Ariana Resources (AIM: AAU) is a gold and silver mining development company with near-term production potential in Western Turkey. Production at the Red Rabbit Gold Project (RRGP) could commence as early as H2 2014. Ongoing exploration is fulfilled through our own work in western Turkey, via joint venture (Eldorado Gold) and strategic investment (Tigris Resources). Ariana is spearheaded by an experienced management team, which aims to discover and develop new gold mines.
30/11/13Ariana adopts new exploration plan to double resources at Kiziltepe
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25/10/13Ariana Resources identifies ten new targets around Turkey flagship
25/09/13UPDATE - Ariana rockets on "exceptional results" from exploration
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Ariana's objective is to deliver shareholder value through the discovery of new gold deposits and the development of gold mines.
The Company is committed to delivering value through a robust, cost-efficient and focused exploration and development strategy, which integrates geoscientific knowledge and new technologies to identify and advance and develop prospects rapidly.
Ariana is targeting the discovery of a multi-million ounce gold deposit in Turkey and intends to achieve this through a combination of acquisition, strategic partnership and full utilisation of its significant exploration expertise in Turkey.
The Company has dedicated much of its exploration effort on the Western Anatolian Volcanic and Extensional (WAVE) Province in western Turkey. This province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits.
Within this province Ariana has one advanced development project (Red Rabbit Project) and a further two advanced exploration projects (Ivrindi and Demirci). The region surrounding the projects is named the WAVE Project Area, with our base of operations at Sindirgi located strategically at its core. Current resources held by the Company in the WAVE Project Area stand at 448,000 oz Au equivalent.
In addition to containing our advanced projects, the Project Area encompasses the majority of our exploration tenements in western Turkey. The exploration and development risk to future gold resources in this region is reduced due to excellent infrastructure and established local mining operations.
Ariana envisages that an aggregate resource of 1Moz of gold can be achieved within the Project Area and our strategy is designed to build on our existing resource base via exploration and future acquisitions.
In parallel to our resource development and exploration strategy in western Turkey, Ariana has joint ventured its exploration portfolio in northeastern Turkey to European Goldfields Limited. The Company also continues to evaluate new opportunities elsewhere in Turkey for acquisition or joint venture.
Ariana Resources was established in 2002 for the purpose of exploring for, acquiring and developing economic gold deposits in Turkey. Since its formation, the company has compiled a substantial, proprietary geological database on Turkey, which it is employing to discover epithermal and porphyry-related gold deposits in the country. Turkey is an exceptional place to explore - it offers highly prospective and under-explored geology, a rapidly and positively evolving political landscape and an increasingly sophisticated investment climate.
Ariana considers that its primary responsibilities are to its stakeholders: its shareholders and employees, and the communities and environment in which it operates. More specifically, Ariana:
* Adheres to sound corporate governance policies
* Maintains a high standard of technical best-practice in its exploration and development activities, and adheres to international standards where applicable
* Embraces a socially responsible and beneficial approach to health and safety, the environment and community support in its areas of operation
* Recognises the importance of its employees and the need to attract and continue to challenge its exceptionally talented people
RED RABBIT GOLD PROJECT
In 2009 Ariana Resources combined its two flagship assets, Sindirgi and Tavsan into one project named "Red Rabbit". Sindirgi and Tavsan are located approximately 75km apart in the highly prospective WAVE Province in western Turkey. Sindirgi (Kiziltepe, Kepez and Karakavak) and Tavsan comprise multiple individual prospects.
Near Term Gold Production Potential
The Red Rabbit gold project has a JORC compliant resource of 448,000 oz Au equivalent. There is potential to increase the resource through additional exploration and as a result the Company is targeting in excess of 500,000 oz Au equivalent which will include approximately 4 million oz Ag.
In 2009 Ariana succesfully completed trial gold production, producing 387 oz Au at the Kiziltepe sector of the Red Rabbit gold project. Following trial mining a scoping study was undertaken by Wardrop Engineering (Wardrop) . The study provided for a production rate of 150,000 tonnes of ore per annum (up to 30,000 oz Au equiv.) with a mine life of in excess of 5 years. The scoping study estimated a project cash cost of between US$350-400 per ounce. The Kiziltepe sector would provide for an open pittable, high grade, moderate strip-ratio, Carbon-In-Leach (CIL) operation.
