Ariana Resources reveals ‘solid start’ to 2019 as costs remain low at Kiziltepe (AAU)

Ariana Resources (LSE:AAU) sat at 1.97p on Monday morning after revealing that low operating cash costs at its Kiziltepe mine have continued into 2019. In a quarterly update for the Turkey-based asset, Ariana said operating cash costs for the period came in at just c.$399/oz of gold, a slight increase on the $349/oz achieved in Q4 2018.

Managing director Kerim Sener said this figure remains low in spite of the high strip ratios incurred during the pushback of the southern pit wall at an area of Kiziltepe called Arzu South. ‘This was helped by the planned draw down on stockpiles, maintenance of significant by-product silver credit and high grades through the plant during the period,’ he added.

Elsewhere, Ariana revealed that its gross income from the asset came in at $10.86m for the quarter based on an average realised gold price of $1,311/oz. This represents a slight increase of the $10.62m turnover generated by the mine in the previous quarter. Finally, gold production came in a 7,296oz over the period while silver output reached 84,109oz.

Looking forward, Ariana said that ore production from Kiziltepe’s open pit will remain restricted during Q2 and Q3 due to the continuation of work on the pushback of the southern wall of the Arzu South pit. However, the firm said this is not expected to impact output significantly. 

Alongside a project called Tavsan, Kiziltepe is part of Ariana’s 50:50 Red Rabbit JV with Proccea Construction. Both sites contain a series of prospects within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional Province of western Turkey.  This province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits.  The total resource inventory of the Red Rabbit Project and wider project area stands at c.605,000oz of gold equivalent.

On the operational side, Ariana said the JV has continued to make gross capital repayments on a $33m construction capital loan on their scheduled basis.  As at the end of March, these payments totalled $19.6m, with $3.2m repaid over the first three months of the year.

‘These first quarter results for the Kiziltepe Mine reflects a solid start to 2019 and continues to demonstrate the efficiency of our JV operations,’ added Sener on Monday. ‘As at the end of the quarter, 60pc of the JV construction capital loan of $33 million had been repaid, and by the end of the June quarter we are expecting to be almost 70pc repaid. Monthly intercompany loan repayments and dividends from the JV to our wholly owned subsidiary, Galata Madencilik San. ve Tic. Ltd., reached approximately $2.7m by the end of Q1 2019.’

Monday’s update comes just days after Ariana said infill resource drilling had demonstrated the potential for a large-tonnage, lower-grade system at the Arzu North area of Kiziltepe. Drilling completed at the site in December to provide Red Rabbit with additional infill resource data encountered encouraging intersections.  Highlights included 44m at 1.5g/t gold and 17.5g/t silver and 27.7m at 1.37g/t gold and 13.1g/t silver.

The drilling was planned to test the theory that the Arzu North vein system – which had not been tested thoroughly – broadens out into a more extensive array of vein mineralisation spanning a series of structures. According to Ariana, the results confirm the presence of at least three broad mineralised structures within the Arzu North pit.

New geological modelling and pit optimisation studies are now underway to revise the resources for Arzu North alongside another area called Derya.  Ariana said it is also looking at the potential of merging Arzu North and Derya into a single pit following re-interpretation of the Aybor vein, located in a 30m-wide zone between the two areas. Regardless, mining is scheduled to begin at both areas simultaneously in the final quarter of this year now that the Red Rabbit partners have received all necessary forestry permissions.

Elsewhere, last week saw Ariana announce that it had received approval for a 10-year renewal of its Salinbas license from the Turkish General Directorate of Mining and Petroleum Affairs.  The organisation is about to commence a 2,000m Reverse Circulation drilling programme, for which a drill rig has now been mobilised.

The gold, silver, and base-metal project contains three notable licence areas called Salinbas, Ardala and Hizarliyayla. The licenses are located within the multi-million-ounce Artvin Goldfield in Turkey’s “Hot Gold Corridor”.  The corridor contains several significant gold-copper projects including the 4Moz Hot Maden project which lies 16km to the south of Salinbas. Also to the south lies the Hizarliyayla prospect which is partially hosted within the same stratigraphic sequence as the Hot Maden discovery.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

Drilling imminent as Ariana secures all permits for Ardala License at Salinbas Gold Project (AAU)

On Tuesday, Ariana Resources (LSE:AAU) updated the market on developments at its Salinbas Gold Project in Turkey. The firm has received approval for a 10-year renewal of the Salinbas license from the Turkish General Directorate of Mining and Petroleum Affairs. Ariana is about to commence a 2,000-metre Reverse Circulation (RC) drilling programme, reporting the drill rig has now been mobilised.

