Ariana Resources plc, an AIM-listed exploration and development company operating in Europe, has announced its operating results for the quarter ended 30 September 2020 for the Kiziltepe Mine in Turkey. 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).
- Gross quarterly revenue of US$11.4 million at an average realised gold price of US$1915/oz, against an average revenue per gold ounce of US$2219 (due to silver credit)*.
- Production and sale of 5125 oz of gold during the quarter ended 30 September 2020.
- Operating cash costs for the quarter are estimated at US$352/oz; lower costs for the period resulting in part due to a decline in exchange rate and sale of silver stock.
- Operational mill availability running at 100% and utilisation at 99% during the period.
- 57 302 t of ore milled during the period ended 30 September 2020 at an average head grade of 2.63 g/t Au.
- Process recovery of gold remains high at 94.2%.
* All figures are given gross with respect to the JV.
Dr Kerim Sener, Managing Director, commented: "3Q20 gold production not only exceeded the prior quarter by nearly 10% and enabled full year production guidance to be maintained into the current quarter, it also showed a 15% increase in revenue for the period. While the quarter marked the end of production from the high-grade Arzu South opencast mine, operations have continued exceedingly well at the Arzu North and Derya areas. In particular, opencast material movements have remained very high and the JV has built up a very large ore stockpile which provides for over 10 months of mill feed.
"The period also concluded with the completion of the final stage installation of the tailings dam liners. Consequently, development of the mine site is now fully complete in terms of the infrastructure according to the feasibility design. However, it is the intention of the JV to continue operational enhancements at the site and work is now underway on an increase in operating capacity up to about 500 000 tpy of ore.
"This will be particularly important as we look to lower grade sources of ore for the plant. The potential at Kiziltepe for larger tonnage, lower grade orebodies is evident already based on our experience of exploring and now mining of the Arzu North and Derya areas. The mine is currently producing over 200% more gold in these areas than was projected in the mine plan. We are confident that further ore will be defined in this area with future drilling programmes.
"These efforts are part of our drive to ensure that Kiziltepe remains an efficient operation, capable of producing gold at the lowest possible cash costs. The emphasis on operating margin represents one of the guiding principles on which the JV intends to continue developing. The current precious metal pricing environment only adds to the fundamental profitability of the Kiziltepe operation."
Read the article online at: https://www.globalminingreview.com/finance-business/23112020/ariana-resources-announces-kiziltepe-operational-update/