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Mangazeya Mining Ltd. announces its production results for the second quarter and the six months ended June 30, 2020

Publish date: 31.08.2020

Print version

TORONTO, ONTARIO, August 31, 2020 – Mangazeya Mining Ltd. (“Mangazeya” or the “Company”) (NEX: MGZ.H) is pleased to announce its production results for the second quarter and the six months ended June 30, 2020.

Q2 2020 Q2 2019 Y-o-Y change H1 2020 H1 2019 Y-o-Y change
Total rock moved, ‘000 m3 974 611 59.4% 1,510 1,232 22.6%
Savkinskoye 0.0% 297 -100.0%
Kochkovskoye 552 611 -9.7% 1,087 934 16.4%
Nasedkino 423 100.0% 423 100.0%
Stripping, ‘000 m3 818 467 75.2% 1,238 1,001 23.6%
Savkinskoye 0.0% 266 -100.0%
Kochkovskoye 440 467 -5.8% 860 735 17.0%
Nasedkino 378 100.0% 378 100.0%
Ore mined, kt 383 348 9.9% 662 538 23.0%
Savkinskoye 0.0% 65 -100.0%
Kochkovskoye 260 348 -25.4% 539 473 13.9%
Nasedkino 123 100.0% 123 100.0%
Stripping ratio, m3/t 2.14 1.34 59.4% 1.87 1.86 0.5%
Savkinskoye 0.0% 4.10 -100.0%
Kochkovskoye 1.69 1.34 26.3% 1.60 1.55 2.7%
Nasedkino 3.08 100.0% 3.08 100.0%
Average grade in ore mined, g/t 1.36 2.19 -37.9% 1.46 2.11 -31.0%
Savkinskoye 0.0% 1.23 -100.0%
Kochkovskoye 1.40 2.19 -36.3% 1.50 2.24 -33.0%
Nasedkino 1.29 100.0% 1.29 100.0%
Gold in ore mined, kg 520 763 -31.8% 965 1,138 -15.2%
Savkinskoye 0.0% 80 -100.0%
Kochkovskoye 362 763 -52.5% 807 1,058 -23.7%
Nasedkino 158 100.0% 158 100.0%
Ore stacked, kt 426 412 100.0% 453 412 10.0%
Savkinskoye 49 251 -80.5% 49 251 -80.5%
Kochkovskoye 377 161 134.3% 404 161 150.9%
Average grade in ore stacked, g/t 1.48 1.62 100.0% 1.50 1.62 -7.6%
Savkinskoye 1.13 1.09 3.7% 1.13 1.09 3.7%
Kochkovskoye 1.53 2.45 -37.6% 1.54 2.45 -37.1%
Gold in ore stacked, kg 632 667 100.0% 677 667 1.6%
Savkinskoye 56 273 -79.6% 55.59 273 -79.6%
Kochkovskoye 576 394 100.0% 621.89 394 57.9%
Gold production, ounces 9.13 6.83 33.7% 12.51 9.09 37.7%
Savkinskoye 1.86 3.56 -47.7% 3.05 4.29 -29.0%
Kochkovskoye 7.26 3.26 122.6% 9.47 4.80 97.4%
including:
Gold from hard-rock deposit 7.14 2.25 218.1% 9.35 3.78 147.3%
Gold from placers 0.12 1.02 -88.1% 0.12 1.02 -88.1%
Refining gold, ounces 9.38 5.08 84.7% 11.97 6.79 76.2%
Savkinskoye 2.18 2.80 -21.9% 3.14 3.43 -8.4%
Kochkovskoye 7.20 2.28 215.3% 8.83 3.36 162.5%
including:
Gold from hard-rock deposit 7.10 1.97 260.7% 8.73 3.05 186.3%
Gold from placers 0.10 0.31 -68.5% 0.10 0.31 -68.5%
Gold sold, ounces 10.28 4.21 144.1% 13.52 6.03 124.4%
Savkinskoye 3.21 1.93 66.1% 4.71 2.66 76.8%
Kochkovskoye 7.07 2.28 210.0% 8.82 3.36 162.1%
including:
Gold from hard-rock deposit 6.97 1.97 254.5% 8.72 3.05 185.9%
Gold from placers 0.10 0.31 -68.5% 0.10 0.31 -68.5%

