First Gold Production

29 June 2009 AIM / PLUS Markets: AAU KIZILTEPE: FIRST GOLD PRODUCTION Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, is pleased to announce its first gold production from the Sindirgi Gold Project. This follows the conclusion of trial mining at the Arzu South vein at the Kiziltepe deposit by Ariana's subsidiary, Galata Madencilik San. ve Tic. Ltd. ("Galata") and the processing of its ore at the Gümüsköy plant by Eti Gümüs A.S. ("Eti"). Dr. Kerim Sener, Managing Director, commented: "Trial processing of ore from Kiziltepe has resulted in the production of the first 387 oz of gold from the Kiziltepe deposit. This is a solid result from the initial trial mine at Kiziltepe, and discussions regarding an extension to this trial for the processing of a further batch of ore are underway. It is currently the intention of the companies to develop their partnership with the intention of advancing both the Sindirgi and Tavsan projects. "Ariana is currently considering the sale of investment ingots from its first gold production from Kiziltepe, following further refining and minting at the Istanbul Gold Refinery. Such ingots will be sold at a modest premium to the gold price on a 'first-come-first-served' basis. I have personally placed a provisional order for 1kg of this first gold production, as I believe this represents such a significant and memorable step forward for the Company." Trial Processing Trial processing of 5,177 tonnes of dry ore from the Kiziltepe deposit was finalised during last week at the Gümüsköy processing plant owned by Eti in Kütahya Province, Western Turkey. According to preliminary data provided by Eti, 253.16kg of dry anode mud was recovered from the electrolytic processing circuit (Figure 1). The gold content of the mud was measured at 4.75%, giving a total gold content of 12.025 kg (387 oz). Refining of the anode mud for conversion to 99.9% pure gold is currently underway at the Eti laboratory and division of the proceeds is expected to occur during a meeting between Galata and Eti scheduled for the 10th July. Please see the news release dated 5th March 2009 for details of the trial processing arrangement with Eti. While the recovered grade was lower than expected, Galata and Eti are working jointly to determine the reasons for this result. Ariana suspects that the surprising volume of sub-surface old workings, containing low grade back-fill, encountered in otherwise higher-grade areas contributed to the lower than expected grade of the ore trucked to the plant. Also, the mined ore suffered certain unplanned dilution resulting from the mining method and the inexperience of the trial mine operators. These factors contributed to a trucked grade of approximately 3.27 g/t Au, based on analyses undertaken at the Eti laboratory. Process recoveries were also somewhat lower than expected and calculations of staged process efficiency are still underway. Ariana is also checking Eti laboratory data via new analyses undertaken at ALS Chemex to determine if any analytical errors have occurred. Following the successful and economically satisfactory completion of the initial trial, Galata and Eti have been discussing the continuation of the trial to encompass a further batch of ore. This extended trial will develop the cooperation between the two companies and will be designed to improve on mining methods and process recovery to ensure improved gold extraction. Beyond this, the companies have expressed interest in a longer term partnership for the joint development of the Sindirgi and Tavsan projects, and to establish a new gold mining and processing venture in Turkey. Please follow this link to Figure 1: http://hugin.info/138153/R/1325474/311741.jpg Figure 1: Anode mud recovered from the processing trial of Kiziltepe ore at the Gümüsköy plant, containing gold, silver, copper and other metals. Contacts: Ariana Resources plc Tel: 020 7407 3616 Michael Spriggs, Chairman Kerim Sener, Managing Director Beaumont Cornish Limited Tel: 020 7628 3396 Roland Cornish Lothbury Financial Tel: 020 7011 9411 Michael Padley / Libby Moss Alexander David Securities Limited Tel: 020 7448 9820 Nick Bealer / David Scott Loeb Aron & Company Ltd Tel: 020 7628 1128 Peter Freeman / Frank Lucas Editors' note: Dr Kerim Sener, BSc (Hons), MSc, PhD, is the Managing Director of Ariana Resources plc. A graduate of the University of Southampton in Geology, he also holds a Master's degree from the Royal School of Mines (Imperial College, London) in Mineral Exploration and a doctorate from the University of Western Australia. He is a Fellow of The Geological Society of London and has worked in geological research and mineral consultancy in Southern Africa and Australia. He has read and approved the technical disclosure in this regulatory announcement. About the Kiziltepe Deposit The Kiziltepe deposit is located within a ten-year renewable operating licence that forms part of the Company's 100% owned Sindirgi Gold Project in Balikesir Province, western Turkey. The current JORC resource of 186,000 ounces gold equivalent is contained within the Arzu South, Arzu North, Banu and Derya veins. Kiziltepe lies approximately 130km west of the Gümüsköy silver mine, 100km east of the one million ounce vein-hosted Ovacik gold mine and 115km northwest of the five million ounce Kisladag gold mine. The deposit hosts over 20km in strike length of gold-silver bearing low-sulphidation epithermal quartz veins across an area of at least 3km by 1km. Individual veins are exposed for up to 750m and widths vary between 1m and 14m. The main veins trend northwest, dip to the northeast and are hosted within Miocene age dacitic volcanic rocks. Ariana acquired the Sindirgi Gold Project from Newmont Mining Corporation (NYSE & ASX: NEM; TSX: NMC) in March 2005. Franco-Nevada Corporation retains the right to a royalty of up to 2.5% on future gold production from the Sindirgi Gold Project. About Eti Gümüs A.S. Eti Gümüs A.S. owns and operates the Gümüsköy silver mine in Kütahya Province, western Turkey. It is currently the largest silver mine in Europe and has been operational since 1987. Before privatisation, the process plant had a designed annual throughput rate of 1,000,000 tonnes and produces a maximum of 122 tonnes of silver per annum using the Merrill-Crowe system; a process for separating silver and gold where high Ag:Au ratios prevent the use of carbon as an effective recovery technique. Current production is well in excess of the original capacity, following improvements to the plant made since privatisation. The company's production meets 45% of annual Turkish silver demand. About Ariana Resources Ariana is an exploration and development company focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey. The Company is exploring a portfolio of prospective licences selected on the basis of its in-house geological and remote-sensing database, on its own in western Turkey and in Joint Venture with European Goldfields Limited in north-eastern Turkey. The Company's flagship assets are its Sindirgi and Tavsan gold projects. Both projects contain a series of prospects, within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional (WAVE) Province in western Turkey. This Province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits. These core projects, which are separated by a distance of 75km, are presently being assessed as to their economic merits. The total resource inventory of the Company stands at 401,000 ounces of gold equivalent. Loeb Aron & Company Ltd. and Alexander David Securities Limited are joint brokers to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser. For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com. Ends ---END OF MESSAGE--- http://hugin.info/138153/R/1325474/311741.jpg This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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