Ariana Resources

  • Ariana Resources (LSE:AAU) jumped 6.7pc to 1.6p today after announcing ‘imminent’ drilling at its Kizilcukur project in Turkey. A 1,000m diamond drilling programme aims to upgrade existing JORC resources to the measured and indicated categories.

  • Shares in Ariana Resources (LSE:AAU) enjoyed a 5.4pc lift to 1.5p last week after the Turkey-focused miner revealed that exploration drilling has identified further mineralisation at its Salinbas gold project.

    In an update, the business said a conventional soil sampling programme recorded a substantial increase of gold along the interpreted extents of the project’s Salinbas North target. Salinbas North is one of three potential areas of mineralisation identified by Ariana this year at Salinbas, which itself comprises the Salinbas gold-silver deposit and the Ardala porphyry, among other prospects.

    One soil sample returned with 5.02g/t of gold and 4405g/t of silver as well as 0.49pc copper, 1.45pc lead, and 0.26pc zinc. Ariana said this almost certainly represents mineralisation that surfaces at the eastern flank of Salinbas North and lies exactly where it expected Salinbas-type mineralisation to be.

    Alongside the soil sampling programme, Ariana took 54 composite channel-samples for a total of 155m along a new access road network to the Ardala Porphyry. The firm said these revealed extensive new zones of mineralisation on the periphery of the Ardala Porphyry in the region of Ardala North. These contained considerable grades of gold and silver as well as smaller amounts of lead and zinc.

    Following this work, Ariana plans to carry out 2,000m of reverse circulation drilling across the broader Salinbas project in the second quarter of 2019. It is working to exploit the project’s considerable total resource inventory, which currently sits at c.1MMoz of gold equivalent.

    The 100pc-owned asset sits in Turkey’s ‘Hot Gold Corridor’ and has been compared by Ariana to the country’s highly-prospective Hot Maden gold project. Ariana’s managing director Kerim Sener said today’s results reinforce the firm’s understanding of the distribution of gold mineralisation near the Ardala Porphyry, Ardala North and Salinbas North areas at Salinbas.

    He added: ‘We are confident that the testing of some of these targets with drilling will lead to the identification and definition of further resources within the project area. We have scheduled the drilling programme for Q2 2019 and we envisage undertaking approximately 2,000m of RC drilling on targets that are accessible from existing permit areas and freehold land.’

    Sener provided further details on the progress being made at Salinbas in a recent podcast with MiningMaven, the transcript of which can be read here.

    Today’s news comes just weeks after Ariana said it was on track to exceed production guidance at its flagship, 50pc-owned Kiziltepe project, also based in Turkey. In its operating results for the third quarter of 2018, the business said the mine achieved gross income of $10.12m during the period with sales of 7,588ozs of gold.

    On this, Sener said: ‘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.’

    Author: Daniel Flynn 

    Disclosure: The author does not own shares in the company mentioned above

  • 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 (LSE:AAU) rose 2.94pc on Monday after laying down development plans for its 100pc-owned Kizilcukur project in Turkey.

    Kizilcukur is based 22km to the northeast of the Kiziltepe mine, which is part of the Red Rabbit joint venture held between Ariana and Proccea. Its mineral resource in the indicated and inferred JORC categories stands at c.308,000 tonnes at 2.11g/t gold and 73.4g/t silver with upside potential.

    In Monday’s update, Ariana revealed strong results in its latest round of drilling at the asset. A bulk sample obtained from the Kizilcukur vein returned c.20ts at 4.22g/t gold and 284g/t silver. This came from the Zeki pit, which is the largest and highest grade of three pits defined at the resource.

    The work aimed to obtain a high-grade bulk sample for test processing at the Kiziltepe processing plant. Ariana is now planning to truck 300ts of this material grading 4.3g/t gold and 239g/t in the summer. It this is successful it plans to transport the remaining 2,500ts of mineralisation ore it currently has stockpiled on site. It believes it could double this through limited additional trial mining in 2019.

