REG - Ariana Resources PLC - 2022 PRODUCTION RESULTS AND GENERAL UPDATE

Ariana ResourcesAnnouncement

20/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230120:nRST3213Na&default-theme=true

RNS Number : 3213N  Ariana Resources PLC  20 January 2023

20 January 2023

AIM: AAU

2022 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 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*:

·    Kiziltepe produced a record total of 28,421 ounces of gold during the
year, exceeding its full-year production guidance by c.14%, following record
mill throughput of well over 400,000 tpa.

·    Mining operations are continuing at Arzu North and Derya, and have
recommenced at the Arzu South pit as it is expanded to the final design
limits.

·   Record gross full-year revenue of US$58 million at an average realised
gold price of US$1,858 per ounce, against an average revenue per gold ounce of
US$2,041 (due to silver credit)*.

·    As at end 2022, the mine had produced a total of 133,358 ounces of
gold and 1,481,011 ounces of silver, recording US$235 million in revenue since
operations commenced in early 2017.

* All figures are given gross with respect to Zenit.

Dr. Kerim Sener, Managing Director, commented:

"As expected, 2022 was an operationally very strong year for the Company.
Kiziltepe has now completed six highly productive years of operation,
performing consistently above guidance and having now produced significantly
more gold than modelled in our feasibility study.  We look forward to seeing
further expansion of the near-mine Resources and Reserves in due course, as we
develop plans to keep the mine operational over the coming years.

"During 2022, Zenit has reinvested significantly into its operations,
including funding the construction of the Tavsan mine and the exploration and
development of demonstrably expanded resources both at Kiziltepe and at
Tavsan.  This has been possible due to the substantial revenue recorded by
the business over recent years, particularly following the plant expansion
completed during 2021, which has resulted in record throughput during 2022.
In parallel, Zenit has focused on maintaining the lowest possible cash costs,
with its long-term average running at c. US$650 per ounce up to June 2022.
 The higher gold price environment of recent years, coupled with these
operational efficiencies together continue to enable substantial operational
margins.

"In addition to the strong performance of the Kiziltepe Mine we are also very
encouraged by the work being undertaken by the team across our other project
interests at Tavsan and Salinbas in particular.  At Tavsan, this work led to
a Resource Estimate containing over 307,000 ounces of gold and also identified
opportunities to further expand this resource through a further drilling
programme which commenced in late 2022.  At Salinbas, drilling is continuing
and has now started at the Hizarliyayla Prospect, which is located in the
vicinity of the >4Moz Hot Maden deposit to the south and with which it
shares several geological features."

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:

·    Mine construction at Tavsan is advancing on schedule, with earthworks
progressing well and concrete for the Adsorption-Desorption-Recovery ("ADR")
plant due to be poured in February; drilling is also underway to provide for a
further revision to the Resource Estimate.

·    Two diamond drilling rigs are operating across the Salinbas Project,
with results from the initial phase of drilling due to be announced soon.

·    Venus Minerals, of which Ariana owns 50%, delayed its IPO in 2022 due
to adverse market conditions and is currently reviewing its plans following an
improvement in market sentiment.  In addition, the option to acquire an
interest in the Apliki Mine lapsed at the end of December and is the subject
of further dialogue with the Iacovou Group; further announcements concerning
Venus will be made in due course.

·    Western Tethyan Resources, of which Ariana owns 75%, is actively
exploring in SE Europe with the support of funding through Newmont Mining
Corporation and continuing with due diligence on the Slivova Project in
Kosovo.

·    The Asgard Metals Fund, of which Ariana owns 100%, has completed
three investments since late 2021 and there are a number of other potential
investments in the pipeline.

Full Year Production Results

                                  Unit         2022       2021       2020       2019       2018       2017
 Open Pit - material moved (wet)  Tonnes       5,309,701  4,531,973  4,459,462  3,985,048  3,268,290  3,531,865
 Open Pit - ore mined (wet)       Tonnes       259,878    411,980    360,966    192,079    285,594    185,720
 Open Pit - mined grade           g/t Au       2.81       2.19       2.29       4.23       4.58       2.79
 Process plant throughput         Tonnes       443,387    286,024    222,628    204,866    193,212    119,316
 Plant feed grade                 g/t Au       2.33       2.44       2.72       4.51       4.73       3.17
 Metallurgical recovery           % Au         92.4       95.8       93.3       93.6       93.7       90.3
 Gold sold                        Troy Ounces  28,421     20,737     18,645     28,132     27,232     10,191
 Silver sold                      Troy Ounces  326,206    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 / Tom Randell / Shivantha Thambirajah  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 307,000 ounces gold and 1.1
million 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. 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.

 

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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLNKCBPABKDFDD