Ariana Resources PLC Ariana Resources Plc : Gold And Silver Production Commences
March 24 2017 - 3:00AM
UK Regulatory
TIDMAAU
24 March 2017
AIM: AAU
GOLD AND SILVER PRODUCTION COMMENCES
Ariana Resources plc ("Ariana" or "the Company"), the exploration and
development company operating in Turkey, is delighted to announce that
its first gold-silver doré pour has been completed successfully at
the Kiziltepe Mine ("Kiziltepe" or "the Project"). Kiziltepe is part of
the Red Rabbit Joint Venture with Proccea Construction Co. and is 50%
owned by Ariana.
Highlights:
-- First doré pour of 5.25kg of gold-silver has been completed at the
Kiziltepe Mine (Figure 1).
-- Final statutory inspections and technical approvals received and the mine
site has been issued with an Operations Permit.
-- Production is expected to ramp up over the coming weeks and through Q2
2017.
Dr. Kerim Sener, Managing Director, commented:
"This is a momentous achievement for the whole Ariana team and our
partners Proccea Construction Co., who have dedicated themselves
collectively over many years to make this happen. We would like to
specifically commend the significant contribution of the joint venture
team on site and the support given by the local community and the
Turkish Government. We would also like to acknowledge our long-term
shareholders who have remained committed to our vision and who have
steadfastly supported our progress.
As a Company, we will remain focused on enhancing our resource base,
adding value through further exploration and development work and
growing our long-term production profile. Our seven-year partnership
with Proccea and our proven ability to deliver successfully on our joint
goals provides a springboard for our future strategy. We look forward to
providing shareholders with further updates on our progress during the
coming months."
Deniz Aybars, Managing Director, Proccea Construction Co.:
"We are very pleased with the completion of the joint venture's first
gold mine. A significant milestone has now been reached and we now look
forward to working with the Ariana team and our funding partners,
Turkiye Finans, to build upon our experience at Kiziltepe through the
development of our joint venture projects in Turkey and possibly
beyond."
A photo gallery of the first doré pour at Kiziltepe is available
below:
http://arianaresources.com/gold-pour
A video of the first doré pour and operations at Kiziltepe is
available below:
http://www.brrmedia.co.uk/event/143288
Figure 1 below shows: Dr. Kerim Sener holding the first doré bar
from the Kiziltepe gold-silver mine. The doré produced from
Kiziltepe is typically 1 part gold to 10 parts silver (by weight),
resulting in a silver rich doré bar.
Summary of Project:
Following completion of construction of the tailings dam in February
(see announcement of 14th February 2017) and the receipt of an
Operations Permit, a first pour of doré (gold-silver) of 5.25kg has
now been achieved at Kiziltepe. The Kiziltepe operation is currently
expected to deliver approximately 20,000 oz gold equivalent per annum
over eight years of initial mine life, for a total of up to 160,000 oz
gold equivalent based on current resources. The operating company,
Zenit Madencilik San. ve Tic. A.S. (50:50 JV between Ariana and Proccea)
will be making repayments against its loan from Turkiye Finans Katilim
Bankasi A.S. based on a pre-determined schedule. Major loan repayments
will have been completed by April 2020 and, during this time, excess
cash-flow from the operation will be used to make repayments of loans
provided by Ariana and Proccea jointly to the JV for exploration and
development respectively. After the repayment of all loans, profits
from the operation will be shared on a 51:49 basis between Ariana and
Proccea respectively.
Ramp up to full production capacity at Kiziltepe is likely to take
several weeks to achieve, following which quarterly production reporting
will commence. In the meantime, the Company is completing a new
resource estimate for the project based on recent drilling and
geological interpretation. Detailed technical and economic assessments
will be completed on several satellite vein systems which are not
currently in the mining plan, in anticipation of these being developed
in future years. The Company is currently targeting a minimum ten-year
mine life, which will require the addition of a further 40,000 oz gold
equivalent in reserves outside of the four main veins (Arzu South, Arzu
North, Banu and Derya) that are currently scheduled to be mined.
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
Beaufort Securities Limited Tel: +44 (0) 20 7382 8300
Jon Belliss
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
Adam James / Tom Salvesen
Editors' Note
About Ariana Resources:
Ariana is an exploration and development company focused on epithermal
gold-silver and porphyry copper-gold deposits in Turkey. The Company is
developing a portfolio of prospective licences originally selected on
the basis of its in-house geological and remote-sensing database.
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. 525,000 ounces of gold
equivalent. At Kiziltepe a Net Smelter Return ("NSR") royalty of up to
2.5% on future 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.
Beaufort Securities Limited and Panmure Gordon (UK) Limited are joint
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:
"doré" semi-pure alloy of gold and silver
"kg" Kilograms
"oz" Ounces
Ends
FIGURE 1 : http://hugin.info/138153/R/2090312/789295.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Ariana Resources plc via Globenewswire
http://www.arianaresources.com/s/Home.asp
(END) Dow Jones Newswires
March 24, 2017 03:00 ET (07:00 GMT)
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