Q3 2020 PRELIMINARY PRODUCTION RESULTS
12 October 2020
Q3 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 September 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").
Third Quarter Preliminary Production Results*:
· Gold production for the quarter was 5,125 ounces (Q2 2020: 4,679 ounces)*, enabling annual guidance of 18,000 ounces to be maintained into Q4 2020.
· Total ore processed for the quarter was 57,302 tonnes (Q2 2020: 54,862 tonnes) at an average head grade to the plant of 2.63 g/t gold.
· Quarterly open-pit ore mined was 86,960 tonnes, at an average mined grade of 2.21 g/t gold, and total material movement for the quarter was 1,190,710 tonnes.
· Average metallurgical recovery of gold for the quarter remains high at 94.2%.
· Planning underway regarding a proposed mill expansion to provide for an increase in throughput to 400,000 to 500,000 tonnes per annum.
* All figures are given gross with respect to the JV.
Dr. Kerim Sener, Managing Director, commented:
"As with the previous quarter, the Kiziltepe operation has continued to perform flawlessly under the somewhat sub-optimal conditions imposed by the COVID-19 pandemic. Material movements remain very high, while process plant throughput remains well above average, setting yet another record for the operation; the mill reached an annualised throughput rate of almost 230,000 tonnes per annum which represents an increase of over 53% above the feasibility designed rate.
"Production from our highest-grade pit, Arzu South, came to a close during August and production has shifted entirely to the Arzu North and Derya pits. Meanwhile, the mine continues to maintain a stockpile of over 160,000 tonnes, sufficient to cover about ten months of mill feed at average throughput rates.
"We now look forward to the next quarter and the further development of the Arzu North area, which is yielding substantially more ore tonnage than modelled previously. We are confident that despite the expected reduction in grade, this increased tonnage coupled with continued high mill throughput will ensure output is maintained at the highest possible levels.
"In addition, the joint venture team is advancing towards a proposed mill expansion which provides for an increase in throughput to 400,000 to 500,000 tonnes per annum. This will help ensure lower unit costs despite the reduction in grade across the satellite pits. We will update the market with further detail on this important development when appropriate."
Q3 2020 Preliminary Production Results
Open Pit - material moved (wet)
Open Pit - ore mined (wet)
Open Pit - mined grade
Process plant throughput
Plant feed grade
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Ariana Resources plc
Tel: +44 (0) 20 7407 3616
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited
Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited
Tel: +44 (0) 20 7886 2500
John Prior / Hugh Rich / Atholl Tweedie
Yellow Jersey PR Limited
Tel: +44 (0) 7951 402 336
Dom Barretto / Joe Burgess / Henry Wilkinson
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 c. 2.1 million ounces of gold and other metals (as at July 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 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. 1.5 million ounces of gold. 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 4 million ounce 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") and has to date earned into an entitlement to 12%. Venus is focused on the exploration and development of copper-gold assets in Cyprus.
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.