Ariana exceeds annualised quarterly gold guidance in Q1

Ariana Resources reported first quarter gold production of 5,129 ounces on Wednesday, down from 7,318 ounces in the fourth quarter, but exceeding its average annualised quarterly guidance by 14%.

The AIM-traded firm said total ore processed for the three months ended 31 March was 53,840 tonnes, down from 54,735 tonnes in the fourth quarter, at an average head grade to the plant of 3.22 grams of gold per tonne.

Quarterly open-pit ore mined totalled 92,482 tonnes, breaking a new record, at an average mined grade of 2.54 grams of gold per tonne, while total material movement for the quarter was 1,030,697 tonnes.

The company said the average metallurgical recovery of gold for the quarter remained “high” at 92.5%.

“We have entered 2020 with a strong first quarter of production from the Kiziltepe Mine,” said managing director Kerim Sener.

“Unlike the same period last year, production was not impacted by unusually poor weather, resulting in operations proceeding as planned across the Arzu South, Arzu North and Derya pits.

“Material movements from the pits were maintained at near all-time highs, while ore production for the quarter broke a new record.”

Dr Sener said that higher production rate was in part to compensate for the expected reduction in grades from the satellite pits.

“Production from our highest-grade pit, Arzu South, is due to be completed during the third quarter of 2020, and production thereafter will be focused on Arzu North and Derya.

“In addition, the mine has built up a stockpile of over 130,000 tonnes of ore, sufficient to cover at least eight months of mill feed.

“I would like to take this opportunity to thank the mine team for their efforts during a period which coincided with the advent of a global pandemic.”

All necessary precautionary measures had been implemented at the mine, Dr Sener added, in order to mitigate the health risk as much as practically possible, with the company’s team continuing to operate without interruption.

“In addition, the Turkish government has implemented restrictions on movement around Turkey to limit the spread, although this has not impacted the mining industry specifically.

“We wish the team and their families well during this time and look forward to maintaining production for the foreseeable future.”

At 1025 BST, shares in Ariana Resources were down 6.51% at 3.38p.