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Ariana Resources

  • BY: Andrew Hore |
  • POSTED: 12/08/2008 |

Ariana Resources has increased its JORC gold resource to 326,000 ounces.

The company has exceeded its initial target and it is already in talks for a potential off-take agreement.

Ariana is a gold exploration company focused on Turkey. It has two main projects in eastern Turkey (Kiziltepe and Tavsan) and a joint venture with Aim-quoted European Goldfields in north eastern Turkey, near Georgia.

The Kiziltepe gold resource has been increased to more than 186,000 ounces of gold. Talks about an off-take agreement could help to speed up the project.

Tavsan was acquired from Odyssey Resources for $500,000 and 3m Ariana shares in June. It has a resource of 140,000 ounces of gold. Ariana believes that this site could produce 20,000 ounces of gold per year.

As part of the joint venture deal European Goldfields acquired 18.57m Ariana shares at 5p each. The £929,000 investment took its stake in Ariana to 20%. European Goldfields will own 51% of the joint venture and finance it up until a bankable feasibility study. 

The subscription by European Goldfields has helped the balance sheet but cash of £671,000 won’t last for long. Management hopes to invest the cash in further exploration rather than costly drilling. It plans to come back to the market with positive news before it tries to raise more money.

At 3.625pa share, Ariana is valued at £3.26m.

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