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AAU Ariana Resources Plc

2.05
-0.05 (-2.38%)
18 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Ariana Resources Plc LSE:AAU London Ordinary Share GB00B085SD50 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.05 -2.38% 2.05 1.90 2.20 2.10 2.05 2.10 821,609 14:00:26
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Gold Ores 0 4.03M 0.0035 5.86 23.5M

Ariana Resources PLC Ariana Resources Plc: Kizilcukur Forestry Permit Granted For Production

01/02/2017 7:00am

UK Regulatory


 
TIDMAAU 
 
   1 February 2017 
 
   AIM: AAU 
 
   KIZILCUKUR FORESTRY PERMIT GRANTED FOR PRODUCTION 
 
   Ariana Resources plc ("Ariana" or "the Company"), is pleased to announce 
the receipt of an operational forestry permit for the Kizilcukur 
Project.  Kizilcukur is located outside of the Red Rabbit joint venture 
with Proccea Construction Co. and is 100% owned by Ariana.  The project 
lies 22km to the northeast of the Kiziltepe mine site. 
 
   Highlights: 
 
 
   -- Forestry permit granted to enable production from the Kizilcukur 
      operating licence. 
 
 
   -- Kizilcukur contains a current Mineral Resource of c.308,000 tonnes at 
      2.11g/t gold + 73.4g/t silver and demonstrates further growth 
      opportunities. 
 
 
   -- Potential for 18 months of add-on mine life for the Kiziltepe Mine from 
      three shallow open-pits if Kizilcukur is developed as a satellite mine 
      site. 
 
 
   -- Mining permit in place until September 2022; a blasting permit will now 
      be sought to enable trial mining to commence. 
 
 
   -- Ariana retains the option to sell Kizilcukur to its joint venture company 
      at three times the exploration cost. 
 
 
   Dr. Kerim Sener, Managing Director, commented: 
 
   "We are very pleased to have received this forestry permit at this time. 
As an integral part of our practical development strategy for our 
advanced projects, the Company will now be able to commence trial mining 
at the Kizilcukur site during 2017 and enable the stockpiling of 
material for future processing at Kiziltepe.  This trial mining exercise 
will fast-track this project through an internal feasibility study, with 
the aim of it becoming a satellite source of high-grade material for the 
Kiziltepe operations. 
 
   We look forward to providing the market with further updates on 
Kizilcukur during 2017 and particularly once we are in a position to 
initiate trial production." 
 
   Details of the Kizilcukur Project 
 
   The Kizilcukur Project consists of one operational licence located in 
the Balikesir Province in Western Turkey (coordinates: 626150 m E; 
4360440 m N). The property lies 22km to the northeast (straight line) 
and 50km by road from the Kiziltepe Sector of the Company's Red Rabbit 
Project. A royalty will be payable to Dogu Akdeniz Mineralleri San. ve 
Tic. Ltd. of 2% Net Smelter Return on commercial production from the 
Project.  Ariana has the option to sell the project to Zenit Madencilik 
San. ve Tic. A.S. (the operating company for the Kiziltepe Mine) at 
three times the exploration cost. 
 
   The Project covers an area containing a series of sub-parallel quartz 
veins hosted by ophiolitic units that trend northwest and extend for at 
least two kilometers. The Main Vein exhibits classic low-sulphidation 
epithermal features and attains a maximum true width of 8m. The western 
quartz vein extends over a strike length of 820m. Composite rock-chip 
sampling of 80m strike along this quartz vein returned encouraging assay 
results of 6m at 3.3 g/t gold, 2m at 9.6g/t gold and 1m at 7.2 g/t gold. 
The peak rock-chip assay result in this area was 152 g/t gold and 1,320 
g/t silver. 
 
   A JORC 2012 compliant Mineral Resource estimate has been prepared for 
the Kizilcukur Project (Table 1) and Whittle optimization conducted in 
2016 has identified the potential for the development of three open pits 
at this locality (Figure 1).  The Mineral Resource stands at c.308,000 
tonnes at 2.11g/t gold + 73.4g/t silver and demonstrates potential for 
further growth with additional drilling. 
 
   The newly granted forestry permit (Figure 2) will enable trial mining to 
commence within the central part of the Zeki Pit.  This pit is the 
largest and highest grade of the three pits defined following Whittle 
optimisation of the Kizilcukur resource.  The General Directorate of 
Mining Affairs has pre-approved blasting operations on the licence as 
part of its Mining Permit (as announced on 18 November 2015) and a 
blasting permit will now be sought from local authorities to enable 
trial mining to commence in 2017. 
 
   Table 1: 2016 Kizilcukur JORC 2012 compliant Mineral Resource estimate, 
based on 17 diamond and 26 RC drill holes.  Gold equivalent is the sum 
of the gold ounces and the gold equivalent ounces of silver based on a 
price ratio of 60:1. 
 
