Turkey

  • Ariana Resources announces launch of due diligence for major JV across its Turkish assets (AAU)

    Ariana Resources (LSE:AAU) was trading at 2.32p on Monday after announcing that due diligence work has kicked off for a major joint venture (JV) over its Turkish assets.

    Groundwork led by Ariana’s existing partner Proccea Construction and its currently-unnamed proposed JV partner has begun at the Salinbas gold project in north-east Turkey. Global Magnet Sondaj has been contracted to complete around 600m of reverse circulation drilling that will twin certain existing holes previously drilled by Ariana. The programme is expected to complete in just one week due to favourable weather conditions, and an independent laboratory in Izmir will analyse subsequent samples.

    Elsewhere, Ariana’s proposed partner – currently referred to as a ‘major Turkish construction and engineering company’ - has commissioned an independent review of Ariana’s Kiziltepe, Tavsan, and Salinbas projects. The work programme forms part of a due diligence period announced as part of the non-binding memorandum of understanding (MoU) agreed between Ariana and the proposed partner towards the end of last month.

    The MoU proposes that Ariana will offload 17pc of its wholly-owned Salinbas Project to the firm for an initial $5m and a subsequent $8m injection of equity into the asset. This second payment would take the proposed partner - who would also organise the bank finance needed to bring Salinbas into production – to a 53pc position in the property. This money would be used to complete additional drilling and resource estimation across Salinbas as well as a definitive feasibility study, permitting, public relations, and an environmental impact assessment.

    Alongside the Salinbas deal, the MoU also lays out some transactions for the Kiziltepe and Tavsan projects – currently held in a 50:50 JV called Red Rabbit between Ariana and Proccea. Specifically, the partner would take on 53pc of the JV in exchange for a $50m payment that would be split between the Red Rabbit firms.

    Elsewhere on Monday, Ariana said that definitive legal agreements concerning the proposed JV are now underway. The company’s managing director Dr Kerim Sener added:

    ‘We are very pleased to host the due diligence and drilling teams on site at Salinbas and look forward to seeing the results of their work. Fortunately, weather conditions are expected to be reasonable through the period of drilling and the programme will likely conclude within one week. In the meantime, detailed technical, environmental and financial due diligence is underway by the designated independent consultant of the Proposed Partner on the Kiziltepe and Tavsan Projects. Two separate teams are being sent out to the sites during the current week and will be conducting their independent assessments of each of the projects.’

    The Salinbas project is wholly-owned by Ariana and consists of the Salinbas gold-silver deposit and the Ardala copper-gold-molybdenum porphyry among other prospects. The total resource inventory of the project area is around 1 million ounces of gold equivalent, and an NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation.

    Meanwhile, the Red Rabbit JV contains a series of prospects within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional province of western Turkey. This region hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits. Kiziltepe is fully-permitted and in production and the total resource inventory across the Red Rabbit project area currently stands at c.605,000 ounces of gold equivalent.

    Monday’s update comes during a busy time for Ariana. Alongside the proposed JV over its Turkish projects, the firm announced on 2 December its acquisition, through an earn-in agreement, of up to 50% of Venus Minerals.  Venus is focused on the exploration and development of copper and gold assets in Cyprus and intends to develop a series of prospects as a single entity known as the Magellan Project. The Magellan Project contains a total historical resource of c. 9.5Mt @ 0.6% copper.

    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, does not a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article’s content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

  • Ariana Resources announces Q3 preliminary production results (AAU)

    Ariana Resources (LSE:AAU), the AIM-listed exploration and development company operating in Europe, disclosed better-than-expected preliminary production results for the quarter ended 30 September 2020 for its Kiziltepe project in Turkey. Kiziltepe is part of the Red Rabbit Joint Venture ("JV") with Proccea Construction, in which Ariana owns 50% through its shareholding in Zenit Madencilik San. ve Tic. A.S.

    Total gold production in the third-quarter of 2020 reached 5,125 ounces, which is an increase from 4,679 ounces in the previous quarter. The average metallurgical recovery of gold for the quarter remains high at 94.2%. The quarterly production increase reflects increased tons processed that more than offset the impacts of lower average grades.

