Ariana Resources plc : Construction Update - Ki...

13 April 2016
AIM: AAU

CONSTRUCTION UPDATE - KIZILTEPE

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company operating in Turkey, is pleased to provide an update on construction of the Kiziltepe Mine within the Red Rabbit Gold-Silver Project in Western Turkey ("Red Rabbit").  Kiziltepe is being advanced towards production through a Joint Venture ("JV") with Proccea Construction Co. ("Proccea").  The project is targeting production in H2 2016.

Highlights:

• Crushers and screens construction substantially complete, with components installation now underway; ball-mill foundations prepared for installation of components within 10 days.
   
• Process (CIL/CIC and ADR*) plant foundations partially complete and awaiting initial steel work installation.
   
• Mine administration, accommodation and canteen facilities are fully operational, with 150 people currently employed on site.
   
• 4.7MW electrical power usage project approved and necessary components acquired, with installation almost complete; telephone, internet and servers access currently being connected to the mine site.
   
• Process water wells have been completed and have demonstrated more than adequate flow rates for process plant usage.
   
• Open-pit access development by the mining contractors is fully underway with blasting occurring regularly three times a week.
   
• Access and pipeline route to the tailings dam area currently half complete; reviews and new submissions to the Ministry of Environment and Urban Planning completed for the tailings storage facility in line with recently modified legislation.
   
• Several exploration drill holes have been planned to target the Arzu Central area and an application for a new forestry permit has been made to provide appropriate access.

Dr. Kerim Sener, Managing Director, commented: 

"We are very pleased to note the current rate of construction at Kiziltepe, which with 150 people now working on site, has become increasingly active.  Our partners, Proccea, are now in the process of completing the installation of the crushing and screening circuit and preparing for the installation of the ball-mill (Figure 1).  Meanwhile, the foundations for the processing plant have largely been laid and structural steelwork will commence shortly.  Following recent drilling on the project, a review of current resources and reserves is underway along with early planning to accommodate a potentially enhanced throughput rate.  The project remains on schedule for commissioning during H2 2016." 

* CIL - Carbon-in-Leach; CIC - Carbon-in-Column; ADR - Adsorption-Desorption-Recovery

To view the aforementioned Figure 1, please click on or paste the following link into your web browser: http://hugin.info/138153/R/2002914/739189.pdf   

Contacts:

Ariana Resources plc	Tel: [phone]
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited	Tel: [phone]
Roland Cornish / Felicity Geidt
Beaufort Securities Limited	Tel: [phone]
Jon Belliss
Loeb Aron & Company Ltd.	Tel: [phone]
John Beresford-Peirse

Editors' Note:

About Ariana Resources

Ariana is an exploration and development company focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey.  The Company is developing 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 Eldorado Gold Corporation in north-eastern Turkey.  Eldorado owns 51% of this joint venture and are fully funding all exploration work on the JV properties, while Ariana owns 49%.  The total resource inventory within this JV is 1.09 million ounces of gold.

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, are presently being assessed as to their economic merits and now form part of a Joint Venture with Proccea Construction Co.  The total resource inventory at the Red Rabbit Project stands at 475,000 ounces of gold equivalent. 

Beaufort Securities Limited and Loeb Aron & Company Ltd. are joint brokers 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.

Ends

Link to Figure 1

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Source: Ariana Resources plc via Globenewswire

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