(Alliance News) - Ariana Resources PLC on Friday said it is evaluating further investment options in Turkey after the successful development of the Red Rabbit and Salinbas gold projects.
The exploration and development company said 2018 was an "exceptional" year, as it continued to make "significant" progress at its Red Rabbit project in Turkey.
In its first full year of commercial production, the Kiziltepe mine, which is a part of Red Rabbit, produced 27,110 ounces of gold. This was 36% higher than forecast for the year and it achieved an average operating cash-cost of USD415 per ounce.
"Following this positive performance last year, we remain on track to hit our 2019 production target of 25,000 ounces of gold," said Ariana Chair Michael de Villiers.
The positive cashflow generated from Kiziltepe has enabled Ariana to repay 70% of the USD33 million joint venture construction capital loan to-date. The company said it expects full repayment of this loan by April 2020.
"There were also a number of important developments during the year at our highly prospective Salinbas gold project in north-eastern Turkey," noted de Villiers.
Ariana said it will providing further updates on Salinbas once it has received and assessed the results of the recent drilling programme.
Looking ahead, the company said it is also at an advanced stage of evaluating other potential interests in Turkey, whilst maintaining its focus on the highly prospective region of the Tethyan metallogenic belt.
"We recognise the importance of diversifying our portfolio partly in to other commodities, and particularly those associated with the development of new technologies, within countries representing low risk profiles," said de Villiers.
Ariana shares were trading 2.7% higher on Friday in London at 2.36 pence each.
Ariana (AAU)