Ariana Resources PLC (AIM:AAU) has forecast gold production for 2024 from its Zenit consortium at 20,000 ounces of gold equivalent, which includes a first contribution from the Tavsan project plus ongoing production from Kiziltepe, both in Turkey.
Kerim Sener, managing director, added: “We are also pleased to report that the average gross revenue per ounce produced during Q1 2024 is US$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 c.US$10M, maintaining the strong debt-free position secured since June 2023, with [more than] US$35M having been spent so far on the Tavsan mine build.
"Over the past few months, Zenit has been mining high-grade ore from the Tavsan Mine, intending to process this ore through the Kiziltepe processing plant.
"We are now pleased to report that trial gold production has been successful and consequently we are now in the position to state our guidance from the Zenit Mining Operations for 2024.
"In addition, we are expecting the rate of throughput of high-grade (>2.5 g/t Au) Tavsan ore to increase in the months ahead, compared to our guidance of c.1.7g/t Au for Kiziltepe alone last year."
Further revisions to the Tavsan mine plan are underway to optimise the production of high-grade ore from the Main Zone and to potentially improve gold recovery from 87% to at least 90% through the CIL processing plant.
"With JORC Reserves at Zenit totalling 5.3Mt at 1.46g/t Au and 9.81g/t Ag for 249koz Au and 1.67Moz Ag, we are demonstrating a pathway for up to ten 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."
Ariana added that average monthly production in 2024 is expected at approximately 25,000 tonnes of ore, with a stockpile of 76,000 tonnes at c.2.2 g/t gold currently maintained on site.
Ore throughput to the mill during 2024 is expected to be about 300,000 tonnes at an average grade of gold 2.4 g/t and recovery to average around 90%.