REG - Ariana Resources PLC - 2023 Production Guidance

Ariana ResourcesAnnouncement

15/03/2023 07:00

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RNS Number : 9713S  Ariana Resources PLC  15 March 2023

 

 

 

 

15 March 2023

 

AIM: AAU

 

2023 PRODUCTION GUIDANCE

 

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 production guidance for 2023 for its interests in the
Kiziltepe Mine ("Kiziltepe" or "the Project"). Kiziltepe is 23.5% owned by
Ariana through its shareholding in Zenit Madencilik San. ve Tic. A.S.

Highlights:

 

·    Gold production guidance for 2023 from Kiziltepe is expected to be c.
18,000 ounces of gold*, more than twice the production levels estimated in the
feasibility plan for this approximate stage of mine life.

 

·     Average monthly production is expected at approximately 29,000
tonnes of ore, with a stockpile of approximately 120,000 tonnes currently
maintained on site.

 

·     Ore throughput to the mill during 2023 is expected to be c.
350,000 tonnes.

 

·   Average grade of gold to be mined during the year is expected to be c.
1.7 g/t Au and gold recovery is expected to exceed 90%.

 

·     Open-pit mining will continue largely at the Arzu North, Derya and
Banu pits during 2023.

 

·     Extensive near-mine exploration remains underway.

 

Dr. Kerim Sener, Managing Director, commented:

 

"Production from the Kiziltepe Mine in 2022 reached all-time highs in terms of
gold ounces produced (28,421 ounces gold) and in revenue (US$58 million),
marking the most successful period of mining ever and the sixth year of
guidance-beating output.  This followed on from the timely financing and the
introduction of the processing plant expansion which was completed in 2021.
This has enabled a marked increase in throughput, to about 440,000 tonnes per
annum in 2022.

 

It is notable that Kiziltepe has now produced 50% more gold over its life than
projected in our Feasibility Study and has done so within only three-quarters
of the time.  This is an extraordinary success and all credit is due to our
operational team at Zenit and our exploration team's efforts, who have doubled
our resources since the commencement of mining in 2017.  With the expected
incremental growth of our resources following further drilling, we plan on
maintaining production until the mid-2020s.  Furthermore, recent exploration
successes have highlighted the potential to make further discoveries in the
area, such as beneath Kiziltepe Hill at Kepez Main, albeit they represent
deeper targets.

 

Kiziltepe will be operated in 2023 at a somewhat reduced rate, processing
typically lower-grade ore and at a slightly reduced mill throughput, according
to the current mine plan.  We are also enabling the exploration team to fully
assess the targets identified in recent geophysics and to determine the
drilling required to test these new opportunities adequately.

 

While Kiziltepe represents our oldest project, we are encouraged that even 18
years since we purchased it from Newmont, it still yields significant
exploration upside.  We have successfully demonstrated the progression of a
project from the greenfields stage with just under 4,000m of drilling when
purchased in 2005, to one with over 55,000m of drilling, delineating a Global
Resource of 380,000 ounces of gold and over 6 million ounces of silver, of
which perhaps half may be mined economically at this time."

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").

* 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.

 

Summary of Project

 

The Kiziltepe gold-silver mine was expected to deliver up to 20,000 oz gold
per annum over eight years of initial mine life from 2017 to 2024.  Expansion
of the Global Reserves to 175,000 ounces of gold enables the mine life to be
extended further.  The operating company, Zenit Madencilik San. ve Tic. A.S.,
is a partnership between Ariana (23.5%), Proccea (23.5%) and Ozaltin (53%),
with management control being with Proccea.  The commercial production was
initiated at Kiziltepe during July 2017 and has continued without
interruption, with production consistently being delivered above plan.
Kiziltepe has now produced approximately 50% more gold than expected from its
total life of mine plan and has done so in three-quarters of the projected
time.

 

The latest Resource and Reserve 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 not
currently in the mining plan, in anticipation of these being developed in
future years.  The Kiziltepe operation is currently targeting a minimum
ten-year mine life, which will require the addition of a further 25,000 oz
gold in Reserves outside of the five main pits (Arzu South, Arzu North, Banu,
Derya and Kepez) that are currently scheduled to be mined.  The joint venture
is confident that this can be achieved assuming the conversion of existing
Resources to Reserves and parts of the Exploration Target being converted as
well.

 

Contacts:

 

 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) 7983 521 488
 Dom Barretto / Shivantha Thambirajah /   arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)

Bessie Elliot

 

 

Editors' Note:

 

The information in this announcement that relates to exploration results is
based on information compiled by Dr. Kerim Sener BSc (Hons), MSc, PhD,
Managing Director of Ariana Resources plc. Dr. Sener is a Fellow of The
Geological Society of London and a Member of The Institute of Materials,
Minerals and Mining and has sufficient experience relevant to the styles of
mineralisation and type of deposit under consideration and to the activity
that has been undertaken to qualify as a Competent Person as defined by the
2012 edition of the Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code) and under the AIM
Rules - Note for Mining and Oil & Gas Companies.  Dr. Sener consents to
the inclusion in the report of the matters based on his information in the
form and context in which it appears.

 

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.  Construction
progress is temporarily suspended pending the outcome of a local court
decision pertaining to the EIA.  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% (increasing to 58%) 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) .

 

 

Glossary of Technical Terms:

 

"Au" chemical symbol for gold;

 

"g/t" grams per tonne;

 

"JORC" the Joint Ore Reserves Committee;

 

"oz" Troy ounces;

 

 

Ends.

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