TIDMAAU
RNS Number : 0025P
Ariana Resources PLC
14 October 2021
14 October 2021
AIM: AAU
EIA APPROVED FOR TAVSAN GOLD-SILVER MINE IN TURKEY
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
mineral exploration and development company with interests in gold
mining operations in Europe , is delighted to report that, further
to the announcement released on 2 September 2021 regarding the
submission of its final Environmental Impact Assessment ("EIA")
report for the Tavsan Mine ("Tavsan" or "the Project") in Western
Turkey, the Ministry of Environment and Urban Planning has now
formally provided its approval of the EIA. Tavsan is part of Zenit
Madencilik San. ve Tic. A.S. ("Zenit") and is 23.5% owned by
Ariana.
Highlights:
-- EIA approved for the development of Tavsan gold and silver
mine which is targeting production of up to 30,000oz of gold per
annum over eight years.
-- Zenit is managing the development programme, with
construction to commence following receipt of final permits.
-- Discussions regarding debt financing of the required
construction capital are being advanced with potential lenders.
-- Opportunities for resource expansion have been demonstrated
at Tavsan and further drilling is expected to commence during Q4
2021, which will lead to a revised resource.
Dr. Kerim Sener, Managing Director, commented:
"The approval of the EIA for the Tavsan Gold-Silver Mine
demonstrates the determination of the Zenit team to develop this
valuable asset through to commercial production. This project
represents the second successful delivery of an environmentally
approved mining project in Western Turkey by the Company. The
development of this project will benefit both local stakeholders
and Ariana investors alike. Zenit have involved the local community
at every stage of the development of the project over several years
and we welcome the support that they have shown for the mine during
the EIA process.
"Zenit will now proceed through the final permitting and
construction phases, while the Ariana team continues its focus on
value accretive exploration. As recently reported, there remains
the potential to substantially increase the resource base at Tavsan
with further drilling and development work. With this in mind, as
we accelerate towards production and the generation of maiden
revenues at Tavsan, our attention remains squarely on the
evaluation and development of our wider investment portfolio across
the full-cycle of exploration, development and production."
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").
Further Information:
As announced on 2 September 2021, Zenit Madencilik San. ve Tic.
A.S., ("Zenit"), submitted the final EIA report for the Tavsan
gold-silver mine to the Ministry of Environment and Urban Planning
("MEUP"). At that time, the mandatory 10-day public notice period
had been completed and final signatures approving the EIA by MEUP
were received in August. In accordance with this, the EIA Positive
Decision Certificate for the Project has now been issued and dated
8 October 2021.
Following this, Zenit will proceed with the development at
Tavsan, and will pursue the granting of final permits ahead of
construction start-up. Construction will commence following receipt
of final permits and the completion of necessary land acquisitions,
which are already 65% completed. Following the receipt of the EIA,
Zenit can now apply for permits including those for construction,
health and safety, and forestry, among others, with production
expected to commence within 12 months after the initiation of
construction.
The construction capital expenditure requirement will be sourced
from debt at the Zenit level. Discussions regarding the
formalisation of debt funding are progressing encouragingly and
further details will be announced in due course. Zenit has existing
relationships with Turkiye Finans Katilim Bankasi A.S. and Garanti
Bankasi A.S., though its operations at the Kiziltepe Mine.
Once in production, the mine at Tavsan will represent a
significant employer in the region, with approximately 100 local
people expected to be retained on a permanent basis. Zenit are
committed to developing a sustainable and environmentally, socially
and economically robust mining project at Tavsan and remain
actively involved in dialogue with the local communities in order
to achieve this.
Contacts:
Ariana Resources plc Tel: +44 (0) 20 3476 2080
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
John Prior / Hugh Rich / Atholl
Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 7951 402 336
Dom Barretto / Joe Burgess / Henry arianaresources@yellowjerseypr.com
Wilkinson
Editors' Note:
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 Turkey 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. with Ozaltin Holding A.S. and Proccea Construction Co. in
Turkey which contains a depleted total of c. 2.1 million ounces of
gold and other metals (as at July 2020). Operations comprise the
Kiziltepe Mine and the Tavsan and Salinbas projects.
The Kiziltepe Gold-Silver Mine is located in western Turkey and
contains a depleted JORC Measured, Indicated and Inferred Resource
of 227,000 ounces gold and 3.7 million ounces silver (as at April
2020). The mine has been in profitable production since 2017 and is
expected to produce at a rate of c.20,000 ounces of gold per annum
to at least the mid-2020s. A Net Smelter Return ("NSR") royalty of
2.5% on production is being paid to Franco-Nevada Corporation.
The Tavsan Gold Project is located in western Turkey and
contains a JORC Measured, Indicated and Inferred Resource of
253,000 ounces gold and 0.7 million ounces silver (as at June
2020). The project is being progressed through permitting and an
Environmental Impact Assessment, with the intention of developing
the site to become the second gold mining operation. A NSR royalty
of up to 2% on future production is payable to Sandstorm Gold.
The Salinbas Gold Project is located in north-eastern Turkey 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 is currently earning-in to 75% of Western Tethyan
Resources Ltd ("WTR"), which operates across 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.
Ariana is also earning-in to 50% of UK-registered Venus Minerals
Ltd ("Venus") and has to date earned into an entitlement to 37.5%.
Venus is focused on the exploration and development of copper-gold
assets in Cyprus which contain a combined JORC Inferred Resource of
9.5Mt @ 0.65% copper (excluding additional gold, silver and
zinc).
Ariana operates its wholly-owned Asgard Metals Fund ("Asgard"),
as part of the Company's proprietary Project Catalyst Strategy. The
Fund will be 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, Turkey and the UK.
Panmure Gordon (UK) Limited is broker to the Company and
Beaumont Cornish Limited is the Company's Nominated Adviser and
Broker.
For further information on Ariana you are invited to visit the
Company's website at www.arianaresources.com .
Ends.
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