Vast Resources in receipt of Zimbabwe diamond parcel, releases operational update on Romania

Shares in Vast Resources () hit a 12-month high after the company released an operational update and announced the sale of a previously impounded parcel of diamonds from Zimbabwe.

Vast was once focussed on Zimbabwe exclusively, but now has projects in Romania and Tajikistan.

At Baita Plai in Romania, Vast has continued production at Baita Plai whilst continuing drilling and reprofiling the underground asset. It has also entered into joint venture discussions and due diligence processes with other mining companies regarding third party investment into Baita Plai.

Cost cutting measures, coupled with the temporary reduction in production following a corporate reorganisation, are expected to benefit future operations once the proceeds from the disposal of the diamond parcel are realised, debt is extinguished, and financing has been finalised. 

During the second half of 2024, Vast mined 13,562 tonnes of ore from Baita Plai and produced 307.8 tonnes of copper concentrate at an average grade of 18.06% copper.

Meanwhile, the company remains in discussions with potential off takers and financiers to recommence mining operations at Manaila, also in Romania. 

At the former Hanes gold mine, where Vast is the operator, the company has commenced development on site after a heavy winter.  A gravity concentrator has been installed to extract gold and polymetallic alluvial minerals directly from the surface, and is expected to commence production at Hanes during the current quarter.  

Facilities are now ready for the company to truck sizeable quantities of ore to Baita Plai for processing, for which the owners of the mine have been required to obtain further transport permitting in view of the substantial quantities involved. These permits have been applied for and are expected to be approved during the current quarter.

However, with regard to the 500 tonne concentrate sale announced on 21 October 2024, the company is still awaiting final assays from the Romanian government laboratory. If this delay continues, Vast will send the material to alternative laboratories abroad.

Vast is also in receipt of the results of separation tests for its Blueberry gold project in Romania. These tests do not involve the use of cyanide, and were performed in Tajikistan using alternative methods at one of Gulf International Minerals Ltd's projects. The tests show an increase from 44% recovery from traditional flotation, to 77%.

Vast’s joint venture partner is currently preparing a submission for an exploitation licence using these alternative methods for Blueberry. 

Meanwhile, in Tajikistan, development at the Aprelevka Gold Mines, in which Vast holds a 4.9% earnings interest, has continued encouragingly during recent months.

The tertiary crushing system and the new silver processing plant has been installed, increasing silver production in March by over 100% on previous months. 

Since January 2025, the company has hit its target of 2,000 tonnes per day of processing, of which approximately half is primary ore and half is tailings reprocessing. Gold production for the third and fourth quarters was 5,225.185 ounces. 

Work continues on increasing capacity and recoveries at the plant, and the company will commence the preparation of a JORC compliant resource for the current operating mines in the second half of 2025.

And in Zimbabwe, the release of the diamond parcel, after it had been held for 15 years in the Reserve Bank, represents a landmark success for the company. 

A valuation estimate will be provided in due course, following the completion of the cleaning and re-sorting process which will enable an accurate assessment of the carat value of the diamonds to be made, and which is not possible in their current condition. Notwithstanding this, initial inspection of the contents of the parcels has exceeded expectations of the company's management. 

The parcels are now in Vast’s possession and have been despatched to Dubai, to be cleaned and re-sorted for the sales process, which is expected to commence within a month.

"Now that this chapter has closed, the company is reengaging our future investment strategy in Zimbabwe and has commenced discussions for further mining concessions in-country alongside the advancement of our wider portfolio in Romania and Tajikistan,” said Andrew Prelea, chief executive of Vast. 

“We now expect to be able to approach new opportunities from a different perspective which will set the tone for the company's future."

View from Vox

Good to see progress on so many fronts from Vast, and to see the shares moving in response. Fifteen years is a long time to wait for a diamond parcel, but this resolution is welcome all the same. It remains to be seen what kind of presence Vast will have in Zimbabwe going forward, but the momentum in other jurisdictions is building up again, and the broadness of the company’s portfolio is beginning to look like strength in depth.