Ariana sets out fresh production guidance for Zenit

The AIM-traded firm, through its shareholding in Zenit Madencilik, holds a 23.5% interest in Zenit.

In the coming year, Ariana said it expected gold production of around 20,000 ounces to be extracted, including the maiden gold production from the Tavsan sector.

Monthly ore production was slated to average around 25,000 tonnes, complemented by a stockpile of about 76,000 tonnes maintained on-site, boasting an average grade of 2.2 grams of gold per tonne.

Throughout 2024, ore throughput to the mill was forecast to about 300,000 tonnes.

Ariana said it expected the average gold grade mined during the year to be 2.4 grams of gold per tonne, with an associated gold recovery rate projected to average around 90%.

Open-pit mining activities were set to continue primarily at the Arzu North, Banu and Derya pits at Kiziltepe, alongside operations at Tavsan Main.

“We are very pleased to provide our production guidance for 2024 following several important developments at the Tavsan Sector in particular, and for the company more broadly,” said managing director Dr Kerim Sener.

“As this announcement comes after the end of the first quarter of 2024, we are also pleased to report that the average gross revenue per ounce produced during the first quarter is $2,328, attributable to the marked increase in gold and silver prices during the period.

“Accordingly, cash on hand within the Zenit partnership is currently $10m, maintaining the strong debt-free position secured since June 2023, with more than $35m having been spent so far on the Tavsan mine build.”

Dr Sener said that with JORC reserves at Zenit totalling 5.3 million tonnes at 1.46 grams of gold and 9.81 grams of silver per tonne, for 249,000 ounces of gold and 1.67 million ounces of silver, the firm was demonstrating a pathway for up to 10 further years of production from the Zenit mining operations.

“This is an extremely positive outcome and stands us in good stead to develop new opportunities, particularly our recently announced proposed acquisition of the Dokwe Gold Project in Zimbabwe.

“Furthermore, we are encouraged to note the significant interest that this has generated amongst our existing partners, and we look forward in conjunction with our partners to explore opportunities by which they may become involved in the development of Dokwe, as the project progresses towards feasibility.”

At 1223 BST, Ariana Resources shares were down 3.77% at 2.5p.

Reporting by Josh White for Sharecast.com.