Ariana Resources PLC Q3 2018 PRELIMINARY PRODUCTION RESULTS (9651D)

TIDMAAU

RNS Number : 9651D

Ariana Resources PLC

15 October 2018

15 October 2018

AIM: AAU

Q3 2018 PRELIMINARY PRODUCTION RESULTS

Gold Production Achieves Another Record

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 2018 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 7,588 ounces (Q2: 7,171 ounces), a 6% increase quarter on quarter ("QoQ") and another quarterly record for the JV.

-- Total ore processed for the quarter was 46,214(#) tonnes (Q2: 49,325 tonnes) at an average head grade to the plant of 4.43 g/t gold(#) .

-- Quarterly open pit ore mined was c. 83,200 tonnes, at an average mined grade of 4.77 g/t gold, and total material movement for the quarter was 876,000 tonnes.

   --     Average metallurgical plant recovery of gold for the quarter remains high at 93.9%(#) . 

-- The Company will exceed its full year production guidance of 20,000 ounces of gold, having achieved a total of 19,625 ounces by the end of Q3.

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

Dr. Kerim Sener, Managing Director, commented:

"We are very pleased to announce that the results for the third quarter have beaten our previous production record, which had been achieved in Q2 2018. The tonnage of ore mined has exceeded 83,000 tonnes during the period and grades are approaching 5 g/t gold. This production rate has continued to build on a robust stockpile position representing up to six months of mill feed as we head in to the winter period. Processing rates continued to be maintained at the highest rates through the period. Moreover, operational costs, being incurred in local currency, remain favourable in the current environment and we look forward to providing Q3 financial detail in early November.

Our production guidance for the year is now likely to be exceeded by some margin and again we would like to congratulate our JV operational team on yet another significant achievement during this past quarter."

Q3 2018 Preliminary Production Results

 
                               Unit       Q3 2018          Q2 2018   Q3 2017 
                                           (preliminary) 
 Open Pit - material moved 
  (wet)                        Tonnes     876,000          758,310   952,655 
                              ---------  ---------------  --------  -------- 
 Open Pit - ore mined (wet)    Tonnes     83,228           70,426    56,132 
                              ---------  ---------------  --------  -------- 
 Open Pit - mined grade        g/t Au     4.77             4.18      2.90 
                              ---------  ---------------  --------  -------- 
 Process plant throughput      Tonnes     46,214(#)        49,325    35,049 
                              ---------  ---------------  --------  -------- 
 Plant feed grade              g/t Au     4.43(#)          4.77      3.46 
                              ---------  ---------------  --------  -------- 
 Metallurgical recovery 
  rate                         %          93.9(#)          94.3      93.8 
                              ---------  ---------------  --------  -------- 
                               Troy 
 Gold produced                  Ounces    7,588            7,171     3,762 
                              ---------  ---------------  --------  -------- 
                               Troy 
 Silver produced                Ounces    70,346           49,508    15,985 
                              ---------  ---------------  --------  -------- 
 

(#) Tonnage and grade of ore processed and metallurgical recovery are calculated to 24 September 2018. No material change is expected once these are updated with the month end figures. All other figures provided here, including gold production, represent month end figures.

The Company will publish full results for the quarter ending 30 September 2018 by early November 2018.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Contacts:

 
 Ariana Resources plc              Tel: [phone] 
                                    3616 
 Michael de Villiers, Chairman 
 Kerim Sener, Managing Director 
 
 Beaumont Cornish Limited          Tel: [phone] 
                                    3396 
 Roland Cornish / Felicity Geidt 
 
 Panmure Gordon (UK) Limited       Tel: [phone] 
                                    2500 
 Adam James / James Stearns 
 
 Yellow Jersey PR Limited          Tel: [phone] 
                                    882 
 Tim Thompson / Harriet Jackson    [e-mail] 
  / Henry Wilkinson 
 

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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October 15, 2018 02:00 ET (06:00 GMT)