Trial Production from Kiziltepe Commences
5 March 2009
AIM / PLUS Markets: AAU
TRIAL PRODUCTION FROM KIZILTEPE COMMENCES
Ariana Resources plc ("the Company"), the gold exploration and
development company focused on Turkey, is pleased to announce the
completion of an agreement with Eti Gümüs AS. ("Eti") to process ore
from the Company's Kiziltepe deposit on a trial basis. Ariana will
receive, through its operating subsidiary, Galata Madencilik San. ve
Tic. Ltd. ("Galata"), an up-front signing fee from Eti of US$ 10,000
which will be deducted from proceeds once the first 1,000 tonnes of
ore has been processed.
The initial agreement with Eti entails a large-scale (5,000 tonnes)
process trial of Kiziltepe ore using the Gümüsköy processing plant,
owned by Eti and located in Kütahya Province in western Turkey.
Ahead of the agreement detailed below, the Company undertook a
smaller test-run of some 25 tonnes of ore through this plant, from
which very good recoveries of between 82.3% and 89.7% gold were
achieved.
Dr. Kerim Sener, Managing Director, commented:
"This event marks the dawn of a new era for Ariana Resources. We
have successfully made the transition from explorer to a committed
developer of gold resources in Turkey. In partnership with Eti
Gümüs, we have now followed through with our resolve to see the
resource at Kiziltepe mined.
"This achievement represents the natural evolution of our long-term
strategy and takes us one step closer to our aim of becoming a
significant gold producer in Turkey. This success also highlights
the determination of our management team to maximise the value of our
resources, despite the difficult conditions faced by all junior
companies.
"We are particularly proud of the solidarity and effort our team has
shown to bring about this achievement. It is through their sense of
purpose and commitment, and indeed that of our loyal shareholders,
that we have achieved this milestone. We thank and congratulate
them. We also look forward to working with our partners, Eti Gümüs,
to make this trial a success, for both companies."
Details of Trial
Ariana will be responsible for mining and trucking the ore to the
Gümüsköy plant, 130km to the east of Kiziltepe. All permits and
rights have been secured for mining operations to commence, and an
initial pit-design/mining plan has been completed jointly by the
company's Mining Engineer and Project Manager; individuals with
extensive mine operational backgrounds in Turkey.
Within one month, the Company expects to extract 5,000 tonnes of ore
from the Arzu South vein of the Kiziltepe deposit. Ore will be
stocked and sampled at Kiziltepe in the first instance. Following
receipt of grade control data, any ore over 4.5 g/t Au will be
transported by road to the Gümüsköy plant for processing. Eti will
review mining progress at Kiziltepe on a periodic basis.
Formal quotes have been received by Galata for drilling, blasting,
general mining operations and transportation. Following completion
of the agreement, contracts for mining and transportation will be
finalised with the relevant contractors, and mining operations are
expected to commence within 15 days. The initial pit will be
approximately 100m long and optimised for the recovery of high-grade
ore.
Over a period of 45 days after receiving the first batch of ore from
Kiziltepe, Eti will be responsible for processing the ore and all
analytical costs associated with process grade control. Galata will
undertake periodic quality control of Eti process analytical results
by supplying control samples to their laboratory.
Eti will feed the Kiziltepe gold-silver ore in to their plant at a
measured rate, along with silver ore from their Gümüsköy mine; any
gold recovered will be attributable to Kiziltepe. Ariana will review
progress at Gümüsköy on a periodic basis while the processing is
underway and will send to site a metallurgist to review Eti process
data and controls.
Gold produced from the operation will be divided on a 50-50 basis
between the parties. Expected recovery of gold will be 85%, in line
with the earlier test results detailed above. Silver recoveries will
be considerably lower, as the silver grade of ore supplied to Eti is
considered marginal for processing and, in any case, the Company has
agreed that any silver obtained from the plant will be retained by
Eti. Gold retained by Ariana will be refined at the Istanbul Gold
Refinery or a suitable alternative.
If this trial operation is deemed successful by both parties, Galata
and Eti have determined to discuss a processing arrangement which
would be governed by a new agreement.
About Eti Gümüs A.S.
Eti Gümüs A.S. owns and operates the Gümüsköy silver mine in Kütahya
Province, western Turkey. It is currently the largest silver mine in
Europe and has been operational since 1987. The process plant has a
designed annual throughput rate of 1,000,000 tonnes per annum and
produces a maximum of 122 tonnes of silver per annum using the
Merrill-Crowe system; a process for separating silver and gold where
high Ag:Au ratios prevent the use of carbon as an effective recovery
technique. The company's production meets 45% of annual Turkish
silver demand
Contacts:
Ariana Resources plc Tel: 020 7407 3616
Michael Spriggs, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited Tel: 020 7628 3396
Roland Cornish
Lothbury Financial Tel: 020 7011 9411
Michael Padley / Louise Davis
Alexander David Securities Limited Tel: 020 7448 9820
Nick Bealer / David Scott
Loeb Aron & Company Ltd Tel: 020 7628 1128
Peter Freeman / Frank Lucas
Editors' note:
About the Kiziltepe Deposit
The Kiziltepe deposit is located within a ten-year renewable
operating licence that forms part of the Company's 100% owned
Sindirgi Gold Project in Balikesir Province, western Turkey. The
current JORC resource of 186,000 ounces gold equivalent is contained
within the Arzu South, Arzu North, Banu and Derya veins.
Kiziltepe lies approximately 130km west of the Gümüsköy silver mine,
100km east of the one million ounce vein-hosted Ovacik gold mine and
115km northwest of the five million ounce Kisladag gold mine. The
deposit hosts over 20km in strike length of gold-silver bearing
low-sulphidation epithermal quartz veins across an area of at least
3km by 1km. Individual veins are exposed for up to 750m and widths
vary between 1m and 14m. The main veins trend northwest, dip to the
northeast and are hosted within Miocene age dacitic volcanic rocks.
Ariana acquired the Sindirgi Gold Project from Newmont Mining
Corporation (NYSE & ASX: NEM; TSX: NMC) in March 2005. Franco-Nevada
Corporation retains the right to a royalty of up to 2.5% on future
gold production from the Sindirgi Gold Project.
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 exploring 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 European
Goldfields Limited in north-eastern Turkey.
The Company's flagship assets are its Sindirgi and Tavsan gold
projects. Both projects 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. The total resource
inventory of the Company stands at 401,000 ounces of gold
equivalent.
Loeb Aron & Company Ltd. and Alexander David Securities Limited 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
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