Ariana takes full control of Salinbas project

Ariana Resources, the gold exploration and development company operating in Turkey, has acquired 100% of the Salinbas gold project from Eldorado Gold (Netherlands) BV, a subsidiary of Eldorado Gold Corporation.

Salinbas had been part of a 49:51 joint venture with Eldorado Sub since 2012 and previously with European Goldfields Limited from 2008 prior to its acquisition by Eldorado.

Highlights:

– Salinbas Project is located within a multi-million ounce goldfield containing several significant gold-copper projects, notably the adjacent Hot Maden project.

– Ariana 100% owner of Salinbas following a Net Smelter Return (“NSR”) royalty of up to 2% on future production being granted to Eldorado Sub.

– Company considering a focused work programme on Salinbas during 2017 to identify potential resource extensions and consider routes to commercialise the project.

– Project area includes the Salinbas Au-Ag deposit, the Ardala Cu-Au-Mo porphyry and the Hizarliyayla Au-Ag system.

– Salinbas contains an approximately 10Mt Indicated and Inferred JORC resource, with an average grade of 2.0 g/t Au and 10.2 g/t Ag (for 650,000 oz gold and 3.2Moz of silver).

– Scoping-study completed on Salinbas demonstrated potential for production of approximately 50,000 ounces of gold and 100,000 ounces of silver per annum over 10 years, providing an NPV(8%) in excess of US$100 million.

– Ardala contains an approximately 16Mt Inferred JORC gold resource with a grade of 0.6 g/t Au (for 323,000 oz gold), also containing copper (up to 0.2%) and molybdenum (up to 0.01%) domains.

Managing director Dr. Kerim Sener said: “Completing this transaction with Eldorado on the Salinbas Project comes at a significant time in the evolution of the Company. With the Kiziltepe Sector of the Red Rabbit Project due to enter production shortly, we are keen to enhance our project pipeline and to demonstrate a pathway to increased downstream production capacity.

“The Salinbas Project represents a major opportunity for the future growth of Ariana, coming with approximately 1Moz in JORC Indicated and Inferred resources in its own right and in a region with significant exploration upside, as underscored by the recent discovery of the approximately 4Moz Hot Maden project just 16 kilometres to the south.

“We look forward to providing further updates on the project and towards enhancing its value in what is proving to be a multi-million ounce goldfield and one of the most prospective areas for new gold exploration in Turkey.”

Story provided by StockMarketWire.com