ARIANA RESOURCES PLC

Earnings Release • Jul 17, 2019

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RNS Number : 7524F

Ariana Resources PLC

17 July 2019

17 July 2019

AIM: AAU

Q2 2019 PRELIMINARY PRODUCTION RESULTS

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 June 2019 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").

Second Quarter Preliminary Production Results*:

·      Gold production for the quarter was 6,438 ounces (Q1 2019: 7,296 ounces), exceeding average annualised quarterly guidance by 3%.

·    Total ore processed for the quarter was 48,132 tonnes (Q1 2019: 46,825 tonnes) at an average head grade to the plant of 4.16 g/t gold.

·    Quarterly open pit ore mined was c. 43,367 tonnes, at an average mined grade of 4.59 g/t gold, and total material movement for the quarter was 943,034 tonnes.

·    Average metallurgical plant recovery of gold for the quarter remains high at 95.2%.

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

Dr. Kerim Sener, Managing Director, commented:

"We are very pleased to report strong second quarter 2019 operational performance at Kiziltepe, including one of the highest material movement rates in the mine's history. Gold production during the quarter was again above target, although operations continued to be constrained by the pushback underway on the southern wall of the pit. Careful stockpile management through the period enabled mill throughput to be maintained according to guidance. While a pattern of unusually wet weather has continued even into July, progress on pit development has been continuing at pace and material movements have increased further. These higher mining rates are being accommodated by an increase in fleet capacity by our mining contractor and this will be maintained as we progress with pre-stripping of the Arzu North and Derya pits later this summer." 

Q2 2019 Preliminary Production Results

	Unit	Q2 2019	Q1 2019	Q2 2018#
Open Pit - material moved (wet)	Tonnes	943,034	771,190	758,310
Open Pit - ore mined (wet)	Tonnes	43,367	26,746	70,426
Open Pit - mined grade	g/t Au	4.59	4.04	4.18
Process plant throughput	Tonnes	48,132	46,825	49,325
Plant feed grade	g/t Au	4.16	4.83	4.69
Metallurgical recovery rate	%	95.2	93.7	96.1
Gold produced	Troy Ounces	6,438	7,296	7,171
Silver produced	Troy Ounces	82,988	84,109	49,508

Re-stated following year-end mine and mill reconciliation.

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
James Stearns / Atholl Tweedie
Yellow Jersey PR Limited	Tel: +44 (0) 20 3004 9512
Tim Thompson / Felicity Winkles / Harriet Jackson / Henry Wilkinson	arianaresources@yellowjerseypr.com

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.

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