Ariana Resources Plc (LON:AAU) We recently visited Ariana Resources’ Red Rabbit Gold-Silver Project, located in western Turkey, where mine development is underway. The Red Rabbit Project is fully funded through a US$33m facility with a Turkish bank and a further US$4.5m from joint venture partner Turkish construction company Proccea Construction Co. that is earning a 50% interest in the holding company (Zenit). Red Rabbit is expected to commence production in H216 producing an average of c. 18,500oz Au eq. over an eight-year mine life. At a gold price of US$1,174/oz Au, the project has a pre-tax NPV10 of US$21.5m and an IRR of 30.3%. Our site visit focused on the Kiziltepe Prospect where we viewed the Banu Vein, Arzu South, Derya Vein and Arzu North deposits from which the joint venture partners will produce the c. 148,000oz Au eq. at an average grade of 3.6g/t Au eq. over the life of mine. With its large land holding Ariana has significant potential to expand on this initial production rate.
Read the full Ariana Resources Plc report here: AAU151102_Northland Capital Partners_Ariana Resources_Site Visit Report
