Ariana Regulatory News (AAU)

10 May 2007 07:01

Ariana Resources PLC10 May 2007 10 May 2007AIM: AAU INITIAL JORC RESOURCE AT KIZILTEPE Ariana Resources plc ("Ariana" or "the Company"), the gold exploration companyfocused on Turkey, is pleased to announce the completion of the Company's firstindependent resource estimate for the Kiziltepe gold prospect, at its flagshipSindirgi Project in Balikesir Province, western Turkey. Highlights •SRK Consulting (UK) Ltd ("SRK") estimates a JORC compliant mineral resource of 99 koz Au + 1,820 koz Ag (for 135 koz Au equivalent) •Resource based on two veins which comprise only 5% of the mapped veins at the property •Mineralisation is open at depth and along strike and additional targets require further drill-testing in 2007 •SRK recommends initiation of a formal scoping study to evaluate production options at Kiziltepe SRK has completed a 3D model and mineral resource estimate in compliance withthe JORC code for certain gold bearing quartz veins at the Kiziltepe prospect. SRK commented, "Ariana has completed over 4,150m of drilling and 250m of channelsampling at surface .... and has ensured a high quality of sample preparationand laboratory results. These have resulted in grade and density data which cansupport a JORC compliant resource estimate." Four mineralised structures have been incorporated in the 3D geological model,namely: Arzu South, Arzu North, Vein 4 and Banu Vein. The majority of thecurrent resource is located within Arzu South, the central part of which hasbeen drilled and channel sampled sufficiently enough to support an IndicatedMineral Resource. The southern and northern parts of Arzu South and a small partof Arzu North comprise the Inferred Mineral Resource. Much of Arzu North, Vein 4and Banu Vein have not been modelled as part of the mineral resource due tolower drill data density and grades. At Arzu South, SRK has provided a detailed interpretation of the drillcoreintersections to produce a geological model consisting of multiple veinsegments, many of which have been delineated robustly by Ariana's drilling. Overthe 800m strike length in consideration at Arzu South, ten mineralised veinsegments have been modelled, with vein widths typically between 1.5 and 5m. SRK has placed a depth limit of approximately 125m to the model, as most drillintersections are above this level and it is unlikely that material below thislevel would be taken by an open pit. A 3 g/t Au cut-off grade has been appliedto the resource blocks which measure 25 x 25m in the plane of the modelledstructures. The parts of the model which are above cut-off grade are generallycontinuous and, within these, higher grade features appear to plunge to thesoutheast. SRK Mineral Resource Statement Classification Vein Tonnage Grade Metal * (Kt) (Au g/ (Ag g/t) (kg Au) (kg Ag) t) Indicated Arzu South 200 5.8 98 1,160 19,600 (C) Inferred Arzu South 70 4.0 70 280 4,900 (N)Inferred Arzu South 180 8.0 160 1,440 28,800 (S)Inferred Arzu North 50 4.0 65 200 3,250 * Equivalent to 135,400 oz gold equivalent. The gold equivalent is calculated onthe basis of a 50:1 Ag:Au price ratio (this price ratio fluctuates and isdependent on market conditions). SRK considers there to be good potential to upgrade the Inferred MineralResources to Indicated Mineral Resources at Arzu South by additional drilling.In addition to this, the Arzu South vein system has some potential to beextended at depth, and considerable potential to be extended along strike. Depthextension drilling must now focus on the potential down-plunge continuation ofzones of high metal accumulation. Further, SRK considers there to be reasonable potential to define, by furtherdrilling, higher grade zones within other veins and to delineate additionalmineralised structures on the property, which have not yet been found in outcropdue to field clearing. In addition to undertaking further drilling, SRK has also recommended anevaluation of options for the extraction of the current resource by undertakinga scoping study. Some options that will be considered as part of the scopingstudy include: 1) A low-cost heap leach on site; 2) A small-scale milling and gravity / cyanidation plant, ultimately producingdore on site; 3) A trucking operation delivering mineralised material or concentrate to anoperating gold mine for toll