Ariana Resources Share Discussion Threads

[pauliewonder] 02/9/2020 13:04

The JV situation would be a real issue if the company didn't have a producing mine at present. I'm content for the JV to take its time as we get 50% of Kiziltepe gold and silver until it's sorted. Ultimately though, we do need a plan for Salinbas and that's where the JV adds value in my view

[soulsauce] 02/9/2020 12:54

Agree Thanksamillion.

[thanksamillion] 02/9/2020 12:40

Nah!, that would to go against their recent statements on that possibility, they are far more interested on simply getting it done and expediting the exploration of Salinbas.

[cyberbub] 02/9/2020 12:33

Sounds to me actually like what I was saying yesterday - that Ariana are looking to improve the terms of the agreement with Ozaltin, and that today's RNS is being used to support that...

[thanksamillion] 02/9/2020 12:22

"We are keen to undertake further studies in parallel with the completion of drafting of our new joint venture agreements with Ozaltin Holding A.S. and Proccea Construction Co., which we are focused on finalising in the coming weeks. "

At least it isnt "coming months", sounds like end October/November to me.

[risa5] 02/9/2020 10:37

Ariana Resources unearths new high-grade gold vein at Kiziltepe mine

"We are very pleased with the results of this drilling programme," said managing director Dr Kerim Sener

Ariana Resources PLC - Ariana Resources unearths new high-grade gold vein at Kiziltepe mine
Ariana Resources PLC (LON:AAU) told investors it has unearthed a new high grade gold vein at the Kiziltepe mine in Turkey.

The vein was discovered in the hanging-wall of the Arzu South part of the mine. Testing yielded grades of up to 6.09 grams per tonne plus 107.58 grams per tonne silver.

Ariana at the same time noted what it described as further significant results that show the potential for underground development at Arzu South. It includes highlight results with 2.18 to 3.39 grams per tonne gold and 31.68 to 53.53 grams per tonne silver in intersections of around 10 metres.

The company noted that the existing conceptual underground mining plans for Arzu South are now being reviewed further.

"We are very pleased with the results of this drilling programme, which clearly demonstrate the potential for mining to continue along the northwest extension of the Arzu South vein,” Dr Kerim Sener, Ariana managing director said in a statement.

“The recognition of an additional and consistent high-grade structure in the hangingwall of the Arzu South vein is a fantastic result and its discovery is a credit to the intelligence of our exploration team.”

Sener added: “We are now investigating the opportunities for further exploration and resource drilling in this area, along with progressing additional underground mining studies. Based on the initial work completed to date, there are opportunities to either extend the Arzu South pit to the northwest by at least 200m or to develop this area by underground mining methods.”

Kiziltepe is part of the wider Red Rabbit joint venture properties, which is 50%-owned by Ariana alongside Proccea Construction.
PI

[pauliewonder] 02/9/2020 10:35

Would need to be at multiples of today's share price though

[pauliewonder] 02/9/2020 10:35

Sounds reasonable. I think there would be some serious value realised via that route. I think your right that Tavsan was thrown in to sweeten the pot as AAU could do Tavsan with Proccea. Salinbas is clearly a monster, and I'm sure there would be multiple buyers available without Ozaltin given the international interest KS has alluded to. I do think Ozaltin will buyout AAU at some point in the next 18-24 months. JV needs to go through first though. KS did allude to this being a possibility in a recent interview

[bmnsa] 02/9/2020 10:34

Sell your losers run your winners.

[cool hand kev] 02/9/2020 10:27

Have the weak all sold out ? Onwards and Upwards for the patient

[konil] 02/9/2020 10:20

cheers bb.

[bigglesbingham] 02/9/2020 10:19

They may go for a second ball mill all depends on the resource. Point is they will only increase cap ex if viable to do so. If viable then shareholders benefit so even though I ain't specifically answered question it does. Does that make sense?

[bigglesbingham] 02/9/2020 10:17

The deposits will require further funding as they may require underground mining. At these levels of resource then no issue with that. Probably fund via debt imho.May pay more but don't think the increase in gold price will be determining factor. KS stated a reasonable figure would be monies received directly for salinbas. So as thanks a million indicated a cash injection from Proccea May increase div but I'd rather divi next year than big one now.

