TIDMAAU
RNS Number : 5138G
Ariana Resources PLC
27 July 2021
27 July 2021
AIM: AAU
2021 PRODUCTION UPDATE
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
mineral exploration and development company with joint-venture gold
mining operations in Europe, is pleased to announce its half-year
2021 production update for its joint venture Kiziltepe Mine
("Kiziltepe" or "the Project"). Kiziltepe is 23.5% owned by Ariana
through its shareholding in Zenit Madencilik San. ve Tic. A.S.
Highlights:
-- Gold production guidance for 2021 from Kiziltepe is
maintained at c. 19,000 ounces of gold*; production during H1 2021
was 7,941 ounces of gold, c. 19% above forecast for the period.
-- Average monthly mine production during H1 2021 was
approximately 34,000 tonnes of ore and a stockpile of over 285,000
tonnes has been established, representing about 10 months of
enhanced production capacity.
-- Open-pit mining is continuing primarily at the Arzu North
pit, with mining occurring concurrently at the Derya pit; 206,450
tonnes of ore have been mined from both pits to the end of June
2021.
-- Process plant expansion to an operating capacity of a nominal
400,000 tonnes of ore per annum is already partially operational
and nearing completion; ore throughput during 2021 is expected to
be c. 325,000 tonnes, which represents a 115% increase over the
feasibility plan.
-- Plant expansion plan was funded through a capital loan of
US$6.6 million (inclusive of interest) to Zenit through Turkiye
Garanti Bankasi A.S., of which 33% has already been repaid, with
eight equal quarterly payments remaining.
Dr. Kerim Sener, Managing Director, commented:
"The past six months have again provided production at Kiziltepe
which exceeds forecasts, largely as a result of the
higher-than-expected average grade that has been maintained through
the processing plant. We are now looking forward to seeing the
effect of the processing plant expansion, which is nearing
completion, with process plant throughput already increasing during
July. Once full-automation of the new system is established, around
mid-August, we are expecting process throughput to increase to a
nominal 400,000 tonnes of ore per annum, enabling us to maintain
our guidance of circa 19,000 ounces of gold production for the
year.
"The JV finances are in great shape, with repayments continuing
against its working capital loan from Turkiye Finans Katilim
Bankasi A.S., which is now over 90% complete, with a final
repayment of US$0.8 million to be made in October 2021. Meanwhile
the new loan facility from Turkiye Garanti Bankasi A.S., which
provided the capital required for the plant expansion, is a third
repaid."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
* Silver production guidance is not provided, as silver is
treated as a by-product credit. All figures are stated gross to the
Project unless otherwise stated.
Summary of Project
The Kiziltepe gold-silver mine is expected to deliver an average
of approximately 20,000 oz gold equivalent per annum over eight
years of initial mine life, for a total of up to 160,000 oz gold
equivalent based on current resources. The operating company, Zenit
Madencilik San. ve Tic. A.S., is a JV between Ariana (23.5%),
Proccea (23.5%) and Ozaltin (53%). Management control of the JV
lies with Proccea. Commercial production was initiated at Kiziltepe
during July 2017 and has continued without interruption to the
present, with production consistently being delivered above
plan.
The latest resource estimate for Kiziltepe was based on recent
drilling and geological interpretation in April 2020. Detailed
technical and economic assessments are underway on several
satellite vein systems which are not currently in the mining plan,
in anticipation of these being developed in future years. The
Kiziltepe operation is currently targeting an increase in mine life
and an enhanced processing rate of 400,000 tonnes of ore per annum,
with operations currently expected to conclude during 2025. The
joint venture is confident that an increase in mine life can be
achieved following the success of recent exploration and assuming
the conversion of existing resources to reserves.
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:
Ariana is an AIM-listed mineral exploration and development
company with an exceptional track-record of creating value for its
shareholders through its interests in active mining projects and
investments in exploration companies. Its current interests include
gold production in Turkey and copper-gold exploration and
development projects in Cyprus and Kosovo.
The Company holds 23.5% interest in Zenit Madencilik San. ve
Tic. A.S. a joint venture with Ozaltin Holding A.S. and Proccea
Construction Co. in Turkey which contains a depleted total of c.
2.1 million ounces of gold and other metals (as at July 2020). The
joint venture comprises the Kiziltepe Mine and the Tavsan and
Salinbas projects.
The Kiziltepe Gold-Silver Mine is located in western Turkey and
contains a depleted JORC Measured, Indicated and Inferred Resource
of 227,000 ounces gold and 0.7 million ounces silver (as at April
2020). The mine has been in profitable production since 2017 and is
expected to produce at a rate of c.20,000 ounces of gold per annum
to at least the mid-2020s. A Net Smelter Return ("NSR") royalty of
2.5% on production is being paid to Franco-Nevada Corporation.
The Tavsan Gold Project is located in western Turkey and
contains a JORC Measured, Indicated and Inferred Resource of
253,000 ounces gold and 3.7 million ounces silver (as at June
2020). The project is being progressed through permitting and an
Environmental Impact Assessment, with the intention of developing
the site to become the second joint venture gold mining operation.
A NSR royalty of up to 2% on future production is payable to
Sandstorm Gold.
The Salinbas Gold Project is located in north-eastern Turkey and
contains a JORC Measured, Indicated and Inferred Resource of 1.5
million ounces of gold (as at July 2020). It is located within the
multi-million ounce Artvin Goldfield, which contains the "Hot Gold
Corridor" comprising several significant gold-copper projects
including the 4 million ounce Hot Maden project, which lies 16km to
the south of Salinbas. A NSR royalty of up to 2% on future
production is payable to Eldorado Gold Corporation.
Ariana is currently earning-in to 75% of Western Tethyan
Resources Ltd ("WTR"), which operates across Eastern Europe and is
based in Pristina, Republic of Kosovo. The company is targeting its
exploration on major copper-gold deposits across the
porphyry-epithermal transition.
Ariana is also earning-in to 50% of UK-registered Venus Minerals
Ltd ("Venus") and has to date earned into an entitlement to 37.5%.
Venus is focused on the exploration and development of copper-gold
assets in Cyprus which contain a combined JORC Inferred Resource of
9.5Mt @ 0.65% copper (excluding additional gold, silver and
zinc).
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 .
Glossary of Technical Terms:
"Au" chemical symbol for gold;
"g/t" grams per tonne;
"JORC" the Joint Ore Reserves Committee;
"oz" Troy ounces;
Ends.
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END
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