Ariana Resources PLC – Dec 2017
December 2017
Ariana Resources plc December 2017 Ariana Resources PLC Dec 2017 - - PowerPoint PPT Presentation
Ariana Resources plc December 2017 Ariana Resources PLC Dec 2017 Disclaimer 2005 (as amended) (the Financial Promotion Order ): Investment Professionals (as defined in Article The content of information contained in these slides and the
Ariana Resources PLC – Dec 2017
December 2017
Ariana Resources PLC – Dec 2017
The content of information contained in these slides and the accompanying verbal presentation (together, the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind. This Presentation is being supplied to you solely for your information. This Presentation has been prepared by, and is the sole responsibility of, Ariana Resources plc (the “Company”). The directors of the Company have taken all reasonable care to ensure that the facts stated herein are true to the best
This Presentation does not constitute, or form part of, an admission document, listing particulars or a prospectus relating to the Company, nor does it constitute, or form part of, any offer or invitation to sell
shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract therefor. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness thereof, nor is any responsibility accepted for any errors, misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of, or reliance on, this Presentation or otherwise in connection with it. By accepting this Presentation you confirm, represent and warrant that you have consented to receive information in respect of securities of the Company and other price-affected securities (as defined in the Criminal Justice Act 1993 (“CJA”) which makes you an “insider” for the purposes of Part V of the CJA, and you agree not to deal in any securities of the Company until such time as the inside information (as defined in the CJA) of which you have been made aware has been made public for the purposes of the CJA and until such time that the Placing has been publicly announced by the Company, or the Company decides not to proceed with the Placing. This Presentation may not be reproduced or redistributed, in whole or in part, to any other person, or published, in whole or in part, for any purpose without the prior consent of the Company. The contents
and amendment without notice. The Presentation is being distributed on request only to, and is directed at, authorised persons or exempt persons within the meaning of FSMA or any order made thereunder or to those persons falling within the following articles of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”): Investment Professionals (as defined in Article 19(5)) and High Net Worth Companies (as defined in Article 49(2)). Persons who do not fall within either of these definitions should not rely on this Presentation nor take any action upon it but should return it immediately to the Company. This Presentation is exempt from the general restriction in section 21 of FSMA relating to the communication of invitations or inducements to engage in investment activity on the grounds that it is made only to certain categories of persons. Neither this Presentation nor any copy of it should be distributed, directly or indirectly, by any means (including electronic transmission) to any persons with addresses in the United States of America (or any of its territories or possessions) (together, the “US”), Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, or to any corporation, partnership or other entity created or
distribution may lead to a breach of any legal or regulatory requirement. The recipients should inform themselves about and observe any such requirements or relationship. The Company’s ordinary shares have not been, and are not expected to be, registered under the United States Securities Act 1933, as amended, (the “US Securities Act”) or under the securities laws of any
Japan, Australia, the Republic of South Africa or the Republic of Ireland or to, or for the account or benefit of, any US persons or any national, citizen or resident of the US, Canada, Japan, Australia, the Republic of South Africa or the Republic of Ireland, unless such offer or sale would qualify for an exemption from registration under the US Securities Act and/or any other applicable securities laws. Forward-looking Statements This Presentation and/or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the “Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at the date of this Presentation. No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by
to the extent permitted by law no responsibility or liability is accepted by any of them for any such information or opinions. Notwithstanding the aforesaid, nothing in this paragraph shall exclude liability for any representation or warranty made fraudulently.
