-- adds detail, share price--
Ariana Resources’ (LON:AAU) hopes of extending the life of its Kiziltepe mine in Turkey have been boosted after deep intercepts were found during its latest drilling programme.
The explorer carried out 3,500 metres (m) of deep drilling at Arzu South, the site of one of the pits for the 50% owned mine at Kiziltepe.
Grades intercepted were 4.07 grams per tonne (g/t) gold equivalent over 11m in one hole from 92m down, while another showed 2.96 g/t over 7m from a depth of 84m.
The current plan for Kiziltepe is to 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 such as the latest drilling and also in the surrounding area may boost this mine life.
Kerim Sener, managing director, said: “The intercepts reported are in line with our expectations for the lowermost parts of the current ore body and it is exceptionally encouraging to obtain such wide intercepts with good grades right at the bottom of the current pit design."
Gold shoots may extend beyond the base of the current planned pit and point to underground targets to be explored in future, he added.
A new resource estimate for Kiziltepe will be published in the New Year that will also include results from additional drilling between Arzu South and Arzu North.
Sener said the drilling had confirmed its understanding that the Kiziltepe may host a significant mineral system that has only been partially tested, particularly at depth within the Arzu vein structure.
The programme had also indicated it would have high-grade ore even at the very end of the projected mine life at Arzu South.
“There also remains scope for future drill testing beyond the limits of the current pit design, both along strike and down-dip."
Kiziltepe will be Ariana’s first mine and is being built in a 50:50 partnership with Turkish firm Proccea.
First gold pour in the second half of 2016 is the target.
Shares eased to 0.82p.