2021 PRODUCTION RESULTS AND GENERAL UPDATE

RNS Number : 7280Y

Ariana Resources PLC

18 January 2022

 

18 January 2022

AIM: AAU

2021 PRODUCTION RESULTS AND GENERAL UPDATE

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral exploration and development company with gold mining interests in Europe, is pleased to announce the full-year production results for the year ended 31 December 2021 for the Kiziltepe Mine ("Kiziltepe" or "the Project") in Turkey.  Kiziltepe is 23.5% owned by Ariana through its shareholding in Zenit Madencilik San. ve Tic. A.S. ("Zenit").

Production Update*:

· Kiziltepe produced a total of 20,737 ounces of gold during the year, exceeding its full-year production guidance by 9%.

· As at end 2021, the mine had produced a total of 104,937 ounces of gold and 1,154,805 ounces of silver, recording US$177 million in revenue since operations commenced in early 2017.

· Mining operations are continuing at Arzu North and Derya, with additional high-grade (7 to 8 g/t Au) material being trucked from Kepez, with expansion of these operations expected during the current year.

· A processing plant expansion was completed early in H2 2021, with plant capacity now increased 300% over the feasibility design.

· Gross full-year revenue of US$42.9 million at an average realised gold price of US$1,763 per ounce, against an average revenue per gold ounce of US$2,067 (due to silver credit)*.

* All figures are given gross with respect to Zenit.

Dr. Kerim Sener, Managing Director, commented:

"2021 marked the fifth full-year of operations at Kiziltepe, which has performed flawlessly and consistently above guidance since day one, and an increase in production from 2020.  This level of performance is a direct reflection on the capabilities of the operational team, who continue to operate at the top of their game.  While recent years have presented unusual challenges, both our operational and exploration teams have taken these in their stride and we are immensely proud of their collective achievements.

"As at the end of 2021, within a period of less than 5 years, total production from Kiziltepe comprised more gold than the original 8-year life of mine production estimated from the feasibility study, highlighting the significant upside generated from Kiziltepe and surrounding prospects such as Kepez.  This has occurred against a backdrop of improved economic conditions, operational excellence and precise planning.  Looking to the future, we now expect to double life of mine production as compared to the feasibility study, once all future permitting requirements are satisfied.

"While the past year has seen unprecedented reinvestment into the operational company in terms of exploration and development (to help extend mine life) and the significant plant expansion (to double throughput capacity), this has been balanced by the second-best revenue flow we have ever seen into the business.  This, coupled with our focus on maintaining the lowest possible cash costs (typically in the US$500-600 range), continues to yield significant operational margin, especially considering our hard currency denominated revenue stream within a declining value local currency environment. 

"Supported by the resultant and continued dividend stream from our operating company in Turkey, we are continuing to reinvest into our business with a view to expanding our interests across the Eastern European region and further afield.  In particular, we are pleased to see the progress being made by Venus Minerals towards its proposed IPO in London and we look forward to continuing our involvement in their exploration and development plans. 

"In addition, current discovery-stage investments made during the year as part of our Project Catalyst Strategy across the Eastern Hemisphere are enhancing our operational reach and exposure to exploration upside in new jurisdictions.

"With value upside evident across all arms of the Company, 2022 is set to be a fantastic year for Ariana."

Other Developments:

· Up to three diamond drilling rigs have been employed at Tavsan during the winter to satisfy the requirements of a revised mineral resource estimate, with construction of the mine expected to commence later in 2022.

· A single diamond drilling rig is continuing work at Salinbas, with other environmental, community and permitting activities proceeding across the project as a whole.

· Venus Minerals, of which Ariana owns 50%, completed its drilling programmes in Cyprus during 2021 and has been completing mineral resource estimates for the Magellan and Apliki Projects, prior to the commencement of a planned IPO in London.

· Western Tethyan Resources, of which Ariana owns 75%, currently has 300km² of licences under application in Kosovo and is actively exploring and identifying new opportunities across Eastern Europe.

· The Company is developing investment interests in discovery-stage opportunities across the Eastern Hemisphere through the Asgard Metals Fund, with two initial investments made during 2021 and with several other investments currently being investigated for 2022.

Full Year Production Results

	Unit	2021	2020	2019	2018	2017
Open Pit - material moved (wet)	Tonnes	4,531,973	4,459,462	3,985,048	3,268,290	3,531,865
Open Pit - ore mined (wet)	Tonnes	411,980	360,966	192,079	285,594	185,720
Open Pit - mined grade	g/t Au	2.19	2.29	4.23	4.58	2.79
Process plant throughput	Tonnes	286,024	222,628	204,866	193,212	119,316
Plant feed grade	g/t Au	2.44	2.72	4.51	4.73	3.17
Metallurgical recovery	% Au	96.0	93.5	93.7	93.7	90.3
Gold sold	Troy Ounces	20,737	18,645	28,132	27,232	10,191
Silver sold	Troy Ounces	239,572	244,372	363,646	241,615	65,600

Contacts:

Ariana Resources plc	Tel: [phone]
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited	Tel: [phone]
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited	Tel: [phone]
John Prior / Hugh Rich / Atholl Tweedie
Yellow Jersey PR Limited	Tel: [phone]
Dominic Barretto / Henry Wilkinson / Matthew McHale	[e-mail]

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 3.7 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 0.7 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 owns 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 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 Inferred Resource of 9.5Mt @ 0.65% copper (excluding additional gold, silver and zinc).

Ariana operates its wholly-owned Asgard Metals Fund ("Asgard"), as part of the Company's proprietary Project Catalyst Strategy. The Fund will be 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.

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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