Yesterday, Ariana Resources (Ariana) informed that it has started a new drilling programme at the Kiziltepe Sector of the Red Rabbit Gold Project. The company started a 3,500 to 4,000m two-rig drilling programme at Kiziltepe and expects it to complete by December 2015. Reverse circulation and diamond drilling are presently focused on various deep holes testing the potential extension of mineralisation along the Arzu South vein.
Beaufort Securities view on Ariana Reosurces: The aforementioned update takes Ariana to the next stage of exploration and resource drilling on different prospects in the Kiziltepe Sector. The Red Rabbit Project has a total resource potential of 475,000 ounces of gold equivalent. The company has identified targets along strike and Arzu South vein, and would initially target these regions. Ariana has also planned drilling at the Kizilcukur prospect along with exploration drilling at Kepez Far West. The company’s initiatives to commence drilling across various regions are a part of its plan to enhance its resource potential. Meanwhile, Ariana’s partners Proccea Construction continue to progress well in the construction of the mine. Recently, the company raised £1m, which not only strengthens its balance sheet but would also suffice exploration and development work across its portfolio. With a first gold pour planned in H2 2016 and annual production of 20,000 ounce equivalent per annum over the current planned eight years, we are very excited at the company’s prospects. Therefore, we retain a Speculative Buy rating on the stock.
Beaufort Securities acts as corporate broker to Ariana Resources plc
