REG - Ariana Resources PLC - GENERAL PROJECTS UPDATE

Ariana ResourcesAnnouncement

23/06/2022 07:01

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RNS Number : 8728P  Ariana Resources PLC  23 June 2022

 

 

23 June 2022

AIM: AAU

GENERAL PROJECTS UPDATE

Ariana Resources plc ("Ariana" or the "Company"), an AIM-listed mineral
exploration and development company with gold mining interests in Europe, is
pleased to announce a general update on its projects across all areas of
current activity.

Highlights:

·    Tavsan project development is being transitioned into the
construction stage, and a revised Mineral Resource Estimate and Feasibility
Study is underway.

·    Simultaneous diamond drilling programmes underway at Kiziltepe, for
up to c. 14,000m, and at Salinbas, for an extended programme which will
involve several drilling rigs.

·    Western Tethyan Resources undertaking fieldwork across its licences
in Kosovo and evaluating several other projects in south-eastern Europe in
conjunction with Newmont.

·    Venus' exploration and development work in Cyprus is ongoing and
preparations for its IPO are continuing.

·    Asgard Metals Fund investee companies are currently undertaking
various geochemical and geophysical exploration programmes and drilling, with
the aim of identifying new mineral resources.

·    New office facilities have been opened in Ankara, from which the
Company's core geoscientific team will operate globally.

Dr. Kerim Sener, Managing Director, commented:

"Significant progress is being made across the Company's projects and
interests in south-eastern Europe and further afield.  Most notably, we are
advancing into the construction stage of the Tavsan Project and associated
development activities are being ramped up. Tavsan will become the second mine
developed by Ariana through its interests in Zenit Madencilik in Turkey.

"New and extended exploration and resource drilling programmes are continuing
at both Kiziltepe and Salinbas and Kiziltepe remains on track to deliver its
production target of c. 25,000oz gold for the year.  The Company is also
advancing a strategy to secure 100% owned exploration projects in eastern
Turkey following the work of the Project Leopard team. While Ariana continues
to diversify its investments and operations, providing a derisked investment
for prospective shareholders, we believe that eastern Turkey offers suitably
attractive opportunities that complement our exisiting in-country activities.

"Following the strategic investment of US$2.5 million by Newmont Corporation
in Ariana, our 75% owned subsidiary, Western Tethyan Resources, is progressing
its exploration programmes in Kosovo and evaluating a number of other projects
in the wider region.  Having access to the Newmont exploration databases
across the region has provided us with enhanced targeting capabilities. The
grant of our first exploration licences marks a major milestone in this region
and we look forward to the grant of several other licences during 2022.

"Venus Minerals, in which we hold a 50% interest, progresses towards its IPO
and Admission to the AIM Market. Current volatility in global capital markets
has proven challenging, however, the very compelling Venus business case
presents at least 10 years copper production commencing ~12 to 15 months
following its IPO. As such, we continue to support Venus so that it can
complete its IPO at the earliest opportunity.

"Our interests in Panther Metals, Pallas Resources and Annamite Resources,
held through our 100% owned Asgard Metals Fund, are being advanced across
multiple new exploration programmes in 2022 involving geochemical and
geophysical programmes, drilling and mineral resource estimation.  The Ariana
team is fully integrated in the design and interpretation of the work
programmes of our investee companies.  We are expecting to make further
investments via Asgard during the current year to further broaden the
portfolio across the Eastern Hemisphere.

"Lastly, the Company is proud to have opened the doors of its own office
premises in Ankara.  This has been established as our Head Office, for our
core administrative and generative geoscientific teams.  The facility will
house our Geotek BoxScan unit, which is currently located in Sindirgi, and
will include an in-house sample preparation and geochemical laboratory to
support our regional exploration programmes."

http://www.rns-pdf.londonstockexchange.com/rns/8728P_1-2022-6-22.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8728P_1-2022-6-22.pdf)

Figure 1: Opening of our new office in Ankara, Turkey, with our administration and generative geoscientific team.

 

 

Zenit Madencilik

 

At the Tavsan development project, the site team is currently transitioning
into the construction stage from July.  In conjunction to work currently
underway on a revised Mineral Resource Estimate and corresponding updates to
the Feasibility Study, the team is also working on securing a finance package
in Turkey for the development of the project.  Meanwhile, the Ariana
exploration team is currently completing a detailed reassessment of the
geology of Tavsan to identify several new exploration areas which will require
further drill-testing.

 

Operations at the Kiziltepe Mine are continuing as planned and Zenit remains
on target for the production of c. 25,000oz gold by year end.  The
enhancements made to the processing plant during 2021, particularly the new
SAG mill, are enabling nominal throughput to remain at about 400,000 tonnes
per annum, which represents double the previous capacity.  Following the
receipt of new forestry permits, a new drilling programme has commenced at
Kiziltepe and the surrounding prospects, for up to c. 14,000m of diamond
drilling.  The drilling programme has commenced with a single rig but this is
expected to be joined by a second rig in the coming weeks.  The results of
this programme will provide the necessary information for future Resource to
Reserve conversion.

 

A resource and exploration drilling programme at Salinbas is continuing and is
currently at c. 3,700m; a programme which was originally budgeted for 2,300m.
 This extended programme is currently continuing with a single diamond
drilling rig but is expected to be joined by up to two additional drill rigs
during 2022, following the receipt of required forestry permits.

 

Western Tethyan Resources

 

Western Tethyan Resources is continuing to undertake fieldwork across its
granted licences in Kosovo and is evaluating several other projects in
south-eastern Europe in conjunction with Newmont Corporation.  A number of
other licence application areas are currently under review and are expected to
be granted in the coming months.

 

Venus Minerals

 

Venus Minerals Ltd is working towards completing its preparations for an IPO
on AIM, including the Competent Persons Report, financial statements and legal
due diligence. Venus has entered into a 50-50 joint venture to mine the Apliki
Project with a local mining company.  Once the IPO is complete, Venus will
continue to advance its project pipeline of development and exploration
projects across the island of Cyprus.

 

Asgard Metals

 

Asgard Metals has made three investments to date.  Panther Metals Limited
(ASX:PNT) is completing a maiden Mineral Resource Estimate for the Coglia
Ni-Co Project in Western Australia, following an extensive RC drilling
programme of 6,000m.  Pallas Resources Limited is currently undertaking drone
magnetic surveys and soil geochemical sampling across several projects in
Kazakhstan.  Annamite Resources Ltd. is completing its first drilling
programme on the Namthom Project in Laos.

 

 

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       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 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). Following the approval of its
Environmental Impact Assessment, resulting permitting work is ongoing to
develop Tavsan as the second joint venture 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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