Ariana Resources: Mine construction to commence at Red Rabbit before 2014

AIM-listed gold exploration and development company Ariana Resources has provided an update on the proposed time frame of mine development at its Red Rabbit prospect in western Turkey.

The company reported that it had submitted and Environmental Project Summary to the Ministry of Environment and Urban Planning for the Kiziltepe Sector of the Red Rabbit Gold Project.

The formal process for the permitting of the mine had been initiated, the company reported further, with Environmental Impact Assessment positive certification expected no later than the beginning of the fourth quarter in 2013.

Ariana Resources also reported that it had acquired a further three parcels of freehold land in the vicinity of the planned Arzu south open pit and had completed geotechnical drilling at the Tailings Storage Facility suite ahead of schedule.

Dr Kerim Sener, Managing Director of Ariana Resources, commented: "The submission of our project summary document to the Ministry of Environment and Urban Planning initiates the formal environmental permitting process at Kiziltepe, targeted to be the first gold-silver mine within our Red Rabbit JV [Joint Venture] project. Accordingly, we expect the permitting process to conclude during the second half of 2013 and to commence mine construction before year end."

Sener added: "We are also pleased to have acquired a further three parcels of freehold land totalling 35,460 square metres in the vicinity of the planned Arzu South open pit, which contains the majority of the current Mineral Reserve and contains potential for additional high-grade mineralisation at depth and along strike."

Ariana's share price was up 8.16% to 1.32p at 09:41 on Tuesday.

MF