    As with the previous quarter, the Kiziltepe operation continued to demonstrate stable performance despite disruptions caused by the COVID-19 pandemic. “Material movements remain very high, while process plant throughput remains well above average, setting yet another record for the operation; the mill reached an annualised throughput rate of almost 230,000 tonnes per annum which represents an increase of over 53% above the feasibility designed rate.” Dr. Kerim Sener, Managing Director, said in a statement.

    Notably, the company had to shift some of its operations in the second quarter owing to pandemic induced restrictions. Because production from the company’s highest-grade pit, Arzu South, came to a close during August, production had to shift entirely to the Arzu North and Derya pits. In the meantime, the Kiziltepe operation was able to maintain a stockpile of over 160,000 tonnes, sufficient to cover about ten months of mill feed at average throughput rates.

    As a result of the consistent performance in the past two quarters, the present moment is opportune for a proposed mill expansion. The planned development will provide for an increase in throughput to 400,000 to 500,000 tonnes per annum.

    There are additional plans for further development of the Arzu North area in the next quarter. This project is yielding substantially more ore tonnage than modelled previously. In fact, despite the expected reduction in grade, this increased tonnage coupled with continued high mill throughput will ensure output is maintained at the highest possible levels.

    Ariana Resources’ Q3 production results were in part driven by the increase in demand for gold. Gold prices have gained 25% so far this year, primarily fueled by the global pandemic. Silver prices have also climbed 34% year to date.

    The 100% owned Salinbas Gold Project is located in north-eastern Turkey and has a total resource inventory of c. 1.5 million ounces of gold.  The project comprises three notable licence areas: Salinbas, Ardala and Hizarliyayla, all of which are located within a multi-million ounce Artvin Goldfield.  The "Hot Gold Corridor" contains several significant gold-copper projects including the 4 million ounce Hot Maden project, which lies 16km to the south of Salinbas and 7km south of Hizarliyayla.  A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation on the Salinbas Gold Project.

    Author: Galina Mikova

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

  • Ariana Resources leaps as resource upgrade extend Kiziltepe’s mine life – can the bull-run continue?

    Ariana Resources(LSE:AAU) jumped 9% to 3.4p a share on Monday after pushing the life of its Kiziltepe gold mine out to 2026.

    An updated JORC-compliant mineral resource estimate put the Turkey-based asset’s total undepleted gold at around 321,000 ounces. This represents a 25% jump on Ariana’s previous resource estimate in May 2017, and a 72% increase on the resource used in the Kiziltepe feasibility study.

    Meanwhile, the latest work gave the project an in-situ (depleted) measured and indicated mineral resource of 2.01 million tonnes (“Mt”) at 2.51 grams per tonne (“g/t”) gold for 154,000 ounces, and an in-situ (depleted) inferred mineral resource of a further 1.01 Mt at 2.23 g/t gold for 73,000 ounces.

    Kiziltepe is part of Ariana's 50:50 Red Rabbit joint venture with Proccea Construction. It currently spans four main pits and is expected to deliver an average of 20,000 ounces of gold equivalent per year over an initial eight-year mine life.

    Dr. Kerim Sener, Ariana’s managing director, said the upgraded resource estimates support at least another six years of Kiziltepe mine life. This is based on the assumption 60% of resources are converted to reserves, a conversion rate that has been achieved in the past, and a throughput rate of 200,000 tonnes per annum is maintained.

    Moving forward, this mine life could be extended yet further through the conversion of any inferred gold resources and exploration targets to the measured and indicated resources or reserves categories. “We will continue to work on increasing the life of mine through additional open pit and potential underground extensions,” added Sener.

    In this vein, the company also announced that it has launched into a new diamond drilling programme at Arzu South, an area of Kiziltepe.

    We are also pleased to report that we are just commencing a new diamond drilling programme, which has been designed to follow-up on the results of our recent exploration programme at Arzu South and which had targeted the potential for underground extensions to the current resource,” he said.

    As this programme is being conducted in the midst of a pandemic, safety of our personnel and that of our contractors comes first, and early termination of the programme is consequently possible.  We will keep the market appraised of our progress, as appropriate."

