1 May 2024
AIM: AAU
2024 PRODUCTION
GUIDANCE
FIRST GOLD PRODUCTION FROM
TAVSAN SECTOR
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 2024
from its interest in the Zenit Mining Operations ("Zenit" or "the
Project"). Zenit is 23.5% owned by Ariana through its shareholding
in Zenit Madencilik San. ve Tic. A.S.
Highlights:
·
Gold production guidance for 2024 from Zenit is
expected to be c.20,000 ounces of gold*, inclusive of first gold
production from the Tavsan Sector.
·
Average monthly production is expected at
approximately 25,000 tonnes of ore, with a stockpile of c.76,000
tonnes at c.2.2 g/t Au that is currently maintained on
site.
· Ore
throughput to the mill during 2024 is expected to be c.300,000
tonnes.
·
Average grade of gold to be mined during the year
is expected to be c.2.4 g/t Au and gold recovery is expected to
average c.90%.
·
Open-pit mining will continue largely at the Arzu
North, Banu and Derya pits at Kiziltepe and at Tavsan Main during
2024.
Dr.
Kerim Sener, Managing Director, commented:
"We are very pleased to provide our production guidance for
2024 following several important developments at the Tavsan Sector
in particular, and for the Company more broadly. As this
announcement comes after the end of the first quarter of 2024, we
are also pleased to report that the average gross revenue per ounce
produced during Q1 2024 is US$2,328, attributable to the marked
increase in gold and silver prices during the period. Accordingly,
cash on hand within the Zenit partnership is currently c.US$10M,
maintaining the strong debt-free position secured since June 2023,
with >US$35M having been spent so far on the Tavsan mine
build.
"Over the past few months, Zenit has been mining high-grade
ore from the Tavsan Mine, intending to process this ore through the
Kiziltepe processing plant. We are now pleased to report that trial
gold production has been successful and consequently we are now in
the position to state our guidance from the Zenit Mining Operations
for 2024. All production results are to be reported on a
consolidated basis going forward, with production from both
Kiziltepe and Tavsan represented.
"In addition, we are expecting the rate of throughput of
high-grade (>2.5 g/t Au) Tavsan ore to increase in the months
ahead, compared to our guidance of c.1.7g/t Au for Kiziltepe alone
last year. Further revisions to the Tavsan mine plan are underway
to optimise the production of high-grade ore from the Main Zone and
to potentially improve gold recovery from 87% to at least 90%
through the CIL processing plant.
"With JORC Reserves at Zenit totalling 5.3Mt @ 1.46g/t Au and
9.81g/t Ag for 249koz Au and 1.67Moz Ag, we are demonstrating a
pathway for up to ten further years of production from the Zenit
Mining Operations. This is an extremely positive outcome and stands
us in good stead to develop new opportunities, particularly our
recently announced proposed acquisition of the Dokwe Gold Project
in Zimbabwe. Furthermore, we are encouraged to note the significant
interest that this has generated amongst our existing partners, and
we look forward in conjunction with our partners to explore
opportunities by which they may become involved in the development
of Dokwe, as the project progresses towards
feasibility."
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, as a CIL
operation, over eight years of initial mine life from 2017 to 2024.
The latest update to the Reserves in March 2024, 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. Commercial production was initiated at
Kiziltepe during July 2017 and has continued without interruption,
with production consistently being delivered above plan.
The latest Resource and Reserve
estimate for Kiziltepe was based on recent drilling and geological
interpretation in March 2024. 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 total mine life and current Reserves
are sufficient to enable production through to 2026. Further
exploration and resource development work remains underway in the
expectation that further extensions to mine life are
possible.
The Tavsan gold-silver Mine is
located 130 kilometres by road from Kiziltepe Mine and is being
developed as a heap-leach operation. Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan
is being developed as Zenit's second gold mining operation in
Turkey and is currently in construction, with mining having been
underway since early 2024. An extended resource infill and
extension drilling programme initiated in November 2022, was
completed at Tavsan in 2024. The results of this drilling programme
are being integrated into a revised Resource and Reserve estimate.
An interim estimate was released in March 2024. Production of gold
from the heap-leach at Tavsan is expected during late
2024.
Contacts:
Ariana Resources plc
|
Tel: +44 (0) 20 3476 2080
|
Michael de Villiers,
Chairman
|
|
Kerim Sener, Managing
Director
|
|
Beaumont Cornish Limited (Nominated Adviser)
|
Tel: +44 (0) 20 7628 3396
|
Roland Cornish / Felicity
Geidt
|
|
Panmure Gordon (UK) Limited (Joint Broker)
|
Tel: +44 (0) 20 7886 2500
|
Hugh Rich / Atholl Tweedie / Rauf
Munir
|
|
WHIreland Limited (Joint Broker)
Harry Ansell / Katy Mitchell /
George Krokos
Yellow Jersey PR Limited (Financial PR)
|
Tel: +44 (0) 207 2201666
Tel: +44 (0) 7983 521 488
|
Dom Barretto / Shivantha Thambirajah
/
Bessie Elliot
|
arianaresources@yellowjerseypr.com
|
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:
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 Türkiye
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
Türkiye which contains a depleted total of c. 2.2 million ounces
gold equivalent (as at March 2024, using a price ratio of 90 Ag to
1 Au). The joint venture comprises the Kiziltepe Mine and Tavsan
mines and the Salinbas projects.
The Kiziltepe Gold-Silver
Mine is located in western Türkiye
and contains a depleted JORC Measured, Indicated and Inferred
Resource of 171,700 ounces gold and 3.3 million ounces silver (as
at March 2024). The mine has been in profitable production since
2017 and has been producing at an average rate of c.22,000 ounces
of gold per annum. 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 Türkiye
and contains a JORC Measured, Indicated and Inferred Resource of
311,000 ounces gold and 1.1 million ounces silver (as at March
2024). Following the approval of its Environmental Impact
Assessment and associated permitting, Tavsan is being developed as
the second gold mining operation in Türkiye 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
Türkiye 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,
Türkiye, 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
five-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 61% 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.