General analysis

  • In Q2 2020, mining works started at Nasedkino deposit.
  • In H1 2020, the total stripping ratio for all deposits (1.87 m3/t) remained nearly unchanged YoY (1.86 m3/t). The lack of change in 2020 was caused by the final development of Khlebny pit, Savkinskoye deposit, and start of mining works at Nasedkino deposit. In Q2 2020, the stripping ratio was 2.14 m3/t compared to 1.34 m3/t in Q2 2019.
  • In H1 2020, the gold in ore mined reduced by 15.2% YoY, or from 1.138 kg to 965 kg due to the reduced gold grade in ore mined (1.46 g/t and 2.11 g/t in 2020 and 2019, respectively) mainly at Kochkovskoye deposit. The gold in ore mined was 520 kg in Q2 2020 and 763 kg in Q2 2019.
  • Gold production increased from 9.09k ounces in H1 2019 to 12.51k ounces in H1 2020, as in H1 2019 161k tons of ore with average gold grade of 2.45 g/t and 393.9 kg of gold in ore were stacked, and in H1 2020, 404k tons of ore with average gold grade of 1.54 g/t and 621.9 kg of gold in ore were stacked. In Q2 2020, 9.13k ounces of gold were produced, in Q2 2019 – 6.83k ounces (9.38k and 5.08k ounces of gold were refined, respectively).
  • Gold sales increased consequently by 124.4%, or from 6.03k ounces in H1 2019 to 13.52k ounces in H1 2020. In Q2 2020, 10.28k ounces of gold were sold as compared to 4.21k ounces in Q2 2019.

Kochkovskoye deposit

  • The volume of mining in H1 2020 was as follows: total ore mined was 539k tons, gold in ore mined was 807 kg, average grade in ore mined was 1.50 g/t, as compared to 473k tons, 1.058 kg and 2.24 g/t, respectively, in H1 2019. The volume of mining increased as in Q1 2019 mining was performed from February to March, and in Q1 2020 – from January to March nonstop. In Q2 2020, total ore mined was 260k tons, gold in ore mined was 362 kg, average grade in ore mined was 1.4 g/t, as compared to 348k tons, 763 kg of gold and average grade of 2.19 g/t in Q2 2019. The volume of mining reduced in Q2 2020 as compared to Q2 2019 as the volume of oxide ore available at ore storage facilities was sufficient to ensure work of ore beneficiation facilities at full capacity.
  • In H1 2020, ore stacked was 404k tons, or by 150.9% more YoY (161k tons in H1 2019). The volume of ore stacked increased due to the improved processing flow and the start of ore stacking in March 2020, while in 2019, ore stacking started in May, after completion of construction of crushing-and-screening unit. In Q2 2020, 377k tons of ore were stacked, and in Q2 2019 – 161k tons.
  • In H1 2020, average gold grade in ore stacked reduced by 37.1% YoY (from 2.45 g/t to 1.54 g/t) due to the mining of lower-grade ore.
  • Gold produced increased from 4.80k ounces in H1 2019 to 9.47k ounces in H1 2020 due to increased volume of ore stacked. In Q2 2020, 7.26k ounces of gold were produced, in Q2 2019 – 3.26k ounces.
  • Gold sales were 8.82k ounces in H1 2020, and 3.36k ounces in H1 2019. In Q2 2020, gold sales were 7.07k ounces, in Q2 2019 – 2.28k ounces.
  • Most of gold produced and sold is hard-rock gold. In H1 2020, 8.73k ounces of gold were produced, and 8.72k ounces of hard-rock gold and 0.1k ounces of placer gold were sold. In H1 2019, 3.05k ounces of hard-rock gold and 0.31k ounces of placer gold were produced and sold.

Savkinskoye deposit

  • In H1 2020, the volume of production reduced by 29.0% YoY. The change was caused by the completion of deposit development. In Q2 2020, the reduction was by 47.7% YoY.
  • The gold sold in H1 2020 increased by 76.8% YoY due to the sales of earlier produced metal. In Q2, the gold sold increased by 66.1% YoY.
  • In H1 2020, no mining or stripping works were performed due to deposit development and production of gold from earlier mined ore.
  • The volume of ore stacked in H1 2020 reduced by 80.5% YoY due to lack of mining in H1 2020.

Nasedkino deposit

  • The volume of mining in Q2 and H1 2020 was as follows: total rock moved was 423k tons, total ore mined – 123k tons, stripping ratio – 3.08 m3/t, gold in ore mined – 158kg, average gold grade in ore mined – 1.29 g/t.
    In Q2 2020, neither refining nor production of gold mined at the deposit was performed. The gold production technology used at Nasedkino deposit is different from that one used at Savkinskoye and Kochkovskoye deposits. At Savkinskoye and Kochkovskoye deposits, heap leaching method is used, and at Nasedkino deposit, gravity concentration and direct cyanidation methods will be used at gold recovery factory.

About Mangazeya Mining Ltd.
Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.

Contact:
Anton Grigoryev
Corporate Secretary
Mangazeya Mining Ltd.
a.grigoryev@mangazeya.ru