Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

UK - Ariana Resources focused on getting first mine up and running  Join our daily free Newsletter

MENAFN - ProactiveInvestors - UK - 20/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - ProactiveInvestors - UK) The recent receipt of the final environmental approval for Ariana Resources' (LON:AAU) Kiziltepe gold-silver mine fires the starting gun to first production at the project



It also consolidates the firm's ambitions to mature into a major mining player in Turkey



Speaking at the London Mines & Money event in December, managing director Kerim Sener told Proactive how the firm was leveraging local partner Proccea's expertise to build the mine and will partly use the cash flow to fund further exploration - hunting for precious metals being Ariana's area of expertise.



"We want to keep up that focus on the exploration side of the equation but at the same time we need to see cash flow," he said.



"We've been very keen to develop a part of the business that is focused on getting our first site up and running as a mine and to do that in partnership.



Kiziltepe is part of the firm's most advanced project - Red Rabbit - and is a joint venture with Proccea, which is earning into a 50% stake.



The 21,000 ounce a year carbon in leach (CIL) operation, which Sener hopes will be in production by December 2014, requires final construction permitting and some forestry permitting



There have been some delays with forestry issues in Turkey, but Sener is confident the firm will see the necessary documents come through.



Proccea is currently working through funding options for constructing the project with two Turkish banks and Sener added that a deal was "close".



The mine will be small but with robust economics, having cash costs of around US600 per ounce. The reserve has a grade of over 3g/t gold and almost 40 g/t silver.



Based on the feasibility study, Kiziltepe has a life of eight years based on current resources with payback of 2.4 years based on a price of US 1,304/oz gold and US 22.6/oz silver and an initial capital spend of US31.1mln



Sener notes that the Kiziltepe pits have also been designed for a gold price of approximately US1,000 an ounce - so they can tolerate further negativity on the price of the yellow metal



At gold's current levels, however, Ariana can expect annual free cash flow of around US5 mln when Kiziltepe is in production



Sener explains this cash will be used to pay off outstanding debt but also to potentially offer a dividend for shareholders



"We think that's an important part of becoming a more mature company in this space," he says, adding however, that the firm, as yet, has no firm dividend policy in place



The money from producing gold will also go towards funding further exploration at Red Rabbit and the nearby region, but also in Turkey as a whole



At Red Rabbit there is upside to the current 448,000-ounce mineable resource, the firm has previously reported. It has also outlined plans in November to double resources at the Kiziltepe sector following on from desk studies which suggested that this was a realistic objective



Sener also highlighted that the firm has access to the US20mln Newmont Mining database, allowing it to investigate further underexplored areas



"We know exactly where we need to go next," Sener said, adding that the firm, as well as making discoveries, would also like to acquire projects with potential



But Ariana is not just about Red Rabbit. It also has the Ivrindi, Demirci, Kizilcukur exploration projects in Turkey and a joint venture with Eldorado Gold, which is focused on the Artvin province in the north-east of the country.



Indeed, the company was buoyed on January 20 with "encouraging" results from the Ardala project, which confirmed last year's drilling had confirmed the continuity of mineralisation in the area between the Ardala Au-Cu-Mo (gold, copper, moly) porphyry and the Salinbas Au-Ag Zone (gold-silver) and the latest results suggest the potential to increase the resource



Additional drilling is now required to test for additional porphyry and limestone-hosted mineralisation, the company said



So there is plenty of potential newsflow from the company in 2013. Finally, it is worth noting too Turkey's pro-mining stance and the fact the government there has identified the industry as high priority.



There are also certain tax advantages, which have come into force, one of which will see Ariana benefit from incentives and rebates as a gold and silver producer.



Sener also highlights that operating in Turkey is in general easier than other areas - it has a well educated work force and excellent infrastructure


 


ProactiveInvestors - UK




  MENA News Headlines
 Feb 1 2015 - HMG wins Excellence Prize for patient care from Arab HealthArab News
(MENAFN - Arab News) Dr. Sulaiman Al-Habib Medical Group (HMG) continues its noticeable attendance in the Arab Health Exhibition in Dubai this year as it has been rewarded with the Excellence Prize ...

 Feb 1 2015 - How to get a job done for 5 onlyArab News
(MENAFN - Arab News) It sounds like a crazy idea but you can actually get a brand new logo for your company or get 250 words translated or 1500 words proofread or your personal piano player for just ...

 Feb 1 2015 - Etihad Airways appoints first female Emirati airport managerArab News
(MENAFN - Arab News) Etihad Airways the national airline of the UAE has appointed Fatima Al-Kharousi as the first Emirati female airport manager. Based in Nagoya Japan she will be responsible for ...

 Feb 1 2015 - Saudi- Facebook beats forecasts with strong profit gainsArab News
(MENAFN - Arab News) SAN FRANCISCO: Facebook said that profit soared on the wings of mobile ad revenue but stressed it is more concerned with investing in the future than making quick cash.While ...

 Feb 1 2015 - Facebook beats forecasts with strong profit gainsArab News
(MENAFN - Arab News) SAN FRANCISCO: Facebook said that profit soared on the wings of mobile ad revenue but stressed it is more concerned with investing in the future than making quick cash.While ...

 Feb 1 2015 - Israeli occupation forces Arrest 10 Palestinian in West BankQatar News Agency
(MENAFN - QNA) Israeli occupation forces arrested since dawn today10 Palestinians in the West Bank amid heavy gunfire during incursions into the West Bank cities of Hebron, Bethlehem and ...

 Feb 1 2015 - 'Qatar Green Building Conference' to Take Place in Doha in AprilQatar News Agency
(MENAFN - QNA) Qatar Green Building Council (QGBC), a member of Qatar Foundation for Education, Science and Community Development (QF), has announced its upcoming inaugural annual conference. The ...

 Feb 1 2015 - Jordanian Government Condemns Execution of Japanese HostageQatar News Agency
(MENAFN - QNA) The Jordanian government strongly condemned on Sunday Daash killing of Japanese hostage journalist Kenji Goto. Jordanian Minister of Information Affairs and Government Spokesman Dr. ...

 Feb 1 2015 - Qatar Armed Forces General Command Issues Precautionary WarningQatar News Agency
(MENAFN - QNA) Qatar Armed Forces General Command forces has announced that the marine shooting range (O.B.D-28), located east of Mesaieed near Fasht Al-Hadid, will be active during the period from ...

 Feb 1 2015 - Qatar Computing Research Institute, Boeing to Host MLDAS 2015 in MarchQatar News Agency
(MENAFN - QNA) Building on the overwhelming success of last year's inaugural symposium, Qatar Computing Research Institute (QCRI) and Boeing are once again partnering to host the second edition of ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help