Having received the required Ardala licence forestry permits, site preparation is underway. This includes some road-building and existing roads have been readied for further drilling in the trial mining area. To date, over 10,000 tonnes of mineralised material has been extracted from the trial mining area and stockpiled on site.

Map of the Salinbas Gold Project

 The gold, silver, and base-metal project contains three notable licence areas called Salinbas, Ardala and Hizarliyayla. The licenses are located within the multi-million ounce Artvin Goldfield in Turkey’s “Hot Gold Corridor”. The corridor contains a number of significant gold-copper projects including the 4 Million Ounce (Moz) Hot Maden project which lies 16km to the south of Salinbas. Also to the south lies the Hizarliyayla prospect which is partially hosted within the same stratigraphic sequence as the Hot Maden discovery.

Dr. Kerim Sener, Managing Director, commented:

"This is an excellent set of outcomes for the future development of the Salinbas Project, which have converged simultaneously.  Now that we have secured all of the permits required for the drilling of the Ardala licence we have much greater flexibility to drill-test some of the key targets defined in earlier exploration.  An initial 2,000m of RC drilling is due to commence on the Ardala licence imminently and is expected to conclude by early June.  In addition, achieving the upgrade of the Salinbas licence to operational status is a particularly important development, as it will secure our rights to that property for 10 years."

Author: Stuart Langelaan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

 

Ariana Resources reveals strong gold drilling results at Kiziltepe’s Arzu North area (AAU)

Ariana Resources (LSE:AAU) sat at 1.77p on Tuesday after revealing that it may have found a way to extend the life of its Kiziltepe mine in Turkey. The business said infill resource drilling has demonstrated the potential for a large-tonnage, lower-grade system at the Arzu North area of Kiziltepe – which is part of Ariana’s 50:50 Red Rabbit JV with Proccea Construction.

Drilling completed at the site in December to provide Red Rabbit with additional infill resource data encountered encouraging intersections. Highlights included 44m at 1.5g/t gold and 17.5g/t silver and 27.7m at 1.37g/t gold and 13.1g/t silver.

The drilling was planned to test the theory that the Arzu North vein system – which had not been tested thoroughly – broadens out into a more extensive array of vein mineralisation spanning a series of structures. According to Ariana, Tuesday’s results confirm the presence of at least three broad mineralised structures within the Arzu North pit.

New geological modelling and pit optimisation studies are now underway to revise the resources for Arzu North alongside another area called Derya. Ariana said it is also looking at the potential of merging Arzu North and Derya into a single pit following re-interpretation of the Aybor vein, located in a 30m-wide zone between the two areas. Regardless, mining is scheduled to begin at both areas simultaneously in the final quarter of this year now that the Red Rabbit partners have received all necessary forestry permissions.

Ariana’s managing director Kerim Sener said the results suggest that there is potential in the Arzu North area to identify a large-tonnage and lower-grade resource that could extend Kiziltepe life of mine.

‘We are investigating opportunities with our JV team to assess this potential further through future drilling programmes and look forward to commencing mining in these fully permitted areas later this year,’ he added. ‘From the results of this work, we can conclude that the Arzu North vein system broadens out into a series of sub-parallel mineralised structures hosted within a halo of mineralised and altered volcanic rocks. This is apparent from the wide zones (>20m) gold and silver mineralisation encountered particularly towards the NW end of Arzu North.’

Kiziltepe, which is fully-permitted and is currently in production, is accompanied by another gold project called Tavsan in the Red Rabbit JV. Both sites contain a series of prospects within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional Province of western Turkey. This province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits. The total resource inventory of the Red Rabbit Project and wider project area stands at c.605,000oz of gold equivalent.

Last month, Ariana revealed that gold production at Kiziltepe for Q1 2019 was 7,296 ounces, exceeding average annualised quarterly guidance by 17pc in spite of wet weather. This figure was also 67pc higher than in the same period in 2018. Meanwhile, the average metallurgical plant recovery of gold for the quarter remained high at 93.7pc.

Beyond Red Rabbit, Ariana also owns 100pc of the Salinbas Gold Project in north-eastern Turkey, which has a total resource inventory of c.1MMoz of gold equivalent.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

Ariana Resources gold production exceeds quarterly guidance at Kiziltepe (AAU)

Ariana Resources (LSE:AAU) released a production update on Tuesday regarding its mining operations at the Kiziltepe Mine in Turkey. Gold production from the mine in the first quarter of this year exceeded the firm’s quarterly guidance by 17pc, and was 67pc higher than the same period in 2018. Silver produced from Kiziltepe has also almost tripled compared with production during Q1 2018.

