1st May 2014 10:07
LONDON (Alliance News) - Ariana Resources PLC said Thursday it has discovered additional gold-silver bearing zones within the Kiziltepe Sector of the Red Rabbit Mining Project.
The Anglo-Turkish gold exploration and mine development company said a new highly anomalous zone of mineralisation has been identified at Kepez Far West with rock-chip samples of up to 6.3 grammes of gold per tonne and 54.8 grammes of silver per tonne; 5.1 grammes of gold per tonne and 31 grammes of silver per tonne; and 3.5 grammes of gold per tonne and 17.3 grammes of silver per tonne.
The company said the minerlised zone has been "extended to over 1.6 kilometres in strike length at Kepez West and Far West, containing alteration and high-grade quartz veins."
Ariana Resources holds the Red Rabbit project, located in Western Turkey, in a joint venture with Turkey's Proccea Construction Co. The project is the company?s most advanced project.
Under the JV deal, formed in 2009, Proccea should contribute USD8 million during three phases of development, culminating in the permitting for a gold mine at Kiziltepe. In return Proccea will receive a 50% equity stake in the project.
"The latest sampling in the Kepez Far West area of our flagship Red Rabbit project has returned exciting results, and confirms the potential of the area to host a mineralised structure of over 1.6km in length. We have previously drill-tested the far eastern end of this structure and intercepted 8m [at] 3.65 g/t gold equivalent and have evidence that the mineralised structure continues at depth," said Managing Director Dr Kerim Sener.
"We have now established over ten new drill targets across the Kiziltepe Sector, many of which are located within agricultural land and will not require forestry permits to be drill tested," he added. Of 34 kilometres of veins mapped and sampled across the region, only two kilometres have been resource drilled and have yielded JORC reserves of 1.1 metric tonnes at 3.1 grammes of gold per tone and 39.8 grammes of silver per tonne.
"We expect to identify significant further resources across this region that have the potential to increase mine life well beyond eight years," said Sener.
In April the firm said the mining license which covers the Kiziltepe gold-silver mine had been extended for up to 20 years by Turkish authorities, and a mining permit for gold and silver attached to the new licence has also been granted.
Ariana said that the mining license, which was due for renewal by October, had been renewed for an initial five years from April 2. Under the terms, the licence will automatically extend for a further 15 years as long as mining starts at the site within the first five years.
Shares in Ariana were trading 9.29% higher at 0.929 pence per share Thursday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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