Ariana Resources PLC - June 2015
Ariana Resources plc
Turkey’s Next Gold Producer
June 2015
Ariana Resources plc Turkeys Next Gold Producer June 2015 Ariana - - PowerPoint PPT Presentation
Ariana Resources plc Turkeys Next Gold Producer June 2015 Ariana Resources PLC - June 2015 Disclaimer The Presentation is being distributed on request only to, and is directed at, authorised persons or The content of information contained in
Ariana Resources PLC - June 2015
June 2015
Ariana Resources PLC - June 2015
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 of their knowledge, information and belief. This Presentation does not constitute, or form part of, an admission document, listing particulars
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Ariana Resources PLC - June 2015
Development
Planned production 2016
Discovery
>1Moz resource
Exploration
Targeting +1Moz deposits
Proccea JV - Red Rabbit Project Eldorado JV - Artvin Project WAVE province
2016) low-cost (US$600/oz) production in western Turkey
eastern Turkey
Newmont database for Turkey
resources to be defined
Minerals (TSX-V)
Ariana Resources PLC - June 2015
Exchange AIM: AAU Market Capitalisation (GBP) £8.2m Options & Warrants 40.4m Shares in issue 683m Min / Max Price (52 week) 0.75 - 1.22 Share Price 1.15p Average daily volume 1,660,690 Shareholder % holding Lanstead Capital 14.1 Barclayshare Nominees 8.8 Hargreaves Lansdown (Nominees) 8.1 TD Direct Investing 4.6 Beaufort Nominees Ltd 4.6 JIM Nominees Ltd 4.3 Eldorado Gold Corporation 4.1 Mr Bruce Rowan 3.6 HSDL Nominees Ltd 3.6 Starvest PLC 2.8 Management 4.0
Top Shareholders
5 10 15 20 25 30 0.2 0.4 0.6 0.8 1 1.2 1.4 Mar 15 Apr 15 May 15 Jun 15
Share price & volume
Share price (p) Volume millions
Ariana Resources PLC - June 2015
Michael de Villiers
Executive Chairman. B.Comm Professional Accountant
(ECR Minerals plc), Oxus Gold plc & Navan Mining plc
Asia & Europe
Managing Director, BSc (Geol), MSc Mineral Exploration, PhD
University of Western Australia
William Payne
CFO, BA Accountancy
Ariana Resources PLC - June 2015
1.4 4.3 5.4 5 5 8 10 11 14.5 17 24.4 29.5 33.5 31 5 10 15 20 25 30 35 40
A B C D E F G Current operating mines Tethyan Metallogenic Belt Porphyry copper-gold Skarn copper-gold Epithermal gold
Ariana Resources PLC - June 2015
Ariana Resources PLC - June 2015
Mine Construction & Exploration
Ariana Resources PLC - June 2015
Proccea Construction
Turkish JV partner
Ariana Resources shareholder Gold-silver processing plant EPCM specialists; responsible for the construction / provision of:
columns
Merrill-Crowe plant, commissioning
Current Holding 69.6% Ariana Resources 30.4% Proccea
US$8 million
commitment of US$4.5m
management control now with Proccea
Turkish government; current incentives exceed US$2.2m
Finans Katilim Bankasi A.S. for the remaining capital requirement
Ariana Resources PLC - June 2015
up to a further 20 years
process
Mine construction to commence imminently: first gold pour expected H2 2016
Ariana Resources PLC - June 2015
Definitive Feasibility Study Summary
Mine life : 8 years C1 Cash Costs : US$600/oz Processing : CIC/CIL Production Rate : 20,000 oz Au p.a. Processing capacity : 150,000 tonnes of ore p.a. TSF design capacity : 15 years Global JORC Resource : 221Koz JORC Reserves : 1.1M tonnes for 140,000oz (proven & probable) In Pit Grade : 3.1 g/t Au; 39.8 g/t Ag
*base case at US$1,304/oz
Project Economics
Net-present value (8%): US$34m Internal Rate of Return: 38% Payback (initial US$31.1 capital) : 2.4 years
Ariana Resources PLC - June 2015
interest charges: modelling undertaken when oil was US$100 per barrel
EPCM
inclusive of State royalty and 2.5% NSR
years (June 2015: 3,250TL/oz)
Scenario Gold Price (US$/oz Au) NPV 10 (US $M) NPV 8 (US $M) IRR (%) Payback year Cash Cost (US $/ oz Au) Minus 30% 913 3.5 5.7 13.7 3.6 588 Minus 10% 1,174 21.5 24.8 30.3 2.7 596 Base Case 1,304 30.4 34.4 37.8 2.4 600 Plus 10% 1,434 39.4 44.0 45.0 2.2 603 Plus 30% 1,695 57.4 63.1 58.8 1.8 611
Ariana Resources PLC - June 2015
Only 6% (2km) of the total vein system (34km) defined to date has been drill-tested and contains the current resource
Potential 200Koz 100Koz 50Koz 100Koz
221Koz 9Koz 17Koz 215Koz Current JORC Resource Ounces
Ariana Resources PLC - June 2015
Kiziltepe Tavsan
Kiziltepe Sector Tavsan Sector
Ariana Resources PLC - June 2015
Ariana Resources PLC - June 2015
Exploration & Development
Ariana Resources PLC - June 2015
project sale process underway
equiv.
with increasing widths of mineralisation
Current Holding 49% Ariana Resources 51% Eldorado Salinbas Scoping Study Summary*
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
Project Economics
Net-present value (8%): US$108m Internal Rate of Return: 28% Payback (initial US$53.3 capital) : 3.3 years
*base case at US$1,250/oz
Ariana Resources PLC - June 2015
average US$53.9 per resource ounce (dashed blue line)
* Caldag is a nickel deposit but the resource has been calculated as a gold equivalent. All other deposits are gold dominant with variable amounts of silver.
200 400 600 800 1000 1200 1400 1600 1800 20 40 60 80 100 120 140 160 180 US$/oz US$/oz Au Price
?
US$/oz
Ariana Resources PLC - June 2015
Exposure to near-term, low-cost, fully funded, fully permitted gold production in Turkey with significant exploration upside across the country Mine Construction and Production: Red Rabbit Gold Project
years of operation
immediate resource upside (capacity for additional 30,000 oz p.a. production) Exploration & Development : Western, NE and SE Turkey
and Royal Road Minerals
wide database
per ounce)
Ariana Resources PLC - June 2015
Ariana Resources PLC T: +44 (0) 207 407 3616 E: info@arianaresources.com Lottie Brocklehrust St Brides Partners Ltd T: +44 (0) 207 236 1177 E: Lottie@stbridespartners.co.uk