[konil] 02/9/2020 10:01

bb, some questions for you please.

1. (a) i can see the rns is very tasty and grades are good, but i'm a bit confused as to aau's game plan to exploit the deposits - i.e. across the entirety of kiziltepe - is there a simple explanation for a simple minded person like me!

(b) will full exploitation of kiziltepe deposits require further expenditure on processing plant or will exisiting facilities suffice?

2. The one-off divi - aau have stated $5m, but even ignoring further cash input by proccea for their share of salinbas, is there a reasonable chance that with the au price increasing c.$450/oz since announcement (and therefore boosting profits by c.50%), that they may reward holders with significantly more? perhaps even $7m or $8m?

[temujiin] 02/9/2020 09:54

Paulie, that's my preferred route but it is possible as CHK says, that perhaps Ozaltin weren't interested unless Red Rabbit was chucked in, in which case I think we should have carried on raking in the cash at Kizil, developed Tasvan and flirted Salinbas to others.

[temujiin] 02/9/2020 09:49

BB, I'm sure Proccea will pay their share, but am making the point that bunging say $5m into Salinbas for services like say mine development, exploration drilling etc would only result in (23.5% of $5m) a $1.2m benefit to AAU, so services seem a difficult route to get fair value for AAU.

[cool hand kev] 02/9/2020 09:47

Perhaps this is a compromise that they had to except to get the deal done?

[pauliewonder] 02/9/2020 09:44

Tem - pretty much where I'm at too. Tavsan is doable without Ozaltin and Salinbas probably not. Ideal solution would be to keep everything and JV with Ozaltin for Salinbas, which is what their focus is clearly on

[temujiin] 02/9/2020 09:41

Cool Hand Kev,

in a nutshell yes AAU would be more profitable keeping half of the mine they have and developing the second mine at Tasvan with Proccea, rather than selling over 50% of it to Ozaltin for a one off $25m. I'm firmly in the camp that thinks the current deal is inferior to the status quo, as most here know.

Salinbas is a different kettle of fish that does require lots more money thrown at it and a partner that can help exploit it. Ozaltin definitely fits that bill.

Kirbs makes the point that both routes have merit so you have to make your own mind up, but on this and LSE board it seems most posters feel the deal is the better route.

[cool hand kev] 02/9/2020 09:32

Ok thanks Guys, I'm relatively new here so I don't know the whole story.

[kirbs4] 02/9/2020 09:22

A topic of debate here for some time.. Tbh there are arguments both ways but it seems to come down to two camps: Financial which says there would be more money for AAU by seeing it through themselves, or Potential which says Kerim is likely to keep finding with that 30m. The issues with the (valid) financial argument in my opinion are that the time frame increases risk, but also simply the risk of ever getting Salinbas to production on our own given the challenging terrain etc, it is felt that Ozaltin would just plough through given their financial/operational muscle.

[soulsauce] 02/9/2020 09:15

cool hand kev they could go it alone but that may mean Salinbas may not produce before the 2030's and would have to do years of very costly drilling before finding the huge Capex to build a processing plant.

This way we have JV partners doing the heavy lifting in a much shorter time frame freeing Ariana up to use that $30m to find new easier to get resources and diversify from Turkey.

[bigglesbingham] 02/9/2020 09:09

They will have to pay fair value by whatever means. I've never understood why they don't use cash being received for their share of kiziltepe and I've made my feelings known from day one. I've also been reassured that Proccea will pay their share so have to see what the final deal looks like but no reason to think otherwise.

[cool hand kev] 02/9/2020 09:09

Wouldn't AAU be more profitable if they went it alone or do they not have the expertise?

[temujiin] 02/9/2020 08:58

Yes he intimated Salinbas money and only ozaltin money was declared as time with Proccea offering services for buy in.
============

BB, I'm not sure Proccea can offer services as a buy in (and I hope that isn't the case) as services would help all partners including themselves and Ozaltin.

AAU atm own 100% of Salinbas so Proccea need to compensate AAU *directly* to buy in. EG say $5m given for exploration at Salinbas means AAU only benefit by 23.5% of that and Ozaltin would benefit by 53%.

Proccea need to give AAU the direct benefit of buying into their 23.5% of Salinbas and that should be cash circa $5m