Ariana Resources PLC (AIM:AAU) said it expects a 20% jump in gold production this year from the Kiziltepe mine in western Turkey.
The gold output guidance for Kiziltepe is expected to be about 25,000 ounces of gold, which is 2.5 times greater than the feasibility plan for this stage of mine life, and an improvement on its 2021 production of 20,737 ounces.
READ: Ariana Resources says Kiziltepe gold production beats guidance
Kiziltepe is operated by Zenit Madencilik: a joint venture between Ariana (23.5%), Proccea Construction Co (23.5%) and Ozaltin Holding AS (53%).
"Another very successful year of production at Kiziltepe was wrapped up in 2021, which included the completion of the processing plant expansion,” said managing director Dr. Kerim Sener. “This was a critical development for Kiziltepe, enabling overall production by year-end to exceed guidance for the fifth year running, despite the expected reduction in throughput grade.”
The Kiziltepe gold-silver mine was expected to produce about 20,000 ounces of gold per year over eight years of initial mine life from 2017 to 2024.
The company did not provide any guidance for silver production as silver is treated as a by-product credit.
Ore throughput to the mill during 2022 is expected to double from last year to about 400,000 tonnes.
Average monthly ore production from the open pit is expected to be about 21,000 tonnes, said AIM-traded Ariana. A stockpile of more than 330,000 tonnes, representing well over a year of production at the current mining rate, has already been built up on site.
The average gold grade to be mined during the year is expected to be about 2.5 grammes a tonne and gold recovery is expected to exceed 90%, an improvement over 2021, it said.