Ariana Regulatory News (AAU)

23 Aug 2006 08:30

Ariana Resources PLC23 August 2006 23 August 2006 AIM: AAUDRILLING UNDERWAY AT KIZILTEPE GOLD PROSPECT Ariana Resources plc ("Ariana" or "the Company"), the gold exploration companyfocused exclusively on Turkey, announces the commencement of a 3,700m diamonddrilling programme at the Kiziltepe prospect within the Company's 100% ownedSindirgi gold project in western Turkey. • Drill rig mobilised and phase one of a 3,700m diamond core programme underway • Previous intersections include 6.29 g/t Au over 13.5m from channel sampling at surface • Kiziltepe prospect hosts at least 19km in strike length of gold-silver bearing quartz veins A total of 37 drill holes are planned at the Kiziltepe prospect to depths of upto 150m. The programme has been designed to test the depth and gradecontinuation of five principal gold-silver bearing epithermal quartz veins,namely, Arzu South, Arzu North, Banu, Hale and Vein 5. A key objective of thecurrent programme is to define an initial gold resource for the Arzu South veinin compliance with the JORC code. Drilling on the Arzu South vein is expected tobe completed by late November 2006 and initial results announced thereafter. Ariana acquired the Kiziltepe prospect as part of the Sindirgi gold project fromNewmont Altin Madencilik Limited Sirketi, a subsidiary of Newmont MiningCorporation (NYSE & ASX: NEM; TSX: NMC) ("Newmont") in January 2005. Newmontretains a Net Smelter Returns royalty of up to 2.5% on future gold productionfrom the Sindirgi project. Independent technical consultants SRK (UK) Limited have previously prepared ageological model of 150,000 ounces at Arzu South (not a resource as defined bythe JORC code), representing approximately 5% of the known vein system atKiziltepe, based on an average gold grade of 4.2 g/t to an approximate depth of150m. Steven Poulton, Chief Executive, commented: "The start of drilling at the Kiziltepe prospect, which hosts over 19km instrike length of gold-silver bearing epithermal quartz veins, represents asignificant milestone towards defining an initial resource estimate. Ourdecision to focus on the Arzu South vein is based on encouraging drilledintersections reported by previous operators including 7.23 g/t over 10m andextensive channel sampling by Ariana which returned grades of up to 6.29 g/t Auover 13.5m. "With a strong balance sheet from our successful £2 million financing in May2006, a portfolio of prospective projects and a strong technical team on theground, Ariana is extremely well placed to deliver value for its shareholders." Contacts: Ariana Resources plcSteven Poulton, Chief Executive Tel: 01235 511 767s.j.poulton@arianaresources.cominfo@arianaresources.com Mobile: 0797 408 6712 Bankside ConsultantsMichael Padley / Susan Scott Tel: 020 7367 8888 About the Kiziltepe prospect The Kiziltepe prospect lies within a 36 km2 ten-year renewable operating licencewhich forms part of the Company's 100% owned 224 km2 Sindirgi gold project inBalikesir Province, western Turkey. The project area lies approximately 100kmeast of the one million ounce vein-hosted Ovacik gold mine and 115km northwestof the five million ounce Kisladag gold mine. Kiziltepe hosts at least 19km in strike length of gold-silver bearinglow-sulphidation epithermal quartz veins across an area of at least 3km by 1km.Individual veins are exposed for up to 700m and widths vary between 1m and 14m.The main veins trend NW, dip to the northeast and are hosted within Miocene ageandesitic volcanic rocks. The majority of exploration work to date at Kiziltepehas focused on the Arzu South vein, where results from drilling by previousowners include intersections of 7.23 g/t over 10m and 10.55 g/t over 7.5m.Channel sampling by Ariana (previously reported in November 2005) returned abest intersect of 6.29 g/t Au over 13.5m. Sampling and Assaying Procedures The drill core will be transported to the Company's core storage facility in thelocal town of Sindirgi for logging, splitting and photographing. Half the corewill be prepared as one meter samples and sent to the ALS Chemex preparationfacility in Izmir and a 50g fire assay undertaken at the ALS Chemex laboratoryin Vancouver. Regular standard, duplicate and blank samples are being used inthe sample sequence in line with the Company's quality control procedures. The drilling program will be managed by Ariana's exploration team under thesupervision of Dr Kerim Sener (Exploration Director) and Mr Muhannad Arar(Projects Manager). Dr Sener is a graduate of the University of Southampton inGeology, he also holds a Master's degree from the Royal School of Mines (Imperial College, London) in Mineral Exploration and a doctorate from theUniversity of Western Australia. He is a Fellow of The Geological Society ofLondon and has worked in geological research and mineral consultancy in SouthernAfrica and the Northern Territory of Australia. He has read and approved thetechnical disclosure in this regulatory announcement. About Ariana Resources Ariana is a well funded technology-driven exploration company focused on thediscovery of epithermal gold-silver and porphyry copper-gold deposits withmulti-million ounce potential within the Tethyan metallogenic belt of Turkey.The Company has a portfolio of prospective licences covering approximately1,000km2, selected on the basis of its advanced in-house remote sensingdatabase. Ariana's broker is Ambrian Partners Limited and Beaumont CornishLimited is the Company's nominated adviser. For further information on Arianayou are invited to visit the Company's website at www.arianaresources.com. This information is provided by RNS The company news service from the London Stock Exchange