PROFIT & LOSS

Ariana close to guidance by end of September

Ariana Resources’ (AIM:AAU) 50%-owned Kiziltepe mine in Turkey almost beat its 2018 guidance by the end of the September quarter.

Staff reporter
Ariana will get more than the forecast 10,000oz share of Kiziltepe's production this year. PICTURE: Alex Hamer

Ariana will get more than the forecast 10,000oz share of Kiziltepe's production this year. PICTURE: Alex Hamer

This year will be the project's first full year in production.

In the September quarter, Kiziltepe produced 7,588 troy ounces of gold, a 6% quarter-on-quarter increase.

This took the year's total production to just under 2018 guidance of 20,000oz.

The company only reported its plant numbers up to September 24, so throughput was lower than the previous quarter, alongside a lower feed grade (from 4.77g/t to 4.43g/t) and recovery rate (down from 94.3% to 93.9%).  

Mining was up 18% quarter-on-quarter to 83,228t.

Ariana managing director Kerim Sener said the numbers showed the mine was on track.  

"We are very pleased to announce that the results for the third quarter have beaten our previous production record, which had been achieved in [the June quarter] 2018," he said.

"The tonnage of ore mined has exceeded 83,000t during the period and grades are approaching 5 g/t gold. 

"This production rate has continued to build on a robust stockpile position representing up to six months of mill feed as we head in to the winter period."

Sener said the weak Turkish lira had helped keep costs down in the period as well.

Ariana's share price was up 10% to 1.24p (US1.63c) as London markets opened following the production news, but eased up on morning trading to 1.1p.

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