Ariana Resources PLC Q1 2019 PRELIMINARY PRODUCTION RESULTS (2525W)

TIDMAAU

RNS Number : 2525W

Ariana Resources PLC

16 April 2019

16 April 2019

AIM: AAU

Q1 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 31 March 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").

First Quarter Preliminary Production Results*:

-- Gold production for the quarter was 7,296 ounces (Q4 2018: 7,517 ounces), exceeding average annualised quarterly guidance by 17%.

-- Total ore processed for the quarter was 46,824 tonnes (Q4 2018: 49,717 tonnes) at an average head grade to the plant of 4.83 g/t gold.

-- Quarterly open pit ore mined was c. 26,746 tonnes, at an average mined grade of 4.04 g/t gold, and total material movement for the quarter was 771,190 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:

"We would like to congratulate the mine management team on an excellent set of first quarter 2019 results, in addition to achieving the scheduled pushbacks which accommodate final-stage pit expansion at Arzu South. Production during the quarter has exceeded our average quarterly guidance by 17%. While movement of ore from the open pit was limited by the pushbacks, output of the process plant was maintained at high levels through the planned drawdown on stockpiles. Activities within the open pit were also impacted during the period due to unusually wet weather, but as we approach the summer period, we are expecting a return to higher ore movements from the pit, particularly towards the latter half of this year."

Q1 2019 Preliminary Production Results

 
                             Unit       Q1 2019   Q4 2018   Q1 2018(#) 
 Open Pit - material 
  moved (wet)                Tonnes     771,190   719,369   913,666 
                            ---------  --------  --------  ----------- 
 Open Pit - ore mined 
  (wet)                      Tonnes     26,746    63,759    68,591 
                            ---------  --------  --------  ----------- 
 Open Pit - mined 
  grade                      g/t Au     4.04      4.54      4.50 
                            ---------  --------  --------  ----------- 
 Process plant throughput    Tonnes     46,824    49,717    44,897 
                            ---------  --------  --------  ----------- 
 Plant feed grade            g/t Au     4.83      5.23      3.85 
                            ---------  --------  --------  ----------- 
 Metallurgical recovery 
  rate                       %          93.7      91.6      95.1 
                            ---------  --------  --------  ----------- 
                             Troy 
 Gold produced                Ounces    7,296     7,517     4,866 
                            ---------  --------  --------  ----------- 
                             Troy 
 Silver produced              Ounces    84,109    90,881    30,864 
                            ---------  --------  --------  ----------- 
 

(#) As originally stated prior to year-end mine and mill reconciliation restatement as per announcement on 14 January 2019.

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 
 James Stearns / Atholl Tweedie 
 
 Yellow Jersey PR Limited                    Tel: [phone] 
                                              9512 
 Tim Thompson / Felicity Winkles / Harriet   [e-mail] 
  Jackson 
  / 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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April 16, 2019 02:00 ET (06:00 GMT)