Ariana Resources (AIM:AAU) , the European-centric resource company, unveiled “record-breaking results” for its Kiziltepe Mine in the last quarter of 2019.
The AIM-listed firm said the mine’s performance had exceeded production guidance to represent “a fitting end to an operationally superb year.”
Kiziltepe, which is part of the Red Rabbit joint venture with Proccea Construction, produced 27,985 ounces of gold to exceed its full year production guidance of 25,000 ounces, representing an increase of around 12%.
Gross income for the year was US$45.1m with a record income of US12.78m for the last quarter at an average realised gold price of US$1,484 per ounce.
The production and sale of gold was 7,318 ounces of gold during the final quarter, whilst operating cash costs were estimated at US$500 per ounce mainly due to increased by-product silver credit, the statement detailed.
Shares in Ariana Resources were trading 3.03% higher at 3.4p during Friday trading.
The Kiziltepe Mine has been producing for about three years and was expected to deliver approximately 20,000 oz gold equivalent per annum, on average, over eight years.
The company noted that the process of recovery of gold remains high at 92%.
Managing Director of Ariana, Dr Kerim Sener, hailed the strength of results despite the expected reduction in grade during the period as operations were decreased on the high-grade Arzu South pit to be gradually replaced by production from the lower-grade Arzu North pit.
He added, “We are excited by the resource growth opportunities we have identified recently at Kiziltepe and the progress being made at Tavsan, which represents the opportunity to deliver an additional 30,000 ounces of gold per annum to the Red Rabbit joint venture, targeting an overall production of 50,000 ounces of gold per annum.”
The company said that 87% of the joint venture construction capital loan of US$33m had been repaid, with the remaining balance to be completed in April 2020.
The Red Rabbit Project is comprised of the company's flagship assets, the Kiziltepe and Tavsan gold projects, and is part of a 50:50 Joint Venture with Proccea Construction.
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