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Ariana Resources (LSE:AAU) has said that the Ministry of Environment and Urban Planning has now formally approved the EIA for the initial mine at Kiziltepe.
Highlights:
– Milestone achievement in the development of the Kiziltepe mine towards gold and silver production –targeted at 21,000oz of gold equivalent per annum.
– Ariana’s joint venture partner, Proccea Construction Co. (“Proccea”) to manage and finance the development, with construction commencing following receipt of final permits and mining anticipated to commence approximately six months after start-up.
– Negotiations regarding debt financing for remaining US$25 million at an advanced stage – clear pathway towards production at Kiziltepe without additional dilution.
– Project remains robust at current gold price, with production cash costs estimated at US$600 per ounce of gold.
– Resource expansion upside has already been demonstrated across the project area – recent results from on-going exploration programmes underpin the potential to double the current mineable resource-base of 448,000oz gold equivalent.
Dr. Kerim Sener, Managing Director, commented that “The approval of our EIA for the Kiziltepe Gold-Silver Mine demonstrates the determination and vision of the Ariana team to develop this highly prospective asset through to commercial production. We have taken what was a high-risk exploration programme in western Turkey right through to the delivery of a low-risk, feasible and environmentally approved mining project, which will benefit both local stakeholders and Ariana investors alike.
“The environmental approvals and permitting process in Turkey is methodical and thorough. Under the latest regulations it has been important to gauge the social impact of development in parallel with the environmental impact. In our case, we have involved the local community at every stage of the development of the project over several years and we have been greatly encouraged by the support that they have shown for the mine during the EIA process.
“With our joint venture partners, Proccea Construction, now assuming management control through the final permitting and construction phases, the Ariana team can again focus on what we excel at: value accretive exploration. As recently reported, Ariana has initiated a new exploration strategy at Kiziltepe, and our operational team are confident there remains the potential to double the current mineable resources across the wider Red Rabbit Project Area.
“With this in mind, as we accelerate towards production and the generation of maiden revenues, our attention still remains squarely on the evaluation and development of our wider acreage as we look to becoming a full-cycle gold exploration, development and production company focused on highly prospective regions of Turkey.”