treatment or direct sale. Kerim Sener, Managing Director, commented: "This is the first independent resource statement published by the Company andit confirms the potential of the Kiziltepe prospect. As Arzu South is only oneof several identified targets, we consider there to be significant scope tofurther expand the resource." "We are very encouraged by the results to date and further drilling is plannedto define the full potential of the prospect. We aim to proceed with therecommendation of SRK to evaluate our production options at Kiziltepe, and as afirst step we have commenced formal test work to define the metallurgicalcharacteristics of the mineralisation." "The drilling results from our initial exploration programme have producedpositive results on a number of our prospects and we expect to be in a positionto increase our mineral resource base in due course." Contacts: Ariana Resources plcMichael Spriggs, Executive Chairman Tel: 07887 998252Kerim Sener, Managing Director Tel: 07709 011954info@arianaresources.comBeaumont Cornish Limited Tel: 020 7628 3396 Roland CornishBankside ConsultantsMichael Padley / Susan Scott Tel: 020 7367 8888 Editors' note: About the Kiziltepe prospect The Kiziltepe prospect is located within a ten-year renewable operating licencethat forms part of the Company's 100% owned 235km2 Sindirgi gold project inBalikesir Province, western Turkey. Kiziltepe lies approximately 100km east of the one million ounce vein-hostedOvacik gold mine and 115km northwest of the five million ounce Kisladag goldmine. The prospect hosts over 20km 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 northwest, dip to the northeast and are hosted withinMiocene age dacitic volcanic rocks. Ariana acquired the Sindirgi Gold Project from Newmont Mining Corporation (NYSE& ASX: NEM; TSX: NMC) in March 2005. Newmont retains the right to a royalty ofup to 2.5% on future gold production from the Sindirgi gold project. Ahead of commencing the drilling programme, Ariana obtained all necessaryenvironmental and forestry approvals from the provincial government in Balikesirand the State Government in Ankara. Sampling and Assaying Procedures Ariana's sampling of drill core and surface samples conforms to industrybest-practice. Laboratory sample preparation, assaying procedures and chain ofcustody are appropriately controlled. Preparation of samples is undertaken byALS Chemex in Izmir and assayed for gold by 30g fire assay at the ALS Chemexlaboratory in Romania. Routine re-assaying of samples assaying greater than 10 g/t Au and 100 g/t Ag has also been completed by ALS Chemex. Standard, blank andduplicate samples are being used in the sample batches in line with theCompany's quality control procedures. Quality control checks have determinedexcellent performance of blanks and standards, and duplicate samples have shownvery high correlations. The Company maintains an archive of half core samplesand a photographic record of all cores for future reference. Statement of Qualification Martin Pittuck, MIOM3, C.Eng, a Principal Resource Geologist at SRK with over 10years experience in Mineral Resource estimation for gold deposits, has overseenthe preparation of this estimate. He is considered to be a competent person forthe purposes of reporting Mineral Resources in accordance with the terminologyand guidelines given in the JORC Code. About Ariana Resources Ariana is a dynamic exploration company focused on the discovery of epithermalgold-silver and porphyry copper-gold deposits with multi-million ounce potentialwithin the Tethyan metallogenic belt of Turkey. The Company has a portfolio ofprospective licences covering 1,755km2, selected on the basis of its advancedin-house remote sensing database. The Company's flagship asset is the 235km2 Sindirgi gold project, which targetsa series of prospects, within a prolific mineralised district in western Turkey.The project hosts over 45km of gold-silver bearing epithermal quartz veins. Ambrian Partners Limited and King & Shaxson Capital Limited are joint brokers tothe Company and Beaumont Cornish Limited is the Company's nominated adviser. For further information on Ariana you are invited to visit the Company's websiteat www.arianaresources.com. Ends This information is provided by RNS The company news service from the London Stock Exchange