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Ariana Resources announces 2Q20 operating results

Published by
Global Mining Review,


Ariana Resources plc, an AIM-listed exploration and development company operating in Europe, has announced its operating results for 2Q20 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).

Highlights:

  • Gross quarterly income of US$9.90 million at an average realised gold price of US$1717/oz, against an average revenue per gold ounce of US$2116 (due to silver credit); higher revenue in 2Q20 compared to 1Q20 in part due to silver produced and kept in stock during 1Q20 being sold during 2Q20.
  • Production and sale of 4679 oz of gold during the 2Q20.
  • Operating cash costs for the quarter are estimated at US$492/oz; the annual State Right ordinarily due to be paid in 2Q20 will instead be reflected by 4Q20, as a result of a payment dispensation introduced due to COVID-19.
  • Operational mill availability running at 100% and utilisation at 99% during the period.
  • 54 862 t of ore milled during 2Q20 at an average head grade of 3.02 g/t Au.
  • Process recovery of gold remains high at 91.8%.

Dr. Kerim Sener, Managing Director, commented: “2Q20 marked the peak of uncertainty during the current pandemic. Despite this, Kiziltepe maintained production according to plan and delivered very strong revenue at an operational cost below US$500/oz. This stands as testament to the focus of the whole team and their ability to remain calm under a period of unusual pressure.

“With the gold and silver price increasing steadily throughout the quarter, following an initial sentiment-driven drop during March, corresponding to the initiation of lockdowns around the world, production from Kiziltepe was consistently sold in to an ever more positive precious metals price environment. In fact, over 30 000 oz of silver production that had been held back from sale from late February was successfully sold at a much better price in early June.

“We are now looking forward to delivering upon another strong quarter at Kiziltepe, with July and August production in line with operational expectations. While the mine site is continuing to observe strict COVID-19 mitigation measures, we are now largely back to full staffing levels on site and operations are proceeding under far more normal conditions.”

Read the article online at: https://www.globalminingreview.com/finance-business/27082020/ariana-resources-announces-2q20-operating-results/

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