9 July 2008
AIM / PLUS Markets: AAU
ARIANA RESOURCES plc
DRILLING RIG AND TEAM
Ariana Resources plc ("Ariana" or "the Company"), the gold
exploration and development company focused on Turkey, is pleased to
announce the initiation of drilling at the Kiziltepe project using
its newly acquired Sandvik DE130 diamond drill rig.
Highlights
* High production, low cost drilling, circa US$ 65 per metre
drilled
* Capability for exploration drilling on demand over the Company's
projects
* New drilling programmes to commence in August
Dr. Kerim Sener, Managing Director, commented:
"The Company is expecting to start its 2008 drilling programme in
August with its newly acquired drill rig. Drilling during 2008 and
early 2009 will be designed to further test previously drilled veins
and to explore veins that remain un-drilled elsewhere on the
Kiziltepe prospect and in the wider Sindirgi project area. Drilling
will also be initiated on the Tavsan deposit with the aim of defining
a larger resource.
"This is an exciting time in the development of the Company, as we
continue to build on our capabilities as one of the leading operators
in Turkey. The addition of our own drilling team has greatly
enhanced the flexibility of the Company to drill on demand at any
time of the year."
Drill Rig
Ariana's Turkish operating subsidiary, Galata Madencilik San. ve Tic.
Ltd. Sti., recently took delivery of a Sandvik DE 130 diamond
drilling rig from its manufacturer in Sweden. This is the first
drill rig to be operated in-house by the Company and used during our
upcoming exploration and resource drilling campaigns.
The Sandvik DE130 was selected by the Company for its ease of use and
training as well as its simple hydraulic system, which will result in
lower down-time and maintenance costs. The rig also uses the metric
wire-line system, which is unique for its light weight, enabling
deeper holes to be drilled than the comparable Q wire-line system.
Between August 2006 and March 2008, through a contract drilling
company, Ariana drilled over 11,000 meters of HQ diamond and Reverse
Circulation drill holes, costing an average of US$ 145 per metre
drilled (inclusive of all direct drilling costs apart from site
preparation and assays). It is expected that our own team will
achieve total drilling costs of US$ 65 per metre drilled of
HQ-equivalent sized core. This provides the Company with a high
degree of competitive advantage.
Drilling Team
An in-house drilling team has been recruited, consisting of two
drillers, a drilling geologist and two off-siders. The core team
received preliminary training using a similar drill-rig on an
operating base-metal mine in Turkey for a period of two weeks in
June. This included operational experience on the rig type, health
and safety, core handling, and drilling performance reporting.
The training was followed by five days of additional and specific
training by an expert driller provided by Sandvik. As part of this
training, and to test the machinery, an initial 23.8m deep drill hole
was drilled on Vein 2 at the Kiziltepe prospect, intersecting a 1.34m
thick quartz vein at a depth of 20.7m. Please see the link at the
end of this announcement for Figure 1 which shows the first training
hole being drilled with the new rig. Training of the drilling team
will continue in July before the planned drilling programmes start in
August.
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
Loeb Aron & Company Ltd Tel: 020 7628 1128
Peter Freeman / Frank Lucas
City Capital Corporation Limited Tel: 020 7842 5867
Charles Dampney
Alexander David Securities Limited Tel: 020 7448 9800
Nick Bealer / David Scott
Editors' note:
About the Kiziltepe prospect
The Kiziltepe prospect 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.
Kiziltepe lies approximately 100km east of the one million ounce
vein-hosted Ovacik gold mine and 115km northwest of the five million
ounce Kisladag gold mine. The prospect 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.
Ahead of commencing the drilling programme, Ariana obtained all
necessary environmental and forestry approvals from the provincial
government in Balikesir and the State Government in Ankara.
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 remote-sensing database.
The Company's flagship asset is the Sindirgi Gold Project, which
targets a series of prospects, within a prolific mineralised district
in western Turkey. The project hosts over 45km of gold-silver
bearing epithermal quartz veins. This project is presently being
assessed as to its economic merits.
Loeb Aron & Company Ltd., City Capital Corporation Limited 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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