TIDMAAU
RNS Number : 4653L
Ariana Resources PLC
06 September 2023
6 September 2023
AIM: AAU
WESTERN TETHYAN - SLIVOVA POSITIVE PEA
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 that Western Tethyan
Resources Ltd ("WTR"), of which 75% is held by Ariana, has
completed a Preliminary Economic Assessment ("PEA") on the Slivova
Gold Project ("Slivova" or "the Project") in Kosovo, reported in
accordance with CIM guidelines and disclosed under NI43-101
reporting requirements. WTR executed a definitive Earn-In Agreement
with Avrupa Minerals Ltd (TSX-V: AVU) on the Project, and can earn
up to 85% by spending EUR1.8 million ("Earn-in")* and up to 85% on
completion of a Feasibility Study among other technical and
parallel work.
Highlights:
-- Slivova provides a conceptual pre-tax Net Present Value
("NPV") at 8% discount rate of US$27 million , and an internal rate
of return ("IRR") of 29% at a gold price of US$1,835/oz(#) .
-- Capital expenditure is estimated at US$33.4 million and
sustaining capital requirements of US$9.4 million are
envisaged.
-- Average production of 13,000 ounces of gold per annum
projected over a seven-year mine life from a combined open-pit and
underground mining operation is estimated from the study.
-- Gold recovery by the Carbon-in-Leach ("CIL") method, with
recovery of gold at 92-94.5% Au (based on current testwork) and a
processing rate of 142,000 tonnes per annum is estimated from the
study.
* WTR of which Ariana owns 75%, has yet to establish a net
attributable interest under the Earn-in.
# The full PEA report can be accessed via:
https://avrupaminerals.com/wp-content/uploads/2023/08/Slivova-NI-43-101-Technical-Report-2023.pdf
To read a pdf version of this announcement, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/4653L_1-2023-9-5.pdf
Dr. Kerim Sener, Managing Director, commented:
"This is an excellent outcome for the Slivova Gold Project,
demonstrating its potential economics and highlighting
opportunities to enhance the project in the longer term. The
broader exploration potential of the Slivova project area, in
particular the opportunity to define further mineralisation
down-plunge of the existing orebody, bodes well for further
economic upside. We are now looking to complete further work to
demonstrate this upside, via a phased exploration programme, which
will target the definition of additional resources and further
investigate various aspects of the proposed mine design and
processing route, among other technical matters, in addition to
project-level environmental and social studies."
Mentor Demi, Managing Director of WTR, added:
" The PEA prepared by Bara Consulting provides strong evidence
that the Slivova Gold Project has the potential to develop into a
profitable gold mine of modest size, even if no additional
resources are identified. By showcasing compelling economic
viability, it also provides the basis for commencing the next phase
of detailed exploration and techno-economic studies. In conjunction
with the pre-established infill resources drill program, WTR is
commencing a trenching program to enhance exploration in the areas
bordering the primary resource zone, specifically targeting
Dzemailj and Valijevishte. Throughout Q4, the company intends to
initiate the Environmental Base Line Study, the Social Impact
Assessment, and complete the planning for a drilling program, with
the actual drilling activities scheduled to commence in the first
quarter (Q1) of 2024."
Paul W. Kuhn, President and CEO of Avrupa Minerals, added:
" We are delighted about the progress made at the Slivova Gold
Project by Western Tethyan Resources and associated company Ariana.
In the past two months, the Mineral Resource Estimate has been
updated, and a positive Preliminary Economic Assessment has been
completed by our partners. We look forward to seeing more positive
results from the upcoming Q4 2023/Q1 2024 work fieldwork program,
including trenching and drilling, the Q4 2023 initiation of an
Environmental Baseline Study, and continued, strong and proactive
ESG work in the project area. "
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").
