TIDMAAU
RNS Number : 9018R
Ariana Resources PLC
03 March 2023
3 March 2023
AIM: AAU
TAVSAN MINE CONSTRUCTION UPDATE
Ariana Resources plc ("Ariana" or the "Company"), an AIM-listed
mineral exploration and development company with gold mining
interests in Europe, provides the following update on construction
progress at the Tavsan Mine ("Tavsan" or "the Project"). The
Project is operated by Zenit Madencilik San. ve Tic. A.S. ("Zenit")
in partnership with Proccea Construction Co. and Ozaltin Holding
A.S. and is 23.5% owned by Ariana.
The Company was recently made aware that a local court, the
Kütahya Administrative Court, determined to rule in favour of a
motion to temporarily suspend the construction activities of Zenit
at the Tavsan mine site until a new expert report relating to the
Environmental Impact Assessment ("EIA") is submitted to the court.
This motion has resulted in an interim decision ("the Decision")
which provides a temporary stay on the provisions of the
"Environmental Impact Assessment Positive" status of the Project
issued by the Ministry of the Environment, Urbanisation and Climate
Change, dating to 8 October 2021.
Following the Decision, Zenit has determined to temporarily
suspend construction activities at the Tavsan mine site to comply
with the judgement. However, various development activities which
are not subject to the Decision are currently expected to continue
in the vicinity, including local road displacements, water pipeline
construction and boundary fence installation, in accordance with
all applicable requirements and regulations. In addition, drilling
activities are currently continuing at the site with over 3,715m
completed for 35 drill holes since the commencement of the most
recent programme in November 2022.
The execution of the EIA provisions will now remain suspended
until a future decision is made through the local court following
the appointment of a new expert committee, the committee discovery
process and the preparation of a new report for submission to the
Kütahya Administrative Court.
Dr. Kerim Sener, Managing Director, commented:
"While this is disappointing news for the construction of our
second mine at Tavsan, which will result in some delay to the
completion of the mine, Zenit has determined to pursue its legal
rights and to continue various development activities at the
Project. This situation is not at all unprecedented and several
other operations have successfully progressed through similar
hurdles. We will provide further updates on this matter in due
course, particularly once a new expert committee is appointed. As
Zenit has been funding the development of Tavsan through capital
reserves and is not encumbered by debt, this delay will have no
appreciable impact on our immediate financial capacity. This allows
us the opportunity to deal with this situation from a position of
significant strength."
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").
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 / Shivantha Thambirajah arianaresources@yellowjerseypr.com
/
Bessie Elliot
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 February 2022).
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 222,000 ounces gold and 3.8 million ounces silver (as at
February 2022). The mine has been in pro table 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 Mine is located in western Turkey and contains a
JORC Measured, Indicated and Inferred Resource of 307,000 ounces
gold and 1.1 million million ounces silver (as at November 2022).
Following the approval of its Environmental Impact Assessment and
associated permitting, Tavsan is being developed as the second gold
mining operation in Turkey. Construction progress is temporarily
suspended pending the outcome of a local court decision pertaining
to the EIA. 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 Gold eld, which contains the "Hot Gold
Corridor" comprising several signi cant 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 owns 100% of Australia-registered Asgard Metals Fund
("Asgard"), as part of the Company's proprietary Project Catalyst
Strategy. The Fund is focused on investments in high-value
potential, discovery-stage mineral exploration companies located
across the Eastern Hemisphere and within easy reach of Ariana's
operational hubs in Australia, Turkey and the UK.
Ariana owns 75% of UK-registered Western Tethyan Resources Ltd
("WTR"), which operates across south-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. WTR is being funded through a
ve-year Alliance Agreement with Newmont Corporation (
www.newmont.com ).
Ariana owns 50% of UK-registered Venus Minerals Ltd ("Venus")
which is focused on the exploration and development of copper-gold
assets in Cyprus which contain a combined JORC Indicated and
Inferred Resource of 17Mt @ 0.45% to 1.10% 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 .
Ends.
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