Ariana Resources, the gold-silver exploration and development company with several projects in Turkey and a technology-metals subsidiary in Western Australia, announced yesterday an update to its JORC-compliant mineral resource estimate for the Kizilcukur project following a recent drill programme in Turkey. The Kizilcukur project lies outside of the Red Rabbit joint venture with Proccea Construction and is 100% owned by Ariana. Based on a 1,598m reverse circulation (RC) drilling programme Ariana has increased the mineral resource estimate by 100% to 308,000t grading 2.11g/t Au and 73.4g/t Ag (inferred and indicated). The updated resource is largely defined within three shallow (40-90m deep) open-pit shells and has the potential, if developed, to add 18 months to life of mine at Kiziltepe. Additional exploration exists along strike and on sub-parallel vein splays. Kizilcukur is located 50km by road from Ariana’s 50% owned Kiziltepe mine and as announced on 18 November has a mining permit is in place.
Beaufort Securities view on Ariana Resources: Ariana continues to add to its resource base along the Sindirgi gold corridor in western Turkey which could extend the current mine life at the Kiziltepe mine. We note that Ariana will be able to sell its wholly owned resource ounces into the Red Rabbit JV for three times its exploration costs as well as maintain its 50% ownership as outlined in the JV agreement. Given Ariana’s continued exploration success within the highly prospective Sindirgi region as well as its near-term production at Kiziltepe, we maintain a Speculative Buy rating on the stock.
Beaufort Securities acts as corporate broker to Ariana Resources plc
Ariana Resources PLC Kiziltepe Operational Update
6th June 2017
Ariana Resources plc (LON:AAU), the exploration and development company operating in Turkey, is has today provided the following operational update from the Kiziltepe Mine (“Kiziltepe” or “the Project”).Kiziltepe is part of the Red Rabbit Joint Venture
