Ariana Resources PLC Red Rabbit Gold-Silver Project Update
30 March 2015 - 5:55PM
UK Regulatory
TIDMAAU
30 March 2015
AIM: AAU
RED RABBIT GOLD-SILVER PROJECT UPDATE
Ariana Resources plc ("Ariana" or "the Company"), the gold exploration
and development company focused on Turkey, is pleased to provide an
update on the Red Rabbit Gold-Silver Project in Western Turkey ("Red
Rabbit"). The Kiziltepe Sector will be the initial mine site at Red
Rabbit, which is being advanced towards production with its Joint
Venture ("JV") partner Proccea Construction Co. ("Proccea").
Highlights:
-- Proccea continuing to earn-in on Red Rabbit, having spent approximately
US$0.74 million during 2014-2015.
-- Proccea has also separately purchased additional freehold land during
2014 for a total of US$0.23 million.
-- Proccea now owns 30.4% of the JV and is continuing sole-funding through
the final permitting and construction stages.
-- Trial mining at the Kiziltepe Sector is due to produce up to 3,000 tonnes
of ore in Q2 2015; Trial mining at the Tavsan Sector produced 2,500
tonnes during 2014, which has been stockpiled and sampled.
-- Provincial agricultural exclusion permit and 3000kVA electrical power
access permission obtained.
-- US$33 million construction finance facility remains on standby for the
development of the Kiziltepe Mine.
Dr. Kerim Sener, Managing Director, commented:
"During the year, we have continued several project development
activities at Red Rabbit. Our partners, Proccea Construction, are
continuing to fund the development of the Kiziltepe Mine through the
permitting and construction stages, having spent approximately US$1
million in 2014 alone. We continue to liaise with relevant authorities
regarding our land access permit application and we look forward to
updating the market once approval has been received, which will enable
the construction stage of the project to commence."
Joint Venture Update
Following the Annual General Meeting held in Ankara, Turkey, on 26 March
2015 for the Joint Venture ("JV") company, Zenit Madencilik San. ve Tic.
A.S. ("Zenit"), Ariana is able to provide an update on the current
status of the Joint Venture ("JV") project.
Approximately US$0.74 million of project expenditures were incurred by
Proccea on the JV properties in the 2014 to 2015 period. To date,
Proccea has spent approximately US$3.5 million on the JV since its
inception in August 2010. Accordingly, Proccea now holds 30.4% of the
JV company and continues to earn-in on 50% of the project. Proccea will
have earned 50% of the JV once they have spent a total of US$8 million
on the project.
In addition to the expenditures incurred on the JV during 2014, Proccea
also completed the acquisition of a further 150,000 m(2) of freehold
land purchases in the vicinity of the mine. This brings the total land
holding by the JV and its partners to 406,000 m(2) , which represents
approximately two thirds of the total land parcels that require
acquisition within the planned infrastructure areas of the mine.
Additional land parcels are in the process of being acquired.
During the year a US$33 million credit agreement, inclusive of capital
repayments and borrowing costs, was completed with Turkiye Finans
Katilim Bankasi A.S. in order to fund mine construction. The credit
facility is non-recourse and comprises no hedging or currency swap
requirements. Loan repayments will occur over five years, with a
two-year principal repayment holiday following first drawn down.
During 2014, Zenit completed further trial mining at the Kiziltepe
Sector in accordance with Turkish mining legislation. Approximately
2,500-3,000 tonnes of ore will be mined from the Kiziltepe Sector in Q2
2015. This will be added to the existing stockpile of 4,800 tonnes
(containing approximately 450 oz of gold), which remains on site ready
for processing. At the Tavsan Sector, which contains a 215,000 oz gold
resource, Zenit completed trial mining for 2,500 tonnes during 2014.
This material has been stockpiled on site and sampled.
Zenit is currently awaiting the approval of its land access permits for
the Kiziltepe gold-silver mine. The permit application, which was
submitted in April 2014, has remained at the Prime Ministry for approval
since June 2014. Feedback from the Prime Ministry remains positive and
the Company and Proccea are working to ensure that this permit is issued
soon.
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
Saif Janjua
Loeb Aron & Company Ltd. Tel: +44 (0) 20 7628 1128
John Beresford-Peirse / Dr. Frank Lucas
St Brides Partners Ltd Tel: +44 (0) 20 7236 1177
Susie Geliher / Lottie Brocklehurst
Editors' note:
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 selected on the basis of
its in-house geological and remote-sensing database, on its own in
western Turkey and in Joint Venture with Eldorado Gold Corporation in
north-eastern Turkey. Eldorado owns 51% of this joint venture and are
fully funding all exploration work on the JV properties, while Ariana
owns 49%. The total resource inventory within this JV is 1.09 million
ounces of gold.
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, are
presently being assessed as to their economic merits and now form part
of a Joint Venture with Proccea Construction Co. The total resource
inventory at the Red Rabbit Project stands at 475,000 ounces of gold
equivalent.
Beaufort Securities Limited and Loeb Aron & Company Ltd. 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
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX 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
HUG#1907284
http://www.arianaresources.com/s/Home.asp
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