    Ariana’s exploration team focused on drilling activities at Kizilcukur since early December 2018. Their work is now around a quarter completed and has continued despite harsh winter weather condition. In Monday’s update, the firm it intends to keep drilling as long as possible through a window of more favourable weather over coming weeks.

    Ariana’s managing director Kerim Sener said the latest bulk sampling results demonstrate that Kizilcukur can act as a source of high-grade satellite feed to the Kiziltepe processing plant. The total resource inventory at the Red Rabbit Project and wider project area stands at c.605,000oz of gold equivalent, as at end-2017.

    ‘We are encouraged by the results of this recent work and the current drilling programme will add confidence to the resource estimate for the Zeki Pit as part of our feasibility work programme,’ added Sener. ‘We are planning to truck a 300 tonne batch of ore to Kiziltepe for test processing during the summer, in order to assess the merits of potentially expanding our operations at Kizilcukur.’

    Author: Daniel Flynn

    Disclaimer: The author does not own shares in the company covered in this piece.

  • Ariana Resources (LSE:AAU) had a positive end to the year continuing a strong run of production from its Turkish gold mine. Gross income for the final quarter was $10.62m from production and sale of 7,417 ounces of gold.  These figures were in line with what Ariana’s Managing Director, Dt. Kerim Sener described as ‘excellent performance’ during the previous two quarters.

    In a quarterly update released on Friday, Ariana said final year gross income totalled $37.8m from the production of 27,110 ounces of gold. This saw the company substantially exceed its yearly production forecast with year-on-year increase of gold production of around 166pc.

    Operating costs have also come down since 2017, averaging $349 per ounce in 2018, compared with $585 per ounce in the previous year. With the gold price appearing to have put in a base since its lows of $1161 last August, Ariana appears poised to capitalise on a much-improved margin as we continue into 2019. 

    Earlier this month, Ariana said it will receive up to £3.79m worth of capital from its subsidiary Galata Madencilik. Galata, Ariana’s wholly-owned Turkish operating company, has transferred around £1m to date as a result of the repayment of loans by its JV company, Zenit Madencilik.

    The company is currently undertaking a drilling campaign in Western Turkey at Kizilcukur, which lies around 22km to the northeast of the Kiziltepe Mine. Drilling to date has indicated that Kizilcukur has the capacity to act as a high-grade satellite source for Kiziltepe 

    Dr. Kerim Sener, Managing Director, commented: 

    "These final results for Q4 2018 are fully in line with the excellent performance of the Kiziltepe Mine achieved during the prior two quarters. Operating cash cost per ounce remains low, mainly due to the maintenance of significant by-product silver credit and increased grades through the plant during the period. 

    "As at the end of the quarter, 50% of the JV construction capital loan of US$33 million has been repaid, with the remaining balance to be repaid largely during 2019. Monthly intercompany loan repayments from the JV to our wholly owned subsidiary, Galata Madencilik San. ve Tic. Ltd., reached approximately US$2.1 million by the end of 2018." 

    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 (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.

  • Shares in Ariana Resources (LSE:AAU) enjoyed a 1.13pc boost to 1.9p on Tuesday after the firm announced a 25pc year-on-year increase in the gold production guidance for its key mine in Turkey. The business expects to produce around 25,000oz of the precious metal from the Kiziltepe mine. This is a quarter higher than its 20,000oz gold production guidance for 2018, and around 21pc above than feasibility plan for Kiziltepe’s third year of operations.

    Kiziltepe commenced commercial production in 2017 and is part of Ariana’s 50pc-held Red Rabbit Joint Venture with Proccea Construction. It is currently expected to deliver an average of 20,000 oz gold equivalent per annum over eight years of initial mine life for a total of up to 160,000 oz gold equivalent.

