Mine permitting proceeds at Red Rabbit Gold Pro...

 

 

5 February 2013
AIM: AAU

MINE PERMITTING PROCEEDS AT RED RABBIT GOLD PROJECT, TURKEY

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, is pleased to announce a further update on its Red Rabbit Gold Project in Western Turkey ("Red Rabbit" or "the Project").

Highlights:

• Environmental Project Summary Document has been submitted to the Ministry of Environment and Urban Planning ("MEUP") for the Kiziltepe Sector of the Red Rabbit Gold Project.  

• Formal process for the permitting of the mine has been initiated with Environmental Impact Assessment ("EIA") positive certification expected no later than the beginning of Q4 2013. 

• Public consultation meeting for the local communities to be affected by the mine development to be held in March 2013. 

• Acquisition of a further three parcels of freehold land totalling 35,460 m² in the vicinity of the planned Arzu South open-pit - increases total land acquired at Arzu South to 234,432 m².  

• Geotechnical drilling has been completed at the Tailings Storage Facility ("TSF") site ahead of schedule.  Results to date have been positive and support the potential for the designated area to host the tailings dam. 

• Discussions with potential lenders to the project to be advanced. 

Dr. Kerim Sener, Managing Director, commented:

"The submission of our Project Summary Document to the Ministry of Environment and Urban planning initiates the formal environmental permitting process at Kiziltepe, targeted to be the first gold-silver mine within our Red Rabbit JV project.  Accordingly, we expect the permitting process to conclude during the second half of 2013 and to commence mine construction before year end.

"We are also pleased to have acquired a further three parcels of freehold land totalling 35,460m² in the vicinity of the planned Arzu South open pit, which contains the majority of the current Mineral Reserve and contains potential for additional high-grade mineralisation at depth and along strike.

"The initiation of mine permitting is a major development for the Company and we are indebted to the hard work and patience of our operational team in Turkey as well as the support of our JV partners, Proccea, to this process.  This now enables the JV to advance discussions with potential lenders to the Project and to evaluate finance terms."

Further Information

Submission of EIA Summary Documentation

On 1 February 2013 the Company, via its Joint Venture operating subsidiary, Zenit Madencilik San. ve Tic. A.S. submitted its Project Summary Document to the MEUP.  This followed from the final review of the document completed last week with Project environmental consultants, SRK Consulting.  The review included various modifications required following the changes to tourism boundaries implemented by the Ministerial Council Decree referred to by the Company in an announcement on 28 January 2013.

The Project Summary Document includes relevant extracts from the EIA study and its submission to the MEUP is a requirement for formal permitting of the mine to commence.  The process of mine permitting will involve public consultation meetings and the receipt by MEUP of consents from several other ministries and government departments.  The process is expected to take five to six months, at the end of which the Company expects to receive its EIA positive certification, which in turn would enable the Company to commence construction permitting and development of the mine.

Since the submission of the Project Summary Document, the MEUP has commenced formal procedures for the environmental permitting of the Kiziltepe gold and silver mine.  The Company will now plan a public consultation meeting for the local communities to be affected by the mine development.  The public consultation meeting is a forum for individuals, organisations and government agencies to debate the mine development programme proposed by the Company.  

It is expected that the public consultation meeting will be held during the second week of March 2013.  According to the current schedule, EIA positive certification is expected no later than the beginning of Q4 2013, which will allow the Company the opportunity to start mine development and construction during the last quarter.  

Land Acquisitions

The Company has also purchased a further three parcels of freehold land totalling 35,460m² in the vicinity of the planned Arzu South open-pit within the Kiziltepe Sector of the Red Rabbit Gold Project.  During Ariana's drilling programme in 2011-2012 new vein systems were confirmed along strike of Arzu South and bonanza grades were reported from the gap-zone between Arzu South and Arzu North.  One intercept within this gap-zone showed the highest grades ever reported from Kiziltepe of 3.2m @ 38.7 g/t Au + 511 g/t Ag (48.0 g/t Au equiv.) and which itself included 1m @ 65.9 g/t Au + 760 g/t silver ('Ag') (79.7 g/t Au equiv.).  

Two of these three newly acquired parcels carry strategic importance for the near-term development of the mine, as they are located proximally to the planned road diversion around the southern boundary of the open-pit.  These acquisitions bring the total land acquired at Arzu South to 234,432m², covering the majority of the open-pit boundary limits and including sufficient room for infrastructure development around the pit walls.

Geotechnical Drilling

Geotechnical drilling work as part of the engineering study on the TSF was recently completed ahead of schedule.  A total of eight HQ holes of 30m each, with packer tests completed at 2m intervals in each hole were determined necessary for the detailed design of the TSF.  All eight holes have now been finalised and the full geotechnical site investigation report for the TSF area will now be completed by early March 2013, though early indications show that the location is likely to be suitable for the TSF.

Contacts:

Ariana Resources plc	Tel: [phone]
Michael Spriggs, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited	Tel: [phone]
Roland Cornish / Felicity Geidt
S.P. Angel Corporate Finance LLP	Tel: [phone]
Ewan Leggat / Laura Littley
St Brides Media & Finance Ltd	Tel: [phone]
Susie Geliher / Lottie Brocklehurst

Editors' note:

Dr Kerim Sener, BSc (Hons), MSc, PhD, is the Managing Director of Ariana Resources plc.  A graduate of the University of Southampton in Geology, he also holds a Master's degree from the Royal School of Mines (Imperial College, London) in Mineral Exploration and a doctorate from the University of Western Australia.  He is a Fellow of The Geological Society of London and has worked in geological research and mineral consultancy in Eastern Europe, Southern Africa and Australia.  He has read and approved the technical disclosure in this regulatory announcement.  

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, while Ariana owns 49% and is the operator.

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 11.5% of Tigris Resources Limited.  

S.P. Angel Corporate Finance LLP 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

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Source: Ariana Resources plc via Thomson Reuters ONE

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