Ariana Resources (LON:AAU) reported to the market today details of its latest resource upgrade with the news that it has increased the Kiziltepe JORC resource by 25 percent, with a significant 60% increase in the Measured and Indicated component. This new resource model will form the basis for the formal Bankable Feasibility Study which is about to be undertaken by their newly formed JV Company Zenith Mining. We took the opportunity to speak to Ariana's Managing Director Kerim Sener and asked him a to expand on the significance of todays news.
Here's what he had to say:
MM: What is the significance of today's announcement of the resource upgrade and what bearing will the results have on the Bankable Feasibility Study?
KS: The results of the resource estimate have, as we expected, improved the 'solidity' of the resource at Kiziltepe. We have successfully converted the previously Inferred resources at Banu and Derya in to the Indicated category. Separate to that, the extensive remodelling of the vein systems and the inclusion of several subsidiary veins provided a welcome additional boost to the global resource figure. The current resource estimate now forms an robust platform from which we can continue with our feasibility work, as we now have a significantly larger component of the resource in the Measured and Indicated categories, from which our Mineral Reserves may be established. In fact if you look at just the gold content of the resource, our Measured and Indicated component has increased by over 60% relative to the previous resource estimate. These elements underpin the potential economics of the project and demonstrate resource integrity. Our decision to use Wardrop for the new resource estimate (previously SRK) was, in part, to obtain a second independently constructed resource estimate (to verify or compare with the first). While this was initially to be reported according to NI 43-101 reporting guidelines it was decided that JORC would be more appropriate for the UK market and would enable a direct comparison with our previous resource estimate. The results of this process have been very positive and we can move forward in the knowledge that our resource (in earlier and later forms) has been independently verified by two separate international consulting firms.
MM: You also state that the High grade zones continue below modelled pit-bottom at Arzu South…
