Proactiveinvestors United Kingdom

Ariana Resources seeks further gold exploration licences in Turkey

Wed, 01 Feb 2012 08:05:00 +0000

Turkey-focused gold explorer and developer Ariana Resources (LON:AAU) plans to secure further licences in the highly prospective western part of the country during government auctions starting this month.

It also plans more exploration drilling in the Kiziltepe area with a view to increasing the Red Rabbit project resource of currently 448,000 ounces of gold equivalent.

Red Rabbit combines the Sindirgi and Tavsan deposits, which are 75 kilometres apart in western Turkey. Kiziltepe, Kerpez and Karakavak are prospects within Sindirgi, and Tavsan also comprises multiple individual prospects. The project is being developed in a joint venture with Turkish group Proccea Construction Co.

Exploration drilling is still underway at Kiziltepe, and is showing encouraging mineralisation in the gap between the planned Arzu North and Arzu South open pits, as well as promising results from targeting individual gold veins.

Ariana is formulating plans for a deep drilling programme at Kiziltepe to determine the long term underground potential of the project following the completion of open pit mining activity and beyond the current projected mine life of eight years.

The programme envisages up to four holes targeting a depth of up to 400 metres. The work will start in the third quarter of 2012 at the earliest.

Drilling on other prospects will proceed following the completion of drilling at Kiziltepe. They include Kepez West, Karakavak and Kizilcukur. A decision to proceed with drilling on Karakavak and Kizilcukur will be postponed until snow has cleared from these sites, which is anticipated in April 2012.

The company has completed an extensive review of licences currently available for auction through the Turkish General Directorate of Mining Affairs.

Ariana believes that approximately 40 licences in western Turkey show potential for gold and 14 are considered high priority.

It has committed a budget for the bidding and expects to secure several but not all of these licence areas in auction during February 2012, with further auctions to be held in April and May 2012.

Managing director Dr Kerim Sener said: "The scope and potential for the wider Red Rabbit project continues to grow as we advance our exploration activities in the area. The already robust economic fundamentals of the Red Rabbit gold project have the potential to be further improved.

“In line with this, we remain focussed on providing near term revenue generation, targeting average production of 20,000 ounces of gold equivalent from 2013, whilst simultaneously providing significant upside from wider exploration activities at Red Rabbit, where we are confident we have the ability to delineate in excess of 1 million ounces."

Ariana Resources: Kiziltepe feasibility study nearly complete; announces US$2 mln loan facility - UPDATE

Thu, 26 Jan 2012 13:25:00 +0000

---Adds broker comments---

Ariana Resources (LON:AAU) said the feasibility study for the Kiziltepe part of its flagship Red Rabbit project in Turkey is now nearly complete as it updated investors on progress.

The wide ranging statement also revealed the firm had agreed a US$2 million loan with Yorkville Advisors for current funding requirements for the project.

And it added that the company had begun acquiring land near the Arzu South pit - one of the last hurdles for the permitting of the project.

The remaining work for the feasibility study is currently focused on the design of the open pits to minimise the strip ratio and the review of engineering designs.

Work has now begun on the designs for the tailings storage facility and the final plans are expected before permits for construction are received - anticipated in the second half of 2012, said the company.

Ariana's managing director Kerim Sener said key operational and corporate milestones continued to be reached at Red Rabbit, adding that the current focus was on publishing the feasibility study.

However, he said that because of some delays relating to new environmental regulations, first production from the project was now projected in 2013.

"We will keep investors abreast of developments in this regard over the course of 2012," he added.

Sener added that the Turkish government remained highly supportive of the development of the project and Ariana planned to finalise all the study work in order to expedite Red Rabbit into production.

Ariana said the US$2 million loan will be made available in two tranches, with the first for US$750,000 to be repaid in ten instalments with the first due in January next year. The second tranche will be made available after the first tranche has been paid.

Interest at a rate of 10 per cent per annum on the outstanding loan amount, together with an implementation fee of 10 per cent on each advance, is payable with each instalment.

The firm also said today that it had agreed to make available a short-term loan of US$600,000 to be shared on a 50:50 basis with joint venture partner Proccea Construction to cover any shortfall in the development budget for phase one of the project.

House broker Fairfax said today's statement showed good progress with the feasibility study close to completion and Proccea making its first project financing investment.

"Production was expected to start in late 2012 but will now start in 2013," said the broker in a note to clients, adding that Fairfax expects an initial production of 7,000 ounces produced with ramp up to 14,400 ounces per year.

"Delay in the start relates to the design requirements on the tailings storage facility which the company expect to have in hand with permitting and construction targeted for H2 2012," it said.

Gold production should rise to 21,400 ounces in 2015 and the mine is scheduled for an eight year life but exploration is likely to allow further expansion of the gold resource, production rates and mine life, said Fairfax, which rates Ariana a 'buy' with a target price of 10 pence.

Ariana Resources: Kiziltepe feasibility study nearly complete; announces US$2 mln loan facility

Thu, 26 Jan 2012 08:52:00 +0000

Ariana Resources (LON:AAU) said the feasibility study for the Kiziltepe part of its flagship Red Rabbit project in Turkey is now nearly complete as it updated investors on progress.

The wide ranging statement also revealed the firm had agreed a US$2 million loan with Yorkville Advisors for current funding requirements for the project.

And it added that the company had begun acquiring land near the Arzu South pit - one of the last hurdles for the permitting of the project.

The remaining work for the feasibility study is currently focused on the design of the open pits to minimise the strip ratio and the review of engineering designs.

Work has now begun on the designs for the tailings storage facility and the final plans are expected before permits for construction are received - anticipated in the second half of 2012, said the company.

Ariana's managing director Kerim Sener said key operational and corporate milestones continued to be reached at Red Rabbit, adding that the current focus was on publishing the feasibility study.

