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.
Edison Investment Research initiates coverage of 'undervalued' Ariana Resources
Edison Investment Research has initiated coverage of Ariana Resources (AIM: AAU), saying the Turkey focused gold miner was well placed to minimize expenditure and explore its portfolio of licenses, which were acquired in the same geological province as Eldorado Gold’s (TSX:ELD, NYSE:EGO, ASX:EAU) 10 Moz (million ounce) Kisladag mine.
Ariana’s most advanced project is Red Rabbit, developed through a JV (joint venture) agreement with the Proccea Construction Company. Under the terms of the agreement, Proccea will contribute US$8 million for a 50% stake and will take over from Ariana as operator following the completion of the feasibility study. Trial mining at the project has been completed with a feasibility study due to commence shortly.
Red Rabbit combines Ariana’s flagship properties Sindirgi and Tavsan. Sindirgi comprises the Kiziltepe, Kepez and Karakavak deposits, while Tavsan encompasses the Evciler, Caldibi and Tavsan prospects.
As part of the ongoing progression of the Red Rabbit Project, a trial batch of gold-silver ore of 5,177 tonnes was extracted from the Arzu South pit in 2009. Subsequent processing resulted in 387oz gold being produced from a trucked grade of 3.27g/t Au.
Edison said that the deal with Proccea will allow Ariana to partially fund its exploration budget internally in the future and “catapult into the ranks of the world’s producers". The report said that Ariana could potentially generate an attributable cash flow of £5.7 million per year assuming a long-term gold price of US$1,100/oz compared to the current US$1,180/oz, adding that the stock could be trading at a discount of as much as 50%.
Ariana is currently preparing to a 2,000 metres reverse circulation resource drilling programme on the Banu and Derya veins of the Kiziltepe deposit, part of the Red Rabbit project. The programme has been devised to enable conversion of current resources on these veins from the Inferred to Indicated category.
Two more exploration licenses from Ariana’s portfolio are set to undergo further exploration drilling.
The total resource inventory of the company stands at 401,000 ounces of gold equivalent.
