Ariana Resources PLC (AIM:AAU, FRA:4A6) announced better-than-expected gold production from the Kiziltepe mine in the first half of 2021.
The mine, a joint venture, produced 7,941 ounces of gold in the first six months, exceeding the forecast by about 19%.
Average monthly mine production during the first half was about 34,000 tonnes of ore and a stockpile of over 285,000 tonnes has been established, representing about 10 months of enhanced production capacity, it said.
Ore throughput during 2021 expected to be about 325,000 tonnes, or 115% more than envisaged in the feasibility plan, following a planned expansion of the process plant.
"The past six months have again provided production at Kiziltepe which exceeds forecasts, largely as a result of the higher-than-expected average grade that has been maintained through the processing plant,” said managing director Dr. Kerim Sener.
“We are now looking forward to seeing the effect of the processing plant expansion, which is nearing completion, with process plant throughput already increasing during July.
“Once full-automation of the new system is established, around mid-August, we are expecting process throughput to increase to a nominal 400,000 tonnes of ore per annum, enabling us to maintain our guidance of circa 19,000 ounces of gold production for the year.”
Kiziltepe is part of the Zenit Madencilik San. ve Tic. A.S. joint venture with Proccea Construction Co. and Ozaltin Holding A.S. and is 23.5% owned by Ariana.
“The JV finances are in great shape, with repayments continuing against its working capital loan from Turkiye Finans Katilim Bankasi A.S., which is now over 90% complete, with a final repayment of US$0.8mln to be made in October 2021,” Sener added.
“Meanwhile the new loan facility from Turkiye Garanti Bankasi A.S., which provided the capital required for the plant expansion, is a third repaid."