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Ariana Resources PLC – Dec 2017
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Exploration:1Moz Salinbas Project represents a major opportunity for growth within a highly prospective region which also hosts the 4Moz Hot Maden project Development: Tavsan represents revenue generative upside targeting 50,000 oz Au p.a. from the Red Rabbit JV Production: Red Rabbit JV revenue expected at >US$ 5M per quarter at current gold price from the Kiziltepe gold mine
Ariana Resources PLC – Dec 2017
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1 2
1. DEVELOPMENT: Salinbas Project Area 2. PRODUCTION: Red Rabbit Project Area 10 active gold mines
Red Rabbit Gold Project
Ariana Resources PLC – Dec 2017
Exploration & Development
Resource drilling at Salinbas using the Ariana drill rig
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Ariana Resources PLC – Dec 2017
copper projects
Salinbas project and now owned 30% by Sandstorm Gold Ltd. after US$175m deal
Ardala Cu-Au-Mo porphyry and the Hizarliyayla Au-Ag system among others
and molybdenum (0.014%) zones
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Ariana Resources PLC – Dec 2017
substantial exploration upside
Salinbas deposit alone; further revisions underway
JV with Eldorado Gold before project acquisition
Gold in 2017
100% Ariana Resources
7 Mine life: 10 years C1 Cash Costs: US$770/oz Processing: CIL Production Rate: 50,000 oz Au p.a. JORC Resource: 9.96Mt for 650Koz Au (Inferred & Indicated) In-pit grade 2.0 g/t Au; 10.2 g/t Ag Net- present value (8%): US$108M Internal Rate of Return: 28% Payback (initial US$53M capex) : 3.3 years Royalty: State Right and 2% NSR to Eldorado Gold
*Pre-tax case at US$1,250/oz, as at April 2015 Scoping by Auralia Mining Consulting Pty. Ltd. (April 2015)
Ariana Resources PLC – Dec 2017
the Hot Gold Corridor (“HGC”) contained within project licences
identified at Ardala North indicating strong potential for gold-silver and base- metal mineralisation
Au-Cu-Mo porphyries in the Ardala area
epithermal Au-Ag mineralisation
million ounce gold deposits and significant base-metal systems
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Ariana Resources PLC – Dec 2017
mineral systems to occur in the vicinity
significantly enriched in gold:
113g/t Mo
150 g/t Mo
zone containing exceptional rock-chip assay results:
0.24% Pb
10.26% Pb
0.25% Pb.
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Ariana Resources PLC – Dec 2017
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Ariana Resources PLC – Dec 2017
Gold & Silver Production
First Gold Pour at Kiziltepe, March 2017
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Ariana Resources PLC – Dec 2017
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Pre-tax case at c.US$1,300/oz, as at June 2013 DFS by Tetra Tech, figures calculated on a 100% equity basis excluding debt finance charges.
Location Sindirgi, 130km north-east of Izmir, western Turkey JORC Reserves & Resources 1.1M tonnes for 140,000oz Au eq. (proven & probable) 338Koz global resource (3 May 17 update) Processing CIC/CIL Mine Life 8 years based on DFS (11.5 yr potential) Production Rate 20,000 oz Au eq. p.a. (target c.25,000 oz p.a.) Processing Capacity 150,000 tonnes of ore p.a. (targeting 180,000 t.p.a) In-pit grade 3.1 g/t Au; 39.8 g/t Ag Costs C1 Cash Costs: US$600/oz (Q3: US$570 per oz) Net-present value (8%): US$34M Internal Rate
38% Payback (initial
US$31M capex):
2.4 years (on-track) Royalty:
State Right and 2.5% NSR to Franco Nevada
Construction Debt:
US$33M, first repayment Dec 2014 (c.US$ 6M already repaid)
Interest Rate:
n/a - participatory bank loan, repayments made typically monthly
Loan terms:
Non-recourse, secured against shares in operating company and freehold land
Ariana Resources PLC – Dec 2017
Arzu South Banu
mining infrastructure for Red Rabbit JV
Construction Co. as manager
Madencilik employs 160 staff
government support – largest single investment of its type in the area
granted by Ministry of Economy
facility plus most modern/best- practice tailings dam in Turkey
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Ariana Resources PLC – Dec 2017
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Laboratory CIL Processing Plant Mine Administrative Buildings Arzu South Open Pit
Sındırgı
Population: 12,67 in 2010
Ariana Resources PLC – Dec 2017
cash costs for Q3 estimated at US$ 570/oz
180,000tpa, up from design plan of 150,000tpa
expectations at 95%
stockpiled, representing over three months of production
from H2 2017 for a period of 8 years initial mine life
Zack Van Coller & Dr Kerim Sener holding first doré bar, March 2017
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Ariana Resources PLC – Dec 2017
deposits (up from 8, as per DFS)
2017 to 338,500 oz Au equivalent
3.8Mt with inclusion of subsidiary veins which do not currently form part of the mine plan
veins (e.g. Kepez) which could increase the LOM further
1.25Mt @ 1.8 g/t Au and 31 g/t Ag established for vein extensions across Kiziltepe that have not yet been drill tested
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Ariana Resources PLC – Dec 2017
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Only 6% (2km) of the total vein system (34km) defined to date has been drill-tested and contains the current resource *Excluding Ivrindi
Additional Potential 200Koz
338Koz 9Koz 33Koz 215Koz Current JORC Resource Ounces
Additional Potential 100Koz Additional Potential 25Koz Additional Potential 100Koz
Discovery Potential
Ariana Resources PLC – Dec 2017
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Pre-tax case at US$1,250/oz, as at November 2016 Scoping by Auralia Mining Consulting Pty. Ltd.