 
 
 
                  Tonnage    Grade Au   Grade Ag                     Au equiv. 
Classification      (t)        (g/t)      (g/t)    Au (oz)  Ag (oz)    (oz) 
   INDICATED         71,300       2.33       80.2    5,300  183,900      8,400 
   INFERRED         236,600       2.04       71.4   15,500  543,200     24,600 
    GLOBAL          307,900       2.11       73.4   20,800  727,100     33,000 
 
 
 
   Figure 1: shows three-dimensional model of the Kizilcukur vein system 
looking due north, showing the modelled ore zones within Whittle 
optimised pit-shells and current drilling. 
 
   Link: http://hugin.info/138153/R/2074952/780124.pdf 
 
   Figure 2: shows map of the forestry permit within which preliminary 
mining operations may begin.  The outline of the 2016 Whittle optimised 
Zeki Pit is also shown for reference.  Selected shallow drilling 
intercepts are also shown along with the outline of the current resource 
as viewed from above.  The mineralised vein dips steeply to the 
south-west. 
 
   Link: http://hugin.info/138153/R/2074952/780125.pdf 
 
   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 
 
Beaufort Securities Limited      Tel: +44 (0) 20 7382 8300 
Jon Belliss 
 
Panmure Gordon (UK) Limited      Tel: +44 (0) 20 7886 2500 
Adam James / Tom Salvesen 
 
 
 
   Editors' Note: 
 
   Competent Person 
 
   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 Africa, Australia and Europe.  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 originally selected on 
the basis of its in-house geological and remote-sensing database. 
 
   The Company's flagship assets are its Kiziltepe 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, form 
part of a 50:50 Joint Venture with Proccea Construction Co.  The 
Kiziltepe Sector of the Red Rabbit Project is fully-permitted and is 
currently in construction.  The total resource inventory at the Red 
Rabbit Project and wider project area stands at c. 525,000 ounces of 
gold equivalent.  At Kiziltepe a Net Smelter Return ("NSR") royalty of 
up to 2.5% on future production is payable to Franco-Nevada Corporation. 
At Tavsan an NSR royalty of up to 2% on future production is payable to 
Sandstorm Gold. 
 
   In north-eastern Turkey, Ariana owns 100% of the Salinbas Gold Project, 
comprising the Salinbas gold-silver deposit and the Ardala 
copper-gold-molybdenum porphyry among other prospects.  The total 
resource inventory of the Salinbas project area is c. 1 million ounces 
of gold equivalent.  A NSR royalty of up to 2% on future production is 
payable to Eldorado Gold Corporation. 
 
   Beaufort Securities Limited and Panmure Gordon (UK) 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. 
 
 
 
   Glossary of Technical Terms: 
 
   "Ag" the chemical symbol for silver; 
 
   "Au" the chemical symbol for gold; 
 
   "cut-off grade" The lowest grade, or quality, of mineralised material 
that qualifies as economically mineable and available in a given 
deposit. May be defined on the basis of economic evaluation, or on 
physical or chemical attributes that define an acceptable product 
specification; 
 
   "g/t" grams per tonne; 
 
   "Indicated resource" a part of a mineral resource for which tonnage, 
densities, shape, physical characteristics, grade and mineral content 
can be estimated with a reasonable level of confidence. It is based on 
exploration, sampling and testing information gathered through 
appropriate techniques from locations such as outcrops, trenches, pits, 
workings and drill holes. The locations are too widely or 
inappropriately spaced to confirm geological and/or grade continuity but 
are spaced closely enough for continuity to be assumed; 
 
   "Inferred resource" a part of a mineral resource for which tonnage, 
grade and mineral content can be estimated with a low level of 
confidence. It is inferred from geological evidence and has assumed, but 
not verified, geological and/or grade continuity. It is based on 
information gathered through appropriate techniques from locations such 
as outcrops, trenches, pits, workings and drill holes that may be 
limited or of uncertain quality and reliability; 
 
   "JORC" the Joint Ore Reserves Committee; 
 
   "JORC 2012" is the current edition of the JORC Code, which was published 
in 2012.  After a transition period, the 2012 Edition came into 
mandatory operation in Australasia from 1 December 2013; 
 
   "m" Metres; 
 
   "oz" Ounces; 
 
   "t" Tonnes; 
 
   "Whittle" computer software that uses the Lerch-Grossman algorithm, 
which is a 3-D algorithm that can be applied to the optimisation of 
open-pit mine designs.  The purpose of optimisation is to produce the 
most cost effective and most profitable open-pit design from a resource 
block model. 
 
   Ends 
 
   Figure 1: http://hugin.info/138153/R/2074952/780124.pdf 
   Figure 2: http://hugin.info/138153/R/2074952/780125.pdf 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Ariana Resources plc via Globenewswire 
 
 
  http://www.arianaresources.com/s/Home.asp 
 

(END) Dow Jones Newswires

February 01, 2017 02:00 ET (07:00 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.

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