JOHANNESBURG (miningweekly.com) – The Kiziltepe joint venture (JV) mine, in Turkey, has performed better than forecast in its first quarter of commercial production, with gold and silver output and sales exceeding feasibility study estimates by 6% on a yearly basis.

The Kiziltepe mine, in which Ariana Resources and Proccea Construction hold equal stakes, produced 3 762 oz of gold and 15 985 oz of silver during the September quarter.

Total sales since operation started in mid-March total 5 691 oz of gold and 30 504 oz of silver, generating gross income of $7.73-million.

Production of ore from the openpit achieved an average rate of 18 600 t/m in the September quarter, with a peak rate of 22 600 t achieved in August. The JV expects to maintain the mining rate in the fourth quarter.

"This is an excellent result from our first quarter of commercial production. We have successfully increased our peak production rate from the openpit at Arzu South to over 22 000 t of ore a month during the quarter. The process plant, in particular the mill, has also been tested successfully at its highest rates and work is progressing on achieving higher sustainable rates. To date this work has demonstrated that the operation has the capacity to achieve throughput rates substantially higher than feasibility parameters,” Ariana MD Kerim Sener said in a statement.

The JV has also demonstrated that the operating cash cost of production is well within the range of feasibility expectations. The mine achieved operating cash cost of $570/oz in the September quarter.

The Kiziltepe operation is currently expected to deliver approximately 20 000 oz/y of gold equivalent over eight years of initial mine life, for a total of up to 160 000 oz gold equivalent based on current resources. The JV is targeting a minimum ten-year mine life, which will require the addition of a further 40 000 oz gold equivalent in reserves outside the four main veins (Arzu South, Arzu North, Banu and Derya) that are currently scheduled to be mined.