Red Rabbit Project Overview
Global Resources
|
Global Totals by Area |
Tonnes (t) |
Grade Au (g/t) |
Grade Ag (g/t) |
Au (oz) |
Ag (oz) |
|
Kiziltepe & Kepez |
3,025,000 |
2.33 |
38.03 |
227,000 |
3,699,000 |
|
Tavsan |
4,489,000 |
1.75 |
5.01 |
253,000 |
723,000 |
Click here for detailed resource breakdown.
Overview
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.
Kiziltepe Mine – Production
Kiziltepe Mine – Production Details
Production Figures
|
Stage of Development: |
Production |
|
Mine life: |
c. 6 yrs remaining (up to 10 years potential) |
|
Cash Costs |
|
|
Q1 2019 Q2 2019 Q3 2019 Q4 2019 |
US$399 US$589 US$540 US$500 |
| Processing: | CIL/CIC |
|
Production Rate (Life of mine average) |
20,000 oz Au p.a. (up to c. 25,000 oz Au p.a.) |
| Global JORC Resource: |
2.01Mt @ 2.51 g/t Au, 43.49 g/t Ag (Measured, Indicated) 1.01Mt @ 2.23 g/t Au, 29.58 g/t Ag (Inferred)* |
|
Payback |
100% of construction loan (US$33 million) repaid on 1 May 2020 |
| Royalty: |
State Right and 2.5% NSR to Franco-Nevada |
*Resource figures include Reserves.
Overview
The Kiziltepe Mine area contains all of the primary mining infrastructure for the project, including the open pits of Arzu South, Arzu North, Banu and Derya. The Kiziltepe Mine progressed to commercial operation in July 2017. The mine has been generating positive cashflow since the start of commercial operations.
Tavsan - Development
Tavsan - Development Details
Scoping Study Summary
|
Mine Life: |
6 years (based on revised resources) |
|
Cash Costs: |
US$630/oz |
|
Processing: |
Heap Leach |
| Planned Production Rate: | 30,000oz Au pa |
| Global JORC Resource: |
4.0Mt @ 1.3g/t Au, 4.5g/t Ag (Measured, Indicated & Inferred) |
|
In-pit Grade |
1.6 g/t Au, 3.0 g/t Ag |
|
Net Present Value |
US$42 million* |
|
Internal Rate of Return |
80%* |
|
Payback |
1.1 years on US$20 million initial capital* |
| Royalty: | State Right and up to 2% NSR to Sandstorm Gold |
*Pre-tax base case at US$1,250/oz for gold as at November 2016 (completed by Auralia Mining Consulting).
Overview
The Tavsan Project area currently consists of five mineralised zones; Main, West, East, North and Far North. The project represents an opportunity to deliver 30,000 oz of gold per annum to the Red Rabbit Joint Venture via the development of a stand-alone heap-leach operation.
Following completion of a scoping-level assessment for the Tavsan Project in 2016, the JV is planning to incorporate Tavsan in to the Red Rabbit global mining schedule, increasing production from approximately 20,000 oz pa to 50,000 oz pa between the two operations.
KEPEZ & KARAKAVAK - EXPLORATION
KEPEZ & KARAKAVAK - EXPLORATION
Overview
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.