“Turkey Gold Project Highly Attractive” – Ariana Resources

PUBLISHED: 29 Oct 2012 @ 09:09 | Comments (0) | More info about Kenneth G. Mondero

Two nights before its Managing Director presents the company at a dinner with investors, brokers, and analysts, Ariana Resources plc (LSE:AAU) said its flaghship Red Rabbit Gold Project in Turkey exhibits “highly attractive economic fundamentals” capable of providing the company multi-million dollar revenue, for the whole life of the mine.

Following an interim feasibility study, Turkey-focussed gold exploration company said it will be able to extract 21,000 ounces of gold a year for the first five years from Red Rabbit’s Kiziltepe sector, which has a reserve of about 1.1 million tonnes at a grade of 3 grams per tonne of gold and 39.8 g/t of silver.

The Kiziltepe sector was reported by Ariana in May 2012 to have bonanza grade ores during its drilling programme in the said area.

Ariana holds 86% ownership of the joint venture that is estimated to provide revenue of about US$49.8 million based on the current price of gold at US$1,650 per ounce and silver at US$25 an ounce.

“The study reinforces the Company’s ability to generate significant revenues from the Kiziltepe Sector of our Red Rabbit Project,” Dr. Kerim Sener, Ariana’s Managing Director, stated.

Red Rabbit’s mine life was initially limited to only eight years but according to Dr. Sener, recent discoveries of bonanza grade ore underscores longer term potential of the deposit.

Total mineral resource for the said project was pegged at 220,904 ounces of gold and gold equivalents while total proven and probable reserves were approximately over 115,ooo ounces of the precious yellow malleable metal.

Ariana is awaiting approval for the company’s environmental impact assessment, while the company makes plans for an open pit mine and its own processing plant.

The news was welcomed by investors trading in London as nearly two million shares were swapped to gain 3.2% in share price to 1.6 pence by 12:00 PM GMT.

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