ARIANA RESOURCES PLC

Earnings Release • Oct 21, 2019

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RNS Number : 4598Q

Ariana Resources PLC

21 October 2019

21 October 2019

AIM: AAU

Q3 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 September 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").

Third Quarter Preliminary Production Results*:

·      Gold production for the quarter was 6,933 ounces (Q2 2019: 6,438 ounces), exceeding average annualised quarterly guidance by 11%.

·     Total ore processed for the quarter was 55,174 tonnes (Q2 2019: 48,132 tonnes) at an average head grade to the plant of 4.47 g/t gold.

·     Quarterly open pit ore mined was 47,933 tonnes, at an average mined grade of 4.95 g/t gold, and total material movement for the quarter was 1,068,404 tonnes.

·     Average metallurgical plant recovery of gold for the quarter remains high at 93.7%.

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

Dr. Kerim Sener, Managing Director, commented:

"This third quarter continued to demonstrate the positive performance of the Kiziltepe mine and plant, including record mill throughput at over 55,000 tonnes.  With gold production for the period just shy of 7,000 ounces, taking our total production for the year to 20,667 ounces, and a favourable gold price environment during the period, this quarter has resulted in one of the best revenues in the history of the operation. 

"We remain fully on track to deliver against our guidance of 25,000 ounces of gold for the year, derived from the remaining production expected at the Arzu South pit.  Meanwhile, mining activity has commenced at the Derya pit and we look forward to seeing the development of this part of our operation." 

Q3 2019 Preliminary Production Results

	Unit	Q3 2019	Q2 2019	Q3 2018#
Open Pit - material moved (wet)	Tonnes	1,068,404	943,034	876,945
Open Pit - ore mined (wet)	Tonnes	47,933	43,367	83,228
Open Pit - mined grade	g/t Au	4.95	4.59	4.94
Process plant throughput	Tonnes	55,174	48,132	49,272
Plant feed grade	g/t Au	4.47	4.16	4.77
Metallurgical recovery rate	%	93.7	95.2	93.2
Gold produced	Troy Ounces	6,933	6,438	7,556
Silver produced	Troy Ounces	89,478	82,988	70,363

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
Dom Barretto / 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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