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Ariana Resources to outstrip feasibility plan at Turkish gold mine
Ariana Resources announced on Monday that it expects its Kiziltepe project in Turkey to produce 20,000 ounces of gold in 2018, an increase of 47% over 2017.
The Kiziltepe mine, which is owned by the Red Rabbit Joint Venture (JV) which Ariana holds 50% of, forecasts monthly production of between 15,500 and 17,000 tonnes of ore during the year, increasing as the year continues.
Kerim Sener, managing director of Ariana Resources, said: "With our gold production guidance for the JV indicating circa 20,000 oz for the year, we look forward to delivering further towards our solid growth trajectory as a Company benefitting from JV operations. In particular, we are pleased to note that repayments of loans made by the Company to the JV for the purposes of exploration and development since 2010, commenced in instalments during Q1 2018."
Ore throughput to the mill during 2018 is expected at approximately 180,000 tonnes, a 20% increase over the feasibility plan.
The average grade of gold expected to be processed during 2018 is approximately 4 g/t Au, with gold recovery expected to exceed 90%.
"As a low-cost open pit operator, ranked in the lowest 30% of cash costs globally, the JV continues to target increases in production and life of mine. In due course, the JV will provide a mineral reserve update, to reinforce our expectations for expanding the current open pits or possibly towards developing underground operations," said Sener.
It should be further noted by investors that the company will no longer report gold equivalents and silver production guidance, with all silver to be treated as a by-product, which demonstrates the mines success as a feasibility study had previously put target production at 20,000 oz of gold equivalent, including silver output.
As of 1412 GMT, Ariana Resources' shares were up 3.85% at 1.35p.