However, he said that because of some delays relating to new environmental regulations, first production from the project was now projected in 2013.

"We will keep investors abreast of developments in this regard over the course of 2012," he added.

Sener added that the Turkish government remained highly supportive of the development of the project and Ariana planned to finalise all the study work in order to expedite Red Rabbit into production.

Ariana said the US$2 million loan will be made available in two tranches, with the first for US$750,000 to be repaid in ten instalments and the final instalment due in January next year. The second tranche will be made available following repayment of the first tranche.

Interest at a rate of 10 per cent per annum on the outstanding loan amount, together with an implementation fee of 10 per cent on each advance, is payable with each instalment.

The firm also said today that it had agreed to make available a short-term loan of US$600,000 to be shared on a 50:50 basis with joint venture partner Proccea Construction to cover any shortfall in the development budget for phase one of the project.

Ariana Resources: Shareholder increases stake in firm

Fri, 09 Dec 2011 07:54:00 +0000

Turkey-focused explorer Ariana Resources (LON:AAU) announced that T1ps Investment Management (IOM) has increased its holding in the firm.

T1ps Investment Management (IOM) Ltd has taken control of Athol Gold & Value Ltd and there was an exercise of warrants on December 2.

Its total holding in Ariana has increased to around 39.46 million shares - or 15.2 per cent of the voting rights, Ariana said in a statement this morning.

Athol Gold and Value Ltd (LON:AHG) is an AIM-quoted investment holding company.

The shares are now held in the SFT1ps smaller companies gold fund, with 12.83 per cent, the SFT1ps smaller companies growth fund. with 0.2 per cent and Athol Gold & Value Limited. with 2.17 per cent, funds under the discretionary management of T1ps Investment Management (IOM) Limited, on behalf of BNY Nominees Limited, Rivington Street Stockbrokers Limited.

As at October 12 this year, Rivington Street Stockbrokers held 3.43 per cent of the firm's capital.

On Wednesday this week, the firm said it will exercise 210,525 warrants, which were granted as part of a placing which raised £1.16 million earlier this year.

The funds were for exploration and development projects and possible acquisitions.

It received requests to exercise 210,525 warrants, granted as a one-for-one with the placing shares announced on February 18 this year - exercisable at 4.75 pence each within twelve months.

And on Monday this week (December 5) it told investors it had received requests to exercise 1,052,630 warrants as part of the same placing.

In February this year, Ariana said that it had placed 24.5 million shares at a price of 4.75 pence - nearly equal to the then share price of 5 pence - and said it was pleased with the support received for the placing.

Ariana’s priority project is the Red Rabbit joint venture in Turkey. It is the centre-piece of Ariana’s growth strategy and brings together the firm’s Kiziltepe prospect with Proccea’s Tavsan gold area.

The firm currently has a JORC compliant resource of 448,000 ounces across the wider Red Rabbit project area and plans to lift that to around 1 million ounces.

Ariana Resources exercises more warrants as part of placing

Wed, 07 Dec 2011 11:34:00 +0000

Turkey-focused explorer Ariana Resources (LON:AAU) announced today that it will exercise 210,525 warrants, which were granted as part of a placing which raised £1.16 million earlier this year.

The funds were for exploration and development projects and possible acquisitions.

Today (December 7), the firm said that it had received requests to exercise 210,525 warrants, granted as a one-for-one with the placing shares announced on February 18 this year - exercisable at 4.75 pence each within twelve months.

On Monday this week (December 5) it told investors it had received requests to exercise 1,052,630 warrants as part of the same placing.

In February this year, Ariana said that it had placed 24.5 million shares at a price of 4.75 pence - nearly equal to the then share price of 5 pence - and said it was pleased with the support received for the placing.

“These funds provide the company with the ability to move quickly on additional assets which meet our investment criteria, as we build the company towards being a mid-tier multi-project gold exploration and development company focused on Turkey, an emerging globally significant gold destination," it said.

As a result of the placing, chairman Michael Spriggs increased his stake in the company to 0.28 percent, non-executive director and company secretary Michael de Villiers upped his shareholding to 0.93 percent and non-executive director and chief financial officer William Payne increased his stake to 0.18 percent. Spriggs and de Villiers each took 100,000 shares and Payne took 102,632.

Ariana’s priority project is the Red Rabbit joint venture in Turkey. It is the centre-piece of Ariana’s growth strategy and brings together the firm’s Kiziltepe prospect with Proccea’s Tavsan gold area.

The firm currently has a JORC compliant resource of 448,000 ounces across the wider Red Rabbit project area and plans to lift that to around 1 million ounces.

Red Rabbit consists of two assets 75 km apart - Sindirgi (which contains Kiziltepe, Kepez and Karakavak) and Tavsan.

Last month, the company unveiled silver results and broker Northland said that these, along with previous high grade gold finds at the Kepez prospect underlined the potential to expand the firm's overall resource.

As at 11.30 am, the firms' shares were trading at 4.75 pence each.

Ariana Resources to exercise warrants as part of placing

Mon, 05 Dec 2011 07:29:00 +0000

Explorer Ariana Resources (LON:AAU) told investors today that it will exercise 1 million warrants, which were granted as part of a placing which raised £1.16 million earlier this year.

The funds were for exploration and development projects and possible acquisitions.

Today, the firm said that it had received requests to exercise 1,052,630 warrants, granted as a one-for-one with the placing shares announced on February 18 this year - exercisable at 4.75p each within twelve months.

In February, Ariana said that it had placed 24.5 million shares at a price of 4.75 pence - nearly equal to the then share price of 5 pence - and said it was pleased with the support received for the placing, adding:

“These funds provide the company with the ability to move quickly on additional assets which meet our investment criteria, as we build the company towards being a mid-tier multi-project gold exploration and development company focussed on Turkey, an emerging globally significant gold destination."

