Ariana Resources PLC 2018 PRODUCTION GUIDANCE (3342H)
March 12 2018 - 3:00AM
UK Regulatory
TIDMAAU
RNS Number : 3342H
Ariana Resources PLC
12 March 2018
12 March 2018
AIM: AAU
2018 PRODUCTION GUIDANCE
Ariana Resources plc ("Ariana" or "the Company"), the
exploration and development company with gold mining operations in
Turkey, is pleased to announce production guidance for 2018 for the
Kiziltepe Mine ("Kiziltepe" or "the Project"). Kiziltepe is part of
the Red Rabbit Joint Venture ("JV") with Proccea Construction Co.
and is 50% owned by Ariana through its shareholding in Zenit
Madencilik San. ve Tic. A.S. ("Zenit").
Highlights:
-- Gold production guidance for 2018 from Kiziltepe is c. 20,000
oz Au*, a c. 47% increase on an annualised basis (2017: 10,191 oz
Au), and c. 21% above feasibility plan for the second year of
operations.
-- The mine plan forecasts monthly production of ore between
15,500 tonnes and 17,000 tonnes during the year, increasing during
Q2 and Q3 2018.
-- Ore throughput to the mill during 2018 is expected at c.
180,000 tonnes, which represents a 20% increase over the
feasibility plan.
-- Average grade of gold expected to be processed during the
year will be c. 4 g/t Au and gold recovery is expected to exceed
90%.
-- Open-pit mining will continue to focus on the Arzu South pit
during 2018, with preparations being made to commence mining on
satellite pits from early 2019.
Dr. Kerim Sener, Managing Director, commented:
"We are very pleased to have reported in early February a strong
operational finish to 2017. The Kiziltepe mine continued to perform
very well and maintained positive operational momentum throughout
Q4 and in to Q1 2018. With our gold production guidance for the JV
indicating circa 20,000 oz for the year, we look forward to
delivering further towards our solid growth trajectory as a Company
benefitting from JV operations. In particular, we are pleased to
note that repayments of loans made by the Company to the JV for the
purposes of exploration and development since 2010, commenced in
instalments during Q1 2018.
"As a low-cost open pit operator, ranked in the lowest 30% of
cash costs(#) globally, the JV continues to target increases in
production and life of mine. In due course, the JV will provide a
mineral reserve update, to reinforce our expectations for expanding
the current open pits or possibly towards developing underground
operations in the future."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
* Silver production guidance is not provided and gold
equivalents will no longer be reported, as silver will be treated
in the future purely as a by-product credit, in line with our
calculation of cash costs. Previously target production for
Kiziltepe based on the feasibility study was 20,000 oz gold
equivalent, which included both the gold and the silver output from
the operation.
(#) The Company is occasionally expected to state its All-In
Sustaining Costs ("AISC"), which is not an applicable metric due to
the particular JV structure and specifically the treatment of the
JV in the Company's accounts according to the equity method of
accounting per IFRS (IAS 28). However, as an indicative exercise
and for the purpose of benchmarking only, assuming that future JV
exploration costs match Ariana's historic exploration spend (an
industry leading US$15 per oz) with no new capital investment,
Ariana's AISC based on 2017 figures would not have exceeded US$600
per oz.
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
Adam James / Tom Salvesen
Yellow Jersey PR Limited Tel: +44 (0) 7544
275 882
Tim Thompson / Harriet Jackson arianaresources@yellowjerseypr.com
/ Henry Wilkinson
Editors' Note
About Ariana Resources:
Ariana is an exploration and development company with mining
operations focused on epithermal gold-silver and porphyry
copper-gold deposits in Turkey, the largest gold producing country
in Europe. The Company is developing a portfolio of prospective
licences originally selected on the basis of its in-house
geological and remote-sensing database, which now contain a total
of 1.6 million ounces of gold and other metals. Ariana's objective
is to cost-effectively add value to its projects through focused
exploration and to develop its operations, primarily through
well-financed joint ventures.
The Company's flagship assets are its Kiziltepe and Tavsan gold
projects which form the Red Rabbit Gold Project. Both contain a
series of prospects, within two prolific mineralised districts in
the Western Anatolian Volcanic and Extensional (WAVE) Province in
western Turkey. This Province hosts the largest operating gold
mines in Turkey and remains highly prospective for new porphyry and
epithermal deposits. These core projects, which are separated by a
distance of 75km, form part of a 50:50 Joint Venture with Proccea
Construction Co. The Kiziltepe Sector of the Red Rabbit Project is
fully-permitted and is currently in production. The total resource
inventory at the Red Rabbit Project and wider project area stands
at c. 605,000 ounces of gold equivalent. 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.
In north-eastern Turkey, Ariana owns 100% of the Salinbas Gold
Project, comprising the Salinbas gold-silver deposit and the Ardala
copper-gold-molybdenum porphyry among other prospects. The total
resource inventory of the Salinbas project area is c. 1 million
ounces of gold equivalent. A NSR royalty of up to 2% on future
production is payable to Eldorado Gold Corporation.
Panmure Gordon (UK) Limited are broker to the Company and
Beaumont Cornish Limited is the Company's Nominated Adviser.
For further information on Ariana you are invited to visit the
Company's website at www.arianaresources.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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