DUE DILIGENCE UPDATE
9 December 2019
DUE DILIGENCE UPDATE
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company, is pleased to announce the commencement of due diligence drilling by Proccea Construction Co. ("Proccea") and the Proposed Partner on the Salinbas Gold Project in Turkey. In addition, the Proposed Partner has commissioned an independent review of the Kiziltepe, Tavsan and Salinbas projects as part of their due diligence during the exclusivity period conferred upon them following completion of the Memorandum of Understanding ("MoU"), announced on 25 November 2019.
· Approximately 600m of Reverse Circulation ("RC") drilling to be undertaken by the contractor Global Magnet Sondaj, in order to twin certain existing holes previously drilled by Ariana.
· The drilling programme is expected to conclude within one week due to favourable weather conditions.
· Analyses of samples to be undertaken by an independent laboratory, ALS Global in Izmir.
· Independent due diligence teams of the Proposed Partner are arriving at the Kiziltepe, Tavsan and Salinbas sites during the week.
Dr. Kerim Sener, Managing Director of Ariana Resources, commented:
"We are very pleased to host the due diligence and drilling teams on site at Salinbas and look forward to seeing the results of their work. Fortunately, weather conditions are expected to be reasonable through the period of drilling and the programme will likely conclude within one week. In the meantime, detailed technical, environmental and financial due diligence is underway by the designated independent consultant of the Proposed Partner on the Kiziltepe and Tavsan Projects. Two separate teams are being sent out to the sites during the current week and will be conducting their independent assessments of each of the projects.
"In addition, preparation of the definitive legal agreements concerning the proposed joint venture between Ariana, Proccea and the Proposed Partner is underway."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Ariana Resources plc
Tel: +44 (0) 20 7407 3616
Michael de Villiers, Chairman
Kerim Sener, Managing Director
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Beaumont Cornish Limited
Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
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Panmure Gordon (UK) Limited
Tel: +44 (0) 20 7886 2500
Atholl Tweedie / James Stearns
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Yellow Jersey PR Limited
Tel: +44 (0) 20 3004 9512
Dominic Barretto / Harriet Jackson
/ Henry Wilkinson
About Ariana Resources:
Ariana is a UK-based exploration and development company with mining operations focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey, the largest gold producing country in Europe. The Company is developing a portfolio of prospective licences originally selected on the basis of its in-house geological and remote-sensing database, which now contain a total of 1.6 million ounces of gold and other metals (as at end-2017). Ariana's objective is to cost-effectively add value to its projects through focused exploration and to develop its operations, primarily through well-financed joint ventures.
The Company's flagship assets are its Kiziltepe and Tavsan gold projects which form the Red Rabbit Gold Project. Both contain a series of prospects, within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional (WAVE) Province in western Turkey. This Province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits. These core projects, which are separated by a distance of 75km, form part of a 50:50 Joint Venture with Proccea Construction Co. The Kiziltepe Sector of the Red Rabbit Project is fully-permitted and is currently in production. The total resource inventory at the Red Rabbit Project and wider project area stands at c. 605,000 ounces of gold equivalent (as at end-2017). At Kiziltepe a Net Smelter Return ("NSR") royalty of up to 2.5% on production is payable to Franco-Nevada Corporation. At Tavsan an NSR royalty of up to 2% on future production is payable to Sandstorm Gold.
In north-eastern Turkey, Ariana owns 100% of the Salinbas Gold Project, comprising the Salinbas gold-silver deposit and the Ardala copper-gold-molybdenum porphyry among other prospects. The total resource inventory of the Salinbas project area is c. 1 million ounces of gold equivalent. A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation.
Panmure Gordon (UK) Limited are broker to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser.
For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com.
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