REG - Ariana Resources PLC - 2021 PRODUCTION RESULTS AND GENERAL UPDATE

Ariana ResourcesAnnouncement

18/01/2022 07:00

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RNS Number : 7280Y  Ariana Resources PLC  18 January 2022

18 January 2022

AIM: AAU

2021 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 2021 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 a total of 20,737 ounces of gold during the year,
exceeding its full-year production guidance by 9%.

·    As at end 2021, the mine had produced a total of 104,937 ounces of
gold and 1,154,805 ounces of silver, recording US$177 million in revenue since
operations commenced in early 2017.

·    Mining operations are continuing at Arzu North and Derya, with
additional high-grade (7 to 8 g/t Au) material being trucked from Kepez, with
expansion of these operations expected during the current year.

·    A processing plant expansion was completed early in H2 2021, with
plant capacity now increased 300% over the feasibility design.

·    Gross full-year revenue of US$42.9 million at an average realised
gold price of US$1,763 per ounce, against an average revenue per gold ounce of
US$2,067 (due to silver credit)*.

* All figures are given gross with respect to Zenit.

Dr. Kerim Sener, Managing Director, commented:

"2021 marked the fifth full-year of operations at Kiziltepe, which has
performed flawlessly and consistently above guidance since day one, and an
increase in production from 2020.  This level of performance is a direct
reflection on the capabilities of the operational team, who continue to
operate at the top of their game.  While recent years have presented unusual
challenges, both our operational and exploration teams have taken these in
their stride and we are immensely proud of their collective achievements.

"As at the end of 2021, within a period of less than 5 years, total production
from Kiziltepe comprised more gold than the original 8-year life of mine
production estimated from the feasibility study, highlighting the significant
upside generated from Kiziltepe and surrounding prospects such as Kepez.
This has occurred against a backdrop of improved economic conditions,
operational excellence and precise planning.  Looking to the future, we now
expect to double life of mine production as compared to the feasibility study,
once all future permitting requirements are satisfied.

"While the past year has seen unprecedented reinvestment into the operational
company in terms of exploration and development (to help extend mine life) and
the significant plant expansion (to double throughput capacity), this has been
balanced by the second-best revenue flow we have ever seen into the
business.  This, coupled with our focus on maintaining the lowest possible
cash costs (typically in the US$500-600 range), continues to yield significant
operational margin, especially considering our hard currency denominated
revenue stream within a declining value local currency environment.

"Supported by the resultant and continued dividend stream from our operating
company in Turkey, we are continuing to reinvest into our business with a view
to expanding our interests across the Eastern European region and further
afield.  In particular, we are pleased to see the progress being made by
Venus Minerals towards its proposed IPO in London and we look forward to
continuing our involvement in their exploration and development plans.

"In addition, current discovery-stage investments made during the year as part
of our Project Catalyst Strategy across the Eastern Hemisphere are enhancing
our operational reach and exposure to exploration upside in new jurisdictions.

"With value upside evident across all arms of the Company, 2022 is set to be a
fantastic year for Ariana."

Other Developments:

·    Up to three diamond drilling rigs have been employed at Tavsan during
the winter to satisfy the requirements of a revised mineral resource estimate,
with construction of the mine expected to commence later in 2022.

·    A single diamond drilling rig is continuing work at Salinbas, with
other environmental, community and permitting activities proceeding across the
project as a whole.

·    Venus Minerals, of which Ariana owns 50%, completed its drilling
programmes in Cyprus during 2021 and has been completing mineral resource
estimates for the Magellan and Apliki Projects, prior to the commencement of a
planned IPO in London.

·    Western Tethyan Resources, of which Ariana owns 75%, currently has
300km(2) of licences under application in Kosovo and is actively exploring and
identifying new opportunities across Eastern Europe.

·    The Company is developing investment interests in discovery-stage
opportunities across the Eastern Hemisphere through the Asgard Metals Fund,
with two initial investments made during 2021 and with several other
investments currently being investigated for 2022.

 

Full Year Production Results

                                  Unit         2021       2020       2019       2018       2017
 Open Pit - material moved (wet)  Tonnes       4,531,973  4,459,462  3,985,048  3,268,290  3,531,865
 Open Pit - ore mined (wet)       Tonnes       411,980    360,966    192,079    285,594    185,720
 Open Pit - mined grade           g/t Au       2.19       2.29       4.23       4.58       2.79
 Process plant throughput         Tonnes       286,024    222,628    204,866    193,212    119,316
 Plant feed grade                 g/t Au       2.44       2.72       4.51       4.73       3.17
 Metallurgical recovery           % Au         96.0       93.5       93.7       93.7       90.3
 Gold sold                        Troy Ounces  20,737     18,645     28,132     27,232     10,191
 Silver sold                      Troy Ounces  239,572    244,372    363,646    241,615    65,600

 

Contacts:

 Ariana Resources plc                                 Tel: +44 (0) 20 3476 2080
 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) 20 3004 9512
 Dominic Barretto / Henry Wilkinson / Matthew McHale  arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)

 

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 July 2020). 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 227,000 ounces gold
and 3.7 million ounces silver (as at April 2020). 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 Project is located in western Turkey and contains a JORC
Measured, Indicated and Inferred Resource of 253,000 ounces gold and 0.7
million ounces silver (as at June 2020). The project is being progressed
through permitting and an Environmental Impact Assessment, with the intention
of developing the site to become the second joint venture gold mining
operation. 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 75% of Western Tethyan Resources Ltd ("WTR"), which operates
across 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.

Ariana owns 50% of UK-registered Venus Minerals Ltd ("Venus") which is focused
on the exploration and development of copper-gold assets in Cyprus which
contain a combined JORC Inferred Resource of 9.5Mt @ 0.65% copper (excluding
additional gold, silver and zinc).

Ariana operates its wholly-owned Asgard Metals Fund ("Asgard"), as part of the
Company's proprietary Project Catalyst Strategy. The Fund will be 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 and the UK.

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 (http://www.arianaresources.com) .

Ends.

 

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