Trans-Siberian Gold reports that mine development activities at Asacha in Far East Russia in the third quarter of 2012 comprised approximately 1,090 m, while ore extraction (including ore from stoping and mine development) amounted to 26,644 t. In the same period, an average 12,414 t/month was processed by the Asacha plant (99.3% of the production level envisaged in the plant’s design documentation). Asacha is located in the Kamchatka krai, occupying a 1,000 km peninsular in Far East Russia.

TSG reported in late September 2012 that the breakdown of some underground equipment had reduced the amount of stoping ore which could be delivered to the plant in the second half of the third quarter, necessitating blending mined ore with lower grade ore from the surface ore stockpile. This problem continued into October, although all necessary spare parts have now been delivered to site. A new underground truck is expected to arrive in Kamchatka by the end of October. Its delivery to Asacha depends on road conditions and is expected in late November, at which time the arrival of a new underground loader is also expected.

As a consequence of the mining production problems in September and October, TSG now expects 2012 production of around 27,000 oz gold, compared to the previous estimate of 31,000 oz.

The company is also taking steps to strengthen the mine’s management team with the appointment of two new underground mining engineers and a mining geologist. It also intends to recruit a Technical Director for Asacha.

By road Asacha is some 150 km to the south of the port of Petropavlovsk – Kamchatsky, the regional capital. The first 90 km of the road is mostly paved, being the road to the Mutnovskaya geothermal power station. From the turn-off to the site is a 60 km long unpaved all-weather road which has been constructed by the company.

Planned production:

• Throughput: 150,000 t/y mine/plant to 200,000 t/y
• Mine: underground sub-level shrinkage (open face/ore shrinkage)
• Plant: CIL
• Annual production: about 84,000 oz of gold and 160,000 oz of silver
• Life: some seven years.