REG - Ariana Resources PLC - TAVSAN MINE UPDATE

Ariana ResourcesAnnouncement

06/04/2022 07:00

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RNS Number : 3897H  Ariana Resources PLC  06 April 2022

6 April 2022

AIM: AAU

TAVSAN MINE 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 an update to the mine development programme underway at
Tavsan. The project is operated by Zenit Madencilik San. ve Tic. A.S.
("Zenit") in partnership with Proccea Construction Co. and Ozaltin Holding
A.S. and is 23.5% owned by Ariana.

Highlights:

·    Tavsan gold and silver mine targeting production of up to 30,000oz of
gold per annum over eight years.

 

·    Over 3,900m of resource drilling completed at Tavsan between December
2021 and March 2022.

 

·    Land acquisition and access process has been completed; forestry
permits applications remain in process with the Government.

 

·    Discussions regarding debt financing of the required construction
capital are continuing between Zenit and potential lenders.

 

·    Ariana will be conducting a new mapping and exploration programme
across Tavsan in the next few months, aiming to identify new zones of
mineralisation.

 

Dr. Kerim Sener, Managing Director, commented:

"The Tavsan mine development programme is advancing at pace, and activities
across the project are ramping up significantly as the project is progressed
towards construction.

"The latest Tavsan drilling programme experienced some delays due to
exceptionally bad weather conditions and the decision to increase the scope of
the programme as it proceeded.  As a result, Zenit has now completed almost
double the drilling metres that had been planned previously and successfully
brought the programme to a close.  We are now awaiting the receipt of assays
from this 100-hole programme, following which a revised Resource and Reserve
Estimate will be published as part of the Feasibility Study.  All
geotechnical drilling required for the finalisation of the study has been
completed, which is being revised with improved and updated operating and
capital cost estimates.

"Essential freehold land acquisitions have also been concluded recently,
allowing for the construction of mine infrastructure.  Following the
Environmental Impact Assessment, the necessary forestry permit applications
were submitted and presently remain under review with the Government.  Mine
construction is expected to commence during Q2 2022, once the required permits
are finalised and bank finance has been approved."

 

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").

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 Agrement with Newmont Corporation
(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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