Trans-Siberian Gold plc : - Asacha Mining and Production Update

Trans-Siberian Gold plc

Asacha mining and production update

LONDON: 23 January 2013 - Trans-Siberian Gold plc ("TSG" or the "Company") (TSG.L) reports that mine development activities at Asacha in the fourth quarter of 2012 comprised approximately 964 metres, while ore extraction (including ore from stoping and mine development) amounted to 37,387 mt, the highest quarterly total to date.

In the same period, an average 12,357 mt per month was processed by the Asacha plant.

Mining and production at Asacha in 2012 is shown in the following table.

	Q1 2012	Q2 2012	Q3 2012	Oct 2012	Nov 2012	Dec 2012	Q4 2012	2012
Mine development        (m)	1,023	1,047	1,090	385	407	172	964	4,124
Ore extracted        (mt)	33,525	30,090	26,644	9,507	13,100	14,780	37,387	127,646
Ore processed      (mt)	28,877	32,963	37,244	12,516	12,017	12,537	37,070	136,154
Average gold grade     (g/t)	7.03	6.33	6.67	5.38	6.02	7.18	6.20	6.54
Average silver grade     (g/t)	16.48	10.55	11.17	8.19	10.70	10.70	9.85	11.79
Gold recovery rate        (%)	95.14	95.48	95.66	95.49	95.49	94.72	95.18	95.41
Silver recovery rate        (%)	48.19	73.67	77.66	76.17	74.21	84.58	78.98	68.49
Gold in dore          (oz)	6,689	6,462	7,783	2,132	2,069	2,785	6,986	27,920
Silver in dore (oz)	7,320	8,991	10,538	2,701	2,469	3,905	9,075	35,924
Gold refined          (oz)	6,281	6,427	7,065	2,427	2,125	3,263	7,815	27,588
Silver refined         (oz)	6,975	8,397	9,629	3,257	2,663	4,189	10,109	35,110

As reported on 29 October 2012 the need to blend mined ore with lower grade ore from the surface ore stockpile (becausethe breakdown of some underground equipmenthad reduced the amount of stoping ore which could be delivered to the plant) affected production between August and October The necessary spare parts were delivered to site in October followed by a new underground truck and underground loader in November and late December respectively.

The Company also reported on 29 October 2012 its intention to strengthen the mine's management team with the recruitment of a technical director for Asacha, following the appointment of two new underground mining engineers and a mining geologist in October. The new technical director commenced work at site in November.

TSG believes that these appointments of experienced personnel, together with the new equipment, will consolidate the steady improvement in the mine's performance at the end of the fourth quarter. The Company is cautiously optimistic that ore dilution can be reduced further through planned changes in the mining methods, in particular, introduction of additional supports and/or backfilling.

Mining activity is now focused on increasing the volume of stoping ore, since the 4,100 metres of mine development in 2012 included the preparation of stoping areas to be mined in 2013. TSG will report Asacha's first quarter 2013 production in April 2013.

Ends

Contacts TSG
Simon Olsen	+ 44 (0) 1480 811871 + 44 (0) 7770 484965
Seymour Pierce Ltd	[phone]
David Foreman / Stewart Dickson (Corporate Finance)
Jeremy Stephenson (Corporate Broking)

This information is provided by RNS

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RNS news service provided by Hemscott Group Limited.