Ariana Resources announces Q3 production results

Photo: Ariana Resources

Ariana Resources plc, the exploration and development company operating in Turkey, is pleased to announce its operating results for the quarter ended 30 September 2019 for the Kiziltepe Mine.  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”).

Operational Highlights*:

- Record gross quarterly income of US$11.76 million at the average realised gold price of US$1,476 per ounce, against an average revenue per gold ounce of US$1,696 (due to silver credit).

 - Production of 6,933 ounces of gold during the quarter ending 30 September 2019.

 - 2019 gold production to the end of Q3 2019 totals 20,667 ounces of gold; on track to achieve annual production guidance of 25,000 ounces of gold.

- Operating cash costs for the quarter are estimated at US$540 per ounce#.

- Operational mill availability running at 99.6% and utilisation at 99.4% for the period.

- 55,174 tonnes ore milled during the period ending 30 September 2019 at an average head grade of 4.47 g/t Au.

- Process recoveries of gold remain high at 93.6% by the end of the quarter.

 - 78% of the US$33 million capital loan for Kiziltepe has been repaid as at quarter ending 30 September 2019; on track to fully repay loan by April 2020.

Dr. Kerim Sener, Managing Director, commented:

“The third quarter results from the Kiziltepe Mine continue to build on a very successful year of operations.  Operating cash costs per ounce for the period are estimated at US$540 per ounce, reflecting in part the pushback on the southern boundary of the Arzu South pit and the commencement of pre-stripping at Arzu North and Derya, in addition to a build-up of process plant consumables inventory and increased maintenance.

“The gold price continued to remain very favourable throughout the period, averaging US$1,474 per ounce – 13% above our feasibility base-case.  This pricing environment is now reflected in our Q3 results, which demonstrates record quarterly revenue for the mine to date.”