Q2 2018 PRELIMINARY PRODUCTION RESULTS

RNS Number : 2307U

Ariana Resources PLC

11 July 2018

 

11 July 2018

AIM: AAU

Q2 2018 PRELIMINARY PRODUCTION RESULTS

Ariana Resources plc ("Ariana" or "the Company"), the exploration and development company with gold mining operations in Turkey, is pleased to announce its preliminary production results for the quarter ended 30 June 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").

Second Quarter Preliminary Production Results*:

·      Gold production for the quarter was 7,171 ounces (Q1: 4,866 ounces), a 47% increase quarter on quarter ("QoQ").

·     Total ore processed for the quarter was 49,325 tonnes (Q1: 44,897 tonnes) at an average head grade to the plant of 4.77 g/t gold.

·     Quarterly open pit ore mined was c. 70,400 tonnes, at an average mined grade of 4.18 g/t gold, and total material movement for the quarter was c. 758,000 tonnes.

·     Average metallurgical plant recovery of gold for the quarter remains consistently high at 94.3%.

·     The Company maintains its full year production guidance of at least 20,000 ounces of gold.

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

Dr. Kerim Sener, Managing Director, commented:

"The results of the past quarter are our best to date, outperforming overall quarterly feasibility-study expectations by 92%.  The tonnage of ore mined has exceeded 70,000 tonnes during the period and grades remain substantially above 4 g/t gold.  This production rate has ensured a very healthy stockpile position representing over four months of mill feed. Processing rates were also maintained at the highest rates through the period, which on an annualised basis suggests that the processing plant is already capable of achieving throughput of almost 200,000 tonnes per annum, or 33% above the designed rate.  We remain confident in delivering positively against our production guidance of at least 20,000 ounces for the year.  I would like to take this opportunity to thank our JV operational team in the achievement represented by the results of this past quarter."

Q2 2018 Preliminary Production Results

	Unit	Q2 2018 (preliminary)	Q1 2018	Q2 2017
Open Pit - material moved (wet)	Tonnes	758,310	913,666	449,081
Open Pit - ore mined (wet)	Tonnes	70,426	68,591	59,702
Open Pit - mined grade	g/t Au	4.18	4.50	2.27
Process plant throughput	Tonnes	49,325	44,897	34,317
Plant feed grade	g/t Au	4.77	3.85	2.41
Metallurgical recovery rate	%	94.3	95.1	93.9
Gold produced	Troy Ounces	7,171	4,866	2,145
Silver produced	Troy Ounces	49,508	30,864	15,634

The Company will publish full results for the quarter ending 30 June 2018 by early August 2018.

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]
Adam James / James Stearns
Yellow Jersey PR Limited	Tel: [phone]
Tim Thompson / Harriet Jackson / Henry Wilkinson	[e-mail]

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 (as at end-2017).  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 (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.

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.

Ends.

 

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