(Alliance News) - Ariana Resources PLC on Monday said due diligence drilling on the Salinbas gold project in Turkey has begun, with its proposed partner also conducting a review of a number of projects.
Shares in the mining firm were up 3.3% at 2.32 pence in London at midday.
Due diligence drilling is being carried out by Proccea Construction Co and by Ariana's undisclosed proposed partner on Salinbas, described by Ariana in November as a "major" Turkish construction and engineering firm. Ariana, Proccea and the undisclosed firm are aiming to establish a joint venture.
The proposed partner has commissioned an independent review of Ariana's Kiziltepe, Tavsan and Salinbas projects during the exclusivity period laid out in the memorandum of understanding between the two firms.
In total, around 600 metres of reverse circulation drilling will be undertaken by contractor Global Magnet Sondaj, aiming to "twin" holes previously drilled by Ariana. This programme should take only one week provided the weather is favourable.
Then, analysis from the new drilling will be undertaken by an independent laboratory.
Independent due diligence terms are arriving at Ariana's Kiziltepe, Tavsan and Salinbas project sites later in the week, of which all are in Turkey.
Ariana Managing Director Kerim Sener said: "We are very pleased to host the due diligence and drilling teams on site at Salinbas and look forward to seeing the results of their work. Fortunately, weather conditions are expected to be reasonable through the period of drilling and the programme will likely conclude within one week. In the meantime, detailed technical, environmental and financial due diligence is underway by the designated independent consultant of the proposed partner on the Kiziltepe and Tavsan projects. Two separate teams are being sent out to the sites during the current week and will be conducting their independent assessments of each of the projects.
"In addition, preparation of the definitive legal agreements concerning the proposed joint venture between Ariana, Proccea and the proposed partner is underway."
By Anna Farley; annafarley@alliancenews.com
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