Trans-Siberian restarts Russian gold mine after January accident

Trans-Siberian Gold PLC resumed operations at Vein 25 in the east zone of the Asacha gold mine in Russia following a rockfall in January that killed two people.

The Federal Service for Environmental, Technological and Nuclear Supervision allowed the restart after repairs were completed in the accident area, the company said March 5.

Independent experts the company chose concluded that the rockfall was largely caused by unpredictable and naturally occurring geological events. The agency is expected to complete its investigation and outline its recommendations in late March.

Ahead of the probe results, Trans-Siberian has implemented a preventive action plan to mitigate the risk of a future rockfall, including modifying ground support protocols, new ground support applications and site inspection. Staff will also be trained with the help of geotechnical software and additional underground equipment.

Trans-Siberian noted that it traded profitably during Vein 25's shutdown, having achieved a positive net cash position of $2.7 million as of March 1. The processing plant continued to run at full capacity as Asacha's main zone continued normal operations and provided sufficient feed ore.

In January and February, the company's gold dore production totaled 5,122 ounces at an average gold grade of 5.1 g/t. The company expects its average gold grades to significantly improve after Vein 25's restart.

Trans-Siberian will provide its production and dividend guidance for full year 2021 once the agency's investigation is complete.