Starvest PLC Investee Company - Ariana Resources
November 01 2017 - 6:34AM
RNS Non-Regulatory
TIDMSVE
Starvest PLC
01 November 2017
1 November 2017
Starvest Plc ("Starvest" or "the Company")
Investee Company - Ariana Resources
Starvest PLC (LON:SVE), the London Stock Exchange AIM listed
specialist mining and resources investment business, is pleased to
announce investee company Ariana Resources plc (LON:AAU) has
provided additional positive news from its flagship Kiziltepe
operation in which it has a 50% interest.
Highlights
-- Investee company Ariana Resources plc announces production of
gold and silver from its newly commissioned Kiziltepe operation has
exceeded quarterly guidance;
-- Gross income for the quarter ended 30 September 2017 of
US$5million from sales of gold and silver,
-- Grade of ore mined matches overall reserve expectations and
mill recoveries are higher than forecast,
-- Production costs of US$570 per ounce against average realised
value of sales of US$1,342 per ounce.
Callum Baxter, Chairman and CEO commented: "Starvest have been a
long term supporter of Ariana Resources since pre-IPO. The team at
Ariana, headed by Michael de Villiers and Dr. Kerim Sener, have
provided a solid set of quarterly production figures from the
Kiziltepe operation. Mining at Kiziltepe continues to exceed
expectations and is generating significant revenue from sales. The
reported cost per ounce of this operation is very positive. We look
forward to continuing our relationship with the Company.'
The Ariana Resources announcement may be found at the following
web address:
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/AAU/13404695.html
Ariana Resources plc - Kiziltepe
Ariana was admitted to AIM in 2005 and Starvest took a stake in
pre-admission funding after recognition of the management team and
assets. Following several years of acquisitions and discoveries,
Ariana moved forward with feasibility studies and mine construction
at its Kiziltepe operation in Turkey.
Production at Kiziltepe commenced in March 2017 targeting
20,000oz gold equivalent production per year for at least 8 years.
Ariana has a 50% interest in Kiziltepe with partner Proccea
Construction Co. holding the balance.
Additional mineralisation has recently been discovered within
their licences adjacent to Kiziltepe which reinforces the longer
term potential of the operation. Ariana recognises that additional
exploration of the local area will likely increase the resource
base.
Kiziltepe had a 20 year mine licence granted in 2014,
construction was completed in February 2017 and first gold-silver
pour in March 2017. Kiziltepe contains primary mining
infrastructure for the project and includes planned open pits at up
to five mineralised zones. Drilling continues to expand project
mine life to more than 10 years, with less than 10% of the
mineralised vein system across the Kiziltepe area having been
drill-tested to date.
Current mine metrics include a resource base of over 338,000oz
gold equivalent, production capacity of at least 150,000 tonnes ore
per annum. In basic terms, Ariana's 50% interest in the operation
could see a profit of around US$6,000,000 per annum at the current
gold price before financing costs which will have been largely
repaid by April 2020.
Kiziltepe has completed its first quarter of commercial
production (to 30 Sept 2017) and successfully demonstrated mining
and processing operations are exceeding expectations. Production
and sale of 3,762 oz gold and 15,985 oz silver was achieved for the
quarter realising US$5.05 million of gross income. Operating costs
averaged US$570 per oz against revenues of US$1,342 per oz.
Management and the operations team continue to demonstrate their
capability and professionalism.
Starvest will continue to closely follow the development of
Ariana and we look forward to additional news from Kiziltepe and
surrounds.
Starvest is a specialist mining and resource investment company
and has the industry knowledge and market exposure to select
compelling opportunities early in the investment cycle.
Callum N Baxter
Chairman & Chief Executive
1 November 2017
Enquiries to:
Starvest PLC
Callum Baxter Chairman/CEO 07922 255 933
cbaxter@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson or Harrison Clarke 02073 835 100
SI Capital Ltd (Appointed Broker)
Nick Emerson 01483 413 500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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