Production was slightly lower than last quarters bumper figures, but exceptional wet weather likely had a part to play in that. In fact, despite required pushbacks to facilitate the expansion at Arzu South and issues with the weather, processing levels were maintained during the quarter by way of drawing down stockpiles of ore. Total ore processed in the period was 46,824 tonnes, a little under the 49,717 tonnes moved in Q4 2018.

Ariana says the average metallurgical plant recovery of gold for the quarter remains high at 93.7pc with an average head grade to the plant of 4.83 grams per tonne of gold. Kiziltepe, alongside the Tavsan gold project is part of the Red Rabbit Joint Venture with Proccea Construction. Ariana owns a 50pc interest in th venture through its shareholding in Zenit Madencilik San. ve Tic. A.S.

Alongside Zenit, Ariana is shortly undertaking a 600m diamond drilling programme at Tavsan. This will focus on resource infill drilling for 355m within freehold land at the Tavsan North and Far North zones.  Additionally, Ariana and Zenit will conduct 245m of geotechnical drilling at Tavsan this month as part of an internal feasibility study.

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."

Author: Stuart Langelaan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.

Ariana Resources spikes after revealing record level of project progress in Turkey (AAU)

Ariana Resources (LSE:AAU) jumped 8.5pc on Friday after revealing strong exploration and development progress across its assets in Turkey.

The business, which currently has a £20.4m market cap, revealed that it has now completed 746m of infill resource diamond-drilling at its 100pc-owned Kizilcukur project. The programme, which began in December, saw it drill 13 diamond drill holes to increase its understanding of the site’ Zeki pit.

The drilling work was also designed to increase Ariana’s confidence in the classification of Kizilcukur’s inferred and indicated resources. Currently, these stand at c.308,000ts at 2.11g/t gold and 73.4g/t silver, for 33,000oz of gold equivalent.

Now drilling has finished, Ariana has begun constructing a new 1.7km haul road at the project. This is being built to accommodate trucks that will move mineralised material from the Kizilcukur trial mining area to a road that connects to a processing plant at Kiziltepe.

Kiziltepe is one of Ariana’s flagship assets and, alongside the Tavsan gold project, forms part of its 50:50-owned Red Rabbit Gold Project joint venture with Proccea Construction. The total resource inventory at the Red Rabbit Project and wider project area stood at c.605,000oz of gold equivalent as at the end of 2017.

On Friday, Ariana also said it also expects to begin further trial mining and stockpiling at Kizilcukur in Q3 2019. Meanwhile, it added that the development of new infrastructure and infill drilling will supplement its internal feasibility study over the project.

Elsewhere in Friday’s update, Ariana said a 600m diamond drilling programme is due to begin shortly at Tavsan alongside the Zenit project team. This will focus on resource infill drilling for 355m within freehold land at the Tavsan North and Far North zones. Here, historic intercepts include drill hole ODX100, which encountered 14m at 1.23g/t gold, and hole ODX102A, which hit 7m at 1.06g/t gold.

Alongside this, Ariana and Zenit will conduct 245m of geotechnical drilling at Tavsan in April as part of an internal feasibility study. Finally, the business expects to carry out a further 1,300m of resource drilling and 1,600m of exploration drilling, once its recent application to the Ministry of Agriculture and Forestry have been approved.

Friday’s release also saw Ariana update investors on work at its Salinbas project. The asset comprises the Salinbas gold-silver deposit and the Ardala copper-gold-molybdenum porphyry in north-eastern Turkey/ among other prospects. The total resource inventory of the Salinbas project area is c.1MMoz of gold equivalent.

Here, the company is making final preparations for a 2,000m RC drilling programme, which is slated to begin in May once work at Tavsan has completed. A further 8,000m of drilling has also been planned in and around the Ardala porphyry and Salinbas zones. However, this work is dependent on the completion of forestry permitting - a process that is now drawing to a successful close. 

Ariana’s managing director Kerim Sener said the firm was ‘very pleased’ with its current pace of progress, adding: ‘Our field team is currently active across all of our sites simultaneously; the highest level of exploration and development activity undertaken in the history of the Company. In western Turkey, project development work is continuing at the Kizilcukur, Ivrindi and Tavsan sites which are located in close proximity to our flagship Kiziltepe gold mine. 

‘Furthermore, additional resource-focused work is being directed towards extending the life of mine at Kiziltepe. In eastern Turkey, work at Salinbas, our large gold and base-metal deposit with over 1Moz of gold already defined, has started early in the field season in order to ensure we are in a position to commence a 2,000m RC drilling programme during May 2019.’

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.