    Ariana is currently targeting a minimum ten-year mine life, which will require the addition of a further 40,000oz gold equivalent in reserves outside of the four main pits. In Tuesday’s update, Ariana said preparations are being made to start mining on satellite pits from early next year. For the meantime, however, open-mining at Kiziltepe will continue to focus on the Arzu South pit in 2019.

    Ariana’s managing director Kerim Sener said the 25pc increase in production guidance reflects the firm’s expectations of higher grades as it continues to mine deeper at Arzu South. Indeed, the average grade of mined gold during the year is expected to be 5g/t, and recoveries are forecast to exceed 90pc.

    Meanwhile, full-year ore throughput to the mill is planned to reach 195,000ts, representing a 30pc increase over Kiziltepe’s feasibility plan. Ariana also said that it forecasts average monthly production of around 13,000ts of ore, peaking in the final quarter of the year.

    On this, Sener said: ‘Although ore output from Arzu South will be variable through the year due to the pushbacks required to accommodate the final stage of mining, current stockpiles are expected to provide for any shortfalls in output such that mill throughput can be maintained at the highest levels through the year.’

    ‘As a low-cost open pit operator, ranked in the lowest quartile of cash costs globally, the JV continues to target increases in production and life of mine. We are pleased to note that our plans for advancing production from some of our satellite pits are at an advanced stage and we look forward to commencing work in these areas towards the end of this year.’

    Sener added that Kiziltepe has continued to perform ‘exceptionally well’ despite difficult weather conditions following a strong end to 2018. In January, Ariana revealed that Kiziltepe production had come in at 27,110oz for 2018, exceeding forecasts by 36pc. A month later, it announced that this had translated into gross annual income for 2018 of $37.8m, with operating cash costs coming in at just $349/oz,

    Elsewhere in Tuesday’s update, Sener said the Red Rabbit JV expects to have mostly paid off the balance of a $33m JV construction capital loan for Kiziltepe by the end of the year. This comes after the firm announced that the venture had paid off half of the debt as at the end of Q4 2018.

    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 (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 (LSE:AAU) rose 2.2pc this morning after announcing that production from its flagship project in Turkey beat expectations by more than a third in 2018. Production from the Kiziltepe mine came in at 27,110ozs of gold over the 12 months. This output surpasses initial full-year production guidance of 20,000oz by around 36pc.

    Gold production for the final three months of 2018 came in at 7,517oz, slightly below the 7,556oz it produced in the last quarter of 2017. Meanwhile, total ore processed for the quarter was 49,717ts at an average head grade to the plant of 5.23g/t gold, and average metallurgical plant recovery of gold remained high at 91.6pc.

    Kiziltepe is part of Ariana’s 50pc-held Red Rabbit joint venture with Proccea Construction in Turkey. It is fully permitted and, as it stands, the company’s chief producing asset. A net smelter return royalty of up to 2.5pc on production is payable to the Franco-Nevada Corporation.

    Last month, Ariana announced plans to carry out an imminent 1,00m diamond drilling programme at a licence called Kizilcukur, 22km northeast of Kiziltepe. The programme is expected to upgrade Kizilcukur’s existing indicated and inferred resource of c.308,000 tonnes at 2.11g/t gold and 73.4g/t silver. Ariana plans to truck ore from the licence and process it at Kiziltepe in the future, further boosting the latter’s upside.

    The Red Rabbit project also contains the Tavsan gold project, where a royalty of up to 2pc on future production is payable to Sandstorm gold.

    Kiziltepe and Tavsan host a series of prospects and span two prolific mineralised districts in the Western Anatolian Volcanic and Extensional province of western Turkey. This area hosts the most significant operating gold mines in Turkey. According to Ariana, it remains highly prospective for new porphyry and epithermal deposits. All-in-all, the total resource inventory at Red Rabbit and its wider project area stands at c.605,000ozs of gold equivalent.

    Ariana’s managing director Kerim Sener said that beating production expectations was a ‘significant milestone’ for the business. He added that it coincides with the repayment of 50pc of a $33m redevelopment loan. It will repay the majority of the remaining balance throughout 2019, he said.

