Ariana Resources

Primary ticker: AIM:AAU
Stage of development: Exploration, Production, Development
Primary minerals: Gold, Silver, Lithium, Copper
Project to promote: Salinbas Gold Project, Red Rabbit Gold Project, Venus Minerals

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Ariana Resources plc is an AIM-listed producer, developer and explorer focused on Turkey. Full commercial gold production was achieved in May 2017 at Ariana’s flagship Red Rabbit Gold Project in western Turkey. Ariana also has a significant opportunity at its Salinbas Project in northeastern Turkey. With over 1Moz gold already defined, exploration has indicated the potential for the area to host significant large gold and base-metal mineralised systems. The project is located within a multi-million ounce goldfield. In December 2019 the Company entered into a non-binding Memorandum of Understanding with a major Turkish construction and engineering company which will enable funding of the Salinbas project to production. The resulting partnership would enable the Company to become one of the premier gold mining companies in Turkey.

Management Profile

Michael de Villiers, Chairman and Company Secretary

Michael qualified as a Professional Accountant with Ernst & Young in Cape Town. Michael gained his experience as financial manager at mining and chemicals operations in Namibia, Botswana, Ghana, Bulgaria and the United Kingdom.
He was previously CFO of Eurasia Mining plc, Finance Director of Mercator Gold (now ECR Minerals plc), Oxus Gold plc and Navan Mining plc.
Michael is Chairman of the Audit Committee and serves on the Company’s Remuneration Committee.

What is your rationale for attending 121 Mining Investment?

We are keen to ensure Ariana remains well known and understood by the market. We would be pleased to meet with any current or potential new investors in our business to update them on our significant progress in 2019 and our forward strategies for 2020 and beyond.

What recent news would you like to highlight to investors attending?

The Company has entered into a non-binding Memorandum of Understanding with a major Turkish construction and engineering company which will enable funding of the Salinbas project to production. The project is currently 100% Ariana Resources owned, with a JORC Resource of 9.9Mt for 650Koz Au (Inferred & Indicated) The scale of the mineral systems identified strongly indicate the potential to host multi-million ounce gold deposits and significant base-metal systems. There is a major opportunity for future growth based on the Company’s JORC Exploration Target of up to 2.7Moz.
Record performance results from the Red Rabbit Gold Project; production guidance on track to exceed expectations in 2019. Since start-up 58Koz Gold has been produced produced (since Apr 2017*). Precious metal revenue is US$83m (since Apr ’17)

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

One of the primary risks to our core business is the gold price. It is not something that we can control, but we do what is necessary to ensure sufficient optionality on our resource base to enable more selective mining to best accommodate a fluctuating gold price. This is why we believe that exploration is still essential to our business and that it is critical that we focus on exploration, in particular growing our resource base at our Salinbas project going forward. Another strategy we have pursued to ameliorate commodity-risk in recent times is an element of diversification and this will be taking the form of a strategic investments in lithium and through a 50% earn in Agreement with Venus Minerals Ltd, a copper-gold exploration and development company focused on Cyprus.

In a sentence, what do you think makes your company such a compelling investment?

Ariana has a proven track record taking projects from grass roots through to production. Its commercial gold production provides revenue to the company in the short to medium term, whilst future exploration/development in significant Gold/Base Metal projects such as Salinbas and strategic investments will drive company growth in the long term.