REG - Ariana Resources PLC - 2023 Production Results and General Update

Ariana ResourcesAnnouncement

17/01/2024 07:00

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RNS Number : 8893Z  Ariana Resources PLC  17 January 2024

17 January 2024

AIM: AAU

2023 PRODUCTION RESULTS AND GENERAL UPDATE

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral
exploration and development company with gold mining interests in Europe, is
pleased to announce the full-year production results for the year ended 31
December 2023 for the Kiziltepe Mine ("Kiziltepe" or "the Project") in Turkey.
Kiziltepe is 23.5% owned by Ariana through its shareholding in Zenit
Madencilik San. ve Tic. A.S. ("Zenit").

Production Update*:

·    Kiziltepe produced (and sold) a total of 17,683 ounces of gold during
the year, including gold in carbon and in circuit at year-end (>500 oz),
exceeding full-year production guidance of 18,000 oz gold for 2023.

·    Mining operations are continuing at Arzu North, Derya, and Banu, with
new forestry permits expected to enable the extension of the Banu pit in 2024.

·    Gross full-year revenue of US$39.2 million at an average realised
gold price of US$1,945 per ounce, with an average revenue per gold ounce of
US$2,218 (due to silver credit)*.

·    As of the end of 2023, the mine had produced a total of 151,041
ounces of gold (planned circa 100,000 oz gold) and 1,682,265 ounces of silver,
recording US$274 million in revenue since operations commenced in early 2017.

* All figures are given gross with respect to Zenit.

Dr. Kerim Sener, Managing Director, commented:

"Kiziltepe has now recorded seven highly successful years of production and
the mine continues to perform extremely well. We are currently working towards
completing an updated Resource/Reserve Estimate, as we plan to bring Kiziltepe
mining operations to a close over the next few years. Beyond this, we continue
to explore within the immediate vicinity to identify further sources of
potential mill supply that are not currently part of the mining plan. We
anticipate that these would be operated as satellite operations, some of which
are located within Zenit-owned licences, and others which we have identified
within neighbouring licence areas.

"During 2023, the strong gold price environment resulted in one of the best
years for gold revenue since operations started. This has certainly boosted
the capacity for Zenit to continue self-funding the development of the Tavsan
mine build without recourse to debt finance. We are continuously monitoring
the capital requirements of the Tavsan build and balancing these financial
demands against practical and operational timelines, given the continued poor
state of the debt markets. Meanwhile, mining operations have recently
commenced at Tavsan and the Main Pit development is proceeding well, with
approximately 40,000 tonnes of ore currently stockpiled ready for
heap-leaching. Construction of the heap-leach, specifically the laying down of
liners, is currently paused due to poor weather conditions and this work will
recommence in the next drier and warmer weather period. Steel construction and
fabrication, along with the delivery of various plant components are being
staggered in accordance with cash-flow considerations. There will be further
updates on Tavsan operations over the coming months, with first gold from the
heap-leach currently expected to be delivered during Q3 2024.

"In summary, we are pleased with our performance operationally in 2023, and we
look forward to updating the market in 2024 on the developments of the
portfolio."

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").

Other Developments:

·    Two diamond drilling rigs are operating across the Salinbas Project,
with results from the drilling programmes at Salinbas, Ardala, and
Hizarliyayla having been announced periodically to the market since early
2023.

·    Venus Minerals in Cyprus progresses towards its IPO and further
updates will be provided in due course.

·    Western Tethyan Resources ("WTR"), of which Ariana owns 75%, is
actively exploring in SE Europe, including drilling at the Hertica Cu-Au
Project, with the support of funding through Newmont Mining Corporation. WTR
has separately secured an earn-in agreement on the Slivova Project in Kosovo.

·    The Asgard Metals Fund, of which Ariana owns 100%, has completed five
investments since late 2021 and is currently actively involved in a due
diligence diamond drilling programme in Zimbabwe with Rockover Holdings
Limited.

