29 November 2016 AIM: AAU
CONSTRUCTION UPDATE - KIZILTEPE
Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company operating in Turkey, is pleased to provide an update on construction of the Kiziltepe Mine within the Red Rabbit Gold-Silver Project in Western Turkey ("Red Rabbit"). Kiziltepe is being advanced towards production through a 50:50 Joint Venture ("JV") with Proccea Construction Co. ("Proccea"). Construction of the project is expected to be completed by mid-December 2016 with production commencing during the weeks thereafter.
Highlights:
- Process CIL/CIC and ADR* piping and electrical work fully completed, with the process plant now under preparation for operational start-up.
- Mining and stockpiling of Run of Mine ("ROM") ore continuing, with drilling and blasting underway on the Stage 1 open-pit at Arzu South.
- Dry commissioning in progress with crushers and milling underway; wet commissioning of process plant commencing with water tests.
- Back-up tailings pumps installed and ready for full-cycle wet commissioning of Tailings Storage Facility ("TSF").
- Dam wall complete and installation of geomembrane for Stage 1 TSF now largely complete; TSF to be ready for inspection by the authorities ahead of start-up during late December.
- Production expected to commence once the TSF installation has been approved and a routine Operations Permit has been issued.
- The Company is considering several accelerated work programmes on its projects to enhance its future production profile once Kiziltepe becomes operational.
Dr. Kerim Sener, Managing Director, commented:
"We are very pleased to report that construction of the Kiziltepe Mine is largely completed and is expected to become operational within weeks. Dry and wet commissioning is underway and it is expected that the TSF will be completed during mid-December ready for final inspections ahead of production start-up. We wish to commend our project partners, Proccea Construction, for completing the project substantially on time and on budget.
As Kiziltepe approaches its first gold pour, we remain focused on further enhancing the project through the drilling of potential resource extensions and in developing several satellite prospects aiming to add to our production profile and to provide increased optionality on our resource base. This will require further drilling programmes and project development work, including additional feasibility studies, particularly at Kepez, Kizilcukur and ultimately at Tavsan. We are focused on building on our production profile to reach a target of 50,000 oz per annum, particularly once Tavsan is developed. We are also aiming to increase overall mine life across the Kiziltepe Sector and to leverage the use of the Kiziltepe infrastructure as we consider the development of Tavsan."
* CIL - Carbon-in-Leach; CIC - Carbon-in-Column; ADR - Adsorption-Desorption-Recovery
Figure 1, which can be accessed from the following link: http://hugin.info/138153/R/2059874/772156.pdf , is a view of the Kiziltepe mine-site showing the current status of construction progress, taken from the waste rock dump haulage road. The crushers, screens and ball-mill are in the foreground (from right to left respectively) and the CIL/CIC and ADR process plant buildings are just behind the conical structure. Piping and electrical work is complete and wet and dry commissioning is underway. ROM stockpiles are seen in the foreground, with ore being fed by a loader in to the crushers to the right.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 .
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 |
| Jon Belliss | |
| Panmure Gordon (UK) Limited | Tel: +44 (0) 20 7886 2500 |
| Adam James / Tom Salvesen | |
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 c. 1 million ounces of gold equivalent.
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 being assessed as to their economic merits and now form part of a Joint Venture with Proccea Construction Co. The Kiziltepe Sector of the Red Rabbit Project is fully-permitted and is currently in construction. The total resource inventory at the Red Rabbit Project and wider project area stands at c. 525,000 ounces of gold equivalent.
Beaufort Securities Limited and Panmure Gordon (UK) Limited 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 .
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