15 October 2018

AIM: AAU

 

Q3 2018 PRELIMINARY PRODUCTION RESULTS

 

Gold Production Achieves Another Record

 

Ariana Resources plc ("Ariana" or "the Company"), the exploration and development company with gold mining operations in Turkey, is pleased to announce its preliminary production results for the quarter ended 30 September 2018 for the Kiziltepe Mine ("Kiziltepe" or "the Project").

  Kiziltepe is part of the Red Rabbit Joint Venture ("JV") with Proccea Construction Co. and is 50% owned by Ariana through its shareholding in Zenit Madencilik San. ve Tic. A.S. ("Zenit").

 

Third Quarter Preliminary Production Results*:

 

·   Gold production for the quarter was 7,588 ounces (Q2: 7,171 ounces), a 6% increase quarter on quarter ("QoQ") and another quarterly record for the JV.

 

·   Total ore processed for the quarter was 46,214# tonnes (Q2: 49,325 tonnes) at an average head grade to the plant of 4.43 g/t gold#.

 

·    Quarterly open pit ore mined was c. 83,200 tonnes, at an average mined grade of 4.77 g/t gold, and total material movement for the quarter was 876,000 tonnes.

 

·     Average metallurgical plant recovery of gold for the quarter remains high at 93.9%#.

 

·   The Company will exceed its full year production guidance of 20,000 ounces of gold, having achieved a total of 19,625 ounces by the end of Q3.

 

* All figures are given gross with respect to the JV.

 

 

Dr. Kerim Sener, Managing Director, commented:

 

"We are very pleased to announce that the results for the third quarter have beaten our previous production record, which had been achieved in Q2 2018.  The tonnage of ore mined has exceeded 83,000 tonnes during the period and grades are approaching 5 g/t gold.  This production rate has continued to build on a robust stockpile position representing up to six months of mill feed as we head in to the winter period. Processing rates continued to be maintained at the highest rates through the period.  Moreover, operational costs, being incurred in local currency, remain favourable in the current environment and we look forward to providing Q3 financial detail in early November. 

 

Our production guidance for the year is now likely to be exceeded by some margin and again we would like to congratulate our JV operational team on yet another significant achievement during this past quarter."

 

Q3 2018 Preliminary Production Results

 

 

Unit

Q3 2018 (preliminary)

Q2 2018

Q3 2017

Open Pit - material moved (wet)

Tonnes

876,000

758,310

952,655

Open Pit - ore mined (wet)

Tonnes

83,228

70,426

56,132

Open Pit - mined grade

g/t Au

4.77

4.18

2.90

Process plant throughput

Tonnes

46,214#

49,325

35,049

Plant feed grade

g/t Au

4.43#

4.77

3.46

Metallurgical recovery rate

%

93.9#

94.3

93.8

Gold produced

Troy Ounces

7,588

7,171

3,762

Silver produced

Troy Ounces

70,346

49,508

15,985

 

# Tonnage and grade of ore processed and metallurgical recovery are calculated to 24 September 2018.  No material change is expected once these are updated with the month end figures.  All other figures provided here, including gold production, represent month end figures.

 

The Company will publish full results for the quarter ending 30 September 2018 by early November 2018.

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

 

Contacts:

Ariana Resources plc

Tel: +44 (0) 20 7407 3616

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

Adam James / James Stearns

 

 

 

Yellow Jersey PR Limited

Tel: +44 (0) 7544 275 882

Tim Thompson / Harriet Jackson

/ Henry Wilkinson

This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Editors' Note

 

About Ariana Resources:

 

Ariana is an exploration and development company with mining operations focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey, the largest gold producing country in Europe.  The Company is developing a portfolio of prospective licences originally selected on the basis of its in-house geological and remote-sensing database, which now contain a total of 1.6 million ounces of gold and other metals (as at end-2017).  Ariana's objective is to cost-effectively add value to its projects through focused exploration and to develop its operations, primarily through well-financed joint ventures. 

 

The Company's flagship assets are its Kiziltepe and Tavsan gold projects which form the Red Rabbit Gold Project.  Both contain a series of prospects, within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional (WAVE) Province in western Turkey.  This Province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits.  These core projects, which are separated by a distance of 75km, form part of a 50:50 Joint Venture with Proccea Construction Co.  The Kiziltepe Sector of the Red Rabbit Project is fully-permitted and is currently in production.  The total resource inventory at the Red Rabbit Project and wider project area stands at c. 605,000 ounces of gold equivalent (as at end-2017).  At Kiziltepe a Net Smelter Return ("NSR") royalty of up to 2.5% on production is payable to Franco-Nevada Corporation.  At Tavsan an NSR royalty of up to 2% on future production is payable to Sandstorm Gold.

 

In north-eastern Turkey, Ariana owns 100% of the Salinbas Gold Project, comprising the Salinbas gold-silver deposit and the Ardala copper-gold-molybdenum porphyry among other prospects.  The total resource inventory of the Salinbas project area is c. 1 million ounces of gold equivalent.  A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation.

 

Panmure Gordon (UK) Limited are broker 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.