Full-Year Production Results

                                  Unit         2023       2022       2021       2020       2019       2018       2017
 Open Pit - material moved (wet)  Tonnes       4,563,926  5,309,701  4,531,973  4,459,462  3,985,048  3,268,290  3,531,865
 Open Pit - ore mined (wet)       Tonnes       226,740    259,878    411,980    360,966    192,079    285,594    185,720
 Open Pit - mined grade           g/t Au       1.99       2.81       2.19       2.29       4.23       4.58       2.79
 Process plant throughput         Tonnes       354,583    443,387    286,024    222,628    204,866    193,212    119,316
 Plant feed grade                 g/t Au       1.81       2.33       2.44       2.72       4.51       4.73       3.17
 Metallurgical recovery           % Au         94.2       92.4       95.8       93.3       93.6       93.7       90.3
 Gold sold                        Troy Ounces  17,683     28,421     20,737     18,645     28,132     27,232     10,191
 Silver sold                      Troy Ounces  201,254    326,206    239,572    244,372    363,646    241,615    65,600

 

Contacts:

 

 Ariana Resources plc                           Tel: +44 (0) 20 7407 3616
 Michael de Villiers, Chairman
 Kerim Sener, Managing Director
 Beaumont Cornish Limited (Nominated Adviser)   Tel: +44 (0) 20 7628 3396
 Roland Cornish / Felicity Geidt
 Panmure Gordon (UK) Limited (Joint Broker)     Tel: +44 (0) 20 7886 2500
 John Prior / Hugh Rich / Atholl Tweedie
 WHIreland Limited (Joint Broker)               Tel: +44 (0) 207 2201666

 Harry Ansell / Katy Mitchell / George Krokos

 Yellow Jersey PR Limited (Financial PR)        Tel: +44 (0) 7983 521 488
 Dom Barretto / Shivantha Thambirajah /         arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)

Bessie Elliot

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

Editors' Note:

 

About Ariana Resources:

Ariana is an AIM-listed mineral exploration and development company with an
exceptional track-record of creating value for its shareholders through its
interests in active mining projects and investments in exploration companies.
Its current interests include gold production in Turkey and copper-gold
exploration and development projects in Cyprus and Kosovo.

 

The Company holds 23.5% interest in Zenit Madencilik San. ve Tic. A.S. a joint
venture with Ozaltin Holding A.S. and Proccea Construction Co. in Turkey which
contains a depleted total of c. 2.1 million ounces of gold and other metals
(as at February 2022). The joint venture comprises the Kiziltepe Mine and the
Tavsan and Salinbas projects.

 

The Kiziltepe Gold-Silver Mine is located in western Turkey and contains a
depleted JORC Measured, Indicated and Inferred Resource of 222,000 ounces gold
and 3.8 million ounces silver (as at February 2022). The mine has been in
profitable production since 2017 and is expected to produce at a rate of
c.20,000 ounces of gold per annum to at least the mid-2020s. A Net Smelter
Return ("NSR") royalty of 2.5% on production is being paid to Franco-Nevada
Corporation.

 

The Tavsan Gold Mine is located in western Turkey and contains a JORC
Measured, Indicated and Inferred Resource of 307,000 ounces gold and 1.1
million ounces silver (as at November 2022). Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan is being
developed as the second gold mining operation in Turkey and is currently in
construction.  A NSR royalty of up to 2% on future production is payable to
Sandstorm Gold.

 

The Salinbas Gold Project is located in north-eastern Turkey and contains a
JORC Measured, Indicated and Inferred Resource of 1.5 million ounces of gold
(as at July 2020). It is located within the multi-million ounce Artvin
Goldfield, which contains the "Hot Gold Corridor" comprising several
significant gold- copper projects including the 4 million ounce Hot Maden
project, which lies 16km to the south of Salinbas. A NSR royalty of up to 2%
on future production is payable to Eldorado Gold Corporation.

 

Ariana owns 100% of Australia-registered Asgard Metals Fund ("Asgard"), as
part of the Company's proprietary Project Catalyst Strategy. The Fund is
focused on investments in high-value potential, discovery-stage mineral
exploration companies located across the Eastern Hemisphere and within easy
reach of Ariana's operational hubs in Australia, Turkey, UK and Zimbabwe.

 

Ariana owns 75% of UK-registered Western Tethyan Resources Ltd ("WTR"), which
operates across south-eastern Europe and is based in Pristina, Republic of
Kosovo. The company is targeting its exploration on major copper-gold deposits
across the porphyry-epithermal transition.  WTR is being funded through a
five-year Alliance Agreement with Newmont Mining Corporation
(www.newmont.com) and is separately earning-in to up to 85% of the Slivova
Gold Project.

 

Ariana owns 58% of UK-registered Venus Minerals PLC ("Venus") which is focused
on the exploration and development of copper-gold assets in Cyprus which
contain a combined JORC Indicated and Inferred Resource of 16.6Mt @ 0.45% to
0.80% copper (excluding additional gold, silver and zinc.

 

Panmure Gordon (UK) Limited and WH Ireland Limited are brokers 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 (http://www.arianaresources.com) .

 

 

Ends.

 

 

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