As a result of the placing, chairman Michael Spriggs increased his stake in the company to 0.28 percent, non-executive director and company secretary Michael de Villiers upped his shareholding to 0.93 percent and non-executive director and chief financial officer William Payne increased his stake to 0.18 percent. Spriggs and de Villiers each took 100,000 shares and Payne took 102,632.

Ariana’s priority project is the Red Rabbit joint venture in Turkey. It is the centre-piece of Ariana’s growth strategy and brings together the firm’s Kiziltepe prospect with Proccea’s Tavsan gold area.

The firm currently has a JORC compliant resource of 448,000 ounces across the wider Red Rabbit project area and plans to lift that to around 1 million ounces.

Ariana's flagship Red Rabbit project consists of two assets 75 km apart - Sindirgi (which contains Kiziltepe, Kepez and Karakavak) and Tavsan.

Last month, the company unveiled silver results and broker Northland said that these, along with previous high grade gold finds at the Kepez prospect underlined the potential to expand the firm's overall resource.

On Friday, the firm's shares closed trading at 4.75 pence.

Ariana Resources' latest finds at Kepez underline potential to expand overall resource, says Northland

Tue, 22 Nov 2011 13:57:00 +0000

Today's silver results along with previous high grade gold finds at the Kepez prospect in western Turkey have underlined the potential to expand Ariana Resources' (LON:AAU) overall resource, says broker Northland.

The firm currently has a JORC compliant resource of 448,000 ounces across the wider Red Rabbit project area and plans to lift that to around 1 million ounces.

Ariana's flagship Red Rabbit project consists of two assets 75 km apart - Sindirgi (which contains Kiziltepe, Kepez and Karakavak) and Tavsan.

Surface sampling of the Karakaya vein on Kepez has shown higher than previously anticipated concentrations of silver, Ariana said today, and revealed the average grade ranged from 65 grams per tonne (g/t) to 277 g/t.

In addition to the existing high gold grades found in the area, today's finds could potentially lead to a doubling of the indicated resource estimate for Kepez, it said.

The indicated resource here currently stands at 60,000 tonnes at 4.6 grams of gold for a rather modest total of 8,900 ounces of gold.

Ariana's managing director Kerim Sener told investors: "These excellent silver results make the already high-grade Karakaya vein at Kepez an even more valuable prospect.

"The resulting gold equivalent grades, which could allow for a doubling of the existing resource at Kepez, may potentially mean that the prospect is mined earlier in the Red Rabbit project than originally scheduled."

Northland analyst Dr Ryan Long welcomed today's announcement from the firm.

He said exploration at Kepez was still early stage but the "high grades and proximity of the Kepez prospect to the Red Rabbit project, currently undergoing a prefeasibility study, suggests the Kepez could be mined simultaneously with the Red Rabbit".

Drilling is expected to begin at the Kepez prospect in the first quarter next year and Northland looked forward to further results, he said.

Ariana is less than a year away from its first gold pour at Kiziltepe, where the plan is to ramp up production to an annualised 20,000 ounces of gold equivalent.

The main pit and four smaller veins nearby are expected to produce at this rate for eight years. However, there is scope to raise the rate of production or to increase the mine life in the event of new vein discoveries in the region.

As at 2pm today, shares in the company were up 5.13 per cent, changing hands at 5.13 pence.

Ariana Resources sees potential for early production at Kepez

Tue, 22 Nov 2011 07:28:00 +0000

Ariana Resources said surface sampling of the of the Karakaya vein on the Kepez project in Western Turkey has identified higher than previously anticipated concentrations of silver.

Kerim Sener, Managing Director of Ariana Resources, talks to Proactive Investors

Fri, 04 Nov 2011 11:05:00 +0000

Kerim Sener, Managing Director of Ariana Resources (LON:AAU), talks about plans to acquire six or more new gold & silver exploration licences, scope to grow resources at Kiziltepe & Tavsan, progress in north-eastern & south-eastern Turkey, & the first gold pour at Kiziltepe with eight years of production scheduled (Oct 2011).

Ariana Resources kicks off drill programme at Red Rabbit gold project

Mon, 24 Oct 2011 07:59:00 +0100

Ariana Resources (LON:AAU) has kicked off a follow -up drill programme at the Red Rabbit gold project in western Turkey.

The drilling work comes ahead of the project's feasibility study which is scheduled for completion towards the end of this year, prior to the start of production next year.

The programme will comprise of 4,000 metres of drilling on the Kiziltepe, Kepez West, Karakavak and Kizilcukur areas of the Red Rabbit project. Ariana said that work is currently underway at Kiziltepe, on the Fidan Vein.

"This drilling programme aims to better define mineralised structures across the project area that may host open-pittable resources that would provide additional mill feed for the planned plant at Kiziltepe,” said managing director Dr. Kerim Sener.

“This is an exciting time for the company, as we advance our feasibility study on Red Rabbit and continue to look for new resource growth opportunities in the region.

“Having our own drilling team provides tremendous flexibility as we can mobilise to new areas at short notice which will be particularly advantageous in the event of the successful acquisition of new ground via auction."

Around 50 holes will be drilled to depths of 50 to 100 metres. Ariana expects the programme to finish during the first quarter of 2012.

Ariana Resources primed and ready for a crucial phase in its development

Fri, 21 Oct 2011 08:44:00 +0100

Boss Kerim Sener talks to Proactive as the miner enters a pivotal phase in its development.

Ariana Resources says Kiziltepe mine life extended by a year to eight years

Mon, 17 Oct 2011 08:08:00 +0100

Ariana Resources (LON:AAU) has increased the mine life for the Kiziltepe sector of its Red Rabbit gold joint venture in western Turkey by a year to eight years.

