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TRANS-SIBERIAN GOLD PLC 30 June 2014 Annual General Meeting TRANS-SIBERIAN GOLD
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TSG Company history Established in 2000 Listed on LSE (AIM) in November 2003 AngloGold Ashanti subscribed for 29.9% shares in 2004 and 2005, now 31.17% UFG acquired 25% in February 2006, now 55.24% Sale of Veduga and Bogunay for $40 million in June 2007 Gold production at Asacha commenced in September 2011 Asacha license extended in 2013 to 1 September 2018
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ASACHA – Underground Mine 201120122013Q1 2014 April 2014 May 2014 YTD 2014 Mine development (metres) 3,4814,1242,6728673023061475 Ore extracted (tonnes) 34,537127,646185,57348,68215,70817,15281,542 TRANS-SIBERIAN GOLD
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ASACHA Processing plant 201120122013 1Q 2014 April 2014 May 2014 YTD 2014 Ore processed (tonnes) 30,308136,154155,21535,36514,06814,64564,078 Gold grade (g/t) 9.356.546.297.057.017.227.08 Silver grade (g/t) 15.66 11.7910.45 12.9011.0711.4812.17 Gold recovery (%) 94.295.4194.4394.2594.8494.3994.41 Silver recovery (%) 61.868.4975.4476.4776.7167.9974.69 Gold in dore (oz) 7,83327,92029,6667,4312,9943,22513,650 Silver in dore (oz) 8,59635,92439,13611,0333,7253,61318,371
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ASACHA Refining and sales 201120122013 1Q 2014 April 2014 May 2014 YTD 2014 Gold refined (oz) 6,53927,58829,6706,0574,2001,72311,980 Silver refined (oz) 7,18935,11039,0268,7856,2092,01517,009 Gold sales US$mill 11.743.943.37.63.84.215.6 Silver sales US$mill 0.21.00.90.20.1 0.4 TRANS-SIBERIAN GOLD
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JORC Resource Estimate 11,000 metres drilled on Asacha’s flanks in 2012 Resource estimate updated in 2013 by QG Pty Ltd shows the Company’s properties contain approximately 1.2 million oz. of gold and about 4.9 million oz. of silver. The estimate incorporates new data from mining development and accounts for mining depletion during 2013 TRANS-SIBERIAN GOLD
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JORC Gold Resource as at 31 December 2013 PROPERTY MEASURED + INDICATED Oz (000) MEASURED, INDICATED & INFERRED Oz (000) GRADE g/t (Au equiv.) CUT-OFF g/t Asacha567 86820.04.0 Rodnikova137 347 8.04.0 TOTALS7041,215--
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Asacha mine Average monthly output of more than 15,000 tonnes of ore in 2013 and more than 16,000 tonnes of ore in 2014 ensures continuous operation of the plant Processing plant throughput averaged 12,935 tonnes per month in 2013 and more than 14,000 tonnes per month in March-May 2014 The main operational issue is high dilution, reducing the grade of ore. However, in 2014 the situation has been steadily improving
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Asacha mine in operation
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Low grades and dilution at underground mine Main measures taken in 2012-2013 Blasting scheme revision (shallow hole blasting where appropriate, reduced diameter of drill holes, etc.) Stoping methods chosen thoroughly for areas of fractured rock Additional support introduction Appropriate equipment purchased Experienced personnel hired Working schemes optimised Main improvements Dilution steadily improved: January-May 2014 – 53.7%, January-May 2013 – 62.6% Dilution in March 2014 was 47.2%, the best monthly figure in 2013/2014 Gold grades for January- May 2014 were 7.08 g/t; for the same period of 2013 – 6.41 g/t
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Commissioning of objects at site TRANS-SIBERIAN GOLD Key facilities commissioned in 2013: Processing plant First phase of the tailings storage facility with sludge pipeline Water supply network Fuel storage facility (including fuel tanks and pipelines, refuelling station and lubrication oils storage) Cold storage facilities Key facilities commissioned earlier: Cyanide storage Explosives storage Power unit and power supply system The camp Underground mine, including the mine ventilation unit, is a priority for commissioning in 2014-2015
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Loan restructuring Between September 2011 and midyear 2013 US$16.5 million of the US$43 million loan facilities were repaid US$26.5 million (due to be repaid by midyear 2014) rescheduled, now to be repaid by the end of 2018 US$1.3 million due for repayment in 2014
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Negative events at the site A fatal accident in the plant on 22 February 2014 Rockfalls in February- March 2013, due in part to the earthquake on 1 March 1 2013
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Rodnikova Deposit Federal authorities prescribed the implementation by April 2014 of two provisions of the Licensing Agreement: – Finalisation of the design documentation – Commencement of work at the deposit The pre-feasibility study finalised in 2013 indicated that exploitation of the deposit would not be economically justified because of the low gold prices In May 2014 the Company applied to the Russian federal authorities for a license extension to evaluate the cost-effectiveness of various technical solutions TRANS-SIBERIAN GOLD
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