Vast Resources (VAST ) says its joint venture partner, Formin TJK (“Formin”), has commenced surveying, soil sampling and preliminary drilling on site at the tailings facility in Tajikistan.
The mining firm announced its participation as one of a collective group of partners in the joint venture project with Open Joint Stock Company Korkhonai Boygardonii Takob last month.
The recent move came in light of Emomali Rahmon, President of the Republic of Tajikistan
Rahmon, declaring that the years 2022 to 2026 would be the years of industrial development for Tajikistan; as a result, the acceleration of industrialisation is now a national strategic goal.
Vast’s interest in the Project was acquired amid the acquisition by a recently incorporated UK company, Central Asia Investments Ltd, in which Vast has a 49% interest of a 50% interest inCentral Asia Minerals and Metals Ore Trading FZCO (“CAMM”) which has a deal with Takob.
Today, Vast Resources announced that it has executed a Memorandum of Understanding (“MoU”) linked to processing the tailings produced at Takob agreed between the Company’s Tajikistan focused Joint Venture subsidiary, and Open Joint Stock Company “Talco”; this will be a separate and additional project to the Takob Joint Venture Project announced in May.
Vast said Formin has now commenced surveying, soil sampling and preliminary drilling on site at the tailings facility, the results of which will be announced upon receipt from ALS Romania.
Formin reported visible signs of lead, zinc and precious metals, including gold, silver & platinum group metals, in the tailings facility. Initial surface survey results compiled by Formin show that there is a minimum of 1 million tonnes and up to 3.3 million tonnes of tailings. The company noted that the depth of the tailings is to be determined once drilling is completed.
The funding for this project - which Vast Resources states may be up to U$20 million - will be provided by CAMM on the same or similar terms as the existing Takob Joint Venture Project.
CAMM has an agreement with Takob for the mine to produce around 7,000 tonnes per month of ore containing no less than 1.5%-2% lead, 1.2%-1.4% zinc and 27% fluoride. Historically, the Takob fluoride and galena mine also contained silver and gold in small quantities.
The Takob Mine opportunity, which is 100% financed by CAMM, will provide Vast Resources with a 12.25% royalty over all sales of non-ferrous concentrate and any other metals produced. Processing of stockpiled ore on site is expected to commence in 2Q22.
Commenting on today’s news Andrew Prelea, Chief Executive Officer of Vast Resources told investors: “On behalf of the Company I wish to again thank the Minister of Industry and New Technologies of the Republic of Tajikistan, together with the Chairman and Executive Team of Open Joint Stock Company TALCO for providing us with a further joint venture opportunity.”
“I would also like to thank our strategic JV partners in Central Asia Minerals and Metals Ore Trading FZCO, namely Formin TJK and Mr Abdul Jabbar Gargash, for their continued support and giving the opportunity to further grow our strategic partnership in Tajikistan,” he added.
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It was announced today that Vast’s joint venture partner, Formin TJK, has started surveying, soil sampling and preliminary drilling on site at the tailings facility. Initial surface survey results compiled by Formin show that there is a minimum of 1 million tonnes (Mt) and up to 3.3Mt of tailings. The depth of the tailings will be determined once drilling is completed, it has stated.
In recent weeks, Vast has reported a revenue increase of 236% to US$2.3 million in the first quarter of 2022. The Baita Plai mine in Romania - a central focus of its portfolio, has focused on copper production in 1Q22, with 224 dry metric tonnes and 263 wet metric tonnes sold.
The company said it expects to witness “a fundamental change” in the way the underground mine operates, with a move to mechanised drilling and cleaning. This is forecast to result in substantially increased production of copper concentrate, commencing in June 2022. Looking ahead, Vast said it expects this change to be reflected in its results from 3Q22 onwards.
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