Location 210km north-east of Izmir, 72km east of Kiziltepe Mine JORC Resource 215Koz Global resource Whittle resource: 2.7M tonnes for 139,000oz Au (indicated & inferred) Processing Heap Leach Mine Life 4 years Production Rate 30,000 oz Au eq. p.a. Processing Capacity 675,000 tonnes of ore p.a. In-pit grade 1.6 g/t Au; 3.0 g/t Ag Costs C1 Cash Costs: US$630/oz Net-present value (8%): US$42m Internal Rate of Return: 80% Payback (initial
US$20M capex):
1.1 years Royalty:
State Right and 2% NSR to Sandstorm Gold
First Production Target
2020 at 30 koz p.a
Management Resource Target
300,000oz Au of which 200,000oz Au open-pittable
Semi-autonomous with Kiziltepe
Ariana Resources PLC – Dec 2017
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improved geological understanding
identified demonstrating clear potential for resource growth
resource area - partly obscured by cover rocks
date at an average grade of 1.41 g/t gold.
Ariana Resources PLC – Dec 2017
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under the JV during 2018
Geological cross-section through the northern extension of the South Zone based on limited previous drilling: shows good continuity of mineralised jasperoid (in orange) occurring relatively near surface
Ariana Resources PLC – Dec 2017
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2016 2017 2018 2019 2020 2021 2022 2023 2024
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Kiziltepe (221Koz) Construction Commissioning Production Kepez (9Koz) Permitting Production Karakavak Drilling Yukaricamli Drilling Kizilcukur (33Koz) Scoping Feasibility Permitting Production Tavsan (215Koz) Drilling Scoping Feasibility Permitting Construction Commissioning Production TOTAL PRODUCTION
20Koz 20Koz 20Koz 20Koz 20Koz 20Koz 20Koz 30Koz 30Koz 30Koz 30Koz 30Koz 20Koz 20Koz 20Koz 50Koz 50Koz 50Koz 50Koz 50Koz 12Koz
Ariana Resources PLC – Dec 2017
Development & Exploration: Turkey and beyond
prospective region which also hosts the 4Moz Hot Maden project
secured in exchange for a 1%NSR (expiring in 2023)
technology-metals projects globally Production & Development: Red Rabbit Gold Project JV
cost c. US$600/oz
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Ariana Resources PLC – Dec 2017
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Every £1 expended by the Company:
partners or bank finance
*As at early June 2017
Ariana Resources PLC – Dec 2017
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CEY: £1,560m MC for 250Koz/a production* HUM: £117m MC for future 86Koz/a production* VAST: £28.8m MC for 10Koz/a production* AAU: £14.5m MC for 10Koz/a production and c.25Koz/a future production* KEFI: £14.1m MC for future 86Koz/a production* STI: £6.2m MC as an ex-producer *Net equivalent production only
Source Yahoo Finance
Ariana Resources PLC – Dec 2017
Michael de Villiers
Executive Chairman, B.Comm Professional Accountant
Eurasia Mining, Mercator, Navan & Oxus
Managing Director, BSc (Hons), MSc Mineral Exploration, PhD
William Payne
CFO, BA Accountancy
Chris Sangster
Non-exec Director, BSc (Hons), GDE Mineral Economics
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Ariana Resources PLC – Dec 2017
26 Exchange AIM: AAU Market Capitalisation (GBP) £12.6m Shares in issue 1,051.6m Options & Warrants 45.3m Share Price 1.20p Min-Max Price (52 week) 1.25 – 2.26p Average volume (3 mth) 2.63m Shareholder % holding Hargreaves Lansdown Asset Mgt 14.3 Barclays Wealth 8.8 Halifax Share Dealing 6.8 Management 5.4 TD Direct Investing 5.9 Beaufort Nominees Ltd 4.1 Interactive Investor 3.5 SVS Securities 3.3 Jarvis Investment Management 3.2 AJ Bell Securities 3.1 Eldorado Gold Corporation 2.7 Mr Bruce Rowan 2.3
Top Shareholders Share price & volume
Ariana Resources PLC – Dec 2017
www.arianaresources.com
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Ariana Resources PLC – Dec 2017
Contacts:
Ariana Resources PLC T: +44 (0) 207 407 3616 E: info@arianaresources.com
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