24 Feb 2020 12:15
24 February 2020
Starvest Plc ("Starvest" or the "Company")
Update on Investee Company - Ariana Resources Plc
Starvest PLC (LON:SVE), the London Stock Exchange AIM listed specialist mining and resources investment business, is pleased to announce an update for investee company Ariana Resources Plc (LON:AAU) ("Ariana").
Highlights:
·; Annual production from Ariana's Kiziltepe operation exceeds 2019 guidance
·; Kiziltepe operating costs reduced in the last quarter of 2019
·; 87% of JV construction costs repaid
·; 45% increase in share price since December 2019
Ariana's published production rates for the 50% owned Kiziltepe mine in Turkey show a total of 27,985oz gold was produced in 2019, which exceeded the production guidance of 25,000oz. Annual silver production was 363,649oz with peak production of 101,074oz in the last quarter of 2019.
Estimated operating costs for Q4 2019 were US$500/oz compared to US$540/oz in Q3 2019 and, as at the end of the last quarter of 2019, 87% of the JV construction capital loan of US$33m had been repaid. The company believe the remaining balance will be paid in April 2020, which will entitle Ariana to 51% of the profits generated by the mine.
The recent announcement by Ariana Resources can be found at:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/AAU/14431978.html
Ariana's peak closing price in February 2020 was 3.25p per share, an increase of over 45% on the December 2019 low of 2.2p per share.
Starvest currently holds 17,500,000 shares in Ariana Resources plc, representing 1.65% of the company.
Callum Baxter, Chairman/CEO of Starvest, commented, "We are pleased to see Ariana continuing to exceed production guidance at its Kiziltepe gold/silver operation against a background of cost reduction. Debt is expected to be retired by April 2020 resulting in an increased share of JV revenue of 51%. Starvest holds 1.65% of Ariana and we look forward to further updates from Ariana's operations and exploration activities."
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.
Ariana Overview
Ariana is a United Kingdom-based company engaged in the exploration, development and mining of epithermal gold-silver and porphyry copper-gold deposits in Turkey.
The company is in a JV over the Kiziltepe mine and has several exploration projects in development at Tavsan and Salinbas.
Tavsan is part of the Red Rabbit Project Area, together with the Kiziltepe mine, a 50:50 venture with Proccea Construction Co. Tavsan currently consists of five mineralised zones and the company claims it represents an opportunity to deliver 30,000 oz of gold per annum to the Red Rabbit Joint Venture via the development of a stand-alone heap-leach operation, which would increase production from approximately 20,000 oz pa to 50,000 oz pa between the two operations.
The wholly owned Salinbas project in north-east Turkey lies within the "Hot Gold Corridor" which hosts several copper-gold projects including the Hot Maden deposit, which was acquired by Sandstorm Gold in 2017.
Ariana has also entered into a conditional agreement to acquire 100% of Dogu Akdeniz Mineralleri San. ve Tic. Ltd. ("Dogu"), a subsidiary of KEFI Minerals plc. Dogu holds a Net Smelter Return on the Kizilcukur Project and a valuable exploration database encompassing the Republic of Turkey.
Enquiries to:
Starvest PLC
Callum Baxter or Gemma Cryan 02077 696 876 info@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson or Harrison Clarke 02073 835 100
SI Capital Ltd (Broker)
Nick Emerson or Alan Gunn 01483 413 500