This was one of the key results of a pre-feasibility study released this morning.

The report also contained an increased pit resource of 188,200 ounces of gold and 1.45 million ounces of silver. The deposit is expected to produce 20,000 ounces of gold per year for the first five years.

The company also said today it is confident of increasing its current resource base to 1 million gold equivalent ounces from 448,000 currently.

The Red Rabbit project is jointly owned with local construction firm Proccea. It combines two assets - Sindirgi and Tavsan - that are 75 kilometres apart.

The main prospects are Kiziltepe, Kepez and Karakavak, which are within Sindirgi. This time next year the group will be on the cusp of its first gold pour at Kiziltepe.

Ariana managing director Kerim Sener said: "The results from the PFS provide us with further evidence of the significant potential of the Red Rabbit gold project as we gear up towards production.

“Importantly, the increase in mineable tonnage and, in turn, total mine life to in excess of eight years, reinforces the company's ability to generate significant revenues from Red Rabbit.

“This statement holds true even if we take a conservative approach to long-term gold prices as demonstrated by the pit optimisation, which was undertaken using a US$1,058 per ounce base case.

"In tandem with the feasibility study being completed before the end of 2011, exploration at Red Rabbit remains a core focus for Ariana as we are confident of the wider area's potential to host in excess of 1 million ounces of gold equivalent.

“New discoveries such as the Gamze Vein, where continuous high-grades of up to 10.7 grams per tonne of gold equivalent were identified; and the Hande Vein, where grades of up to 7.74 grams per tonne of gold equivalent were reported, underpin this confidence.

“This strategy ensures near-term revenue generation whilst also benefitting from the significant uplift potential new discoveries will bring to the company."

Ariana Resources spies opportunity to significantly increase gold exploration footprint in Turkey

Mon, 10 Oct 2011 12:52:00 +0100

Turkey-focused gold miner Ariana Resources said today that it has a “key opportunity” to substantially increase its mineral gold footprint in western Turkey now that licence auctions in the country have been announced.

Ariana Resources has “key opportunity” to increase potential for multi-million ounce finds

Mon, 10 Oct 2011 09:11:00 +0100

Turkey-focused gold miner Ariana Resources (LON:AAU) said today that it has a “key opportunity” to substantially increase its mineral exploration footprint in western Turkey now that licence auctions in the country have been announced.

Turkey’s auctions for what are known as ‘Group IV’ licences (which include gold, silver and copper) are due to commence in January and continue until May 2012. In all, 1,252 exploration licences will be auctioned via a consecutive closed and open bidding process.

Ariana said that it has identified 20 prospective target licences within its area of interest and it plans to further evaluate these before the auctions begin. Meanwhile, the firm said it is in a “strong position” to take advantage of opportunities offered by this round of auctions following on from its grassroots exploration programme in 2010/2011.

“We are in an unrivalled position to identify prospective target areas for exploration in western Turkey, and acquire these at auction,” said Dr Kerim Sener. “Having our own operational drill rig means we can quickly evaluate any licences that we acquire. This will help us on our way to growing our resource-base across western Turkey through low-cost grassroots discoveries by the Ariana exploration team, and achieving our target resource of one million ounces gold equivalent.”

Shares in Ariana were higher by 6.7 per cent at 4.4 pence each in early trading this morning.

UPDATE: Ariana Resources: sights “firmly set on” becoming Turkey’s next gold producer

Fri, 30 Sep 2011 14:34:00 +0100

UPDATE: Adds comments from brokers Fairfax Securities & Northland Capital

Announcing its 2011 interim results today, Ariana Resources (LON:AAU) said it is making progress towards becoming Turkey’s next gold producer with its Red Rabbit gold project set to begin production in the fourth quarter of next year.

The firm’s total resource inventory current stands at 448,000 ounces of gold equivalent and Ariana has an objective to increase this resource to one million ounces in the medium term.

Ongoing exploration at Red Rabbit has generated “exciting results”, said Ariana, with two new vein discoveries at the Kiziltepe Sector containing up to 10.7 grams per tonne and 7.74 grams per tonne gold equivalent.

Meanwhile, the firm is focused on expanding its resource inventory through new ground acquisitions and exploration in western Turkey with licence auctions expected during Q4 2011 and Ariana having identified “several attractive targets”.

Dr Kerim Sener, Arian’s managing director, said the firm’s “sights remain firmly set on becoming Turkey’s next gold producer” and that Ariana was “delighted” with the continued progress made at Red Rabbit, where it is gearing up to a new drilling programme to test new targets at Kiziltepe ahead of Proccea Construction taking control of the joint venture project.

"Much of the earlier part of this year was focused on evaluating the results of our regional exploration programmes in Western Turkey,” said Sener. “The exploration team has built several enviable datasets and we are now in an excellent position to rapidly assess new opportunities across the region. We have already set our sights on a number of targets, which are expected to become available as part of the Turkish Government's licence auctions process.”

During the six months to June 30 Ariana made a net loss of £854,000, compared with a £183,000 loss in H1 2010. At the end of the period, it had £1.2 million cash in the bank.

“Ariana is moving quickly to develop its first gold mine and to increase gold and silver resources on the JV and wholly owned licence area,” Fairfax Securities analyst John Meyer said.

“The management are conservative in their approach to announcements on the project and they are more likely to under promise and over deliver. The mine plan is being built on a resource base which is likely to expand as results come through on exploration near the Kiziltepe sector of the Red Rabbit project.”

Fairfax has a buy recommendation on the stock with a 10 pence a share target price. The broker’s target is based on a conservative estimate of Ariana’s 50% share of the Red Rabbit project, Meyer said.