Introduction
The Slivova Gold-Silver Project ("the Project") is located some
30 km southeast of Pristina, the capital of Kosovo. The Project was
acquired by AVU Kosova, a wholly owned subsidiary of Avrupa
Minerals ("Avrupa"), which was granted a seven-year exploration
licence for the Project in 2022. In May 2023, Western Tethyan
Resources Ltd ("Western Tethyan", "WTR" or "the Company") executed
an earn-in agreement with Avrupa, in which WTR can earn-in up to
85% of the project.
Bara Consulting Limited ("Bara") was engaged by WTR to prepare a
Preliminary Economic Assessment ("PEA") for Slivova. The study
comprised the updated Mineral Resource Estimate (announced
separately on 17 July 2023) and mining and tailings management
assessments, which were used as inputs into a concept-level
techno-economic evaluation prepared in accordance with CIM
guidelines and disclosed in accordance with NI 43-101 reporting
requirements.
Project Location
The Slivova Project exploration licence is located along the
Vardar Trend, approximately 30 km (30 minutes by car) southeast of
Pristina, the capital city of Kosovo. Access to the Project is via
the Pristina-to-Gjilan, two-lane highway and then an unsealed road
beyond the village of Peshter.
There are four main exploration targets within the Slivova
licence: Peshter, Dzemail, Valjeviste, and Brus. The Peshter
prospect is further subdivided into three portions: the Main
Gossan, Gossan Extension, and the Sandstone Gossan. The Peshter
prospect is the main subject of the PEA, for which there is
material disclosure (Figure 1).
Figure 1: The Slivova deposit (Peshter Target), and its
associated license boundary.
Project Geology
Within the Slivova licence, two units are identified: the
calcareous unit and the non-calcareous greywacke unit. They are
moderately to steeply dipping, northwest striking, and beyond the
mineralised prospects, tend to be unaltered and weakly to
moderately oxidised.
Two types of intrusive dykes and sills were identified in the
mapping and drilling: hornblende-biotite porphyry dykes and stock
and a feldspar porphyry dyke. The dykes represent less than 3% of
the total rock volume within the Main Gossan, with the
hornblende-biotite porphyry representing 99.5% of the intrusive
rocks. Within the Gossan Extension, the hornblende-biotite porphyry
is represented by a greater volume of rock and may be a series of
northeast-trending dykes, or a larger stock.
Economic mineralisation in the Main Gossan and Gossan Extension
is concentrated in the calcareous pebble conglomerate and
calcareous sandstones. Mineralisation at Slivova is classified as a
distal, intrusive-related, stratiform, massive to disseminated
gold-silver-lead-zinc deposit. The principal minerals of economic
interest are gold with minor amounts of galena, sphalerite,
chalcopyrite and silver. The gangue mineral assemblage consists of
ilvaite(?), trace magnetite, arsenopyrite, pyrrhotite, marcasite,
pyrite, quartz and various carbonates. Trace elements include
arsenic, bismuth, chromium, manganese, nickel, and vanadium.
Mineral Resources
The Mineral Resource Estimate, as previously announced, has an
effective date of 22 June 2023. The Mineral Resource Estimate for
Slivova is reported in Table 1, which was completed on 14 July
2023, based on the block model shown in Figure 2. No estimates of
Mineral Reserves have been prepared. Mineral Resources are not
Mineral Reserves and do not have demonstrated economic viability.
The estimate of Mineral Resources may be materially affected by
environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues. The Qualified Person is not
aware of any such issues at the time of writing.
Figure 2: Oblique view of the block model showing the estimated
gold grades. WGS84 Z34N.
Table 1: Estimated Mineral Resources for Slivova. Numbers are
rounded to an appropriate number of significant figures and as such
discrepancies may exist between individual values, products and
totals.
