Ariana Resources step closer to constructing Red Rabbit Gold Mine

AIM-listed gold exploration and development company Ariana Resources has moved a step closer towards commencing construction at its first mine in Turkey, a company update issued on Monday disclosed.

The group, which is developing a mine known as the Red Rabbit Gold Project in Western Turkey, stated that it expected mine construction to commence in the fourth quarter of the year.

The group stated that a decree from the Ministerial Council in Turkey had been awarded which removed the Kiziltepe sector site - the location of the Red Rabbit mine- from an area previously affected by the requirements of the Ministry of Culture and Tourism.

It stated that this had enabled Ariana Resources to proceed with its Environmental Impact Assessment (EIA), something it expected to submit shortly, thereby initiating the formal process for the permitting of the mine.

Dr Kerim Sener, Managing Director of Ariana Resources, commented: "Following the approval of our forestry permits last month, this Ministerial Council Decree has removed another hurdle for us ahead of the construction of our first mine during late 2013.

"The imminent submission of our EIA documentation and initiation of the mine permitting process are significant milestones for Ariana as we advance closer to commercial production from Red Rabbit in 2014."

Ariana Resources' share price was up 3.85% to 1.35p at 08:00 on Monday morning.

MF