Ariana Resources plc : Red Rabbit Gold Project ...
30 April 2012
AIM / PLUS Markets: AAU
RED RABBIT UPDATE
Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, announces an update on exploration and development progress at the Red Rabbit Gold Project in Western Turkey.
Highlights:
First stage now completed on the Tailings Storage Facility ("TSF") design work for inclusion in to the Feasibility Study.
Final TSF design and engineering study expected ahead of receiving permits for construction start-up, targeted in H2 2012.
Acquisition of strategic freehold land has been completed in the vicinity of the planned Arzu South open-pit area.
Completed 2,000m drilling at Kiziltepe which confirmed the presence of continuity between the Arzu North and Arzu South structures.
Dr. Kerim Sener, Managing Director, commented:
"The publication of our Feasibility Study at the Red Rabbit Gold Project remains a key objective for Ariana and this highly encouraging update demonstrates the ongoing progress made towards achieving this goal in the near term. In particular, the completion of the first of two stages for the Tailings Storage Facility design and engineering study and the finalisation of our geotechnical report for the waste rock dump are key developments which will facilitate the advancement of the Feasibility Study and help determine final operating and capital cost estimates.
"In addition to our focus on achieving production from Red Rabbit in the near term, we also continue to broaden the scope and potential of the project through exploration activities aimed at identifying areas in which the current JORC resource of 448,000 ounces gold equivalent could be expanded. Following the completion of 2,000m of drilling at the Kiziltepe sector of the Red Rabbit Project, we have now successfully confirmed the presence of continuity between the Arzu North and Arzu South structures.
"We will now complete a IP/resistivity survey over a large part of this vein system with the intention of generating targets for future deep drilling to provide further information on the wider resource potential of the Red Rabbit Gold Project. This exploration work has the potential to provide considerable further upside to the project which has a current life of mine of eight years targeting average production of 20,000oz of gold equivalent from 2013."
Red Rabbit Project Update
Most components of the Feasibility Study have been completed and reviewed by the Company and its consultants. Certain outstanding items have been completed recently or are nearing completion and are reported below.
Tailings Storage Facility
The Company has completed the first of two stages of its TSF design and engineering work with EKASU-IMC Co. consultants in Turkey. The Company is working with the Turkish government authorities to expedite the process of gaining access the TSF site for the additional geotechnical and hydrological drilling required of the second stage of the TSF design study. The Company is currently expecting to obtain permission to access the site in the near future. Once this permission is obtained and forestry permits are granted, this additional drilling will be completed allowing the Company to enable the advancement of the final stage of the TSF project work for the purposes of completing its Feasibility Study. The permitting for construction start-up is currently targeted in H2 2012.
Waste Rock Dump
The Company has completed its geotechnical report for the waste rock dump design for the purposes of the Feasibility Study. This work was compiled by the Middle East Technical University Department of Mining Engineering and included a slope stability analysis against modelled seismic events. The final waste dump geometry includes five benches and proposed slope angles of 35 degrees for the first three benches and 25 degrees for the last two benches, with a final overall storage capacity estimated at 12.3 M tons of waste (at 2t/m3 loose density). This is a simpler design than envisaged in the Pre-feasibilty Study and should provide operational and waste rock dump management efficiencies.
Land Acquisitions
Ariana has continued to acquire key strategic freehold land in the vicinity of the planned Arzu South pit. This has been managed by a new subsidiary of Ariana known as Camyol Gayrimenkul, Madencilik, Turizm, Tarim ve Hayvancilik Ltd ("Camyol"). The company is 99% held by Ariana's Turkish subsidiary, Galata Madencilik San. ve Tic. Ltd. with the remaining 1% of Camyol held by Zenit. To date Camyol has purchased 178,372m2 of land at a fixed price negotiated with and accepted by the local landholders. Approximately 95% of the freehold land in the Arzu South area now belongs to Camyol, with further acquisitions planned during 2012 in the TSF area and along site access roads. Any land acquired by Camyol in this manner will either be sold in to or leased to Zenit for the duration of the project.
Kiziltepe Exploration
Ariana has completed approximately 2,000m of drilling at the Kiziltepe site. Results from the drilling programme have confirmed the presence of continuity between the Arzu North and Arzu South structures beneath cover, and the presence of other mineralised structures on the property along strike of known veins.
In the Arzu North and Arzu South "gap zone" the geology and grades returned from this drilling indicate that at least part of the large geophysical anomaly targeted in this zone relates to a gently dipping body of silicification and argillic alteration occurring between the upper and lower ignimbrite units. The grades intercepted in this zone were anomalous but generally low (<1 g/t Au). The Company has concluded that it had been drilling the periphery of the predicted vein zone and has determined that additional and deeper drilling in this area is required. However, the Company cannot progress this work immediately as it needs to complete additional forestry permitting to gain access to more suitable drilling locations further up slope. This permitting will be applied for by the Company once the Feasibility Study is completed.
In advance of further drilling at Kiziltepe, the Company is completing a deep IP/resistivity survey over a large part of the vein system. The survey has been designed to obtain penetration to over 300m of depth from surface and will be used to resolve targets for future deep drilling. In addition to this, the Company is completing the first ground magnetic survey over the prospect, which will be used in conjunction with the IP/resistivity data to aid the construction of a 3D model, which will support the structural targeting for further drilling.
Contacts:
| Ariana Resources plc | Tel: +44 (0) 20 7407 3616 |
| Michael Spriggs, Chairman | |
| Kerim Sener, Managing Director | |
| Beaumont Cornish Limited | Tel: +44 (0) 20 7628 3396 |
| Roland Cornish / Felicity Geidt | |
| Fairfax I.S. PLC | Tel: +44 (0) 20 7598 5368 |
| Ewan Leggat / Laura Littley | |
| St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
| Susie Geliher / Hugo de Salis | |
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, is fully funding all exploration work on the JV properties until delivery of a feasibility study.
The Company's flagship assets are its Sindirgi 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 of the Company stands at 448,000 ounces of gold equivalent.
Ariana also has a strategic investment in Tigris Resources Limited (www.tigrisresources.com), a private Jersey-based exploration company, which is focused on the exploration of copper and gold deposits in southeastern Turkey. Ariana retains approximately 13% of Tigris Resources Limited.
Fairfax I.S. PLC are 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
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Ariana Resources plc via Thomson Reuters ONE
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