Ariana Sees Kiziltepe mine profitability rising further during 2018
Source - SMW
Ariana Resources plc reported production and sale of 4,501 ounces gold and 35,095 ounces silver during the quarter ending 31 December 2017, which exceeded the feasibility forecast by roughly 38% for recovered gold on an annualised basis.
Gross income for the quarter was $6.31m and the average effective gold price was $1,402 per ounce. While operating cash costs for the quarter was estimated at $585 per ounce.
Total gold and silver sales for 2017 was 10,191 ounces and 65,600 ounces respectively, while operational mill availability was running at 98% and utilisation at 95% in December.
The weighted average grade of ore mined in the period was 3.40 g/t Au and 33.5 g/t Ag, matching overall reserve expectations.
The company said that 45,381 tonnes ore was milled during the period ending 31 December 2017, 21% higher than the feasibility forecast, while on an annualised basis and milled grades were 3.90 g/t Au and 40.7 g/t Ag.
Process recoveries of gold and silver remain higher than expected at close to 89% for gold and 67% for silver as at the end of the quarter.
Dr. Kerim Sener, Managing Director, said: 'This is another great result from the Kiziltepe Mine, demonstrating that we have exceeded 2017 production guidance on a gold-only basis.'
'Our second quarter of commercial production, as detailed here, underscores the profitability of this operation, with operating cash costs remaining well within range of our expectations.'
'At current gold prices, profitability of the mine is predicted to increase further during 2018, due to increasing grades expected to be encountered in the coming months.'
At 10:06am: (LON:AAU) Ariana Resources PLC share price was +0.05p at 1.6p