In a note to clients Northland Capital analyst Andrew McGeary also emphasised the potential of the Red Rabbit project: “The conclusion of the feasibility study at the Red Rabbit Deposit will be an important milestone towards first production from the Red Rabbit Deposit.”

Ariana Resources: sights “firmly set on” becoming Turkey’s next gold producer

Fri, 30 Sep 2011 08:52:00 +0100

The firm’s total resource inventory current stands at 448,000 ounces of gold equivalent and Ariana has an objective to increase this resource to one million ounces in the medium term.

Ongoing exploration at Red Rabbit has generated “exciting results”, said Ariana, with two new vein discoveries at the Kiziltepe Sector containing up to 10.7 grams per tonne and 7.74 grams per tonne gold equivalent.

Meanwhile, the firm is focused on expanding its resource inventory through new ground acquisitions and exploration in western Turkey with licence auctions expected during Q4 2011 and Ariana having identified “several attractive targets”.

Dr Kerim Sener, Arian’s managing director, said the firm’s “sights remain firmly set on becoming Turkey’s next gold producer” and that Ariana was “delighted” with the continued progress made at Red Rabbit, where it is gearing up to a new drilling programme to test new targets at Kiziltepe ahead of Proccea Construction taking control of the joint venture project.

"Much of the earlier part of this year was focused on evaluating the results of our regional exploration programmes in Western Turkey,” said Sener. “The exploration team has built several enviable datasets and we are now in an excellent position to rapidly assess new opportunities across the region. We have already set our sights on a number of targets, which are expected to become available as part of the Turkish Government's licence auctions process.”

During the six months to June 30 Ariana made a net loss of £854,000, compared with a £183,000 loss in H1 2010.

At the end of the period, it had £1.2 million cash in the bank.

Shares in Ariana were down 2.9 per cent at 4.37 pence each during early trading this morning.

Ariana Resources offers an enticing entry point, reckons Edison

Tue, 30 Aug 2011 13:46:00 +0100

Ariana Resources (LON:AAU), which plans initial production from Red Rabbit in Turkey in the second half of 2012, offers investors an enticing low-cost entry point in a mining junior approaching gold production, reckons research house Edison.

It offers exploration potential on top of a short-term production base in Turkey - a relatively under-explored country, says analyst Charles Gibson, in a note today.

The company's shares are currently trading at 5.88 pence - 4.44 percent higher than Friday's close.

The Red Rabbit project is a 50:50 joint venture with Proccea and the current timeline sees the Definitive Feasibility Study (DFS) finished by the end of this year.

Edison says it values Ariana's share of the project at 4.92 pence rising to 7.40 pence at the current spot price for gold (around US$1,850 per ounce).

Additional value will be geared to exploration success at the company’s wholly owned exploration licences and joint-ventures across Turkey, it added.

Based on Edison's own estimates, Ariana Resources is trading at an average discount of around three times other AIM quoted gold stocks, said Gibson.

It added that if the company was successful in expanding its resource base to around 1 million ounces of gold equivalent and the Red Rabbit mine life is increased then it reckons Ariana would start to trade at a price earnings ratio more in line with the FTSE Gold Mines index.

Edison added that it had not factored in the achievement of reaching production nor the growing confidence the firm has in the vicinity near Red Rabbit to exploit similar vein systems - not least the Kizilcukur prospect.

"Further additional upside is provided in its other exploration interests in the north and east of Turkey (the European Goldfield JV and its 13 percent interest in privately owned Tigris Resources," said Gibson.

UPDATE: Ariana Resources discovers additional vein system at Kiziltepe gold target in Turkey

Mon, 22 Aug 2011 13:36:00 +0100

Update....with broker comment

Turkey-focused gold group Ariana Resources PLC (LON:AAU) said it discovered a new buried gold-silver vein system, called the Hande Vein, at the Kiziltepe target of its Red Rabbit gold project.

The latest success follows the discovery in May of the Gamze Vein at Kiziltepe and further underpins the high prospectivity of Red Rabbit project area where production is targeted for the fourth quarter of 2012, the group said in a statement.

Since the discovery of the Gamze Vein, the company has continued surface sampling along multiple geophysical targets at the Kiziltepe deposit.

A field team recently completed a follow-up float and rock-chip sampling programme over an area covering the newly named Hande Vein. This was designed to confirm the distribution of near surface mineralisation and to determine the relationship of this structure to the Banu Vein, which outcrops to the southeast.

The team obtained high grades there, with a maximum of 7.74 grams per ton gold equivalent and an overall average of 1.47 g/t Au equivalent. Ariana said the continuity of grade identified along the strike length of this vein, totalling 950 metres, identify this area as an important target for future exploration. Field and geophysical evidence suggest that the Hande and Banu vein systems are connected within the same mineralised structure.

Consequently there is some potential to expand the planned Banu pit to the north-west, following new exploratory drilling.

Managing director Dr Kerim Sener said: "The identification of an additional high grade vein system at the Kiziltepe deposit further underpins the high prospectivity of the Red Rabbit project area, and demonstrates the potential for increases to our current JORC compliant resource of 448,000oz Au equivalent.

“These new vein discoveries represent a key development in the evolution of the Red Rabbit Project, as we simultaneously advance towards production in 2012 and conduct exploration activities across the project area to feed into the current resource, extending the mine life and further improving the economic fundamentals of the project.”

In addition to the new discoveries at Kiziltepe, recently completed geophysical programmes at the satellite prospects of Kepez West, Karakavak and Kizilcukur have also identified numerous chargeability and resistivity anomalies which have been identified as high priority drill targets ahead of Ariana’s drilling campaign which will commence in September.

Shore Capital welcomed the announcement, saying that if the vein system uncovered is connected with the Banu system as the company believes, the planned Banu pit could potentially be extended.

It adds:"While today’s and recent discoveries are encouraging, these are still very early days and drilling will be required before we have a clearer idea of by how much the current 0.448Moz resource could be expanded."

