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Ariana Resources PLC (AAU)

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Friday 14 February, 2020

Ariana Resources PLC

DUE DILIGENCE UPDATE

RNS Number : 9764C
Ariana Resources PLC
14 February 2020
 

 

 

 

 

 

 

14 February 2020

AIM: AAU

 

DUE DILIGENCE UPDATE

 

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce the receipt of due diligence drilling results by Proccea Construction Co. ("Proccea") and the Proposed Partner on the Salinbas Gold Project in Turkey. A detailed independent review of the Kiziltepe, Tavsan and Salinbas projects by international consultants of the Proposed Partner remains underway following completion of the Memorandum of Understanding ("MoU"), announced on 25 November 2019.

 

Highlights:

 

·     600m of Reverse Circulation ("RC") drilling was undertaken to twin four holes previously drilled by Ariana: ARD019, 20, 22 and 23.

 

·     Assay results from the independent laboratory, ALS Global in Izmir, have been received and good correlations are confirmed between Ariana's drilling results and the due diligence drilling results.

 

·     The Proposed Partner, Proccea and Ariana have completed an extension agreement to enable the conclusion of the due diligence work up to 31 March 2020.

 

 

Dr. Kerim Sener, Managing Director, commented: 

 

"We are pleased to confirm that the due diligence confirmatory drilling programme at Salinbas has been concluded and can now be factored into the independent review. The efforts of the independent due diligence team are currently focusing on the Kiziltepe mining operations and, in order to provide sufficient time for the completion of this work, the proposed JV parties have extended the exclusivity period to the end of March. Meanwhile, the necessary definitive legal documentation is being prepared for review by the proposed JV parties from the second half of February. 

 

"We look forward to working closely with the proposed JV parties in order to conclude the proposed agreement and advancing our project development plans for Salinbas in particular."

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

 

Contacts:

 

Ariana Resources plc

Tel: +44 (0) 20 7407 3616

Michael de Villiers, Chairman

 

Kerim Sener, Managing Director

 

 

 

Beaumont Cornish Limited

Tel: +44 (0) 20 7628 3396

Roland Cornish / Felicity Geidt

 

 

 

Panmure Gordon (UK) Limited

Tel: +44 (0) 20 7886 2500

Atholl Tweedie / James Stearns

 

 

 

Yellow Jersey PR Limited

Tel: +44 (0) 20 3004 9512

Dom Barretto / Joe Burgess / Henry Wilkinson

[email protected]

 

 

Editors' Note:

 

About Ariana Resources:

 

Ariana is an AIM-listed mineral exploration and development company operating in Europe.  It has interests in gold production in Turkey and copper-gold assets in Cyprus.  The Company is developing a portfolio of prospective licences in Turkey, which contain a total of 1.6 million ounces of gold and other metals (as at end-2017). 

 

The Red Rabbit Project is comprised of the Company's flagship assets, the Kiziltepe and Tavsan gold projects, and is part of a 50:50 Joint Venture with Proccea Construction Co.  Both assets are located in western Turkey, which hosts some of the largest operating gold mines in the country and remains highly prospective for new porphyry and epithermal deposits.  The Kiziltepe Sector of the Red Rabbit Project is fully permitted and is currently in production.  The total resource inventory at the Project and its wider area is c. 605,000 ounces of gold equivalent (as at end-2017).  At Kiziltepe a Net Smelter Return ("NSR") royalty of up to 2.5% on production is payable to Franco-Nevada Corporation. At Tavsan an NSR royalty of up to 2% on future production is payable to Sandstorm Gold.

 

The 100% owned Salinbas Gold Project is located in north-eastern Turkey and has a total resource inventory of c. 1 million ounces of gold equivalent.  The project comprises three notable licence areas: Salinbas, Ardala and Hizarliyayla, all of which are located within a multi-million ounce Artvin Goldfield.  The "Hot Gold Corridor" contains several significant gold-copper projects including the 4Moz Hot Maden project, which lies 16km to the south of Salinbas and 7km south of Hizarliyayla.  A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation on the Salinbas Gold Project.

 

Ariana is also earning-in to 50% of UK-registered Venus Minerals Ltd ("Venus").  Venus is focused on the exploration and development of copper-gold assets in Cyprus.

 

Panmure Gordon (UK) Limited are broker 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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