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Starvest PLC (SVE)

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Wednesday 01 November, 2017

Starvest PLC

Investee Company - Ariana Resources

RNS Number : 2529V
Starvest PLC
01 November 2017
 

1 November 2017

 

 

 

Starvest Plc ("Starvest" or "the Company")

 

Investee Company - Ariana Resources

 

Starvest PLC (LON:SVE), the London Stock Exchange AIM listed specialist mining and resources investment business, is pleased to announce investee company Ariana Resources plc (LON:AAU) has provided additional positive news from its flagship Kiziltepe operation in which it has a 50% interest.

 

Highlights

·     Investee company Ariana Resources plc announces production of gold and silver from its newly commissioned Kiziltepe operation has exceeded quarterly guidance;

·     Gross income for the quarter ended 30 September 2017 of US$5million from sales of gold and silver,

·     Grade of ore mined matches overall reserve expectations and mill recoveries are higher than forecast,

·     Production costs of US$570 per ounce against average realised value of sales of US$1,342 per ounce.

 

Callum Baxter, Chairman and CEO commented: "Starvest have been a long term supporter of Ariana Resources since pre-IPO. The team at Ariana, headed by Michael de Villiers and Dr. Kerim Sener, have provided a solid set of quarterly production figures from the Kiziltepe operation. Mining at Kiziltepe continues to exceed expectations and is generating significant revenue from sales. The reported cost per ounce of this operation is very positive. We look forward to continuing our relationship with the Company.'

 

The Ariana Resources announcement may be found at the following web address:

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/AAU/13404695.html

 

 

Ariana Resources plc - Kiziltepe

 

Ariana was admitted to AIM in 2005 and Starvest took a stake in pre-admission funding after recognition of the management team and assets. Following several years of acquisitions and discoveries, Ariana moved forward with feasibility studies and mine construction at its Kiziltepe operation in Turkey.

 

Production at Kiziltepe commenced in March 2017 targeting 20,000oz gold equivalent production per year for at least 8 years. Ariana has a 50% interest in Kiziltepe with partner Proccea Construction Co. holding the balance.

 

Additional mineralisation has recently been discovered within their licences adjacent to Kiziltepe which reinforces the longer term potential of the operation. Ariana recognises that additional exploration of the local area will likely increase the resource base.

 

Kiziltepe had a 20 year mine licence granted in 2014, construction was completed in February 2017 and first gold-silver pour in March 2017. Kiziltepe contains primary mining infrastructure for the project and includes planned open pits at up to five mineralised zones. Drilling continues to expand project mine life to more than 10 years, with less than 10% of the mineralised vein system across the Kiziltepe area having been drill-tested to date.

 

Current mine metrics include a resource base of over 338,000oz gold equivalent, production capacity of at least 150,000 tonnes ore per annum. In basic terms, Ariana's 50% interest in the operation could see a profit of around US$6,000,000 per annum at the current gold price before financing costs which will have been largely repaid by April 2020.

 

Kiziltepe has completed its first quarter of commercial production (to 30 Sept 2017) and successfully demonstrated mining and processing operations are exceeding expectations. Production and sale of 3,762 oz gold and 15,985 oz silver was achieved for the quarter realising US$5.05 million of gross income. Operating costs averaged US$570 per oz against revenues of US$1,342 per oz. Management and the operations team continue to demonstrate their capability and professionalism.

 

Starvest will continue to closely follow the development of Ariana and we look forward to additional news from Kiziltepe and surrounds.

 

Starvest is a specialist mining and resource investment company and has the industry knowledge and market exposure to select compelling opportunities early in the investment cycle.

 

Callum N Baxter

Chairman & Chief Executive

1 November 2017

 

Enquiries to:

Starvest PLC

Callum Baxter  Chairman/CEO  07922 255 933  [email protected]

 

Grant Thornton UK LLP (Nomad)

Colin Aaronson or Harrison Clarke  02073 835 100

 

SI Capital Ltd (Appointed Broker)

Nick Emerson  01483 413 500

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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