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 and Proccea complete Red Rabbit JV deal
Ariana Resources (LON:AAU) has finalised its joint venture agreement over the Red Rabbit project with Proccea Construction Co. The 50-50% JV has now been established with Proccea committing US$8m to develop the project, which will ultimately lead to Ariana becoming the next gold producer in Turkey.
The Red Rabbit project consists of the Ariana’s two flagship projects, the Kiziltepe and Tavsan sectors.
"This JV has now put us firmly on the path towards becoming the next gold producer in Turkey ... The partners are aiming to see the Kiziltepe Sector through to production in approximately two years, and to continue the advancement of the Red Rabbit project area as a whole”, Ariana MD Dr Kerim Sener commented.
Under the terms of the joint venture, Proccea is committing US$1.4m to a feasibility study, EIA (Environmental Impact Study) and additional permitting. Whilst also committing a further, US$6.6m towards plant construction.
“We have already spent several productive months working together as partners in developing this opportunity and in enhancing our understanding of the project,” Proccea MD Deniz Aybars said. [We] have a lot of confidence in the JV company becoming one of the leading mining companies in the region.”
The partners initially began negotiating the JV back in October 2009.
With the completion of the deal, the partners will now progress the three-phase development plan - with the Proccea funded pre-feasibility study and EIA being carried out in Phase 1. The second phase will involve the establishment of the processing facilities, tailings and waste disposal areas in addition to related mine infrastructure and facilities - Phase 2 will be part funded by Proccea, as well as a credit facility.
Next the longer term development of the Kiziltepe and Tavsan sectors will continue in Phase 3. Additionally, the partners have also agreed to investigate other opportunities for mine development which may arise inside and outside of Turkey.
Ariana noted that it has already hired Wardrop Engineering to complete the new mineral resource statement, to form part of feasibility study. Furthermore, it is awaiting the receipt of its recent drilling on the Banu and Derya veins within the Kiziltepe Sector.
The drilling programme has been devised to enable conversion of current resources on these veins from the Inferred to Indicated category.
Ariana is focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey. The company is exploring a portfolio of prospective licences selected on the basis of its in-house geological and remote-sensing database, on its own in western Turkey and in joint venture with European Goldfields Ltd (AIM, TSX: EGU) in north-eastern Turkey.
The core Kiziltepe and Tavsan sectors are separated by a distance of 75 kilometres. The total resource inventory currently stands at 401,000oz gold equivalent.
