Q4 2019 PRELIMINARY PRODUCTION RESULTS

RNS Number : 9577Z

Ariana Resources PLC

16 January 2020

 

16 January 2020

AIM: AAU

Q4 2019 PRELIMINARY PRODUCTION RESULTS

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce its preliminary production results for the quarter ended 31 December 2019 for the Kiziltepe Mine ("Kiziltepe" or "the Project") in Turkey.  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").

Fourth Quarter Preliminary Production Results*:

·      The Company produced a total of 27,985 ounces of gold during the year, exceeding its full year production guidance of 25,000 ounces of gold by 2,985 ounces; representing an increase of c. 12%.

·      Gold production for the quarter was 7,318 ounces (Q3: 6,933 ounces^#).

·    Total ore processed for the quarter was 54,735 tonnes (Q3: 55,174 tonnes) at an average head grade to the plant of 4.42 g/t gold.

·    Quarterly open pit ore mined was 74,034 tonnes, at an average mined grade of 3.59 g/t gold, and total material movement for the quarter was 1,082,303 tonnes.

·    Average metallurgical plant recovery of gold for the quarter remains high at 92.2%.

* All figures are given gross with respect to the JV.

Dr. Kerim Sener, Managing Director, commented:

"The last quarter of 2019 has again set another record for the Company, exceeding our forecast production for the year by a significant margin and beating last year's record.

"As at the end of the year, the JV development capital loan of US$33 million is 88% repaid, with the balance to be repaid by April 2020.  Looking ahead to 2020, the JV remains in a strong position as we pursue our future project development plans at Kiziltepe and Tavsan.  Once more, I would like to take this opportunity to thank both our dedicated JV team and our partners, Proccea Construction Co., for delivering another successful year of production and we look forward to working together in the years ahead. 

"We are pleased with the strong start to the year and expect to publish our 2020 production guidance during Q1 2020, once the latest resource estimation for Kiziltepe has been completed."

Q4 2019 Preliminary Production Results

	Unit	Q4 2019	Q3 2019#	Q4 2018#
Open Pit - material moved (wet)	Tonnes	1,082,303	1,068,404	719,369
Open Pit - ore mined (wet)	Tonnes	74,034	47,933	63,349
Open Pit - mined grade	g/t Au	3.59	4.99	4.55
Process plant throughput	Tonnes	54,735	55,174	49,717
Plant feed grade	g/t Au	4.42	4.47	5.23
Metallurgical recovery	%	92.2	93.6	91.6
Gold produced	Troy Ounces	7,318	6,933	7,517
Silver produced	Troy Ounces	107,074	89,478	90,881

^#Re-stated following year-end mine and mill reconciliation.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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]
James Stearns / Atholl Tweedie
Yellow Jersey PR Limited	Tel: [phone]
Dom Barretto / Harriet Jackson / Henry Wilkinson	[e-mail]

Editors' Note:

About Ariana Resources:

Ariana is an AIM-listed mineral exploration and development company operating in Europe.  It has interests in gold production in Turkey and copper-gold assets in Cyprus.  The Company is developing a portfolio of prospective licences in Turkey, which contain a total of 1.6 million ounces of gold and other metals (as at end-2017). 

The Red Rabbit Project is comprised of the Company's flagship assets, the Kiziltepe and Tavsan gold projects, and is part of a 50:50 Joint Venture with Proccea Construction Co.  Both assets are located in western Turkey, which hosts some of the largest operating gold mines in the country and remains highly prospective for new porphyry and epithermal deposits.  The Kiziltepe Sector of the Red Rabbit Project is fully permitted and is currently in production.  The total resource inventory at the Project and its wider area is c. 605,000 ounces of gold equivalent (as at end-2017).  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.

The 100% owned Salinbas Gold Project is located in north-eastern Turkey and has a total resource inventory of c. 1 million ounces of gold equivalent.  The project comprises three notable licence areas: Salinbas, Ardala and Hizarliyayla, all of which are located within a multi-million ounce Artvin Goldfield.  The "Hot Gold Corridor" contains several significant gold-copper projects including the 4Moz Hot Maden project, which lies 16km to the south of Salinbas and 7km south of Hizarliyayla.  A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation on the Salinbas Gold Project.

Ariana is also earning-in to 50% of UK-registered Venus Minerals Ltd ("Venus").  Venus is focused on the exploration and development of copper-gold assets in Cyprus.

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.

Ends.

 

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