TIDMAAU
RNS Number : 8893Z
Ariana Resources PLC
17 January 2024
17 January 2024
AIM: AAU
2023 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 2023 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 (and sold) a total of 17,683 ounces of
gold during the year, including gold in carbon and in circuit at
year-end (>500 oz), exceeding full-year production guidance of
18,000 oz gold for 2023.
-- Mining operations are continuing at Arzu North, Derya, and
Banu, with new forestry permits expected to enable the extension of
the Banu pit in 2024.
-- Gross full-year revenue of US$39.2 million at an average
realised gold price of US$1,945 per ounce, with an average revenue
per gold ounce of US$2,218 (due to silver credit)*.
-- As of the end of 2023, the mine had produced a total of
151,041 ounces of gold (planned circa 100,000 oz gold) and
1,682,265 ounces of silver, recording US$274 million in revenue
since operations commenced in early 2017.
* All figures are given gross with respect to Zenit.
Dr. Kerim Sener, Managing Director, commented:
"Kiziltepe has now recorded seven highly successful years of
production and the mine continues to perform extremely well. We are
currently working towards completing an updated Resource/Reserve
Estimate, as we plan to bring Kiziltepe mining operations to a
close over the next few years. Beyond this, we continue to explore
within the immediate vicinity to identify further sources of
potential mill supply that are not currently part of the mining
plan. We anticipate that these would be operated as satellite
operations, some of which are located within Zenit-owned licences,
and others which we have identified within neighbouring licence
areas.
"During 2023, the strong gold price environment resulted in one
of the best years for gold revenue since operations started. This
has certainly boosted the capacity for Zenit to continue
self-funding the development of the Tavsan mine build without
recourse to debt finance. We are continuously monitoring the
capital requirements of the Tavsan build and balancing these
financial demands against practical and operational timelines,
given the continued poor state of the debt markets. Meanwhile,
mining operations have recently commenced at Tavsan and the Main
Pit development is proceeding well, with approximately 40,000
tonnes of ore currently stockpiled ready for heap-leaching.
Construction of the heap-leach, specifically the laying down of
liners, is currently paused due to poor weather conditions and this
work will recommence in the next drier and warmer weather period.
Steel construction and fabrication, along with the delivery of
various plant components are being staggered in accordance with
cash-flow considerations. There will be further updates on Tavsan
operations over the coming months, with first gold from the
heap-leach currently expected to be delivered during Q3 2024.
"In summary, we are pleased with our performance operationally
in 2023, and we look forward to updating the market in 2024 on the
developments of the portfolio."
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:
-- Two diamond drilling rigs are operating across the Salinbas
Project, with results from the drilling programmes at Salinbas,
Ardala, and Hizarliyayla having been announced periodically to the
market since early 2023.
-- Venus Minerals in Cyprus progresses towards its IPO and
further updates will be provided in due course .
-- Western Tethyan Resources ("WTR"), of which Ariana owns 75%,
is actively exploring in SE Europe, including drilling at the
Hertica Cu-Au Project, with the support of funding through Newmont
Mining Corporation. WTR has separately secured an earn-in agreement
on the Slivova Project in Kosovo.
-- The Asgard Metals Fund, of which Ariana owns 100%, has
completed five investments since late 2021 and is currently
actively involved in a due diligence diamond drilling programme in
Zimbabwe with Rockover Holdings Limited.
Full-Year Production Results
Unit 2023 2022 2021 2020 2019 2018 2017
Open Pit
- material
moved (wet) Tonnes 4,563,926 5,309,701 4,531,973 4,459,462 3,985,048 3,268,290 3,531,865
--------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Open Pit
- ore mined
(wet) Tonnes 226,740 259,878 411,980 360,966 192,079 285,594 185,720
--------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Open Pit
- mined g/t
grade Au 1.99 2.81 2.19 2.29 4.23 4.58 2.79
--------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Process
plant throughput Tonnes 354,583 443,387 286,024 222,628 204,866 193,212 119,316
--------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Plant feed g/t
grade Au 1.81 2.33 2.44 2.72 4.51 4.73 3.17
--------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Metallurgical
recovery % Au 94.2 92.4 95.8 93.3 93.6 93.7 90.3
--------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Troy
Gold sold Ounces 17,683 28,421 20,737 18,645 28,132 27,232 10,191
--------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Silver Troy
sold Ounces 201,254 326,206 239,572 244,372 363,646 241,615 65,600
--------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Contacts:
Ariana Resources plc Tel: +44 (0) 20 7407 3616
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited (Nominated Tel: +44 (0) 20 7628 3396
Adviser)
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited (Joint Tel: +44 (0) 20 7886 2500
Broker)
John Prior / Hugh Rich / Atholl
Tweedie
WHIreland Limited (Joint Broker) Tel: +44 (0) 207 2201666
Harry Ansell / Katy Mitchell / George
Krokos Tel: +44 (0) 7983 521 488
Yellow Jersey PR Limited (Financial
PR)
Dom Barretto / Shivantha Thambirajah arianaresources@yellowjerseypr.com
/
Bessie Elliot
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's
Nominated Adviser and is authorised and regulated by the FCA.
Beaumont Cornish's responsibilities as the Company's Nominated
Adviser, including a responsibility to advise and guide the Company
on its responsibilities under the AIM Rules for Companies and AIM
Rules for Nominated Advisers, are owed solely to the London Stock
Exchange. Beaumont Cornish is not acting for and will not be
responsible to any other persons for providing protections afforded
to customers of Beaumont Cornish nor for advising them in relation
to the proposed arrangements described in this announcement or any
matter referred to in it.
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 pro table 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 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 and is currently in construction. 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 Gold eld, which contains the "Hot Gold
Corridor" comprising several signi cant 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, UK and Zimbabwe.
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
ve-year Alliance Agreement with Newmont Mining Corporation
(www.newmont.com) and is separately earning-in to up to 85% of the
Slivova Gold Project.
Ariana owns 58% of UK-registered Venus Minerals PLC ("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 16.6Mt @ 0.45% to 0.80% copper (excluding
additional gold, silver and zinc.
Panmure Gordon (UK) Limited and WH Ireland Limited are brokers
to the Company and Beaumont Cornish Limited is the Company's
Nominated Adviser.
For further information on Ariana, you are invited to visit the
Company's website at www.arianaresources.com .
Ends.
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UPDQKABPQBKDBDD
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