In a recent Q&A session with MiningMaven, commenting on the successful completion of the joint venture with Proccea, Ariana Resources (LON:AAU) Managing Director, Kerim Sener pointed out quite vociferously that the Company's mantra is to set realistic goals and to deliver without fail.
This morning the Company reported positive results from the 26 most recent drill holes from the Banyu and Derya veins at Kiziltepe. With mineralisation encountered in every hole and peak gold equivalent grades at 23.12 gpt, they certainly seem to be living up to their mantra!
Results from the drill programme will provide data required for the all-important resource estimate upgrade at Kiziltepe, which is expected shortly. However from some additional exploratory holes drilled at Derya, we now have confirmation of the continuation of the vein system running undercover between Derya and Arzu South.
Both management and shareholders have long speculated on the possibility and likelihood of this continuation; so to finally receive confirmation, with the possibility of adding another 580m of mineralised strike to the deposit, is most encouraging.
It is also encouraging to note that since these exploratory holes were drilled on geophysical targets, with little or no vein outcrop, it proves their robust geophysical methods.
Kerim mentions in the update that this is a great start to the Joint Venture with Proccea, and we agree. Both parties will no doubt be looking forward to developing the production facility based on a robust resource base with the potential for significant expansion.
To date, the market has not exactly made life easy for Ariana investors with the share price finding it hard to gain traction on any rise.
Whilst the JV with Proccea was delayed in its formal completion, in the interim Management continued to assure the market that a successful outcome was never in doubt. So when the news finally was released, it was probably no less than the market was expecting.
However, we suspect that today’s news may represent something more quantifiable as these results build on confidence in the underlying resource potential . This is even more significant since the resource at the Kiziltepe project can now be directly correlated to production through the newly formed JV vehicle. With the pieces of the jigsaw starting to come together, investors will be eagerly anticipating the soon to be announced resource upgrade.
But today's news gives us a glimpse of …