Ariana Resources shareholder T1ps Investment Management raises stake to over 11 pct

Fri, 05 Aug 2011 15:12:00 +0100

Ariana Resources PLC (LON:AAU) was notified that T1ps Investment Management has increased its stake in the group to 11.06 percent of the capital.

According to Ariana’s shareholder register which is dated May 26 2011, this makes T1ps the second largest shareholder after joint venture partner European Goldfields Ltd (LON:EGU, TSE:EGU) which as of May 26 controls 11.27 percent.

Ariana said T1ps bought the additional stock on Monday, August 1, raising its holding to 27.84 million shares. They are held in the SF T1ps Smaller Companies Gold Fund.

Ariana is an exploration and development company focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey. It is developing a portfolio of prospective licences in western Turkey and in north-eastern Turkey.

European Goldfields owns 51 percent of the Ardala copper-gold JV in north-eastern Turkey and, as the operator, is fully funding all exploration work until delivery of a feasibility study.

The company's flagship assets are its Sindirgi and Tavsan gold projects which form the Red Rabbit Gold Project, which is being developed in a separate joint venture with Turkish construction firm Proccea.

Ariana also has a 15 percent strategic investment in Tigris Resources Ltd, which is focused on the exploration of copper and gold deposits in southeastern Turkey.

Ariana Resources is moving fast towards increasing gold resources- broker

Thu, 04 Aug 2011 15:23:00 +0100

Broker Fairfax says Ariana Resources (LON:AAU) is moving fast towards increasing its gold resources.

The house broker released a note on the gold firm today following the announcement that Ariana had defined multiple drilling targets on its newly acquired Kizilcukur gold prospect in western Turkey.

The broker feels there should be much to come from the company for investors.

The drill targets at Kizilcukur were identified after a geophysical programme on the property and further underpin the prospectivity of the entire project area within the Sindirgi gold corridor - a mineralised trend which extends through Ariana’s flagship Red Rabbit gold project, said the company today.

The Kizilcukur area lies within 20km of the production JV licences on Red Rabbit - held between Ariana Resources and Proccea Construction.

This could enable the trucking of higher grade gold ores to a plant within the JV license, said Fairfax.

"Drilling and defining vein deposits takes time and effort but is proving highly rewarding for many miners in the current gold price environment.

"If Ariana’s inference is correct then Kizilcukur could reward investors with the addition of meaningful ounces outside the production JV but within easy reach of the gold plant if agreement can be reached," said the broker, which recently visited the firm's licences in Turkey.

Ariana said today that with additional exploration work, it hopes to establish a resource for the Kizilcukur prospect. This resource may then be integrated into Red Rabbit’s development, which will enhance the economic fundamentals of the project, for which production is scheduled in late 2012.

The Red Rabbit resource currently stands at 448,000 ounces of gold equivalent.

Ariana Resources defines multiple drilling targets on Kizilcukur gold prospect in Turkey

Thu, 04 Aug 2011 07:40:00 +0100

Turkey-focused gold group Ariana Resources PLC (LON:AAU) said it has defined multiple drilling targets on its newly acquired Kizilcukur gold prospect in the west of the country, following the conclusion of a successful geophysical programme on the property.

The results further underpin the prospectivity of the entire project area which is contained within the Sindirgi gold corridor, a mineralised trend which extends through Ariana’s flagship Red Rabbit gold project, the group said in a statement.

They also confirm the continuity of potentially mineralised structures at depth and along strike of areas previously drill tested at Kizilcukur.

With additional exploration work, it hopes to establish a resource for the prospect. This resource may then be integrated into Red Rabbit’s development, which will enhance the economic fundamentals of the project, for which production is scheduled in late 2012.

The Red Rabbit resource currently stands at 448,000 ounces of gold equivalent.

The Kizilcukurprospect, located 21 kilometres from Kiziltepe and at the north-east end of the Sindirgi gold corridor, had previously not been explored by geophysical methods.

The programme was designed to determine the sub-surface extent of the known vein outcrops and their connectivity, generate drill targets and subsequently expand the resource for the wider Red Rabbit project.

Managing director Dr. Kerim Sener said: “The exploration team is currently designing a drilling programme and relevant permit applications are being completed. These results, along with those obtained from the Kepez West and Karakavak prospects, will be remodelled in three dimensions and assessed in parallel with previous exploration data.

“In addition, relogging of all old diamond drill core from Kizilcukur, covering 17 drill holes, is being completed ahead of final drill hole planning."

Ariana Resources looks good value, says Fairfax

Fri, 29 Jul 2011 15:13:00 +0100

Ariana Resources is focused in western Turkey, where it wants to develop the Kiziltepe mine for its Red Rabbit project. Yesterday, the company revealed that a geophysical study of the asset has returned positive results.

Ariana Resources says geophysical programme identifies "numerous" drill targets

Thu, 28 Jul 2011 07:39:00 +0100

Ariana Resources (LON:AAU) said this morning that its geophysical programme on two satellite prospects in the Kiziltepe sector of its Red Rabbit Gold Project in western Turkey had identified “numerous high priority drill targets”.

It revealed that “large, high resistivity and chargeability anomalies” had been identified at Kepez West.

At the same time it said two main gold-bearing quartz veins on the Karakavak prospect are connected by a sub-surface structure, providing 1.7 kilometres of untested strike length.

It will now focus in on a handful of targets as it plans its latest drilling programme.

Managing director Kerim Sener said: "Due to the positive results obtained from earlier geophysical programmes undertaken at Kiziltepe, we have now completed programmes at the satellite prospect areas of Kepez West and Karakavak.

“Results from these programmes have indicated numerous chargeability and resistivity anomalies, which we understand to represent near surface, mineralised quartz veins and related alteration.

