Ariana Resources (AAU ) said the resources estimate for the Kepez North area of the Kiziltepe gold-silver mine has risen by 97% from its previous resource estimate in 2020.
Kepez North is part of the Zenit Madencilik San. ve Tic. A.S. Joint Venture with Proccea Construction Co. and Ozaltin Holding A.S. and is 23.5% owned by Ariana Resources. Today’s update reflects the addition of five new diamond drill holes at the Kepez North resource.
The mineral exploration and development company said the Kepez North resource is now estimated to contain about 36,400 ounces of gold and 329,400 ounces of silver which reflects a 97% rise from 2020 and a 310% riseover the Feasibility Study Resource (2013).
In particular, Ariana reported that most of the revised resource estimate (around 86%) is in the improved ‘measured’ category with the remaining 14% within the ‘Indicated’ category.
Also within the resource update for the Kepez North area was a significant increase in average grade to 7.14 grammes a tonne (g/t) gold and 64.65g/t silver, Ariana reported.
Addressing shareholders, Dr. Kerim Sener, Managing Director, said, "This is a great outcome from the recent drilling undertaken in the Kepez area. We remain highly encouraged by this area as a potential source of very high-grade mineralisation, which can complement the mill-feed of the Kiziltepe processing plant, which is located only 14km away by road.”
He said, “Based on the significant increase in the resource at Kepez and the potential for identifying further extensions of this high-grade mineralisation down plunge, the JV has taken the decision to bring the drill rig back to this area to complete further drilling.”
Shares in Ariana Resources have increased by over 5% in value in the past month. The stock was trading 3.09% higher this morning at 5p following the announcement.
“This work, in addition to further mining studies and associated permitting, is being expedited in order to bring this area forward in the mining schedule. Importantly, the geometry of the mineralisation lends itself well to near complete resource extraction.”
Ariana Resources told investors that following the completion of pit optimization study at the Kepez North area, further permitting is currently being advanced at the company’s site.
On Tuesday, Ariana unveiled plans to pay a special dividend in three tranches,subject to the completion of the group’s capital reduction process, which is being finalised in July 2021.
The first tranche of 0.35p will be declared as an interim dividend and paid during the 3Q21. The second tranche of 0.175p is intended as a second interim dividend and paid six months thereafter while the third of 0.175p will be proposed for approval at its 2021 AGM, it noted.
"Today is a momentous occasion in Ariana's history, and we are exceptionally pleased to be able to announce the details of the Company's dividend distribution plan,” said Sener.
Commenting on the proposed special dividend payout, he added, “This is a testament to the success of Ariana's exploration, development and production strategy which has brought us to a position that very few AIM-listed resources companies find themselves in; with a producing asset and able to provide a return to our loyal shareholders.”
Looking ahead, Ariana said it hopes to distribute future dividends arising from ongoing profits generated by its existing operations and those arising out of future undertakings.
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