Ariana Resources plc : First Operational Update - Kiziltepe

11 January 2017
AIM: AAU

FIRST OPERATIONAL UPDATE - KIZILTEPE

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company operating in Turkey, provides its first operational update on 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"). 

Highlights:

• Process CIL/CIC and ADR* piping and electrical work fully completed, with the process plant ready for operational start-up; automation works are continuing.
   
• Commissioning of ball mill is complete and wet commissioning of the process plant is largely complete, with thickener tests due to be completed this week.
   
• Dry commissioning has been completed and the crushers and screens are now fully operational.
   
• Approximately 7,000 tonnes of ore ranging in grade from 2.7 to 0.5 g/t gold and representing two weeks of production, is stockpiled ready for the first full-scale tests and start-up.
   
• Dam wall complete and installation of geomembrane for Stage 1 Tailings Storage Facility ("TSF") is largely complete, though currently experiencing delays due to unprecedented weather conditions.
   
• Revisions to our resource and reserve estimates are ongoing following recent drilling; an improved mining plan and associated scheduling is underway.
   
• Mine site laboratory is now operational with capability for routine Aqua Regia digests and fire assay. 

Dr. Kerim Sener, Managing Director, commented: 

"Following a productive site visit conducted in the last few days, we are very encouraged to report that the Kiziltepe Mine is now largely operational, following the successful completion of major construction in December.  Dry and wet commissioning of the process plant, including the CIL tanks and thickeners, is almost complete, although deteriorating and unprecedented weather conditions during the latter part of December and in to January have now delayed completion of the TSF.  The conditions being encountered at site have ranged from very wet weather in late December to sub-zero temperatures and heavy snowfall in early January, which have negated the laying of the final geomembrane for the Stage One TSF, which comprises only another two weeks of work.  Previous guidance provided by the Company had indicated that Kiziltepe was likely to become operational in late December but the timing of start-up has now been necessarily postponed due to the conditions at site.  As the TSF completion is a critical path component of the project, we cannot provide further guidance on formal start-up until the weather clears and the conditions for laying geomembrane improve.  In particular, the temperatures for laying geomembrane must exceed five degrees Centigrade.  In the meantime, our teams are working on all other operational aspects to ensure a smooth transition in to production once the TSF is able to be completed.  We will provide a further update on project progress before the end of January.

The Company is also advancing work programmes on its other projects to enhance its future production profile once Kiziltepe enters production and we look forward to updating the market on this activity in due course."

* CIL - Carbon-in-Leach; CIC - Carbon-in-Column; ADR - Adsorption-Desorption-Recovery

Figure 1: View of the Kiziltepe process plant showing the completed CIL/CIC and ADR plant, taken from the site of the ball mill.  The pipeline from the ball mill to the thickeners (in the foreground) is completed.

Link:  http://hugin.info/138153/R/2070388/777898.pdf

Figure 2: View of the CIL tanks within the completed CIL/CIC and ADR plant.  All components within the process plant, including the ADR system have been individually tested.  Full system commissioning is due to commence shortly.

Link:  http://hugin.info/138153/R/2070388/777899.pdf

Figure 3: View of the fully operational ball mill.  Testing of the ball mill is complete and piping of slurry to the thickeners will occur during the week.

Link:  http://hugin.info/138153/R/2070388/777900.pdf 

Figure 4: View of the TSF location looking towards the dam wall.  Two feet of snow has obscured the facility and inhibits the laying of remaining geomembrane. 

Link:   http://hugin.info/138153/R/2070388/777901.pdf 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Contacts:

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 originally selected on the basis of its in-house geological and remote-sensing database.

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, form part of a 50:50 Joint Venture with Proccea Construction Co.  The Kiziltepe Sector of the Red Rabbit Project is fully-permitted and is nearing start-up.  The total resource inventory at the Red Rabbit Project and wider project area stands at c. 525,000 ounces of gold equivalent.

In north-eastern Turkey, Ariana owns 100% of the Salinbas Gold Project, comprising the Salinbas gold-silver deposit and the Ardala copper-gold-molybdenum porphyry among other prospects.  The total resource inventory of the Salinbas project area is c. 1 million 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.

Ends