Ariana Resources plc : AGM Statement
29 June 2012
AIM: AAU
AGM STATEMENT
Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, confirms that all of the resolutions put to shareholders at the Company's Annual General Meeting held today were duly passed. The Chairman, Michael Spriggs, made the following comments at the meeting:
"This has been a hugely exciting year for Ariana, and one which has been punctuated with key advancements towards bringing our Red Rabbit Gold Project into production, in addition to highly significant new discoveries and exploration results. After ten years of growth and development, I am confident that Ariana has successfully transformed into a dynamic exploration and mine development company, now on the threshold of becoming a profitable gold producer targeting 20,000 ounces of gold equivalent per annum from late 2013.
"Our focus remains squarely on Turkey, which has increasingly demonstrated itself to be a premier investment destination with robust mining legislation adopted in 2004 and updated again in 2010. As a rapidly growing new global power, which is targeted to be the world's tenth largest economy by 2023, the Government of Turkey recognises that monetising its strategic national resources is a crucial aspect in achieving its growth objectives. Already Europe's largest gold producer, Turkey has an outstanding pedigree as a gold and precious metals province, and the Ariana team is centred on maximising our exploration and development expertise to rapidly advance our current assets and delineate additional new multi-million ounce deposits. Our long term commitment in Turkey has provided us with not only a comprehensive understanding of the exploration potential of the area, but also a strong network of relationships with key partners and the relevant authorities, enabling us to deliver on our operational objectives.
"Our core project area in Turkey is the highly prospective Western Anatolian Volcanic and Extensional (WAVE) province in the west of the country, with our Red Rabbit Gold Project taking a dominant position in this region. Our primary focus at present is the completion of the Feasibility Study; most components of this study have now been finalised and the Company is centred on finalising the last outstanding items. One outstanding aspect of the Feasibility Study is the completion of the design and engineering of the Tailings Storage Facility (TSF), which has unfortunately been subject to some delays. However, the first two stages of the TSF design and costing programme are now complete. The Company is working with the Turkish government authorities to expedite the process of gaining access to the TSF site for the additional geotechnical and hydrological drilling required of the second stage of the TSF design study which is expected shortly.
"In addition to our rapid development schedule aimed at bringing the Red Rabbit Gold Project into production next year, a key focus for us remains the exploration of the wider area in order to provide further upside to the already highly attractive economic fundamentals and current +8 year mine life. This exploration programme has yielded some outstanding results in recent months, with the discovery of new vein systems and exceptionally high grade mineralised zones. The most recent example of this has been the identification of an extension to the Derya vein at our Kiziltepe deposit where the highest grades ever recorded from this target have been logged, including 12.1m at 13.1 g/t gold and 187.6 g/t silver, totalling 16.5 g/t gold equivalent over the intercept. This is an excellent discovery for our exploration team and proves that the full scope and size of our Red Rabbit Gold Project is yet to be truly realised. A 4,000m drilling programme focusing on these new vein systems is underway in order to provide a better understanding of the longer term resource potential of the wider Red Rabbit Gold Project and I look forward to providing regular updates on this.
"Finally, moving on to our broader portfolio, I am delighted to report on a recent update to our joint venture with Eldorado Gold, where we are focused on the exploration and development of gold discoveries in northeastern Turkey. Following the acquisition of European Goldfields by Eldorado Gold earlier this year, both Ariana and Eldorado Gold reiterated their eagerness to rapidly bring our joint assets through the development curve, with activities on the Ardala Project and the Salinbas prospect prioritised. In line with this, Eldorado Gold supported our desire to become operator of the joint venture, and we have now commenced a US$1.77 million work programme aimed at delineating a preliminary resource at Salinbas. I am confident that Eldorado Gold is an excellent partner for Ariana, and I look forward to working together in enhancing the value of these exciting assets.
"In summary, we continue to make excellent progress across our growing portfolio of assets, both independently and through joint venture. We have also secured sufficient funding to complete our work programmes during the course of this year, with approximately US$1 million available to Ariana directly, in addition to the aforementioned budget allocated by Eldorado to our joint venture in northeastern Turkey. Our strategy of focusing on the highly prospective and politically stable country of Turkey continues to reap benefits for the Company, and we are committed to extending our mineral footprint across the country, as demonstrated by our recent acquisition of four new exploration licences. I would like to extend my thanks to our valued shareholders for their continued support and look forward to providing further positive updates as we move into the next chapter of our development with the advent of commercial gold production at the Red Rabbit Gold Project."
**ENDS**
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 / Lottie Brocklehurst | |
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.
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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