gold and silver assays.

“Magura Neagra and Piciorul Zimbrului are important components of our evolving and expanding global inventory of resource assets,” said chief executive officer Andrew Prelea.

“Although further behind in the development curve when compared to the already producing nearby Manaila mine, or our near term production assets at Baita Plai and brownfield Blueberry, the licences are highly compelling by virtue of the historic assessments conducted by the previous state exploration company which pointed to both licences demonstrating sufficient size and scale to warrant a comprehensive exploration campaign.”

Prelea said he “looked forward” to advancing those assets over the coming months, as it began to get an impression of the resource potential of Magura Neagra and Piciorul Zimbrului, and continued in its strategy to become a mid-tier producer in the region.

“Talks are advancing with institutional investors and the completion of the prospecting drilling campaign is essential to ensure securing the exploration licence in the first half of 2019.

“This is a vital step to concluding the transaction.”