Category Tonnes Bulk Density AuEq Au Ag Au Ag
(g/t) (g/t) (g/t) (oz) (oz)
---------- ------------- ------- ------- ------- -------- ========
Total Mineral Resources (Gross to the Project)
Measured 835,000 2.9 4.3 4.2 15 113,000 402,000
=========== ========== ============= ======= ======= ======= ======== ========
Indicated 296,000 2.8 3.6 3.5 15 33,200 144,000
=========== ========== ============= ======= ======= ======= ======== ========
Meas
+ Ind 1,130,000 2.9 4.1 4.0 15 146,000 546,000
=========== ========== ============= ======= ======= ======= ======== ========
Inferred 250,000 2.8 3.7 3.7 13 30,000 100,000
----------- ---------- ------------- ------- ------- ------- -------- ========
Open Pit Resources Above 0.5g/t AuEq
Measured 110,000 2.9 3.2 3.2 14 11,200 48,300
=========== ========== ============= ======= ======= ======= ======== ========
Indicated 39,300 2.6 2.8 2.7 13 3,390 16,500
=========== ========== ============= ======= ======= ======= ======== ========
Meas
+ Ind 150,000 2.8 3.1 3.0 13 14,600 64,800
=========== ========== ============= ======= ======= ======= ======== ========
Inferred nil nil nil nil nil nil nil
----------- ---------- ------------- ------- ------- ------- -------- ========
Underground Resources Above 1.5g/t AuEq
Measured 725,000 2.9 4.4 4.4 15 102,000 354,000
=========== ========== ============= ======= ======= ======= ======== ========
Indicated 257,000 2.9 3.7 3.6 15 29,800 127,000
=========== ========== ============= ======= ======= ======= ======== ========
Meas
+ Ind 982,000 2.9 4.2 4.2 15 131,000 481,000
=========== ========== ============= ======= ======= ======= ======== ========
Inferred 250,000 2.8 3.7 3.7 13 30,000 100,000
----------- ---------- ------------- ------- ------- ------- -------- --------
Notes to the Mineral Resource Estimate (1-9):
1. The independent Qualified Person responsible for Mineral
Resource disclosure, as defined by NI 43-101, is Mr. Richard
Siddle, MSc, MAIG, of Addison Mining Services Ltd. The effective
date of the Mineral Resource Estimate is 22 June 2023.
2. Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that all or
any part of the Mineral Resource will be converted to Mineral
Reserves.
3. A gold equivalent (AuEq) grade was calculated for each block
using the formula AuEq = (Ag g/t x 0.05) + Au g/t. It is the
opinion of the Qualified Person that all elements included in the
Au Equivalent calculation have a reasonable prospect of being
recovered and sold, the calculation of the Au equivalent value
considers the relative recovery and payability of each element
(recovery by cyanide leaching of 93.4% for gold and 50% for silver
and 95% and 85% payability, respectively, as informed by
metallurgical test work completed to date) as well as the assumed
commodity prices.
4. Reasonable prospects of eventual economic extraction are
satisfied by the estimation of break-even cut-off grades for each
anticipated mining scenario (0.5g/t AuEq for open pit and 1.5g/t
AuEq for underground mining). These cut-off grades were used to
report the Mineral Resource. The cut-off grades were estimated on
the basis of the following assumptions: a gold price of US$1850/oz
(selected following consideration of (1, 2 and 3 year trailing
average LMBA gold price and LMBA 2023 average forecast gold price,
a silver price of US$20/oz, underground mining costs of US$43.7/t,
processing costs (including tailings disposal) of US$29.5/t and
G&A costs of US$3/ROMt.
5. Estimates in the above table have been rounded to three
significant figures for Measured and Indicated Resources and two
significant figures for Inferred Mineral Resources.
6. CIM Definition Standards for Mineral Resources have been followed.
7. The independent Qualified Person for Resources is not aware
of any additional known environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues that
could materially affect the Mineral Resource Estimate.
8. The Mineral Resource figures set out above are quoted gross
with respect to the Project. WTR of which Ariana owns 75%, has yet
to establish a net attributable interest under the Earn-in and
accordingly, no separate net attributable figures are reported.
9. Western Tethyan Resources is the operator of Slivova.
Mine Design
A revised approach to the mining of Slivova involves a small
starter pit to access the outcropping mineralised gossan area,
followed by underground extraction of the gold resource below the
open pit at an appropriate extraction rate to suit the size and
grade of the deposit. Mine design involved a more detailed analysis
of the potential mining method and a mineable stope optimisation
exercise to fully assess and define the underground stoping
extents.
