Ariana Resources (LSE:AAU) is an AIM listed mineral resource exploration and production company with gold mining projects in Turkey and a copper-gold asset in Cyprus.
Ariana Resources was admitted to AIM in July 2005 and raised £1.165 million in gross proceeds by placing 9.7 million ordinary shares at a share price of 12 pence each.
Following the placing, AAU had 31.431 million shares in issue and the market capitalisation of the company was £3.772 million.
In August 2023, the company had 1.147 billion shares in issue and the AAU share price was 2.65 pence, giving a market cap of £30.38 million.
Overview of the company’s assets
The key assets owned by the company are:
Kiziltepe gold-silver mine
This asset is currently held by Zenith in a 50:50 Joint Venture with Proccea Construction – and has an expected 8-year initial mine life (as at March 2020). There is a Memorandum of Understanding in place to sell down 53% to a third party by August 2020, leaving Ariana with a 23.5% interest.
The latest JORC report released in April 2020, estimates inferred and indicated resources of 321k oz gold and 5.3 million oz of silver. Current annual production rate is up to 30k oz gold and 200k oz silver.
Tavsan project
This is linked to the Kiziltepe mine with an expected 4-year mine life. The latest JORC report released in June 2020, estimates inferred and indicated resources of 253k oz gold and 723k oz of silver. Current annual production rate is up to 30k oz gold.
Salinbas project
The Salinbas project includes three licence areas (Ardala, Salinbas and Hizarliyayla) and is currently 100% owned by Ariana with an estimated 10-year life of mine. There is a Memorandum of Understanding in place to sell down 53% to Zenith (owner of the Kiziltepe mine),and eventually restructure ownership of Zenith such that Ariana and Proccea each own a 23.5% interest.
In July 2020, Ariana announced a revised JORC resource update which increased the global resource inventory from c. 1 million ounces of gold equivalent to 1.5 million ounces.
Salinbas is located within a multi-million-ounce goldfield containing other significant gold-copper projects, in particular the 4 million oz Hot Maden project.
Kizilcukur project
100% owned by Ariana Resources. The latest JORC report released in May 2020, estimates inferred and indicated resources of 21k oz gold and 620k oz of silver.
Venus Minerals
Ariana acquired an initial interest of 9.24% in a gold-copper exploration and development company in Cyprus by way of an earn-in, having committed expenditure of c. €920k to the project. By agreeing to spend a further €180k, Ariana expects to take its shareholding to 12% before October 2020.
In October 2020, a maiden JORC compliant Mineral Resource Estimate was released for Venus Minerals flagship project – Magellan – and the Exploration Target identified between 42,000 and 216,000 ounces of gold and 297,000 to 2.218 million ounces of silver.
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