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Additional Information
Market: AIM
Sector: General Mining - Gold
EPIC: AAU
Latest Price: 2.88p  (0,00%)
52-week High: 6.88p
52-week Low: 2.50p
Market Cap: 7.76M
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Ariana Resources
www.arianaresources.com

Ariana is an AIM-listed and PLUS-traded gold exploration and development company which aims to develop new gold mines in Turkey. Ariana is lead by an experienced board and is spearheaded by a focused Turkish management team. Current resources stand at approximately 400,000 ounces of gold in western Turkey, with two key projects under development: the high-grade Kiziltepe prospect and the heap-leachable Tavsan prospect. An exploration joint venture with European Goldfields (20% shareholders in Ariana) in northeastern Turkey is focused on the Ardala copper-gold porphyry and surrounding areas. Ariana holds a large and prospective licence portfolio from which a pipeline of new exploration targets is being generated for drill-testing utilizing an ‘in-house’ drilling team. Exploration and development success is being delivered via a strategy which integrates geoscientific knowledge and new technologies to identify and advance prospects for drill-testing. Ariana aims to develop a portfolio of licences in western Turkey which contain an aggregate of one million ounces of gold; a target which it is already on the way to achieving.

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Ariana Resources lifted by progress report for Red Rabbit gold project in Turkey

17th Dec 2009, 10:51 am Ariana Resources lifted by progress report for Red Rabbit gold project in Turkey

Shares in Turkey-focused gold explorer and developer Ariana Resources PLC (AIM: AAU) rose after the group reported further solid progress towards production on its proposed joint venture with Proccea Construction Co on the Red Rabbit gold project in western Turkey.

Work is underway on a number of fronts in preparation for the planned 2010 feasibility study and ahead of concluding the JV agreement which it is confident will occur in the first quarter of 2010, Ariana said in a statement.

The stock was trading up 3.8 percent in late morning deals.

The company announced in late October it had signed a Memorandum of Understanding with Proccea, a Turkish turn-key construction firm involved in a range of business sectors from gold processing plants to major hotels, aimed setting up a 50-50 JV to develop the Sindirgi and Tavsan projects, which are being combined to form the Red Rabbit project.

Sindirgi includes the Kiziltepe property, which started gold production in September 2009.  The integrated Red Rabbit project has a measured and indicated resource of 230,000 ounces of gold, which would satisfy a mine life of over 7 years with an annual production rate of 30,000 oz. Additionally, it has a JORC compliant inferred resource of 170,000 oz, making for a total of 401,000 oz.

The partners will set up a Turkish joint stock company that will hold and develop the Red assets. Proccea will be committed to fully-fund an environmental impact assessment and feasibility  study on Red  Rabbit  and  to  commence construction of the gold processing plant.  By funding US$8 million, Proccea will earn-in to its 50 percent share in the joint stock company.   On the successful commissioning of the plant, profit share within the joint stock company will be 51 percent Ariana and 49 percent Proccea.

In today’s statement, Ariana said Proccea has now made the US$0.5 million goodwill payment as agreed in October, and is being highly supportive of the above mentioned work programmes, reinforcing the efforts being made by the Ariana team.
 
The company intends to hold this sum in a high interest bearing account until completion of the JV agreement, following which the funds will be directed towards new exploration in Turkey.

Wardrop Engineering has been commissioned to undertake a revised National Instrument 43-101 compliant mineral resource estimate for the Kiziltepe sector. In parallel with this work, SGS Mineral Services UK Ltd. will be commencing further metallurgical testwork on mineralised material from Kiziltepe to determine optimal grind, leach and tailing characteristics. The revised resource and the new metallurgical testwork will be used as part of project feasibility studies to be undertaken in 2010. Relating to this, Proccea is intending to establish its own laboratory on site to fast-track future metallurgical testwork.

SRK Consulting in Turkey has been engaged to commence environmental scoping in December 2009 prior to commencing a formal Environmental Impact Assessment (EIA) for the project in the new year.  The formal EIA is currently scheduled to be completed by September 2010. Funding of the EIA will be undertaken by Proccea as part of its earn-in commitment.

PriceWaterhouseCoopers in Turkey has been engaged to provide financial advice to the company during the structuring of the formal JV agreement and for the establishment of the JV company.

Proccea and Ariana are currently estimating completion of the JV within the first quarter of 2010. 

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