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Ariana Resources announces record Kiziltepe Mine operating results

Image courtesy: Ariana Resources
Image courtesy: Ariana Resources
Published by
Simon Matthis - 12 Nov 2018

Ariana Resources plc, the exploration and development company operating in Turkey, announces its operating results for the quarter ended 30 September 2018 for the Kiziltepe Mine. 

Kiziltepe is part of the Red Rabbit Joint Venture with Proccea Construction Co. and is 50% owned by Ariana through its shareholding in Zenit Madencilik San. ve Tic. A.S..

Operational Highlights include:

 -Gross income for the quarter is US$10.12 million and average revenue per gold ounce is US$1,334 (due to silver credit), against an average realised gold price of US$1,198 per ounce.

-Production and sale of 7,588 ounces of gold during the quarter ending 30 September 2018; 6% increase quarter on quarter (“QoQ”).

 - Operating cash costs for the quarter are estimated at US$330 per ounce#.

- Operational mill availability running at 98% and utilisation at 93% during September. 

 - 49,272 tonnes ore milled during the period ending 30 September 2018 at an average head grade of 4.94 g/t Au. 

 - Process recoveries of gold remain high at c.91% at the end of the quarter. 

 Dr. Kerim Sener, Managing Director, commented: 

 “These quarterly results have yet again demonstrated record performance for the Kiziltepe Mine and we are now well on track to exceed our production guidance for the year.  Since start-up in 2017 the JV has produced about 30,000 ounces of gold and over 200,000 ounces of silver.  Our operating cash cost per ounce has continued to remain low, due in part to a marked fall in value of the Turkish Lira (-28%), a substantial increase in by-product silver credit (+36%) and maintenance of high grades through the plant during the period. As at the end of the quarter, 40% of the JV construction capital loan of US$33 million has been repaid, with the remaining balance to be repaid between now and April 2020.  Monthly intercompany loan repayments from the JV to our wholly owned subsidiary, Galata Madencilik San. ve Tic. Ltd. since early Q1 2018, has now reached approximately US$1.6 million for the year (c. US$200,000 per month).”