    Ariana announced receipt a watershed £1.6 million dividend from the Kiziltepe project last month. Likewise, earlier in March, the firm announced that 2020 gold production from Kiziltepe is expected to come in at around 18,000 ounces – nearly a third ahead of the project's feasibility plan for this stage of mine life. Meanwhile, ore throughput to the project's mill this year is expected to be c.205,000 tonnes – a 37% higher than estimated – while gold recovery is expected to exceed 90% at an average grade of 2.5 grams per tonne.

    As at writing, these consistent updates have supported an 80% rise in Ariana's share price year-to-date with its market cap sitting at £32.85 million. If the company can continue to maintain the strong momentum of its newsflow, then we see no reason why this bull-run cannot continue.

    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, does not a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

  • Ariana Resources reveals extension to JV discussions as Turkish gold portfolio review completes (AAU)

    Wednesday saw Ariana Resources(LSE:AAU) reveal that a detailed assessment of its portfolio of Turkey-based gold assets has now completed with respect to a potential joint venture (“JV”). The £26.7 million explorer and developer said technical consultants to its proposed partner have completed an initial draft due diligence report covering its Kiziltepe, Tavsan, and Salinbas projects.

    A memorandum of understanding (“MoU”) for the JV has now been extended to 30 April to enable the firm – currently identified as a “major Turkish construction and engineering company" – to review the information. Elsewhere, Ariana said that draft definitive legal agreements for the partnership are being reviewed by all parties involved.

    Joint venture discussions for the project began last November when Ariana revealed the terms of the non-binding MoU, prompting a 30% increase in its share price at the time.  If the JV goes ahead, the firm will sell a 17% stake in Salinbas to its proposed partner for $5 million.  The third-party will then inject a further $8 million of equity into the asset via an earn-in arrangement and organise the bank finance to enable it to be brought into production. This would take its total position to 53%.

    Alongside the Salinbas deal, the MoU also lays out some transactions for the Kiziltepe and Tavsan projects – currently held in a 50:50 JV called Red Rabbit between Ariana and Proccea Construction. Specifically, the partner would take on 53% of the JV in exchange for a $50 million payment that would be split between the Red Rabbit firms.

    On Wednesday, Ariana’s managing director Dr. Kerim Sener said:

    "We are pleased to report the completion of the due diligence work of the technical consultants.  A period of internal review will now be conducted by the Proposed Partner and Proccea.  In addition, draft definitive legal documentation has been prepared and is being reviewed by the Parties.  We look forward to reporting further on the proposed deal in due course."

    The Salinbas gold project is based in north-east Turkey and has a total resource inventory of around 1 million ounces of gold equivalent. The asset is made up of three licence areas - Salinbas, Ardala and Hizarliyayla – and is based in an area known as the "Hot Gold Corridor". This contains several significant gold-copper projects including the 4 million ounce Hot Maden project, which lies 16 kilometres to the south of Salinbas.

    Meanwhile the Kiziltepe Sector of the Red Rabbit Project is fully permitted and is currently in production. The total resource inventory at the project and its wider area is around 605,000 ounces of gold equivalent.

    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, does not a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article’s content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

     

  • Ariana Resources reveals progress in Salinbas JV discussions (AAU)

    Friday saw Ariana Resources (LSE:AAU) reveal positive progress in joint venture (“JV”) discussions for its Salinbas project in Turkey.

    The firm said that its proposed, as-yet-un-named partner for the asset has completed 600 metres of reverse circulation drilling at the asset to twin four holes previously drilled by Ariana. Following the receipt of assay results from the work, “good correlations”have been found between the two sets of holes. As such, the parties involved in the potential JV have completed an extension agreement that will enable due diligence work to be completed up to the end of next month.

    Wholly-owned by Ariana, Salinbas is located in north-east Turkey where it spans three highly-prospective licence areas called Salinbas, Ardala, and Hizarliyayla.

    The Salinbas deposit (which lies within both the Salinbas and Ardala licences) contains an Indicated and Inferred JORC resource of c.10Mt at an average grade of 2g/t gold and 10.2g/t silver for approximately 650,000oz and 3.2Moz of the metals respectively.

    Ardala, meanwhile, hosts a porphyry system with an Inferred JORC resource of 16Mt. This grades 0.6g/t gold for 323,000oz of the precious metal while also containing domains with up to 0.2pc copper and 0.01pc molybdenum.

