Q2 2020 PRELIMINARY PRODUCTION RESULTS

RNS Number : 4504S

Ariana Resources PLC

09 July 2020

 

9 July 2020

AIM: AAU

Q2 2020 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 30 June 2020 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").

Second Quarter Preliminary Production Results*:

· Gold production for the quarter was 4,679 ounces (Q1 2020: 5,129 ounces)*, meeting half-year annual guidance.

· Total ore processed for the quarter was 54,862 tonnes (Q4 2019: 53,840 tonnes) at an average head grade to the plant of 3.02 g/t gold.

· Quarterly open-pit ore mined was 77,179 tonnes, at an average mined grade of 2.79 g/t gold, and total material movement for the quarter was 973,603 tonnes.

· Average metallurgical recovery of gold for the quarter remains high at 91.8%.

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

Dr. Kerim Sener, Managing Director, commented:

"The second quarter of 2020 again witnessed better than planned rates of production, despite corresponding with the global onset of COVID-19.  Material movements from the pits were maintained at very high rates, while ore production also continued at near record levels.  The mill also performed at some of the highest monthly rates ever recorded, reaching an annualised rate of almost 220,000 tonnes per annum which represents an increase of over 45% above the feasibility designed rate.

"Production from our highest-grade pit, Arzu South, is as planned now drawing to a close with production shortly to be focused entirely on the Arzu North and Derya pits. In addition, the mine has continued to maintain a stockpile of well over 130,000 tonnes of ore at a grade of approximately 2.5 g/t gold, sufficient to cover at least eight months of mill feed.

"As I expressed in my statement last quarter, we would like to again thank our joint venture team for their commendable efforts during a very uncertain time.  I recognise that it has been a difficult period for everyone on the team but, despite the circumstances, the teamwork displayed was extraordinary and we were even able to effectively and safely conclude a significant drilling programme on Arzu South with our drilling contractors.  We again wish all those involved in the Company's success, and their families, well during what continues to be an unsettling period."

Q2 2020 Preliminary Production Results

	Unit	Q2 2020	Q1 2020	Q2 2019
Open Pit - material moved (wet)	Tonnes	973,603	1,030,697	943,034
Open Pit - ore mined (wet)	Tonnes	77,179	92,482	43,367
Open Pit - mined grade	g/t Au	2.79	2.54	4.59
Process plant throughput	Tonnes	54,862	53,840	48,132
Plant feed grade	g/t Au	3.02	3.22	4.16
Metallurgical recovery	%	91.8	92.5	95.2
Gold produced	Troy Ounces	4,679	5,129	6,438
Silver produced	Troy Ounces	61,986	67,459	82,988

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 / Joe Burgess / 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 depleted total of 1.5 million ounces of gold and other metals (as at April 2020). 

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 gross depleted resource inventory at the Project and its wider area is c. 500,000 ounces of gold equivalent (as at April 2020).  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"); currently c. 10% held by Ariana.  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 and joint broker.

For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com .

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