“It is our aim to further expand the Kiziltepe resource base by following up and drilling these new targets over the next year."

The Red RabbitGold Project brings together the Kiziltepe prospect with Turkish construction firm Proccea’s Tavsan gold area.

Together they have a resource of 450,000 ounces of gold and gold equivalent, though the target is to take that figure to at least 500,000 ounces. From that they hope to produce around 30,000 ounces per annum over a five year period.

Proccea has committed to spending US$8 million to earn a 50 per cent stake in the joint venture company.

Phase one of the project will be overseen by Ariana, which will include the feasibility study and environmental permitting process. Once this is completed the project will then be handed over to Proccea, which will supervise the construction of the gold plant.

Ariana Resources completes exploration licence purchase from KEFI

Wed, 20 Jul 2011 07:53:00 +0100

Turkey-focused gold miner Ariana Resources (LON: AAU) has announced it has completed the acquisition of four prospective exploration licences in western Turkey from fellow AIM-quoted Turkish explorer KEFI Minerals (LON:KEFI).

In early June Ariana said that it had signed agreements to purchase from KEFI four exploration licences covering two highly-prospective project areas: Kizilcukur and Muratdag.

Ariana said that its Turkish subsidiary Galata Madencilik has now made a payment of 10,000 Turkish lira in consideration for the transfer of the licences. Ariana has also issued 910,747 new shares at a deemed price of 5.49 pence per share to KEFI.

Meanwhile, the net smelter return royalty of two per cent payable by Galata to KEFI’s subsidiary on commercial production of any mineral from the licences has also now been granted.

On the Kizilcukur project there are two kilometres of mineralised quartz veins containing high-grade gold and silver. Previous assay results suggest up to 152 grams per tonne of gold and 1,320 grams per tonne of silver.

The acquisition of the Kilizcukur project provides Ariana with access to the entire gold mineralised trend within the Sindirgi Gold Corridor which is contained by the firm’s flagship Red Rabbit gold project.

Meanwhile, a gold and soil geochemical anomaly has been identified on the Muratdag project, which has not previously been drill tested.

Ariana said that the acquired properties demonstrate strong synergies with the Red Rabbit project, which is being fast-tracked towards production in 2012

Ariana Resources completes deal to buy Turkish exploration projects from KEFI

Fri, 03 Jun 2011 07:46:00 +0100

Ariana Resources (LON:AAU) has completed a deal to acquire a number of prospective gold properties in western Turkey from KEFI Minerals.

The two AIM-listed firms agreed the initial terms of the deal back in March. The four exploration licences cover two main areas, known as Kizilcukur and Muratdag.

Ariana has made a nominal cash payment to KEFI, it will issue shares worth £50,000 and it will grant KEFI a 2 percent net smelter royalty for all future production from the licences.

"This is an important transaction for Ariana,” said Ariana managing director Dr Kerim Sener.

He added: “In particular, the synergies between these new projects and our flagship Red Rabbit Gold Project make this a particularly attractive strategic acquisition for the company.

“Development at Red Rabbit continues at pace ahead of production next year, and the consolidation of additional licences in the locality provides us with further resource uplift potential, which, in the longer term may provide the opportunity to significantly extend the mine life of Red Rabbit and improve the financial returns of the wider project area.”

The deal also makes a lot of sense for KEFI, who have a stated divestment strategy which will allow it to focus on projects that can be fast-tracked to production.

KEFI managing director Jeff Raynor said: "We continue to focus on developing projects in under-explored countries with excellent potential for discovery of major gold and copper mines.

“The decision to sell the assets in western Turkey is in line with our decision to focus on other projects, which are to be developed pending licence application approval."

KEFI is focusing it attentions on projects in Turkey and in Saudi Arabia.

In a separate statement KEFI also release their annual results, for the twelve months ended 31 December 2010.

During the year it has tested various prospects, taking a cost effective approach, which has allowed it to move onto other prospects with a greater chance of exploration success. So far all the field exploration work has been confined to Turkey.

Meanwhile in Saudi Arabia it is currently working through the licence application process. It said it is very keen to commence field explorations there.

"We continue to progress exploration programmes that aim to fast-track gold and copper discoveries and the eventual development of new mines,” Rayner added. “We are further progressing the licence application procedure in Saudi Arabia and will update shareholders with developments on this front in due course."

Ariana Resources says achieved all strategic milestones in full year

Mon, 23 May 2011 08:52:00 +0100

Turkey-focused gold group Ariana Resources PLC (LON:AAU) said it achieved its strategic project milestones during the full year to December 31 2010, which enabled the company to progress the Red Rabbit gold project towards production.

Red Rabbit is the joint venture with Turkish construction firm Proccea, which combines Ariana’s Kiziltepe gold deposit with Proccea’s Tavsan gold area.

The resource base at Red Rabbit continues to increase, and focused exploration and planned acquisitions in western Turkey have the potential to grow Ariana's resource base further.

The group’s gold and silver resource base has been expanded by 25 percent in the period to almost 450,000 ounces of gold equivalent.

Red Rabbit is on course to become the next new Turkish gold producer during 2012, and the European Goldfields (LON:EGU) joint venture exploration programme in north-eastern Turkey is producing exciting results and its partners continue to support the further funding of these exploration programmes, Ariana said.

Throughout Turkey, Ariana retains a substantial gold licence portfolio, including seven drill-stage prospects.

While the principal exploration and development focus remains in western and north-eastern Turkey, the company has additionally made a strategic investment in private company Tigris Resources, an exploration vehicle which will provide Ariana with access to a number of attractive gold-copper properties in south-eastern Turkey, a highly prospective but much underexplored region.

