Red Rabbit Gold Project
In 2009 Ariana Resources combined its two flagship assets, Sindirgi and Tavsan into one project named "Red Rabbit". Sindirgi and Tavsan are located approximately 75km apart in the highly prospective WAVE Province in western Turkey. Sindirgi (Kiziltepe, Kepez and Karakavak) and Tavsan comprise multiple individual prospects.
Near Term Gold Production Potential
The Red Rabbit gold project has a JORC compliant resource of 448,000 oz Au equivalent. There is potential to increase the resource through additional exploration and as a result the Company is targeting in excess of 500,000 oz Au equivalent which will include approximately 4 million oz Ag.
In 2009 Ariana succesfully completed trial gold production, producing 387 oz Au at the Kiziltepe sector of the Red Rabbit gold project. Following trial mining a scoping study was undertaken by Wardrop Engineering (Wardrop) . The study provided for a production rate of 150,000 tonnes of ore per annum (up to 30,000 oz Au equiv.) with a mine life of in excess of 5 years. The scoping study estimated a project cash cost of between US$350-400 per ounce. The Kiziltepe sector would provide for an open pittable, high grade, moderate strip-ratio, Carbon-In-Leach (CIL) operation.
In 2010 Ariana Resources committed to develop the Red Rabbit gold project in partnership with Proccea Construction Company. The project is currently being fast-tracked to production with initial production targets set for 2012.
Phased Development to Production in 2012
Phase 1Proccea 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.
Phase 2Encompasses 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.
Phase 3Production 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.
