Further Positive News from Investee Company

RNS Number : 2354G

Starvest PLC

25 May 2017

 

25 May 2017

Starvest Plc ("Starvest" or "the Company")

Further Positive News from Investee Company Ariana Resources PLC

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 further positive news from its flagship Kiziltepe operation.

Highlights

·     Investee company Ariana Resources PLC moves from gold explorer to gold producer at its Kiziltepe operation;

·     Scheduled annual production of 20,000oz gold equivalent per year;

·     Current resource increased to over 338,000oz gold equivalent;

·     Recent exciting discoveries reinforce the long term potential of Kiziltepe.

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 worked very hard to achieve their goal of production from Kiziltepe and their recent discovery of additional mineralisation nearby supports the long term potential of the operation. We look forward to continuing our relationship with the Company."

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 with ramp-up 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 150,000 tonnes ore per annum and expected cash costs of approximately US$600 per ounce against the current gold price of over US$1,200 per ounce. 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.

Ariana is focussing on increasing the life of the operation beyond the currently scheduled 8 years with nearby potential being looked at closely from several areas. Ariana is targeting 50,000oz per annum production from 2020 operating across two sites, Kiziltepe and Tavsan.

All business operations and investments have their risk but we see Ariana as being in a relatively strong position. Starvest will continue to closely follow the development of Ariana and looks forward to additional production 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

25 May 2017

Enquiries to:

Starvest PLC

Callum Baxter  Chairman/CEO  07922 255 933  [e-mail]

John Watkins  Finance Director  07768 512 404  [e-mail]

Grant Thornton UK LLP (Nomad)

Colin Aaronson or Harrison Clarke  02073 835 100

SI Capital Ltd (Appointed Broker)

Nick Emerson or Andy Thacker  01483 413 500

 

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