The Red Rabbit Gold Project, located in western Turkey, is the Company’s most advanced project. The project was formed in 2009 following a joint venture with the Turkish construction firm, Proccea Construction Co. The JV requires Proccea to contribute US$8m 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. Proccea are an excellent production partner as they are not only financed but also they have extensive experience in the construction and optimization of precious metal processing plants both nationally and internationally.
The Kiziltepe Sector would provide for an open pittable, high grade, moderate strip-ratio, Carbon-In-Leach (CIL) operation. Results from the definitive feasibility study, finalized in June 2013, define production of approximately 21,000 oz Au equivalent per annum in the first five years, and a mine life of 8 years (based on current resources). The financial model provides a payback of 2.4 years based on US$31.1 million initial capital and cash costs are estimated at between US$588 – US$611. The payback uses a base case of US$ 1,304/oz gold and US$ 22.6/oz silver.
RED RABBIT MINE FLY THROUGH
The Red Rabbit project comprises of the Kiziltepe and Tavsan Sectors, located approximately 75km apart. The financial model for mine development is based on the Kiziltepe Sector alone. There is significant potential for Ariana to substantially increase the global resource, both enhancing the economic fundamentals and extending mine life, across both Kiziltepe and Tavsan. The target is to keep the Kiziltepe plant running in excess of 10 years through further discoveries. As such the Tailings Storage Facility (TSF) has been designed with a capacity of 15 years. As part of the terms of the JV agreement with Proccea, Ariana can sell resources into the JV at 3X exploration cost within the Red Rabbit AOI (excluding JV licences).
Ariana holds under license all major prospective areas within the Sindirgi Gold Corridor (a mineralized trend running from Kiziltepe through to Tavsan).
Recent discoveries in the Red Rabbit project area have identified significant vein systems yielding bonanza grades of up to 79.7 g/t Au equivalent. In addition to this the Company has defined an Exploration Target of up to 92,000 oz Au and 1,100,000 oz Ag at the Arzu Central zone (which lies between the Arzu North and Arzu South open pits). The Exploration Target at Arzu Central will focus future mine-scale exploration on the delivery of additional resources mineable by underground methods. This is in addition to the open-pittable reserves already defined at Kiziltepe and would result in the expansion of mine life beyond eight years.
Proccea are funding US$1.4 million including all costs associated with the Feasibility Study (FS), Environmental Impact Assesment (EIA), permitting, land acquisition and additional exploration in the vicinity of Kiziltepe.
Encompasses the construction and commissioning of the gold mine. This will involve the establishment of the processing plant, tailings and waste-rock disposal areas in addition to related mine infrastructure and facilities.
Production and further investment. This involves the longer term development of the Kiziltepe Sector and the advancement of the Tavsan Sector.
Ariana has the option to sell into the JV any resources discovered in the Red Rabbit project area at three times the exploration cost incurred by the Company.
Currently the company is in transition between Phase 1 and Phase 2. With the EIA formally submitted to the Ministry of Environment and Rural Affairs in August 2013 the Company is pressing ahead with final permits, land acquisitions and discussions surrounding bank finance of the construction phase of the project.
Ariana Resources plc Bridge House, London Bridge, London, SE1 9QR, UKTel: +44 (0)207 407 3616
© 2011 Ariana Resources Plc :: Disclaimer
Developed by Alkimi Ltd :: AIM Web development services