Zenit Madencilik

Zenit Madencilik San. ve Tic. A.S. is a joint venture company operating in Turkey, now owned 23.5% by Ariana.  The joint venture is operated by Proccea Construction Co., which also owns 23.5%, with the remaining 53% owned by Özaltin Holding A.S.  Zenit owns 100% of the Kiziltepe gold-silver mine, and the Tavşan and Salinbaş development projects, in addition to a number of other gold projects in Turkey.  The joint venture owns a depleted total of c. 2.1 million ounces of gold and other metals (as at July 2020).  The joint venture is focused on achieving production from both Kiziltepe and Tavşan in the coming years, with the aim of increasing output to c. 50,000 ounces of gold per annum.

Click here for detailed resource breakdown.

The Kiziltepe Gold-Silver Mine is located in western Turkey and contains a JORC (2012) Measured, Indicated and Inferred Resource of 227,000 ounces gold and 0.7 million ounces silver (as at September 2021). The mine has been in profitable production since early 2017 and is expected to produce at a rate of c.20,000 ounces of gold per annum to at least the mid-2020s. Since start-up, the mine has recorded five years of successful operations and has mined a total of 1,024,359 tonnes at an average grade of 3.52 g/t Au as at the end of 2020. Processing at Kiziltepe is via the carbon-in-leach method and a processing plant expansion has been completed to provide for higher mill throughput of up to 500,000 tonnes of ore per annum. A major drilling programme of over 12,800 m was completed in 2021 which targeted various resource extensions across the property. A Net Smelter Return (“NSR”) royalty of 2.5% on production is being paid to Franco-Nevada Corporation.

*Resource figures include Reserves.

The Tavsan Gold Project is located in western Turkey and contains a JORC (2012) Measured, Indicated and Inferred Resource of 253,000 ounces gold and 723,000 ounces silver (as at June 2020). The Tavsan Project area currently consists of five mineralised zones; Main, West, East, North and Far North. The project is being progressed through permitting and an Environmental Impact Assessment, with the intention of developing the site to become the second joint venture gold mining operation.  Processing at Tavsan will be via the heap-leach method to accommodate a production rate of c. 30,000 ounces of gold per annum. A NSR royalty of up to 2% on future production is payable to Sandstorm Gold.

*Pre-tax base case at US$1,250/oz for gold as at November 2016 (completed by Auralia Mining Consulting).

Resource Estimate table for Tavsan (JV): June 2020.
Note: Summary 2020 Tavsan Project JORC 2012 compliant Mineral Resource Estimate, based on 171 drill holes and 156 rock-saw channels (dated 8 June 2020). Reporting is based on a 0.7 g/t Au cut-off grade. Figures in the table may not sum precisely due to rounding.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues may materially affect the estimate of Mineral Resources. Ariana are not aware of any material barrier to eventual economic extraction.

Kepez and Karakavak prospects lie within short trucking distances of the Kiziltepe processing plant (12km and 27km respectively) and they collectively represent the most significant areas for near-surface resource growth in the immediate area of Kiziltepe.

The total combined resource 27,000oz Au. eq. in the Kepez area has the capacity to be improved upon with further exploration and resource drilling and demonstrates potential for the development of several satellite open-pits in the future. Exploratory drilling at Karakavak has identified several near-surface mineralised veins which have the potential to yield mineable resources in the future.

Kizilcukur is located 22km to the northeast of the Kiziltepe Mine and is being developed with the intention of trucking and processing ore at the Kiziltepe plant in the future.  The project comprises a single licence with 10-year operational status. Kizilcukur sits outside the Red Rabbit JV but can be sold into the JV at 3 x exploration cost at time when mutual benefit can be demonstrated to the JV.

Previous scoping-level work on the project showed the potential for open-pit mining and new drilling has been focused on defining future reserves.  Metallurgical test work at Kizilcukur has demonstrated that the ore responds well to the operating conditions used within Kiziltepe processing plant. 

Trial mining conducted in 2017-18 produced an initial c. 5,000 tonnes of material which is currently stockpiled on site.  It is expected that some of this material will be transported to the Kiziltepe plant for bulk trial-processing in the near to medium term future.

The Ivrindi Project consists of one operational licence located in Balikesir Province in Western Turkey (coordinates: 545830 mE; 4380450 mN). The property lies 70km to the northwest (straight line) and 100km by road from the Kiziltepe sector of the Company's Red Rabbit Project.   

At Ivrindi, mineralisation occurs at the Kinik prospect, which occurs within a 450m long zone of mineralised alteration within Miocene age andesitic volcanic rocks.  Mineralisation extends from surface to 70m vertical depth and is developed in part along the normal faulted contact with Permo-Triassic age limestones.  The gold mineralisation is most well developed in several intensely clay altered zones associated with haematite and limonite, in which quartz vein formation is virtually absent. 

At Ivrindi, mineralisation occurs at the Kinik prospect, which occurs within a 450m long zone of mineralised alteration within Miocene age andesitic volcanic rocks.  Mineralisation extends from surface to 70m vertical depth and is developed in part along the normal faulted contact with Permo-Triassic age limestones.  The gold mineralisation is most well developed in several intensely clay altered zones associated with haematite and limonite, in which quartz vein formation is virtually absent. 

Resource Estimate table for Ivrindi (100% Ariana owned)