REG - Ariana Resources PLC - 2022 HALF-YEAR PRODUCTION RESULTS

Ariana ResourcesAnnouncement

03/08/2022 07:15

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RNS Number : 6893U  Ariana Resources PLC  03 August 2022

3 August 2022

AIM: AAU

2022 HALF-YEAR PRODUCTION RESULTS

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 its half-year production results for 2022 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*:

·    Gold production guidance for 2022 from Kiziltepe is maintained at c.
25,000 ounces of gold*; production during H1 2022 was 13,378 ounces of gold,
c. 7% above forecast for the period.

·    Average monthly mine production during H1 2022 was c. 22,600 tonnes
of ore and a stockpile of over 270,200 tonnes has been established,
representing 8 months of enhanced production capacity.

·    Mining operations are continuing across all pits; pit expansion is
underway at Arzu South and Arzu North, with ore currently being mined from
Derya and Kepez.

·    Construction operations are underway at the Tavsan Mine, with
workers' accommodation, office facilities and other key infrastructure due to
be installed.

* Silver production guidance is not provided, as silver is treated as a
by-product credit.  All figures are stated gross to the Project unless
otherwise stated.

Dr. Kerim Sener, Managing Director, commented:

"It has been great to see the impressive progress of our operations at
Kiziltepe and Tavsan during the past six months.  At Kiziltepe, we remain
very much on track to meet our guidance of 25,000 ounces of gold for the year,
particularly given our average grade has increased to over 2.5 g/t gold,
largely as a result of the high-grade ore currently being blended from Kepez.

"Mining at Kepez is continuing very well and to date approximately 60,000
tonnes of ore at an average grade of 5.04 g/t gold has been extracted.  We
are expecting mining to continue at Kepez until the end of the year, although
there is further potential to expand this operation once further resource
evaluation work is completed.  It is notable that we have already mined more
than twice the gold expected from the Reserve established for this area.

"This fortunate situation has not been unique to Kepez.  During the past six
years of operation, the gold mined from the Kiziltepe Sector has exceeded our
Reserve forecast substantially.  In part this is due to the under-reporting
of grade within our drilling results caused by the loss of fines during
drilling, in addition to significant additional mineralisation being
encountered during mining which occurs along subordinate vein structures.

"Zenit is now advancing a two-rig drilling programme across the Kiziltepe
Sector to further test extensions of known vein systems, with the aim of
adding to our Resource and Reserve position.  Significantly, we have now
mined 22% more gold than was scheduled from our Feasibility Study and we have
at least two more years of Reserves to mine.  This represents an excellent
outcome and we would like to congratulate our exploration and mining teams for
enabling this substantial uplift to mine output and mine life at Kiziltepe.

"Meanwhile, construction of our Tavsan Mine has formally commenced and we look
forward to seeing this mine in operation within approximately 12 months.
Certain project development work is still underway in the background,
including a Reserve estimate, which will go hand-in-hand with a finance
package that Zenit is expecting to conclude for the project."

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").

 

Summary of Project

The Kiziltepe gold-silver mine is expected to deliver a total of up to 200,000
oz gold based on current Reserves, with operations currently projected to
conclude during 2025.  The operating company, Zenit Madencilik San. ve Tic.
A.S., is a partnership between Ariana (23.5%), Proccea (23.5%) and Ozaltin
(53%).  Management control of the partnership lies with Proccea.  Commercial
production was initiated at Kiziltepe during July 2017 and has continued
without interruption to the present, with production consistently being
delivered above plan.

The latest resource estimate for Kiziltepe was based on recent drilling and
geological interpretation in February 2022.  Detailed technical and economic
assessments are underway on several satellite vein systems which are not
currently in the mining plan, in anticipation of these being developed in
future years.  The Kiziltepe operation is currently targeting an increase in
mine life at an enhanced processing rate of 400,000 tonnes of ore per annum.
Ariana is confident that increases to mine life can be achieved following the
success of recent exploration and assuming the conversion of existing
Resources to Reserves.

 

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 / Laurie Gellhorn  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 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 253,000 ounces gold and 0.7
million ounces silver (as at June 2020). Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan is being
developed as the second gold mining operation in Turkey. 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 and the UK.

 

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 Corporation
(www.newmont.com (http://www.newmont.com) ).

 

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 Indicated and Inferred Resource of 17Mt @ 0.45% to
1.10% copper (excluding additional gold, silver and zinc), in addition to
pursuing a separate 50:50 JV on Hellenic Apliki Mines, which owns the Hellenic
SX-EW processing plant and the 11Mt @ 0.25% to 0.69% Cu Apliki mine
development project.

 

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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