A geotechnical review was undertaken to validate extraction
methods. Ore zones and host rocks are either non-calcareous or
calcareous sequences of altered sedimentary rocks with ore zone
strengths varying between 45 MPa and 50 Mpa. Mine design was
adapted to be flexible to varying competencies of host rock,
particularly in the contact areas.
The starter pit is designed to be mined from the top bench
downwards with ore being accessible and extracted immediately,
i.e., there is no requirement or need for any pre-stripping. It has
been assumed that this small open pit can be mined by local
contractors who have quarries within the vicinity of the proposed
mine at Slivova. The revised starter pit design is also situated
such that there is now no requirement for stream re-alignment where
the pit can be accessed for initial extraction via existing tracks
on the north side of the stream. Pit extents minimise the impact on
the surrounding countryside and local communities.
Due to the requirement for a 25 m crown pillar the bottom bench
was modified to a base of 865 mRL. Bench access was linked into the
existing tracks and roads on the site. This allows for easy access
to each bench for overburden and ore removal without the need for
any ramps. The access to the bottom bench is directly in from
topography, with pit operations ceasing after Year 1.
Underground access is envisaged as a portal developed directly
into the south valley wall, supporting mining typically by sublevel
open stoping, unless ore zone geometry dictates a step down to
cut-and-fill methods. Main sublevels are 20 m, with stoping
separated 25 m from the open pit bottom by a crown pillar which
will be mined by sublevel caving methods at the end of mine
life.
Mining is suggested to be via small teams of approximately 16
people per shift, using small diesel fleet appropriate for
production at between 300 t/day and 400 t/day. Mined material to be
trammed directly from underground operations through the portal to
the primary crusher tip located at the plant site on the saddle of
the southern ridge 500 m to the east.
Recovery Methods
Results of extensive characterisation and testing of the Slivova
ore by a range of methods suggest that treatment would be via
carbon-in-leach ("CIL") methods, delivering gold recovery of
92-94.5% and silver recovery of 19.8-22.5%. Some gold may be
extracted via gravity recovery methods. Nominal plant throughput
will be 142,000 tpa, with primary, secondary, and tertiary crushing
of the ore, followed by ball milling to 106 m m and leaching of the
ore by CIL methods. Loaded carbon is stripped, with electrowinning
and final EAF smelting of the dore to bullion on site.
Environmental
The environmental and social work completed to date is in line
with that required for the PEA based on the revised mining plan. No
environmental or social fatal flaws have been identified and Bara
is not aware of any environmental or social issue that would
prevent the project from proceeding to the PFS phase, during which
time various potential environmental risks would need to be
evaluated further.
Economic Analysis
The economic analysis presented here is preliminary in nature
and is based in part on Inferred Mineral Resources that are
considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorised as Mineral Reserves. There is therefore no certainty
that the PEA presented here will be realised.
PEA level economic analysis is based on the production schedule
presented with capital and operating cost estimates for the Slivova
Project and other information as of July 2023. The discounted
cashflow analysis ("DCF") is presented in United States Dollars
(US$) in real money terms, free of escalation or inflation. Revenue
has been determined through application of the recovered troy
ounces produced by Slivova to the gold and silver prices as stated,
less payability.
Depreciation has been calculated on the assumption of that 100%
of capital expenditure may be deducted from profits in the year
that they are incurred (Deductibility Rate). It is assumed that all
capital expenditure is eligible for deduction. A discount rate of
8% has been used for the evaluation and no tax treatment has been
applied.
The conceptual DCF analysis shows the Project is economic with a
pre-tax NPV, at 8% discount rate of US$27 million, and an internal
rate of return ("IRR") of 29% with upfront capital requirements of
$33.4 million, and sustaining capital requirements of $9.4
million.
