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Kerim Sener, CEO of Ariana Resources, provides an update on the operations at Kiziltepe, with the second quarter of 2018 demonstrated record performance and remaining fully on track to deliver on our production guidance for the year. Kerim also talks about the impact of the Turkish Lira on the company. https://www.brrmedia.co.uk/broadcasts/5b7ab7d3d1c8cd10b3420968/ariana-resources-kiziltepe-quarterly-operational-update

Kerim has been pretty confident that Tavsan has a 7 year life of not more.
Four years was from the historic Scoping study and I believe the Reserves/Resources will be expanded as part of the
current work programme.
I agree that Kizzy seems good value at £1m.

Three new photos on twitter

Tavsan is described as an extremely attractive low cost and high-margin mining opportunity.
It is envisaged to be a semi autonomous satellite operation sharing much of the management and operational infrastructure as Kiziltepe but will need a separate heap leach processing facility.
As such the costs will be low, although as you say it will involve trucking.
The Scoping Study estimated cash costs at $630/oz, producing at 30,000 ozs.
You may recall the IRR was an impressive 80% with 1.1 yrs payback on $20m initial capital.

Hi John
I’ll try and answer all those questions. See if you agree.
1. Guidance is for this calendar year so 20000 is about right given production in Q1.
2. Yes life of mine is a very important issue, but Kerim has indicated this can go to 10 plus years from developing the satellites like Kizilcukur, Kepez etc. Etc
3. Three times exploration costs is at least £1m so I understand.
4. Yes I suspect they can’t buy now because of imminent news.
Windows to buy are few & far between.

Cheers

There is going to be additional production of 5000 ozs pa starting mid 2019 coming from Kizilcukur, which as we know isn't yet in the joint venture. If this is correct then it means Ariana will probably receive three times exploration costs from the J.V. to bring it into the fold so to speak. To leave it outside makes no sense and would be messy from an accounting perspective. So more cash hopefully coming airway to fund Salinbas drilling.
Have a look at the Resource Development Schedule slide in the latest presentation.
This also sets out the timing for Tavsan with production of 20,000 ozs predicted to commence January 2021.
If our current run rate is c. 28,000 ozs per annum (7171 ozs in Q2 times four) then with an extra 5,000 ozs coming from Kizilcukur (perhaps 2500 ozs in 2019 & 2500 ozs in 2020) we could be looking at production potential of 30,000 ozs next year. At the current margin of c. $1000 per oz that would be $30m (£23.5m) or £11.75m to Ariana, not much less than our current Market Capitalisation. How silly is that?

I agree a great interview and very reassuring for the further imo.
I agree they have done great but when Dan says almost unheard off, Ariana Resources (AAU) have also achieved the same thing. Gone from commissioning to production without hic-up and in fact now have 3 successful quarters under their belt. And ahead of plan with grades of 4.77g/t and costs below $400 per oz.
That beats HUM!!

This issue has been discussed a few times. The reason they don’t quote all in costs is because the operating Co. is Zenit. As such the C1 & C3 costs for Ariana are very similar apart from extracting 50% of the loan repayments.and capital they spend on development, both of which are itemised in the balance sheet.
If you want confirmation of this you could drop a line to William Payne the CFO via the Coy’s email.
It is unfortunate that the JV structure makes issues like this a little less clear.

Great to see new pictures on Twitter again today.

The results are really good and surely better than any of us could have hoped for.
These grades (4.77g/t) and costs of $371 must surely raise eyebrows in the market and industry.
Given we are under the radar, I accept that it could take a while before the significance of these numbers register.
It's a shame gold decided to dip but I really don't think that is a long term problem as the US$ gets too expensive and demands action to help US competitiveness.
The Turkey situation seems to have generally helped us so far so perhaps the worry beads can go back in their box!
Hopefully we will get Licences & Forestry permits for Salinbas before Xmas as we plan the drill programme after the snows melt around April.
Tavsan update perhaps with a new Reserve study could come before Xmas as well.
I believe there could also be news of permitting at Kizilcukur ahead of production plans for 2019.
So lots going on.
I agree we should now expect an updated Panmore Gordan Note (I think 12 months has elapsed since the last one)which hopefully will make a wider audience aware of the amazing progress.
I really believe in normal conditions the share price should be in the 3p's now if not higher, but the market is irrational and takes time to realise what an ass it is.
Anyway well done Kerim & team. (99% Mill availability & utilisation - can't get much better than that!)

Qatar comes to rescue as Turkey moves to avert financial crisis.
Qatar to invest $15b in Turkey.
Ankara given green light to Moscow's proposal to switch to ruble-lira trade between the countries and similar plans for trade with China & other countries.
This is positive for the Turkish lira and great timing to release our results hopefully tomorrow.

Are you suggesting a cup & handle formation?

I think you should John. It is fine imo. I don't gave anything to do with the likes of Facebook, but Twitter is a great source of business & political/economic information. Kerim likes to keep us informed using this medium.

More great, very encouraging tweets with pictures from Ariana this morning on Twitter.

Thanks John for that further insight into the road issue. The satellite (pipeline) pits for Kiziltepe are covered in the latest Annual Report so nothing to speculate on as far as I can see. Looks like Quarterlies are now next week.

It will be good to hear from the Director in charge of LC especially as he was there when it failed to deliver. Strategic Minerals seem to be going against existing wisdom, confident it with deliver next year. I assume the director in charge also must share that belief. Personally I think it might be OK rather than exceptional, but time will tell. I think they hope Redmore will be the asset to surprise on the upside. In the short term I think the Beaufort Administration is effecting us as I think JP hinted at in the I/v. Hopefully will be concluded next month.

Lot to do with the Beaufort Administration fall out imo.

I suspect it is also to do with the Beaufort Securities Administration debacle fall out. The Broker went bust in March & Price Waterhouse Cooper don’t conclude their work till September. Has stock been dumped? Selling into news. I think a number of AIM stocks have been similarly effected. Just a possibility of mine?

With regard to the road construction tweet, this was mentioned at the American Sq. Investors evening. Kerim said that Turkey has a massive road development programme and the road running through Red Rabbit is scheduled to be moved, widened and straightened. Kerim said they were hoping the Govt. would get on with this and pay for it, giving them better access to their resource development plans. The tweet says to accommodate full extent of the Arzu South pit. It looks like the work might be about to start as its says view from "current" highway & "new road construction".

My post on ADVFN One tweet talks about trial mining starting at the Ivrindi Project and shows the mining benches from earlier production. As we know this is outside the Red Rabbit J.V. and therefore owned 100% by Ariana Resources. In the A.R. & A. it mentions that the Co. is committed to maintaining a pipeline approach adding higher risk projects at the bottom end at low cost and developing or commercialising lower risk projects at the top end. I'm not exactly sure what that means! Can anyone enlighten me? Examples of those being developed within the pipeline approach include Kizilcukur and Ivrindi. Both are in the vicinity of the Kiziltepe mine. In the A.R. & A. it also said that further exploration and development work on these projects is being undertaken currently to determine the viability of these projects as satellite operations for the Kiziltepe mine. Ivrindi is currently quite a small resource but no doubt has expansion potential. Well from the tweets it looks like they are delivering on Ivrindi.