Update on Sindirgi
2 April 2009
AIM / PLUS Markets: AAU
UPDATE ON SINDIRGI ACTIVITIES
TRIAL MINING & NEW DRILL PROGRAMME
Ariana Resources plc ("Ariana" or "the Company"), the gold
exploration and development company focused on Turkey, is pleased to
provide an update of its operational activities at the Sindirgi Gold
Project. Trial mining of the Arzu South vein is underway and a new
drilling programme on two additional veins has commenced. The
drilling programme is designed to test potential extensions to the
existing resource.
Dr. Kerim Sener, Managing Director, commented:
"Trial mining has been underway at the Arzu South vein of the
Kiziltepe deposit since mid-March. Grade-control of initial
stockpiles has demonstrated higher than expected gold grades over the
central portion of the vein. This provides a considerable boost to
our confidence and the team is continuing to work to ensure a
positive outcome from the trial.
"Elsewhere on the Kiziltepe deposit, the Company has initiated
drilling on two veins occurring to the west of Arzu South which have
not been drill-tested effectively in the past. This drilling will
lead towards a further drilling programme scheduled for the summer,
which is designed to test for the continuity of the mineralised Arzu
structure beneath cover."
Trial Mining
Trial mining activities commenced on schedule on Saturday 14th
March. This involved the use of an excavator/rock-breaker to level
surface outcrops, to create an initial stockpile of surface ore and
to prepare the ground for grade-control drilling. Samples collected
from surface material were analysed at the Eti Gümüs A.S. ("Eti")
laboratory and confirmed continuity of grade along 100m of strike
over the central portion of the vein. The results of these analyses
have exceeded expectations of surface grade at Arzu South, recording
an average of 7.6 g/t Au (max. 20.4 g/t Au, 220 g/t Ag; min. 1.8 g/t
Au, 10 g/t Ag). Approximately 500 tonnes of this high-grade material
is currently stockpiled at site.
Grade-control drilling was undertaken on Friday 27th March. Nine
grade control holes were drilled over 100m of strike to depths of 8
to 20m from which seventy-three 2m composite samples were collected
and dispatched to the Eti laboratory for analysis along with standard
and blank samples for quality control purposes. One half of each
sample has also been retained by Ariana for independent analysis if
necessary. The Company is also making use of a field-portable XRF
(X-ray fluorescence) instrument to assist with on-site analyses of
silver, which is being used as an effective proxy for gold grade,
ahead of formal grade-control sampling.
Drilling and blasting commenced on Wednesday 1st April and
approximately 10,000 tonnes (representing 90m of strike) of material
blasted simultaneously using ANFO explosives in 71 holes (24 rows).
An estimated three days will be required to move the broken ore into
stockpiles, during which further grade-control sampling will be
undertaken. The first transport of ore to the Eti processing plant
is expected on Thursday 9th April.
New Drilling
Ariana has commenced a new drilling programme on two previously
untested veins (Vein 9 and Derya West) at the western end of the
Kiziltepe prospect using its in-house drilling team. The programme
is designed for a maximum of 300m of drilling for six shallow holes
of 50m depth, although the programme can be extended dependent on
assay results. As part of this programme, the Company has benefited
from the input of Mr. Mehmet Ali Özkan who has 25 years of
diamond-drilling experience in Turkey operating similar hydraulic
rigs, and who is consulting to the Company on the further development
of the in-house drilling team.
This short drilling programme is being undertaken in advance of a
further programme planned for the summer which will test several
geophysical targets defined in areas under cover, notably in the Arzu
area. The identification of a coherent resistivity and chargeability
anomaly (from the 2008 geophysical programme) and other confirmatory
geological work has demonstrated that a 650m long 'gap' between the
Arzu South and North veins represents an opportunity for further
resource expansion.
Forestry applications have been submitted to secure permits in the
area of ignimbrite cover between the two veins. Drilling in this
area will test for the sub-surface continuity of the Arzu structure
via several holes spaced 50m apart. The Company has flexibility to
extend this programme.
For announcement with graphics please follow this link:
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 / Libby Moss
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:
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 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.
On 5 March, 2009, Ariana announced that the trial production from
Kiziltepe had commenced, and an agreement with Eti Gumus A.S. ("Eti")
to process ore on a trial basis had completed. 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 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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