    Finally, Hizarliyayla, the least advanced of the three licence areas, is an epithermal prospect with a c.3km2 alteration zone prospective for both gold and base-metal mineralisation.

    Joint venture discussions for the project began last November when Ariana enter a non-binding memorandum of understanding for the project with a ‘major Turkish construction and engineering company’. The agreement – which prompted a 30% increase in Ariana’s share price – proposes the sale of a 17% stake in Salinbas to the unnamed partner for $5 million.  The third-party will then inject a further $8 million of equity into the asset via an earn-in arrangement and organise the bank finance to enable it to be brought into production. This would take its total position to 53%.

    Alongside the Salinbas deal, the MoU also lays out some transactions for the Kiziltepe and Tavsan projects – currently held in a 50:50 JV called Red Rabbit between Ariana and Proccea Construction. Specifically, the partner would take on 53% of the JV in exchange for a $50 million payment that would be split between the Red Rabbit firms.

    Ariana’s managing director Kerim Sener provided further details on these discussions in Friday’s release:

    "We are pleased to confirm that the due diligence confirmatory drilling programme at Salinbas has been concluded and can now be factored into the independent review. The efforts of the independent due diligence team are currently focusing on the Kiziltepe mining operations and, in order to provide sufficient time for the completion of this work, the proposed JV parties have extended the exclusivity period to the end of March.

    Meanwhile, the necessary definitive legal documentation is being prepared for review by the proposed JV parties from the second half of February. We look forward to working closely with the proposed JV parties in order to conclude the proposed agreement and advancing our project development plans for Salinbas in particular."

    To download and read our recent, in-depth report on the Salinbas project – please click here

    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, does not a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article’s content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

     

     

     

  • Ariana Resources takes show on the road with rapid expansion beyond Turkey (AAU, 4A6)

    If you have a business strategy that works, why would you want to change it?

    Indeed, wouldn’t it make more sense to take an approach that you alreadyknow to be successful, and apply in other areas where it can generate even more value?

    Well, that’s exactly what gold explorer and producer Ariana Resources (LON: AAU | FRA: 4A6) is doing right now.

    You see, with its proven, highly successful approach continuing to gather increasingly impressive momentum in Turkey, this London-listed company is taking what it has learned into a growing number of new territories, increasing the upside on offer for both itself and its investors with every passing day.

    And make no mistake, given the scale of geological potential across these new areas, this upside could be vast.

    Here, Ariana’smanaging director Dr. Kerim Sener walks Mining Maven through his firm’s exciting plans over the coming months and years.

    How it works – the basis of a strong strategy

    Sener tells us that Ariana’sapproach to gold exploration and production in Turkey began with a focus on picking “relatively early-stage mineral development opportunities” which showed potential to become mines.

    Then, from here, the firm has gone on to build these opportunities into producing mines and advanced development projects using successive drilling campaigns.

    According to Sener, “it was a matter of identifying good in-country teams and good partnerships” that ultimately created such a solid platform on which to build the company.

    And this foundation is extremely solid. In fact, in its latest annual report for 2020, Ariana revealed gold production of 18,645 ounces and pretax profit of just over £5 million.

    Critically, thanks to this work, Ariana is now completely self-funded through its Turkish JV gold mining activities. In fact, the company’s last significant fund raise came over four years ago.

    Beyond Turkey – Ariana pursues success further afield

    As alluded to earlier, with Turkey continuing to deliver, Arianahas now taken its strategy even further afield.

    “Our approach worked so well in Turkey that we recognized the opportunity to do the same thing and roll the same sort of strategy out elsewhere,” Sener explains.

    In Cyprus, this expansion is taking place through Venus Minerals, where Ariana has an earn-in agreement for up to a 50% stake and into which they have already earned an entitlement to 37.5%.

    Venus Minerals, active in Cyprus for over 15 years, is seeking to develop volcanogenic massive sulphide copper-gold deposits, and its main projects are Magellan and Mariner.

    Magellan comprises three licence areas known as Kokkinoyia, Klirou, and New Sha sectors.

    The three are Venus Metals’ most advanced projects, with JORC 2012 resources of approximately 9.5 million tonnes of ore with an average grade of 0.65% copper. All three also have indications of significant gold assays and all three have exploration upside, as reinforced in the latest drilling results from the Kokkinoyia Sector.

