Update on Joint Venture with Eldorado Gold

Update on Joint Venture with Eldorado Gold

18 June 2012
AIM: AAU

JOINT VENTURE WITH ELDORADO GOLD

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, is pleased to announce that it is to become the operator of the Artvin Province joint venture exploration agreement with Eldorado Gold Corporation ("Eldorado").  

Highlights:

  • Ariana is to be operator of the Joint Venture with overall responsibility for implementing the exploration programmes. 

  • US$1.77 million has been allocated by Eldorado in 2012 for advanced-stage exploration programmes under the joint venture agreement.   

  • The JV agreement covers the highly prospective Artvin Province of north-eastern Turkey where exploration campaigns are underway at the Salinbas and Ardala gold prospects. 

  • Highly encouraging drill results received from the 2011 drilling programme at Salinbas include best intercepts of 9.5m @ 6.48 g/t Au + 39.4 g/t Ag; 11.3m @ 4.98 g/t Au + 42.8 g/t Ag and 25m @ 3.34 g/t Au + 7.9 g/t Ag. 

  • Preliminary resource modelling is underway by Ariana at Salinbas to aid target definition for infill and step-out drilling in Q3 2012. 

Dr. Kerim Sener, Managing Director, commented:

"Following the acquisition of European Goldfields by Eldorado, we recognised a need to modify the original JV agreement to focus our activities on the Ardala Project and the Salinbas prospect in particular.

"We are pleased that Eldorado has supported our desire to become operators of the JV and this is testament to the quality of the team that we have established for this project.  Eldorado is an excellent partner for Ariana, having two established gold mining operations in the country and an exceptionally creative and successful exploration team.  We look forward to working with Eldorado on the development of our JV in north-eastern Turkey.  

"Following the announcement of highly encouraging drill results from Salinbas in March, our focus remains on rapidly bringing the project up the development curve.  Preliminary resource modelling is now underway at Salinbas to aid drill target definition ahead of a drilling campaign in Q3 2012 aimed at delineating a preliminary resource."

Modifications to Joint Venture

The following modifications have been made to the existing Joint Venture ("JV") agreement between the companies:

  1. Ariana now becomes the operator of the JV company in Turkey, which is owned 51% by Eldorado and 49% by Ariana.  Any costs associated with inputs provided to this programme from our own subsidiary in Turkey will be charged to the JV on a consultancy basis. 

  1. Eldorado will continue funding the JV according to the terms of the existing JV agreement and earn-in requirements defined by that agreement, will provide technical support to the JV, and will participate in the Technical Committee responsible for designing and approving budgets for exploration activities. 

  1. The area of interest ("AOI") will be restricted to the Artvin Province only. 

  1. A Turkey-wide strategic alliance contemplated by the original agreement is revoked. 

  1. One licence held by Eldorado will be transferred in to the JV.   

  1. Six licences held by the JV that are located outside of the Artvin AOI will be transferred 100% back to Ariana.   

Contacts:

Ariana Resources plcTel: +44 (0) 20 7407 3616
Michael Spriggs, Chairman
Kerim Sener, Managing Director
Beaumont Cornish LimitedTel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Fairfax I.S. PLCTel: +44 (0) 20 7598 5368
Ewan Leggat / Laura Littley
St Brides Media & Finance LtdTel: +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.  To

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



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Source: Ariana Resources plc via Thomson Reuters ONE
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