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Ariana's flagship Kiziltepe mine enjoys a record quarter of gross income

"The third-quarter results from the Kiziltepe Mine continue to build on a very successful year of operations," said Dr Kerim Sener, the managing director of Ariana.

Kiziltepe mine
Shed-loads of gold was produced in the third quarter

Ariana Resources PLC (LON:AAU), the exploration and development company operating in Turkey, hailed a record gross quarterly income from its jointly-owned Kiziltepe Mine.

Income of US$11.76mln in the third quarter of 2019 was achieved at an average realised gold price of US$1,476 per ounce.

Production in the quarter clocked in 6,933 ounces of gold, taking output in the first nine months of the year up to 20,667 ounces, leaving the company on track to achieve its annual production guidance of 25,000 ounces of gold.

Operating cash costs for the quarter are estimated at US$540 per ounce of gold produced.

The quarter saw 55,174 tonnes of ore milled at an average head grade of 4.47 grams per tonne of gold, with process recoveries of gold running at 93.6% at the end of the quarter.

Production of ore from the open-pit was 47,933 tonnes over the three months, with a peak rate of over 17,444 tonnes achieved in August.

Mining operations have commenced in the Arzu North and Derya areas, supplementing production from the Arzu South pit, which is nearing the end of its operational life, Ariana said.

"Operating cash costs per ounce for the period are estimated at US$540 per ounce, reflecting in part the pushback on the southern boundary of the Arzu South pit and the commencement of pre-stripping at Arzu North and Derya, in addition to a build-up of process plant consumables inventory and increased maintenance,” said Dr Kerim Sener, the managing director of Ariana.

"The gold price continued to remain very favourable throughout the period, averaging US$1,474 per ounce - 13% above our feasibility base-case. This pricing environment is now reflected in our Q3 results, which demonstrates record quarterly revenue for the mine to date," he added.

Kiziltepe is part of the Red Rabbit joint venture with Proccea Construction and is 50% owned by Ariana through its shareholding in Zenit Madencilik.

Quick facts: Ariana Resources PLC

Price: 5.749 GBX

Market: AIM
Market Cap: £61.09 m

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