12th Mar 2019 11:47
LONDON (Alliance News) - Ariana Resources PLC on Tuesday guided for a slight drop in annual production in 2019, though the figure is still ahead of targets during development.
Ariana produces gold from the Kiziltepe mine, which is part of the Red Rabbit joint venture with Proccea Construction Co, and is 50% owned by Ariana.
Ariana has guided for 25,000 ounces of gold from Kiziltepe in 2019, which compares to 27,110 ounces in 2018, itself well ahead of 20,000 ounces guidance.
This guidance is 21% above what Ariana had foreseen for the third year of mining when carrying out a feasibility study.
Kiziltepe's average monthly ore production is guided at around 13,000 tonnes, with overall ore throughput in the mill for 2019 seen at 195,000 tonnes.
Ariana is guiding for a gold grade of around 5 grammes of gold per tonne of ore, and gold recoveries of over 90%.
Ariana's focus in 2019 will be on the Arzu South open-pit, while preparations are also being made to start mining from satellite pits from early in 2020.
Managing Director Kerim Sener said: "Advancing on the company's positive finish to 2018, the Kiziltepe mine continued to perform exceptionally well, despite a very wet winter period during fourth quarter 2018 and into first quarter 2019, and we look forward to building on this strong operational track-record.
"Notably, our gold production guidance for the joint venture is up 25% from last year's guidance, and is estimated at circa 25,000 ounces for the year, reflecting a further increase in expected grades as we mine deeper into the Arzu South pit and the maintenance of high monthly mill throughputs," Sener continued.
"Although ore output from Arzu South will be variable through the year due to the push-backs required to accommodate the final stage of mining, current stockpiles are expected to provide for any shortfalls in output such that mill throughput can be maintained at the highest levels through the year."
Shares were 3.6% higher on Tuesday at a price of 1.89 pence each.
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