Trans-Siberian Gold (TSG.L) has released an updated resource estimate for its Asacha gold mine, in Kamchatka, Russia. The total measured and indicated resource currently stands at 479,000 ounces of gold and about 2.2 million ounces of silver, contained in approximately 862,000 tonnes of rock at an average grade of 16 g/t gold and 79 g/t silver, as you can see on the image below.
There also is an additional inferred resource which currently contains 333,000 tonnes of rock at an average grader of 16 g/t gold and 71 g/t silver for a total of 166,000 ounces of gold and 762,000 ounces of silver. This pushes the total resources at Asacha (measured, indicated and inferred, as unlike the NI43-101 rules, the company is allowed to report a global resource estimate by throwing all categories together) to 645,000 ounces of gold and almost 3 million ounces of silver. This represents a 43% increase compared to the previous resource estimate, including a 61% increase in the measured and indicated resources as the results of the 30,500 meters of drilling have had a positive impact.
That’s good news for Horvik Limited, which is currently in the process of acquiring all remaining shares of Trans-Siberian Gold it doesn’t own yet. Horvik is offering 118 pence in cash, which is approximately 3% higher than the most recent closing price of 114.5 pence. It looks like the Offer Document hasn’t been filed yet so the final date for the acquisition to close hasn’t been set in stone yet but perhaps a short-term arbitrage strategy could be deployed.
Disclosure: The author has no position in Trans-Siberian Gold. Please read our disclaimer.