TIDMAAU
RNS Number : 3018L
Ariana Resources PLC
12 January 2021
12 January 2021
AIM: AAU
2020 PRODUCTION RESULTS AND GENERAL UPDATE
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
exploration and development company operating in Europe, is pleased
to announce its full-year production results for the year ended 31
December 2020 for the Kiziltepe Mine ("Kiziltepe" or "the Project")
in Turkey. Kiziltepe is currently 50% owned by Ariana through its
shareholding in Zenit Madencilik San. ve Tic. A.S. ("Zenit"), which
will reduce to 23.5% once the new joint venture with Ozaltin
Holding A.S. ("Ozaltin") and Proccea Construction Co. ("Proccea")
completes (details as announced on 7 December 2020 and ratified by
shareholders on 30 December 2020).
Production Update*:
-- Kiziltepe produced a total of 18,645 ounces of gold during
the year, exceeding its full year production guidance by 3.5%.
-- As at end 2020 the mine had produced a total of 84,200 ounces
of gold and 915,233 ounces of silver, recording US$134 million in
revenue since operations commenced in early 2017.
-- Mining operations are continuing at Arzu North and Derya,
with plans to expand these open-pit operations currently under
permitting review.
-- A processing plant expansion is underway, with construction
due to be completed in H2 2021; the processing plant capacity will
be increased by over 300% over the feasibility design and up to
500,000 tonnes of ore per annum.
* All figures are given gross with respect to the JV.
Dr. Kerim Sener, Managing Director, commented:
"The final quarter of 2020 rounded off another solid year of
production for Kiziltepe, which once again exceeded joint venture
guidance. We were further buoyed by gold and silver prices during
the year, resulting in revenue exceeding US$37 million in 2020, and
capping off an exceptional period of Company development for which
our staff and our joint venture team must be commended.
"Since operations commenced at Kiziltepe, the joint venture
company, Zenit, has successfully repaid US$36.7 million in debt to
Turkiye Finans Bankasi A.S. Accordingly its relationships with
lenders are very sound, which bodes well for future mine
development projects at Tavsan and Salinbas, contemplated as part
of our planned new joint venture with Ozaltin and Proccea.
"Following shareholder approval at our General Meeting at the
end of 2020, we are now finalising the new joint venture, in which
we will adopt a 23.5% interest alongside Proccea. "Our reduced
holding in the joint venture will naturally place a different
emphasis on our operational activities going forward. Accordingly,
as we transition into the new framework, we will report our
production from the joint venture on a six-monthly, rather than
quarterly, basis going forward.
"Meanwhile the Company is continuing to progress its exploration
and development activities across its portfolio, which includes a
drilling programme being undertaken within the joint venture and
the start-up of field activities elsewhere. Notably we are
expecting to increase the pace of our involvement in Venus
Minerals, with the expectation that a diamond drilling programme at
the Magellan Project can commence by Q2 2021; the current
limitations imposed by travel restrictions notwithstanding. We are
also fast-tracking some other exciting copper-gold project
opportunities in the region, further details of which will be
announced in due course."
Other Developments:
-- A two-rig diamond drilling programme for 4,000 to 5,000m
commenced last week at Kiziltepe to test vein extensions at Arzu
South, Arzu North, Derya and Banu, with the aim of further
expanding the Kiziltepe resource; drilling may continue at the
Karakavak prospect once drilling at Kiziltepe concludes.
-- Environmental, community and permitting activities have
continued for the Tavsan and Salinbas projects through the winter,
with resource drilling activities due to commence at Tavsan from
spring 2021.
-- Percussion drilling by Venus Minerals in Cyprus for 1,705m
(comprising 15 holes) on a conceptual structural target, has
discovered an up to 12m thick, 50 x 300m silica-pyrite-chlorite
alteration zone containing anomalous gold geochemistry at a depth
of 50 to 80m below surface; planning is being finalised for a
diamond drilling programme to commence on the Magellan Project in
the coming months.
-- The Company is evaluating several copper-gold targets
generated elsewhere in Eastern Europe and is looking to develop
further interests in the region.
Full Year Production Results
Unit 2020 2019 2018 2017
Open Pit - material
moved (wet) Tonnes 4,459,462 3,985,048 3,268,290 3,531,865
--------- ---------- ---------- ---------- ----------
Open Pit - ore mined
(wet) Tonnes 360,966 192,079 285,594 185,720
--------- ---------- ---------- ---------- ----------
Open Pit - mined grade g/t Au 2.29 4.23 4.58 2.79
--------- ---------- ---------- ---------- ----------
Process plant throughput Tonnes 222,628 204,866 193,212 119,316
--------- ---------- ---------- ---------- ----------
Plant feed grade g/t Au 2.72 4.51 4.73 3.17
--------- ---------- ---------- ---------- ----------
Metallurgical recovery % Au 93.5 93.7 93.7 90.3
--------- ---------- ---------- ---------- ----------
Troy
Gold sold Ounces 18,645 28,132 27,232 10,191
--------- ---------- ---------- ---------- ----------
Troy
Silver sold Ounces 244,372 363,646 241,615 65,600
--------- ---------- ---------- ---------- ----------
Contacts:
Ariana Resources plc Tel: +44 (0) 20 7407 3616
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
John Prior / Hugh Rich / Atholl
Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 7951 402 336
Dom Barretto / Joe Burgess / Henry arianaresources@yellowjerseypr.com
Wilkinson
Editors' Note:
About Ariana Resources (details as current and before completion
of the JV) :
Ariana is an AIM-listed mineral exploration and development
company operating in Europe. It has interests in gold production in
Turkey and copper-gold assets in Cyprus. The Company is developing
a portfolio of prospective licences in Turkey, which contain a
depleted total of c. 2.1 million ounces of gold and other metals
(as at July 2020).
The Red Rabbit Project is comprised of the Company's flagship
assets, the Kiziltepe and Tavsan gold projects, and is part of a
50:50 Joint Venture with Proccea Construction Co. Both assets are
located in western Turkey, which hosts some of the largest
operating gold mines in the country and remains highly prospective
for new porphyry and epithermal deposits. The Kiziltepe Sector of
the Red Rabbit Project is fully permitted and is currently in
production. The total depleted resource inventory at the Project
and its wider area is c. 500,000 ounces of gold equivalent (as at
April 2020). At Kiziltepe a Net Smelter Return ("NSR") royalty of
up to 2.5% on production is payable to Franco-Nevada Corporation.
At Tavsan an NSR royalty of up to 2% on future production is
payable to Sandstorm Gold.
The 100% owned Salinbas Gold Project is located in north-eastern
Turkey and has a total resource inventory of c. 1.5 million ounces
of gold. The project comprises three notable licence areas:
Salinbas, Ardala and Hizarliyayla, all of which are located within
a multi-million ounce Artvin Goldfield. The "Hot Gold Corridor"
contains several significant gold-copper projects including the 4
million ounce Hot Maden project, which lies 16km to the south of
Salinbas and 7km south of Hizarliyayla. A NSR royalty of up to 2%
on future production is payable to Eldorado Gold Corporation on the
Salinbas Gold Project.
Ariana is also earning-in to 50% of UK-registered Venus Minerals
Ltd ("Venus") and has to date earned into an entitlement to 12%.
Venus is focused on the exploration and development of copper-gold
assets in Cyprus.
Panmure Gordon (UK) Limited is broker to the Company and
Beaumont Cornish Limited is the Company's Nominated Adviser and
Broker.
For further information on Ariana you are invited to visit the
Company's website at www.arianaresources.com .
Ends.
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