Kepez gold prospect results reinforce Red Rabbi...

22 November 2011
AIM / PLUS Markets: AAU

KEPEZ GOLD PROSPECT RESULTS REINFORCE RED RABBIT
PRODUCTION POTENTIAL

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, is pleased to announce a positive update on exploration activities at its Kepez gold prospect ("Kepez"), part of the Company's flagship Red Rabbit Gold Project ("Red Rabbit") in Balikesir Province, western Turkey.  Kepez is located 6.5km to the ENE of the Kiziltepe Sector of Red Rabbit where a Feasibility Study ("FS") is underway ahead of anticipated commencement of production in late 2012.

Highlights:

• High surface silver grades from Karakaya Vein at Kepez complement existing high gold grades 

• Average silver grade is 65 g/t, with a maximum of 277 g/t 

• Gold equivalent grades now average 8.32 g/t, with a maximum of 46.84 g/t 

• High gold equivalent grades could potentially lead to a doubling of the resource estimate for Kepez 

• Management reviewing possibility of earlier production from Kepez in combination with Kiziltepe, where production is currently scheduled for Q4 2012 

• Further targets at Kepez West identified from recent geophysical work and surface sampling, to be drill-tested Q1 2012 

Dr. Kerim Sener, Managing Director, commented:

"These excellent silver results, make the already high-grade Karakaya Vein at Kepez an even more valuable prospect.  The resulting gold equivalent grades, which could allow for a doubling of the existing resource at Kepez, may potentially mean that the prospect is mined earlier in the Red Rabbit Project than originally scheduled."

"While the Karakaya Vein continues to excite and is a priority target for our ongoing exploration programmes in the region, it forms only part of the wider Kepez prospect area.  The geophysics programme conducted earlier in the year, coupled with prospect-wide surface geochemical anomalies, lead us to believe that Kepez will yield further high grade areas.  We plan to start drill-testing these targets in Q1 2012."

Details of Programme

These results are based on the further analysis of rock-chip and float sampling conducted on the Karakaya Vein at Kepez (located 6.5km to the ENE of Kiziltepe), and an update on the Kepez West geophysics, sampling and drill-targeting work.  The systematic surface sampling yielding high gold and silver grades was conducted over Karakaya Vein; the recent exploration rock-chip sampling and geophysics programme was carried out around 1km west of this, in an area known as Kepez West.

Karakaya Vein

The analysis of samples previously collected from the Karakaya Vein at Kepez was undertaken in order to include silver data in our resource estimate for Kepez as part of our feasibility study programme of work.  The Indicated resource at Kepez currently stands at 60,000 tonnes at 4.6 g/t Au for 8,900 ounces of gold.  The analysis of samples for silver was based on the analytical pulps derived from a comprehensive float and rock-chip sampling programme, which covered an area on the Karakaya Vein in March 2009 (Figure 1).  

The original sampling programme was designed to confirm the distribution of near surface mineralisation over the central portion of the vein from which earlier channel samples, which were taken across and partly down-dip of the vein, had reported good grades.  Sampling was undertaken on a grid consisting of eight north-south trending lines of 100m length and 10m spacing.  Samples were taken every 10m along the lines and at each sample location randomly selected outcrop or float samples were collected as composites from a circular area with 5m radius around the sample point.  This ensured that the 8,000m² area was comprehensively sampled with minimum bias.  High grades were obtained, especially towards the southerly extent of the sampling grid.  The maximum grade reported by the composite sampling in this area has now, with the additional silver results, been calculated to be 46.8 g/t Au equivalent (41.8 g/t Au, 277ppm Ag).  

Figure 1: Sampling undertaken over the Karakaya Vein at Kepez.  The gold equivalent values are shown for both rock-chip and float sampling.  The gold equivalent is calculated as the sum of the gold grade plus the gold equivalent grade of silver using a price ratio of 55:1.  

Kepez West

A surface sampling and geological mapping programme on the Kepez West area has been completed by the Ariana field team to complement the recent geophysical surveys carried out on the Red Rabbit Project (see 28th July 2011 News Release).

Kepez West is an area characterised by both forestry and agricultural land use, such that geological mapping and sampling was based on a mixture of in-situ outcrop and float sampling (Figure 2).  A total of 108 composite rock-chip samples were taken across Kepez West in this manner, from a variety of lithologies including quartz vein, stockwork and altered dacitic volcanic rocks.  These samples demonstrated grades up to a maximum of 9.8g/t Au, with 7 samples returning >2g/t Au and an overall arithmetic mean of 0.4g/t Au.  Areas returning high grades were subsequently correlated with geophysical anomalies to produce drilling targets for the current exploration drilling programme.  Some of the priority targets produced are shown in the map below; these include several mineralised quartz veins visible at surface, which are expected to trend E-W.

Figure 2: Sampling undertaken over the Kepez West prospect.  The gold equivalent values are shown for both rock-chip and float sampling.  The gold equivalent is calculated as the sum of the gold grade plus the gold equivalent grade of silver using a price ratio of 55:1.  The location of geophysics lines is also shown.

Sampling and Assaying Procedures

The Kepez Karakaya Vein programme consisted of the collection of 80 composite float and rock-chip samples of quartz vein material.  The composite rock-chip samples were collected from in-situ rock from the vein outcrops.  The composite float samples (a) included both weathered material and/or mined rejects; (b) represent scree which has moved downhill; and (c) were obtained from a blanket of broken rock which is not more than a few metres thick. For further details on this programme, see the news release from the 13th May 2009.

The Kepez West exploration programme consisted of geological mapping and the collection of 108 composite in-situ outcrop and float samples.  Float samples were only collected where in-situ outcrop was not available, and due to the nature of the relatively low-gradient terrain at Kepez West, are thought to be a good representation of the sub-surface geology. Some shifting from original in-situ position due to agricultural land-use may have occurred, but this is thought to be minimal.

All samples were prepared by the ALS Chemex preparation facility in Izmir, with fire assay for gold carried out by the ALS Chemex laboratory in Romania, and multi-element ICP-MS analysis undertaken by the ALS Chemex laboratory in Canada.  Routine re-assaying of all samples assaying greater than 100 ppm Ag and 10ppm Au has also been completed by ALS Chemex.  Regular standard and blank samples are being used in the sample sequence in line with the Company's quality control procedures.  Every sample was photographed and analysed using a hand-held XRF instrument prior to assay at ALS Chemex.  

Contacts:

Ariana Resources plc	Tel: [phone]
Michael Spriggs, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited	Tel: [phone]
Roland Cornish / Felicity Geidt
Fairfax I.S. PLC	Tel: [phone]
Ewan Leggat / Laura Littley
St Brides Media & Finance Ltd	Tel: [phone]
Hugo de Salis / Susie Geliher

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 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 European Goldfields Limited in north-eastern Turkey.  European Goldfields owns 51% of this joint venture and, as the operator, is fully funding all exploration work on the JV properties until delivery of a feasibility study.

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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Figure 1

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Source: Ariana Resources plc via Thomson Reuters ONE

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