    This puts a target of more than 10 million tonnes at a minimum of 0.5% copper, 0.5g/t gold, and 0.5% zinc well within reach.

    Mariner, meanwhile, was acquired more recently and consists of two licences - Avdellero and Troulli. Venus Minerals analysed over 2,000 soil samples from Mariner and mapped over 10 square kilometres, finding several copper-zinc anomalies

    Alongside, Cyprus, Arianahas also moved further into Eastern Europe now, too, with several exploration licence applications already submitted in Kosovo through Western Tethyan Resources (“WTR”). These include the Terpeza, Hertica, and Cecelia projects.

    Previous trench results from Terpeza include an impressive 51m at 1.25 g/t gold, while drill intersections have returned 17m at 1.32 g/t gold and 24m at 1.65 g/t gold, 2% lead plus zinc.

    Likewise, historical exploration has also been promising, returning above 1% lead and zinc over a kilometer-long structure. Finally, at Cecelia, a stream sampling programme found several significant gold anomalies, ranging between 0.2 and 2.2 parts per million gold.

    Ariana will hold a 75% interest in WTR, after recently committing a further €100,000 of exploration funding in 2021. A local management team holds the other 25% WTR interest.

    Other projects in Eastern Europe are also being assessed, with a focus on major copper-gold systems in areas like Bulgaria, North Macedonia, Serbia, and Bosnia.

    Solid foundations - Turkey keeps on delivering riches for Ariana

    Returning to Turkey, and Sener tells that us that he chose the country as Ariana’skicking-off point after considering “a whole range of countries across the Tethyan Belt”.

    Ultimately, he picked the country thanks to its stability and his own heritage.

    “I am half Turkish. I was born there and spent the first four years of my life in Turkey before moving to the UK. I was naturally drawn to Turkey, and it was obvious from fairly early on that the country was going to be the focus for the company because of that,” Sener explains.

    So why the Tethyan Belt in particular?

    Well, the area is a major metal-producing belt that stretches all the way from Europe to the Himalayas and beyond. Sener compares it to “the Western seaboard of the Americas”, where the geology has created significant precious and base metal mineral systems running “from Alaska all the way down to the tip of Chile”.

    He says the Tethyan belt is, like the Western seaboard of the Americas, highly prospective. However, it is vastly underexplored in comparison, due to the difficulties of working in some of these countries it scales, for example, Afghanistan.

    Turkey has proven to be a great place for Ariana to have built its business.  The potential of the region immediately becomes clear when one looks at Kiziltepe, currently Ariana’sflagship project.

    The mine has a depleted JORC Measured, Indicated, and Inferred Resource of 700,000 ounces of silver and 227,000 ounces of gold, as of April 2020.

    Kiziltepe has been in profitable production since 2017 and is expected to deliver around 20,000 ounces of gold a year until at least the mid-2020s.

    Meanwhile, at the Kepez North area of the Kiziltepe Sector, drilling demonstrated potential for a northwest-trending high-grade mineralised shoot. This will be part of a revised resource estimate – now showing potential for a substantial boost in grade.

    Elsewhere in Turkey, the Salinbas project is still a major opportunity for Ariana’s future growth, situated only 16km from the 4-million-ounce Hot Maden project.

    Credit for much of the firm’s success to far goes to Ariana’s “almost 100% Turkish team,” which Sener calls “the best of the best in the business, certainly in Turkey”.

    This team truly is impressive, boasting a remote-sensing specialist and in-house capabilities in areas like geophysics and geochemistry.

    “Although we may be a relatively small company on the junior end of the market, we punch well above our weight,” Sener proclaims.

    What’s next? – Ariana’s path to success

    With a strong team already in place, Sener says Ariana’s aim is to demonstrate that it can operate within the framework of its joint ventures (“JVs”) successfully, maintaining “stable and robust” partnerships.

    Sener believes that, at this point, there’s nothing stopping the company’s growth, especially given its “very sound financial footing”.

    Being self-funded alone is a very valuable quality for a miner, especially one of Ariana’s size.

    Indeed, the fact that the firm is not returning to the market for funds, which would likely dilute shareholder value, is worth anyone’s attention.

    But perhaps most importantly, the company’s market capitalisation has already climbed “from a couple of million pounds” to almost £55 million at the time of writing. 

