Ariana Resources, the gold-silver exploration and development company with several projects in Turkey, announced today drill results from its Kiziltepe mine project, part of the Red Rabbit joint venture with Proccea Construction Co. Once mine construction is completed in H216, Ariana will hold a 50% interest in the Red Rabbit joint venture. Reverse circulation (RC) drill holes at the Arzu South vein have returned encouraging intercepts, including 11m grading 4.07g/t Au equivalent (based on a gold:silver price ratio of 60:1) in hole KTP-RC05-15 and 7m grading 2.96g/t Au equivalent in hole KTP-RC02-15. The recent drilling programme has increased confidence in the presence of plunging ore-shoots extending beyond the base of the optimised pit for Arzu South. Further deep drilling will be required to systematically test for potential underground mining targets. These results, in addition to drilling currently on going, will be undertaken to support a revision of the mineral resource estimate for Kiziltepe project.
Beaufort Securities view on Ariana Resources: We are encouraged with the latest results from the Kiziltepe drill programme and the increased confidence in the current resource model as well as continuity of high-grade ore-shoots extending beyond the current optimised Arzu South pit base. Whilst further drilling is required to evaluate and define potential underground mining resources, we are optimistic given the initial high-grade assay results over relatively wide intervals and look forward to a revised mineral resource estimate which may extend the current mine schedule for Kiziltepe. In the meantime, we maintain a Speculative Buy on the stock.
Beaufort Securities acts as corporate broker to Ariana Resources plc