In 2010 Ariana Resources committed to develop the Red Rabbit gold project in partnership with Proccea Construction Company. The project is currently being fast-tracked to production.
Phased Development to Production
PHASE 1 - FS & EIA
Proccea are funding US$1.4 million including all costs associated with the Feasibility Study (FS), Environmental Impact Assesment (EIA), permitting, land acquisition and additional exploration in the vicinity of Kiziltepe.
PHASE 2 - Construction
Encompasses the construction and commissioning of the gold mine. This will involve the establishment of the processing plant, tailings and waste-rock disposal areas in addition to related mine infrastructure and facilities.
PHASE 3 - Production
Production and further investment. This involves the longer term development of the Kiziltepe Sector and the advancement of the Tavsan Sector.
Ariana has the option to sell into the JV any resources discovered in the Red Rabbit project area at three times the exploration cost incurred by the Company.
IVRINDI GOLD PROJECT
The Ivrindi Gold Project is located in the Ivrindi District of Balikesir Province in western Turkey. The project comprises 7 exploration licences covering a total area of 91km2. The Project area lies approximately 70km from Sindirgi and 70km northeast of the one million ounce vein-hosted Ovacik gold mine and 180km northwest of the five million ounce Kisladag gold mine.
Reconnaissance rock-chip sampling identified the prospect area with peak values of 5.32 g/t Au and 1.46 g/t Au. Follow-up channel sampling along a single road-cut identified 48m of mineralisation, with higher grade sections of 3.21 g/t over 10m, 3.09 g/t over 5m and 1.4 g/t over 13m (using a 0.5g/t Au cut-off) and a peak grade of 10.42 g/t. Soil sampling defined an extensive and coherent east-west trending gold in soil anomaly of 750m by 50m. 9% of the 230 samples collected returned values above 0.1 g/t Au and the peak soil value was 1.22 g/t Au. Drilling has provided intersections of 1.41 g/t Au over 6.2m, 4.17 g/t Au over 1.9m and 4.91 g/t Au over 1.7m.
DEMIRCI GOLD PROJECT
The Demirci Gold Project is located in the Demirci District of Manisa Province in western Turkey. The project comprises 3 exploration licences covering a total area of 54km2. The Project area lies approximately 60km from Sindirgi and 130km east of the one million ounce vein-hosted Ovacik gold mine and 60km northwest of the five million ounce Kisladag gold mine.
50m by 50m and more detailed sampling on 25m by 25m grids has defined a large area of anomalous geochemistry with a peak gold grade of 4.16 g/t Au. Sixteen samples provided grades >0.5% Ni with peak grades of 1.72% Ni and 0.15% Co. Rock-saw channel sampling of altered schists gave consistent mineralisation in places with up to 0.49 g/t Au over 23m.
Drill intercepts from six intial holes provided 1.52 g/t Au over 2m and 1.36 g/t Au over 4m from no more than 10m verical depth from surface.
Follow-up exploration programmes are planned to define new drill targets.
ELDORADO GOLD JOINT VENTURE
Reconnaissance exploration in eastern Turkey for large porphyry Cu-Au and related deposits identified potential in north-eastern Turkey and resulted in the acquisition of the Ardala Project by the Company. This project, in addition to several other licences, is now being advanced through a Joint Venture agreement with Eldorado Gold. A Joint Venture exploration company, 49% owned by Ariana Resources and named Pontid Madencilik San. ve Tic. Ltd., was established in 2008. The Joint Venture includes a free-carry to Bankable Feasibility at 20% or 10%, for initial projects or new projects, respectively. Funding of development costs thereafter is undertaken on a pro-rata basis and if Ariana is diluted to <5% during this period of joint funding then Ariana will adopt a 1.5% NSR
In its first year, European Goldfields (now Eldorado Gold) committed to and exploration budget of $1million, rising to $2.2 million in year 2. Exploration and drilling is underway on the principal prospects and the JV is targetting deposits with the potential to host > 1 million + oz gold.