    ‘The past year has seen the Joint Venture achieve several successes, quarter on quarter, including an annualised increase in mill throughput to 200,000 tonnes per annum. We look forward to the continuation of these very positive developments. We take this opportunity to thank both our dedicated JV team and our partners, Proccea Construction Co., for their diligence and focus during the year,’ said Sener. ‘We begin 2019 on firm-footing, and we are very excited about the year ahead.  We are expecting to publish 2019 production guidance in due course.’

    Alongside its stake in Red Rabbit, Ariana owns 100pc of the Salinbas Gold Project in north-eastern Turkey. This contains numerous prospects, the most notable of which are the Salinbas gold-silver deposit and the Ardala copper-gold-molybdenum porphyry. The project’s total resource inventory comes in at c.1MMoz of gold equivalent. A royalty of 2pc on future production is also payable to Eldorado Gold Corporation.

    Author: Daniel Flynn

    Disclosure: The author does not own shares in the company mentioned in this article

  • 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.

  • 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 (LSE: AAU) climbed 8% on Tuesday on news that it will receive up to £3.79m worth of capital from its subsidiary Galata Madencilik. Galata, Ariana’s wholly-owned Turkish operating company, has transferred around £1m to date as a result of the repayment of loans by its JV company, Zenit Madencilik.

    Galata made the loans to cover the exploration and development of its Kiziltepe Mine, which achieved first gold production in March 2017. The mine is part of the Red Rabbit Gold Project, a joint venture between Galata and Proccea Construction (incorporated as Zenit Madencilik). Now that production has ramped up, cashflow from the mine has reduced capital requirements, allowing Zenit to make repayments back to Galata.

    Speaking with Mining Maven, Ariana’s Managing Director, Dr. Kerim Sener explains:

    "We’ve been building up a strong position of funds within our subsidiary as a result of the transfers that were coming from our joint venture with Proccea.  Those funds were derived from cashflow in repayment of loans we previously made to the joint venture. We have been receiving loan repayments pretty much every month since February of last year.’"

    The return of funds will obviously be very beneficial to Ariana, which will now be able to redistribute additional capital to its other assets in Turkey.  The company is currently undertaking a drilling campaign in Western Turkey at Kizilcukur, which lies around 22km to the northeast of the Kiziltepe Mine. Sener told us some of its new funds will be redirected here. Sener commented on progress at the Kizilcukur Project in a January update to investors, saying:

    “We are encouraged by the results of this recent work and the current drilling programme will add confidence to the resource estimate for the Zeki Pit as part of our feasibility work programme.”

    Drilling to date has indicated that Kizilcukur has the capacity to act as a high-grade satellite source for Kiziltepe. More will be known in the summer when the joint venture plans to truck 300ts of ore to Kiziltepe for test processing. 2,800ts of material has already been stockpiled on site and has been subjected to successful initial testing. Ariana will truck the remaining 2500ts for processing if the first batch of 300ts is successful.

    The repatriation of funds back to Ariana is expected to pick up again after this year. In line with this, Sener tells us that repayments of loans to the Turkish bank that provided the finance for the development of Kiziltepe are marginally higher this year: 

    "Once we’re through this year, the free cashflow will be directed to the partners – ourselves and Proccea Construction. But we first need to bring those funds into Ariana PLC. The most efficient way to do this is to pursue a reduction in capital. The reduction of capital allows us to repatriate that capital to the UK, without incurring tax.’"

    With the Kiziltepe Mine in full swing and generating cashflow, Ariana is now in a strong position to continue the expansion of its operations.

    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.

  • Gervaise Heddle joins us for todays podcast and we discuss, amongst other topics, Greatland Gold (LON:GGP) news today regarding the commencement of drilling at their Bromus Nickel sulphide project in Australia. Gervaise recently became an Executive Director of the Greatland, having previously performed a Non Executive role with the company.

    https://www.investegate.co.uk/greatland-gold-plc--ggp-/rns/bromus-project---commencement-of-drilling/201607261126142576F/

    Gervaise also recently joined the board of THOR Mining (LON:THR) so we discuss the significance of this as we take a look at the potential value drivers for this Australian tungsten focused explorer/resource developer.

