Vast Resources reports progress at former Hanes Mine

30th Oct 2024 13:00

(Sharecast News) - Vast Resources updated the market on its project involving the processing of material from a rock dump at the former Hanes Gold Mine in Romania on Wednesday.

The AIM-traded firm said the initiative, part of a broader ecological cleanup effort encouraged by the Romanian government, involved extracting polymetallic ore from a 1.5 million tonne rock dump in the Alba region.

Recent production-scale tests on 200 tonnes of the material yielded promising results, with concentrate grades of 11.4% copper, 3.5% zinc, 8.5% lead, 1360 grams of silver per tonne, and 10.6 grams of gold per tonne.

The company said it expected the overall gold grade to be higher following a planned pre-wash of material to capture free gold before flotation.

Vast said it anticipated improving recovery rates from the current 50% to between 65% and 75% as production scaled and the flotation line was optimised.

Under the first agreement, Vast was set to receive an effective royalty of 20% on the net difference between revenue and all related costs, payable monthly.

Additionally, the company would levy processing fees at its Baita Plai site in line with industry standards.

"The processing and marketing of concentrate derived from the Former Hanes Gold Mine is a great result for Vast and provides near term cash flow whilst utilising excess capacity at Baita Plai," said chief executive officer Andrew Prelea.

"We expect further news shortly in relation to the final assays of the 500 tonne concentrate sale outlined in the second agreement, and will provide updates as soon as appropriate."

At 1419 GMT, shares in Vast Resources were down 1.33% at 0.1p.

Reporting by Josh White for Sharecast.com.