    And today, given the company’s proven model for taking projects from exploration and into production and considering the exploration and expansion into new geological environments that are already underway…

    This figure only stands to increase by even greater multiples.

    As Sener himself puts it:

    “If we can go from £2 million to £55 million in the space of fifteen years, you know, what’s the next ten or fifteen years going to bring? I imagine significant, further growth.”

    Bottom line is, now is an excellent time to invest and potentially reap the long-term rewards, with Ariana all set to replicate its solid strategy in new and exciting locations

    Author: Anna Farley

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

  • Oriole receives $500k payment from Turkish asset (ORR)

    Oriole Resources (LSE:ORR) was up 0.8pc to 0.38p in midday trading on Monday after revealing a $500k success-based payment from one of its investments in Turkey. The firm will receive the money from its partner Anadolu in relation to the Karaağaç project in Turkey.

    The payment was triggered by the definition of a minimum JORC 2012-compliant resource of 50,000oz of gold at the site under the terms of a 2015 exploration agreement. Anadolu has announced an indicated and inferred resources of 348,150pz gold and 2,832,036oz at the site. The firm is now waiting for the Urban and Environment ministry in turkey to approval an Environmental Impact Assessment for the site.

    Oriole will receive staged payments of $25,000 a month for 20 months. It was paid the first of these instalments in February. The business is also entitled to a 1.5pc net smelter return royalty on any future production.

    Oriole’s chief financial officer Bob Smeeton said the development provided ‘further evidence’ of the success of oriole’s self-funding exploration strategy.

    ‘The company's focus on developing projects in conjunction with carefully chosen partners means that we can expose investors to significant exploration upside whilst also minimising the risk of dilution,’ he added.

    The news comes less than a week after Oriole revealedvery encouraging’ high-grade anomalies at its assets in Cameroon. In an exploration update for the Bibemi asset, where it is earning up to a 90pc interest, Oriole said the first phase of a trenching programme had confirmed multiple zones of gold mineralisation. This includes 6m at 3.02 g/t gold with individual veins returning up to 13.7 g/t.

    The trenching programme is now complete, with the remaining results anticipated later this quarter or in early Q2 2019. The work followed the news last November that rock-chip sampling results for Bibembi had demonstrated ‘bonanza’ high-grade gold anomalism extending over the c.4km strike. A phase two trench programme will now begin for a planned 4,360m.

    Elsewhere the business said it has also completed soil sampling at the earlier stage Wapouze project, where it is also earning up to a 90pc stake. Results for 2,119 soil samples and 146 rock samples are expected later this month.

    Oriole entered a conditional option agreement with established Cameroonian outfit BEIG3 in June last year for Bibemi and Wapouzé. The assets cover the highly prospective Neoproterozoic Pan-African greenstone belts in the north-east of the country.

    The two-part agreement gives Oriole the right to earn up to a 90pc interest in the projects and take over their management. For an initial 51pc stake, the firm must fund $1.56m of exploration over two years, with a minimum commitment of $560,000 in the first year. It can then earn up to a further 39pc in exchange for another $1.56m exploration payment.

    Monday’s update also comes several weeks after Oriole received a £500,000 rebate from the UK tax office. It will re-invest this into Cameroon and its other projects.

    Author: Daniel Flynn

    The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

    The Author has not been paid to produce this piece by the company or companies mentioned above

    Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

    MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

  • REPORT: Ariana Resources- Transforming Salinbas into Turkey’s next major gold mine

    Ariana Resources (LSE:AAU) opened up a world of new opportunity at the Salinbas gold project in north-east Turkey when it took over full ownership of the asset towards the end of 2016. After developing a new approach, which recognises the prospectivity presented by Turkey’s world-class Hot Gold Corridor, Ariana is confident that the project’s potential extends far beyond its current JORC-resource of one million Indicated and Inferred ounces (“1Moz”) of gold equivalent.

    In November 2019, Ariana signed a potentially game-changing deal with a major Turkish construction and engineering firm for a joint venture on Salinbas that will accelerate the company’s vision of developing the project into a gold mine. Here, we take a deep dive into the Salinbas project, its history, and its prospectivity, and look at what this latest development could mean for Ariana’s growth potential.

    To read our report in full, please click here.