Trans-Siberian Gold (LON:TSG) has published excellent production results at its Asacha mine in Russia as it produced approximately 50% more gold and 105% more silver compared to the first quarter of last year. Despite processing just 1% more tonnes, the higher gold grade of 8.8 g/t compared to 6.1 g/t had a massive impact on the company’s performance. On top of that, the recovery rates actually increased by 1% to 95.4%%, while the silver recovery rate increased to 81%.
This resulted in a refined gold production of almost 11,900 ounces and a refined silver production of almost 12,000 ounces. A good result but this doesn’t mean Trans-Siberian will have been printing money in the first quarter as the company ramped up its mine development program. Whereas it developed ‘just’ 1549 meters in Q1 2018 and 1,769 meters in Q4 2018, it was able to complete in excess of 2,000 meters of underground development in the first quarter of the year.
That being said, Trans-Siberian will have to make sure it isn’t running down its stockpiles. Both in Q4 2018 and Q1 2019, the company processed more tonnes than it mines, indicating it’s depleting its stockpiles. Ideally, we would like to see mining production ramping up in the next few months and quarters.