AAU Ariana Resources Plc

 
TIDMAAU 
 
   30 March 2015 
 
   AIM: AAU 
 
   RED RABBIT GOLD-SILVER PROJECT UPDATE 
 
   Ariana Resources plc ("Ariana" or "the Company"), the gold exploration 
and development company focused on Turkey, is pleased to provide an 
update on the Red Rabbit Gold-Silver Project in Western Turkey ("Red 
Rabbit").  The Kiziltepe Sector will be the initial mine site at Red 
Rabbit, which is being advanced towards production with its Joint 
Venture ("JV") partner Proccea Construction Co. ("Proccea"). 
 
   Highlights: 
 
 
   -- Proccea continuing to earn-in on Red Rabbit, having spent approximately 
      US$0.74 million during 2014-2015. 
 
 
   -- Proccea has also separately purchased additional freehold land during 
      2014 for a total of US$0.23 million. 
 
 
   -- Proccea now owns 30.4% of the JV and is continuing sole-funding through 
      the final permitting and construction stages. 
 
 
   -- Trial mining at the Kiziltepe Sector is due to produce up to 3,000 tonnes 
      of ore in Q2 2015; Trial mining at the Tavsan Sector produced 2,500 
      tonnes during 2014, which has been stockpiled and sampled. 
 
 
   -- Provincial agricultural exclusion permit and 3000kVA electrical power 
      access permission obtained. 
 
 
   -- US$33 million construction finance facility remains on standby for the 
      development of the Kiziltepe Mine. 
 
 
   Dr. Kerim Sener, Managing Director, commented: 
 
   "During the year, we have continued several project development 
activities at Red Rabbit.  Our partners, Proccea Construction, are 
continuing to fund the development of the Kiziltepe Mine through the 
permitting and construction stages, having spent approximately US$1 
million in 2014 alone.  We continue to liaise with relevant authorities 
regarding our land access permit application and we look forward to 
updating the market once approval has been received, which will enable 
the construction stage of the project to commence." 
 
   Joint Venture Update 
 
   Following the Annual General Meeting held in Ankara, Turkey, on 26 March 
2015 for the Joint Venture ("JV") company, Zenit Madencilik San. ve Tic. 
A.S. ("Zenit"), Ariana is able to provide an update on the current 
status of the Joint Venture ("JV") project. 
 
   Approximately US$0.74 million of project expenditures were incurred by 
Proccea on the JV properties in the 2014 to 2015 period.  To date, 
Proccea has spent approximately US$3.5 million on the JV since its 
inception in August 2010.  Accordingly, Proccea now holds 30.4% of the 
JV company and continues to earn-in on 50% of the project.  Proccea will 
have earned 50% of the JV once they have spent a total of US$8 million 
on the project. 
 
   In addition to the expenditures incurred on the JV during 2014, Proccea 
also completed the acquisition of a further 150,000 m(2) of freehold 
land purchases in the vicinity of the mine.  This brings the total land 
holding by the JV and its partners to 406,000 m(2) , which represents 
approximately two thirds of the total land parcels that require 
acquisition within the planned infrastructure areas of the mine. 
Additional land parcels are in the process of being acquired. 
 
   During the year a US$33 million credit agreement, inclusive of capital 
repayments and borrowing costs, was completed with Turkiye Finans 
Katilim Bankasi A.S. in order to fund mine construction.  The credit 
facility is non-recourse and comprises no hedging or currency swap 
requirements.  Loan repayments will occur over five years, with a 
two-year principal repayment holiday following first drawn down. 
 
   During 2014, Zenit completed further trial mining at the Kiziltepe 
Sector in accordance with Turkish mining legislation.  Approximately 
2,500-3,000 tonnes of ore will be mined from the Kiziltepe Sector in Q2 
2015.  This will be added to the existing stockpile of 4,800 tonnes 
(containing approximately 450 oz of gold), which remains on site ready 
for processing.  At the Tavsan Sector, which contains a 215,000 oz gold 
resource, Zenit completed trial mining for 2,500 tonnes during 2014. 
This material has been stockpiled on site and sampled. 
 
   Zenit is currently awaiting the approval of its land access permits for 
the Kiziltepe gold-silver mine.  The permit application, which was 
submitted in April 2014, has remained at the Prime Ministry for approval 
since June 2014.  Feedback from the Prime Ministry remains positive and 
the Company and Proccea are working to ensure that this permit is issued 
soon. 
 
   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 
Saif Janjua 
 
Loeb Aron & Company Ltd.                 Tel: +44 (0) 20 7628 1128 
John Beresford-Peirse / Dr. Frank Lucas 
 
St Brides Partners Ltd                   Tel: +44 (0) 20 7236 1177 
Susie Geliher / Lottie Brocklehurst 
 
 
 
   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 1.09 million 
ounces of gold. 
 
   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 
presently being assessed as to their economic merits and now form part 
of a Joint Venture with Proccea Construction Co.  The total resource 
inventory at the Red Rabbit Project stands at 475,000 ounces of gold 
equivalent. 
 
   Beaufort Securities Limited and Loeb Aron & Company Ltd. 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. 
 
   Ends 
 
   This announcement is distributed by NASDAQ OMX Corporate Solutions on 
behalf of NASDAQ OMX Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Ariana Resources plc via Globenewswire 
 
   HUG#1907284 
 
 
  http://www.arianaresources.com/s/Home.asp 
 

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