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.
Ariana Resources targets Red Rabbit JV start-up in May
Ariana Resources (AIM: AAU) said it is working hard to ensure project start-up in May at the proposed Red Rabbit joint venture project in Turkey. In an update, Ariana MD Dr Kerim Sener told investors that a more detailed review of various legal and financial issues has taken up some additional time in the schedule.
In October 2009, the companies agreed the terms of a 50-50 joint venture, whereby it is envisaged that Procea, a Turkish turn-key construction firm, will earn into Ariana’s Red Rabbit project - which encompasses the Sindirgi project area consisting of Kiziltepe, Kepez and Karakavak, and the Tavsan project areas - to develop a long term gold mining operation in Turkey.
“We are currently in the process of resolving the last remaining items with Proccea and remain fully committed to completing the JV agreement”, Dr Kerim Sener commented. “While this has slightly delayed the initiation of our planned RC drilling programme and the commencement of the feasibility and environmental impact assessment, we are working hard to ensure we have project start-up by the beginning of May”.
Under the terms of the MoU (Memorandum of Understanding), signed in October, Procea committed to an up-front goodwill payment of US$500,000 and expenditures of US$8 million to fund an Environmental Impact Assessment (EIA) and Feasibility Study.
As Procea has been earning into the project whilst the companies have been finalising the joint venture agreement, the Red Rabbit project has been advancing rapidly. In February 2010, the partners reported significant progress as a scoping study and an environmental scoping assessment were completed along with preliminary designs of the processing plant.
"The past few months have been busy and very constructive. While we have encountered certain unexpected delays ... we are resolved to complete the JV agreement”, Proccea MD Deniz Aybars commented.
“We see this partnership as a platform for further growth as a Turkish-based gold mining company which, unlike many companies of comparable size, includes a fully-fledged and in-house metallurgical process design, construction and mine commissioning capability. This provides a unique competitive advantage and we hope to expand the scope of the JV company accordingly."
Last week, Ariana raised £1 million through a placing of 50 million new shares at 2p each to certain institutional investors. “We are utilising the funds from this placing to continue our exploration and development work on our existing projects, notably in the Red Rabbit region and the wider WAVE Project Area in western Turkey, and in preparation for the funding of new opportunities”, Dr Sener stated previously.