Via a C$115,000 private placement in 2010, Ariana acquired a 15 percent stake in Tigris and managing director Dr Kerim Sener has been appointed as a non-executive director to the Tigris board.

The Tigris placing funds will be used to tender for the next round of exploration licences which it expects to be announced this year.

Ariana posted an operating loss of £515,000 for the full year, compared with a £407,000 loss in 2009.

Ariana Resources finds new gold vein system at Kiziltepe in Turkey

Tue, 17 May 2011 07:45:00 +0100

Turkey-focused Gold group Ariana Resources PLC (LON:AAU) has discovered a further gold bearing vein system on the Kiziltepe gold deposit in Balikesir Province, western Turkey.

The latest results come from a surface sampling programme at Kiziltepe, part of the Red Rabbit joint venture with Turkish construction firm Proccea. Red Rabbit combines Kiziltepe with Proccea’s Tavsan gold area.

Sampling at what is now called the Gamze vein returned continuous high grades up to 10.7 grammes per tonne of gold equivalent.

Managing director Dr Kerim Sener said: "The recent confirmation of the Gamze vein reinforces the potential for significant near surface resource upside at the Kiziltepe gold prospect, which is further enhanced by the identification of additional vein systems parallel to the trend of known structures.

"A drilling programme is being planned for the summer and it is expected that these additional veins will provide further resource upside for the planned mining operation at Kiziltepe."

Gamze is showing strong continuity with existing high-grade gold bearing vein systems, and there is potential for expansion of the current 448,000 ounces of gold equivalent JORC resource for Red Rabbit.

An increased resource would further improve the economics of the planned operation at Kiziltepe, where production is targeted to begin in 2012.

Ariana Resources: Kiziltepe open pit boosted by new scoping study

Mon, 04 Apr 2011 07:40:00 +0100

Ariana Resources’ (LON:AAU) Red Rabbit joint venture was boosted by a newly updated scoping study, which it says demonstrates little downside to the project.

The study was carried out for Kiziltepe, the nearer term open-pit part of the Turkish gold mine development project. It was prepared by the company’s consultants Wardrop, as part of the ongoing pre-feasibility study work for Kiziltepe.

"The completion of this report is an important part of our ongoing work programmes at Kiziltepe,” said managing director Dr. Kerim Sener.

Importantly Kiziltepe’s resource was also updated as part of the study, with 1 million tonnes of ore, grading 3.6 grams per tonne gold and 41.6 grams per tonne silver, in preliminary optimised pits. The scoping study sees annual production at 20,000 ounces a year, from 150,000 tonnes of ore.

Kiziltepe has a 6.9 year mine life based on current resource estimates (this only includes measure and indicated resources).

Capital costs are estimated for this part of the Red Rabbit project are estimated at US$25.1 million, with cash costs seen in the region of US$441 to US$472 per ounce. The mine net present value (NPV) is estimated at US$56.2 million with an internal rate of return (IRR) of 75.9 percent, with payback secured in 1.2 years – based on US$1,350 an ounce gold and US$20 per ounce of silver price.

Sener added: “We have demonstrated the economic potential of the project using base case gold and silver prices that may now be considered conservative. The pit optimisation currently being considered for the PFS will inevitably be using higher base case metal prices (approximately US$1,100/oz for gold).

“We have now demonstrated that there is little downside to this project and we are fully engaged with our partners, Proccea and consulting teams to ensure we remain on track with the feasibility and environmental studies."

Ariana’s priority project is the Red Rabbit joint venture in Turkey. It is the centre-piece of Ariana’s growth strategy and brings together the firm’s Kiziltepe prospect with Proccea’s Tavsan gold area.

Ariana to buy gold exploration properties in Turkey from KEFI Minerals

Wed, 16 Mar 2011 07:52:00 +0000

Ariana is buying four exploration properties in western Turkey from KEFI Minerals which will potentially create synergies with its Red Rabbit gold project ahead of scheduled production in 2012.

Ariana Resources raises £1.16m for exploration & development projects, acquisitions

Fri, 18 Feb 2011 14:51:00 +0000

Ariana Resources (LON:AAU) has successfully raised £1.16 million via a placing for its exploration and development projects and possible acquisitions.

Ariana placed 24.5 million shares at a price of 4.75 pence, which nearly equals the current share price of 5 pence.

The company said it was pleased with the support received for the placing, which “underpins the investment community's understanding of the significant value accretion potential of the company”.

“These funds provide the company with the ability to move quickly on additional assets which meet our investment criteria, as we build the Company towards being a mid-tier multi-project gold exploration and development company focussed on Turkey, an emerging globally significant gold destination,” said managing director of Ariana Resources Kerim Sener.

The placing shares will represent 9.79% of the enlarged issued ordinary share capital.

As a result of the placing, chairman Michael Spriggs increased his stake in the company to 0.28 percent, non-executive director and company secretary Michael de Villiers upped his shareholding to 0.93 percent and non-executive director and chief financial officer William Payne increased his stake to 0.18 percent. Spriggs and de Villiers each took 100,000 shares and Payne took 102,632.

Just less than a month ago, Ariana secured up to £5 million via a standby equity distribution agreement (SEDA) with Yorkville Advisors LLC.

It can drawdown new capital from the facility at any time over the SEDA’s three year life span, by issuing new shares to one of Yorkville’s investment funds, YA Global Master SPV.

Ariana then said that the deal enhanced its access to new capital which will help with significant project and investment decisions in the medium term.

Ariana’s priority project is the Red Rabbit joint venture in Turkey. It is the centre-piece of Ariana’s growth strategy and brings together the firm’s Kiziltepe prospect with Proccea’s Tavsan gold area.

Together the two have a resource of 450,000 ounces of gold and gold equivalent, though the target is to take that figure to at least 500,000 ounces. From that they hope to produce around 30,000 ounces per annum over a five year period.