Production at gold producer Trans-Siberian Gold’s (TSG’s) Asacha gold mine, in Russia, increased by 66.5% quarter-on-quarter to 11 419 oz in the second quarter of the year.

The mine achieved a significant improvement in its production performance compared with the first quarter of the year despite gold mineralisation in the main zone having become lower-grade and more erratic at depth.

On a quarter-on-quarter basis, the average gold grade increased by 46.9% to 7.6 g/t. This was, in part supported by high-grade test ore extracted from Vein 25.

Since April, about 9 488 t of ore, with an average gold grade of 19.8 g/t, has been extracted from Vein 25 and processed to produce about 6 028 oz of gold.

In addition, significant mine development work was completed at Vein 25 during the second quarter and TSG remains on track to start commercial mining in the east zone of the Asacha mine, which contains significantly higher-grade ore, next year.

Bulk sampling will continue for the remainder of this year.

Meanwhile, the average realised gold price increased by 8.7% quarter-on-quarter to $1 738/oz, while total gold sales increased by 94.6% quarter-on-quarter to 11 357 oz.

Revenue increased by 111.5% quarter-on-quarter to $19.7-million.

SIX-MONTH PERFORMANCE

For the first half of the year, TSG's gold doré production decreased to 18 278 oz, compared with the 21 899 oz produced in the first half of 2019.

Average gold grades also decreased, from 8.6 g/t in the first half of 2019, to 6.4 g/t for the six months under review.

Revenue remained stable at $29-million, while the gold recovery rate remained consistent at 94.2%.

TSG says it remains on track to meet its full-year production guidance.

TSG CEO Alexander Dorogov says despite Covid-19 lockdown measures being implemented around the world, the company managed to maintain its operations without interruption. 

“The second quarter of 2020 saw a return to substantially higher average gold grades as we began to process high-grade ore extracted from Vein 25 in the east zone.”

He adds that TSG made considerable progress in its mine development works at Vein 25 during the period, with development remaining ahead of schedule.