Ariana Resources

Full Ariana Resources profile here

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 setting up JV with Turkish partner to develop Sindirgi and Tavsan gold projects

Tuesday, October 27, 2009 by Andre Lamberti
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Shares in Ariana Resources PLC (AIM: AAU) rose after the Turkey-focused gold group announced it is setting up a 50-50 joint venture with a domestic partner to develop the Sindirgi and Tavsan projects in the country.

Ariana has signed a Memorandum of Understanding with Proccea Construction Co, a Turkish turn-key construction firm involved in a range of business sectors from gold processing plants to major hotels, to form a joint venture through its Galata Madencilik operating subsidiary aimed at establishing a long term gold mining operation in Turkey.

The share was trading up nearly 14 percent in early deals, after having shot up 30 percent just after the news broke.
 
The partners envisage formalising the venture by setting up a Turkish joint stock company that will hold and develop the assets, which will be combined to form the Red Rabbit project. Proccea will then 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. 

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The groups plan to meet the additional capital requirements for the plant start-up by a credit facility to be arranged by 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.

Under the terms of the MoU, Proccea will pay Ariana US$0.5 million in cash which will be used at the company's discretion, but will be paid pack if the parties fail to reach a formal JV agreement.

Ariana managing director Kerim Sener commented: “This MoU with Proccea marks a major step forward for Ariana.  Our earlier trial mining at Kiziltepe demonstrated our ability to produce gold in Turkey, providing the technical and economic reassurance necessary to develop the Sindirgi and Tavsan projects as a successful integrated entity - the Red Rabbit project.”

“We have identified a strong JV partner for funding the project through the feasibility and construction stages, with a track record of successful gold project development in Turkey. 

A  business division of Proccea named CH Engineering  & Consultancy (CH)provides  a range of  services to the  mining industry, including the design of mining equipment and processing plants, manufacturing installation, commissioning, start-up and staff training for  gold  and  silver extraction  in  the  mining  industry. CH has wide experience of designing and commissioning gold and silver processing plants. In Turkey this has included Eldorado Gold Corp’s (TSX: ELD; NYSE: EGO) Kisladag gold mine, Anatolia Minerals Development Ltd’s (TSX:  ANO) Copler gold mine and Koza Gold Operations Co’s Mastra mine. 

CH processing  plant commissions  have included  the Zarcan gold mine in Iran, the Knelson gold mine in Kazakhstan,  the Amesmessa gold mine in Algeria, the Kitila gold mine in Finland,  the Minera Triton gold  mine in  Argentina and  the Maaden  gold mine  in Saudi Arabia. 

The Sindirgi project 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.

Ariana said in its interim results statement at the end of September it was planning further exploration work for both Kiziltepe and Tavsan to increase the total resource to 500,000 oz.

In the same announcement, it also reported progress in north-eastern Turkey, where its joint venture with European Goldfields Ltd (AIM, TSX: EGU) managed to make several discoveries, including the Salinbas prospect, a higher grade gold zone, where rock chip samples returned grades of between 1.42 g/t (grams per tonne) and 20.5 g/t gold, averaging 10.8 g/t. Trenching and follow-up drilling was due to commence on the prospect in “near future.”


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Additional Information

Market:AIM
Sector:General Mining - Gold
EPIC:AAU
Latest Price: 3.38p  (0.00%)
52-week High:5.13p
52-week Low:2.13p
Market Cap:7.49M

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