Business
Jorc Compliant Resource and Scoping Study Report
Jorc Compliant Resource and Scoping Study Report.
About this update from Ariana Resources Plc
[{"type":"text","content":"\n \n\n\n\n\n4 April 2011\nAIM / PLUS Markets: AAU\n\n\n JORC COMPLIANT RESOURCE & SCOPING STUDY REPORT\n\nAriana Resources plc (\"Ariana\" or \"the Company\"), the gold exploration and\ndevelopment company focused on Turkey, is pleased to announce that its\nconsultants Wardrop, a Tetra Tech Company (\"Wardrop\") have finalised a resource\nestimate and scoping study report in accordance with Joint Ore Reserves\nCommittee 2004 guidelines (\"JORC\"). Â This has been finalised as a part and in\nadvance of completing the Company's ongoing Pre-feasibility (\"PFS\") work on the\nKiziltepe Sector of its Red Rabbit Joint Venture.\n\nHighlights:\n\n * Combined resource in preliminary optimised pits is approximately\n 1 million tonnes at an average grade of 3.6 g/t Au and 41.6 g/t\n Ag*\n * Output expected at a rate of 150,000 tonnes ore per annum,\n corresponding to an average production of approximately 20,000\n oz/year of gold equivalent, over a mine life of 6.9 years\n * Financial model at a gold price of US$1350/oz and a silver price\n of US$20/oz provides an NPV (8% discount) of US$56.2 million and\n IRR of 75.9%, with payback secured in 1.2 years\n * Expected capital cost estimated at US$25.1 million\n * Cash costs are in the region of US$441 to US$472 per ounce\n across the financial model range.\n\n\nDr. Kerim Sener, Managing Director, commented:\n\n\"The completion of this report is an important part of our ongoing work\nprogrammes at Kiziltepe. Â The JORC resource estimate is now provided in parallel\nwith the results of our scoping study, to better define the direction being\ntaken by the Company on this project. Â We have demonstrated the economic\npotential of the project using base case gold and silver prices that may now be\nconsidered conservative. Â The pit optimisation currently being considered for\nthe PFS will inevitably be using higher base case metal prices (approximately\nUS$1,100/oz for gold). Â We have now demonstrated that there is little downside\nto this project and we are fully engaged with our partners, Proccea and\nconsulting teams to ensure we remain on track with the feasibility and\nenvironmental studies.\"\n\nScoping Study\n\nFollowing on from the resource estimate announced on the 28th October 2010, and\nwhile the Pre-feasibility Study (\"PFS\") remains underway, the Compa...