PROCCEA CONSTRUCTION CO. JOINT VENTURE
In July 2010, Ariana Resources announced the joint venture (JV) of its Red Rabbit Project, with the Turkish construction firm Proccea Construction Co (Proccea). A shareholders agreement between Galata Madencilik (Ariana’s operating subsidiary in Turkey) and Proccea provided for the incorporation of a Turkish joint stock company named Zenit Madencilik San. ve Tic. A.S. (Zenit). Galata and Proccea may each own a 50% shareholding in Zenit subject to the terms of the JV. The ownership of the licences associated with the Red Rabbit project were transferred from Galata to Zenit in October 2010. Proccea is now funding the development of the Red Rabbit Project, as stated in the JV agreement.
With Ariana's principal exploration and development focused around western and north-eastern Turkey, the company believes that south-eastern Turkey is the next great frontier for gold and copper exploration in Turkey. Effective exploration in this region requires a unique and dedicated management capability with a focused exploration mind-set. As a consequence Ariana Resources made a strategic investment into Tigris Resources in 2010. Tigris is a private exploration and development company focused gold and copper deposits in the highly prospective Tethyan Metallogenic Belt in southeast Turkey. Ariana is confident that the uniqe skills of the Tigris team will be applied to a region that hosts significant potential for the discovery of world-class deposits.
Michael Spriggs, BA (Hons) MA MSc - Chairman
Michael has 37 years' mining sector experience having graduated from Oxford University with a BA (Hons) in 1964 and an MA in 1968. He obtained an MSc in Geology and Mineral Sciences from the University of Leicester in 1969. He worked for a number of major mining groups, including Anglo American, Falconbridge and Rio Tinto. Michael spent 11 years with the mining team of the UK investment bank SG Warburg (now UBS) from 1986-97. He was appointed Head of the South African Mining Equities Research Team and was subsequently appointed Director of Corporate Finance. Between 1997 and 2004 he was a partner at College Hill, the UK public relations consultancy, as head of the Mining Team. He is presently a consultant to Lothbury Financial Services, the public relations consultancy. He is a Committee Member of the Association of UK Mining Analysts, a Member of The Institute of Materials, Minerals and Mining and is a Chartered Engineer. Michael serves on the Company's Audit Committee and is chairman of the Company's Remuneration Committee.
Kerim Sener, BSc (Hons) MSc DIC PhD - Managing Director
Kerim graduated from the University of Southampton with a first-class BSc (Hons) degree in Geology in 1997 and from the Royal School of Mines, Imperial College, with an MSc in Mineral Exploration in 1998. After working for Independence Gold Mining Pvt. Ltd. (Lonmin Zimbabwe) he completed a PhD at the University of Western Australia. During his PhD, in 2000-2003, he worked with ASX-listed Northern Gold NL in the Northern Territory and on a variety of exploration consultancy projects in Western Australia. In 2009, he completed his military service in Turkey. He is a Fellow of The Geological Society of London, Member of The Institute of Materials, Minerals and Mining, Member of the Chamber of Geological Engineers in Turkey and a member of the Society of Economic Geologists. He is a non-executive director of ASX-listed Genesis Resources Limited in Australia.
Michael de Villiers, B. Comm. MIOD Professional Accountant - Non-Executive Director 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 is currently Finance Director of AIM-listed Mercator Gold plc, Norseman Gold plc and is CFO of Eurasia Mining plc, and was previously the Finance Director of Oxus Gold plc and Navan Mining plc. Michael serves on the Company's Remuneration Committee and is chairman of the Audit Committee.
William Payne, BA (Hons) ACA - Non-Executive Director and Chief Financial Officer
William studied Accountancy at Exeter University before training and qualifying as a Chartered Accountant with KPMG in London. He left after 5 years there to become a partner in W H Payne and Co. in 1991. In 2003 he became a partner in top thirty accountancy practice Wilkins Kennedy at their London office. He has a wide diversity of clients, and roles range from audit and assurance to planning, reporting and compliance. He is head of the firm's Property and Construction Group, and is responsible for several outsourced accounts and administration functions. William is also a director of a number of companies, including a company listed on the London PLUS Markets.
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