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Ariana Resources surges as it flags significant resource increase at Kiziltepe

The updated estimate has increased the resource at the site by 25% to around 321,000 ounces of gold and 5mln ounces of silver

Ariana Resources PLC - Ariana Resources flags significant resource increase at Kiziltepe

Ariana Resources PLC (LON:AAU) has reported what it says is a “significant” increase in the mineral resource estimate for its Kiziltepe mine in Turkey.

The AIM-listed explorer said the updated estimate increased the resource at the site by 25% to around 321,000 ounces of gold and 5mln ounces of silver. The increase also represents a 72% uplift over the feasibility study resource on an undepleted gold only basis.

WATCH: Ariana Resources: Mining continues uninterrupted after record quarter of ore production

Ariana said the increased resources supported potential for a “significantly extended mine life at Kiziltepe” should resources be converted into reserves, adding that several subsidiary veins comprising a “significant JORC exploration target” will also be drill-tested in the future with the aim of converting to resources.

"We are very pleased to note that the revised estimate supports an increase in expected mine-life to at least 2026 using a historical resource to reserve conversion ratio of 60% and at a throughput rate maintained at 200,000 tonnes per annum”, Ariana managing director Kerim Sener said in a statement.

Sener also said the company has commenced a new drilling programme to follow-up recent from recent exploration at the Arzu South area of the project, which had targeted “potential for underground extensions to the current resource”.

"We will keep the market appraised of our progress, as appropriate", he added.

The shares surged 9% to 3.4p in early deals on Thursday.

--Adds share price--

Quick facts: Ariana Resources PLC

Price: 4.05 GBX

AIM:AAU
Market: AIM
Market Cap: £42.92 m
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