March 29 (SeeNews) - UK-based mining company Vast Resources said on Wednesday it has confirmed the existence of 3 million tonnes of mineral resources at Faneata tailings dam located near the Baita Plai Polymetallic Mine (BPPM) in Romania.
A preliminary economic assessment on the operating costs indicates a break-even total processing recovery of 25% at Faneata, Vast Resources said in a press release.
“With an anticipated total processing recovery of 36%, Faneata has the potential to deliver a 44% margin over a period of 16-20 months, before capital expenditure, highlighting the ability for this project to materially enhance financial performance in the near-term, supporting Vast's wider expansion plans across Romania," CEO Roy Pitchford said.
A feasibility study is underway and due for completion by end of the second quarter of this year.
At the beginning of March, Vast Resources announced that it has confirmed significantly higher grades of silver, copper, lead and zinc at Faneata.
Vast Resources started drilling in the area in November and made 33 surface drill holes, covering 630 metres. The results showed a noticeable rise in the average value of silver, copper, lead and zinc grades when compared to previous estimations.
Vast holds an 80% interest in a prospecting licence over Faneata located 7 km from BPPM. This licence constitutes a separate right from the anticipated right to mine at Baita Plai itself and Vast believes Faneata has the potential to be a stand-alone mining operation when enhanced processing technologies, that can enable the economic extraction of the metalliferous content of the tailings, are used, the company said.
Besides Baita mine, Vast Resources holds a 50.1% interest in Sinarom Mining Group, the owner of the Manaila Polymetallic Mine. However, earlier in March, Vast announced that it will acquire remaining 49.9% of Sinarom from Chinese businessman Ni Jin Ming.
Vast Resources will pay Ni Jin Ming is $1.13 million (1.05 million euro) for his shares in two stages: $400,000 by March 31, and a further $735,000 on April 30.
Vast Resources, formerly known as African Consolidated Resources Plc, is an emerging mid-tier, multi-commodity, multi-jurisdictional development and mining company with a project portfolio covering gold, nickel, copper, phosphate and diamonds. It also owns a gold mine in Zimbabwe.
($=0.9209 euro)