    We then move on to talk about the current gold price drivers and the broader resource market, before covering the latest news and activities from some of the other companies where we are invested, namely Ariana Resources, MOD Resources and Metal Tiger.

    We hope you enjoy listening.

    #gold#silver#copper#nickel#MTR#AAU#THR#GGP#AIM#mining#investing

    All opinions expressed are those of MiningMaven and the respective guests, unless otherwise stated and should not be construed as investment advise or a recommendation to buy shares in any featured Company.

    From time to time MiningMaven principals may take equity positions in companies featured. Listeners are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of a qualified investment adviser or stockbroker, as they deem appropriate.

    Podcast player

  • Our guest on today's podcast is Ariana Resources MD, Dr Kerim Sener.

    Kerim was in celebratory mood at the Master Investor Show yesterday, and rightly so after the company announced on Friday first gold pour at its JV gold mine at Kiziltepe , Turkey. A momentous occasion and the culmination of 13 years work!

    https://arianaresources.com/2017/1090-gold-and-silver-production-commences

    Guess the value of the dore bar

    If you would like to take part in the competition to guess the approximate value of the dore bar Kerim is holding, listen to the question in the interview and email your answer to This email address is being protected from spambots. You need JavaScript enabled to view it.

    The Power of Gold: The History of an Obsession by Peter L. Bernstein

    https://www.amazon.co.uk/gp/product/111827010X/ref=oh_aui_detailpage_o00_s00?ie=UTF8&psc=1

    We hope you enjoy listening.

    All opinions expressed are those of MiningMaven and the respective guests, unless otherwise stated and should not be construed as investment advice or a recommendation to buy shares in any featured Company.

    From time to time MiningMaven principals may take equity positions in companies featured. Listeners are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk.

    Investors should also seek the advice of a qualified investment adviser or stockbroker, as they deem appropriate.

    This interview was recorded on Saturday 25th March 2017.

    MiningMaven.com is a trading division of Catalyst Information Services Limited. Registered in England no. 06537074 (Registered Office Address 3rd Floor Ivy Mill, Crown Street, Manchester, M35 9BG

    Podcast player

  • Our guest on today's podcast is Ariana Resources MD, Dr Kerim Sener.

    On 6th June the Company released an operational update from its Kiziltepe Mine. Kiziltepe is part of the Red Rabbit Joint Venture with Proccea Construction Co and is 50% owned by Ariana.

    On 13th June the Company announced the completion of resource-focused target assessments for the Tavsan Gold Project . Tavsan is also part of the Red Rabbit Joint Venture with Proccea Construction . You can read both announcements here:

    https://arianaresources.com/2017/1101-ariana-resources-plc-ariana-resources-plc-kiziltepe-operational-update-2017-06-06-070012

    https://arianaresources.com/2017/1103-ariana-resources-plc-ariana-resources-plc-extensive-resource-targets-at-tavsan-gold-project-2017-06-13-070011

    We took the opportunity to catch up with Kerim and get his take on both these updates. We hope you enjoy listening.

    All opinions expressed are those of MiningMaven and the respective guests, unless otherwise stated and should not be construed as investment advice or a recommendation to buy shares in any featured Company.

    From time to time MiningMaven principals may take equity positions in companies featured. Listeners are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk.

    Investors should also seek the advice of a qualified investment adviser or stockbroker, as they deem appropriate.

    This interview was recorded on Thursday 15th June 2017.

    MiningMaven.com is a trading division of Catalyst Information Services Limited. Registered in England no. 06537074 (Registered Office Address 3rd Floor Ivy Mill, Crown Street, Manchester, M35 9BG

    Podcast player