In a trading update, the AIM-listed firm said the operational performance at the Asacha Gold Mine in Kamchatka in Far East Russia has continued to improve in the second half of 2018.
It added that, as a result of improving gold grades in the fourth quarter, the company expects to slightly exceed the upper end of the full year total gold production guidance of 36,000-40,000 ounces for 2018.
Trans-Siberian Gold also reported that it has entered into a new electricity supply agreement with Kamchatskenergo which will supply power to the Asacha Gold Mine at a reduced price of 4.69 roubles (US$0.07) per kilowatt hour (/kWh).
The group said the agreement, for an initial period of 12 months, follows the implementation of incentive measures to support the development of the Far East of Russia introduced by the government.
Kamchatskenergo is a subsidiary of RAO Energy Systems of the East Group which is part of the RusHydro Group (LON:HYDR).
The company said as well that construction of the underground de-watering pumping facilities continues, albeit slightly behind the original planning timetable, with the completion of the permanent facilities expected to be achieved by May 2019.
Continuous improvements, delivering real results
Alexander Dorogov, Trans-Siberian Gold ‘s CEO commented: “We are making continuous improvements at the Asacha Gold Mine which are delivering real results. Power is a significant production cost and we are pleased to have secured a substantial cost saving with the support of the regional Government of Kamchatka.”
As previously indicated, the firm said a production update for the fourth quarter of 2018 will be provided later this month.
In late afternoon trading, shares in Trans-Siberian Gold were 8.7% higher at 37.50p.