About Western Tethyan Resources
Western Tethyan Resources Ltd ("WTR") is a UK-registered,
mineral exploration and development company focused on South East
Europe. The company has a strategic alliance with Newmont
Corporation and Ariana Resources and is currently focused on
exploration for major copper-gold deposits in the Lecce Magmatic
Complex and Vardar Belt. The company is assessing several other
exploration project opportunities across Eastern Europe, targeting
major copper-gold deposits across the porphyry-epithermal
transition.
For further information on Western Tethyan Resources you are
invited to visit the Company's website at
www.westerntethyanresources.com
About Avrupa Minerals Ltd
Avrupa Minerals Ltd. is a growth-oriented junior exploration and
development company directed to discovery of mineral deposits,
using a hybrid prospect generator business model. The company holds
one 100%-owned license in Portugal, the Alvalade VMS Project,
presently optioned to Sandfire MATSA in an earn-in joint venture
agreement. The company now holds one 100%-owned exploration license
covering the Slivova gold prospect in Kosovo and is actively
advancing four prospects in central Finland through the recently
announced acquisition of Akkerman Finland Oy. Avrupa focuses its
project generation work in politically stable and prospective
regions of Europe, presently including Portugal, Finland and
Kosovo. The company continues to seek and develop other
opportunities around Europe.
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
Editors' Note:
The independent Qualified Person for the disclosure of the
Preliminary Economic Assessment as defined by NI 43-101 is Dr.
Andrew Bamber, BSc, MASc, PhD, P.Eng. of Bara Consulting Limited.
Dr. Bamber has reviewed and approved the scientific and technical
content of this news release, in the form and context in which it
appears. Dr. Bamber completed a site visit to the project on 15
February 2023 and inspected the property, core samples and visited
locations relevant to the project including the gossan outcrop and
potential access road, process plant and tailings sites within the
licence area.
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. 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 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 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
ve-year Alliance Agreement with Newmont Corporation
(www.newmont.com) and is separately earning-in to 85% of the
Slivova Gold Project.
Ariana owns 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 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 .
Glossary of Technical Terms:
"Ag" chemical symbol for silver;
"Au" chemical symbol for gold;
"AuEq" gold equivalent;
"CIM" Canadian Institute of Mining, Metallurgy and
Petroleum;
"cut-off grade" the lowest grade, or quality, of mineralised
material that qualifies as economically mineable and available in a
given deposit. May be defined on the basis of economic evaluation,
or on physical or chemical attributes that define an acceptable
product specification;
"g/t" grams per tonne;
"Indicated Resource" a part of a mineral resource for which
tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a reasonable level of
confidence. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. The
locations are too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced closely enough
for continuity to be assumed;
"Inferred Resource" a part of a mineral resource for which
tonnage, grade and mineral content can be estimated with a low
level of confidence. It is inferred from geological evidence and
has assumed, but not verified, geological and/or grade continuity.
It is based on information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill
holes that may be limited or of uncertain quality and
reliability;
"Inverse Distance Weighted Squared" or "IDWS" or "ID2" a
conventional mathematical method used to calculate the attributes
of mineral resources. Near sample points provide a greater
weighting than samples further away for any given resource
block;
"JORC" the Joint Ore Reserves Committee;
"JORC 2012" is the current edition of the JORC Code, which was
published in 2012. After a transition period, the 2012 Edition came
into mandatory operation in Australasia from 1 December 2013;
"m" Metres;
"Measured Resource" a part of a Mineral Resource for which
tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a high level of confidence.
It is based on detailed and reliable exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and
drillholes. The locations are spaced closely enough to confirm
geological and grade continuity;
"mIK" Median Indicator Kriging;
"MRE" Mineral Resource Estimate;
"Mt" million tonnes;
"NI 43-101" the Canadian National Instrument 43-101. This is the
national instrument for the Standards of Disclosure for Mineral
Projects within Canada or reported on the TSX (Toronto Stock
Exchange);
"oz" Troy ounces;
"ROMt" run of mill tonnes;
"SE" standard error statistic;
"t/m(3) " tonnes per cubic metre.
Ends.
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