Ariana Resources’ (LON:AAU) ambitions for its Salinbas/Ardala joint venture in Turkey have been boosted by the bumper gold grades discovered nearby at Hot Maden by rival junior Mariana (LON:MARL).
“Hot Maden’s success reinforces our view that this area has the potential to host multi-million ounce gold deposits”, Ariana said.
Hot Maden has an equivalent three million ounces and sits on the “doorstep” of Salinbas/Ardala, which Ariana is developing with Eldorado Gold (49/51%). Salinbas/Ardala has a resource of approximately one million ounces.
Elsewhere, Ariana is building its first mine, at Kiziltepe, in a 50:50 partnership with Proccea.
All required freehold land has now been acquired and foundations for mine buildings are being laid and Ariana said it remains on target for first gold pour in the second half of 2016.
Kiziltepe will be produce 20,000 ounces gold equivalent over eight years at an expected cash cost in the vicinity of US$600 per ounce, but further exploration in the vicinity will aim to boost the life of the mine.
Michael de Villiers, chairman, added: “We have been further encouraged by results from recent work suggesting the project contains significant potential for further resource discoveries in the vicinity. “
Losses in the half year to June were £621,000 (£225,000). Since the year end the company has raised £1mln to strengthen its balance sheet.