31st May 2018 13:25
LONDON (Alliance News) - Ariana Resources PLC on Thursday said it has received a "significant" gold resource increase at its Kepez prospect in Turkey.
A joint ore reserves committee resource update has given Kepez a resource of 371,000 tonnes of ore at grades of 2 grammes of gold per tonne of ore and 14 grammes of silver per tonne of ore.
This gives 23,900 ounces of gold and 164,300 ounces of silver present in all categories.
This new gold estimate is more than triple the previous resource estimate of 8,800 ounces of gold.
Ariana said there is further potential for this resource to be extended given drilling is currently ongoing.
Managing Director Kerim Sener said: "This resource update for Kepez indicates the potential to add at least one year of production from this satellite area to the Kiziltepe mining operations."
"Furthermore, the higher confidence indicated resource at Kepez North, which contains approximately 60,000 tonnes at 4.6 g/t Au and 34.7 g/t Ag, shows potential for several months of high-grade production. This part of the resource has also been shown to have good metallurgical characteristics from previous bulk testwork."
Sener added: "We envisage this area being developed as a series of shallow open-pits, developed as satellites to the Kiziltepe mining operations, within short trucking distance from the processing plant. In addition, we believe there is scope to enhance this resource further and additional drilling is being planned by the joint venture accordingly. The proximity of this area to the Kiziltepe operations makes such satellite operations highly viable."
Kepez is located on the Red Rabbit joint venture being undertaken with Proccea Construction Co.
Ariana shares were 2.0% higher on Thursday at a price of 1.30 pence each.
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