🕐28.09.12 - 10:27 Uhr
ARIANA RESOURCES - INTERIM RESULTS - GOLD EXPLORATION AND DEVELOPMENT IN TURKEY PROGRESSING WELL
28 September 2012
AIM: AAU
INTERIM RESULTS
Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, announces its results for the six month period ended 30 June 2012.
Highlights:
* Project development continues at the Red Rabbit Gold Project (Red Rabbit) in western Turkey.
While work remains underway on the Feasibility Study, Ariana has completed new exploration drilling at the Kiziltepe Sector which has returned intercepts including 12.1m @ 16.5 g/t gold (Au) equiv., 7.6m @ 7.60g/t Au equiv.
and 5.8m @ 5.71g/t Au equiv.
* Ariana takes on management of the Eldorado Joint Venture in NE Turkey from which intercepts of 9.5m @ 7.20 g/t Au equiv., 11.3m @ 5.76 g/t Au equiv.
and 25m @ 3.48 g/t Au equiv.
are reported from Salinbas.
* Participation in a placing for Tigris Resources (Tigris) to enable Tigris to complete drilling of its first target in SE Turkey from which grades of up to 37.8 g/t Au have been returned from channel sampling.
* New exploration in western Turkey is underway on new licences acquired via government auction earlier in the year.
Chairmans Statement
It is pleasing to see the progress being made by the team on several fronts in Turkey.
Our flagship Red Rabbit Gold Project in western Turkey, which has a current JORC resource of 448,000 oz gold equivalent is continuing to be advanced though its feasibility programme and via exploration.
We have also taken the operational lead on our highly encouraging Artvin Joint Venture with TSX and NYSE quoted Eldorado Gold Corporation and have maintained our exposure to exploration success in south-eastern Turkey through our recent participation in a placing for Tigris Resources.
At our Red Rabbit Project (currently 86%-owned), development has been somewhat delayed due to changes in permit approval procedures in Turkey, which has impacted all sectors.
This is affecting our ability to access the proposed site of our Tailings Management Facility for the final technical drilling required for our Feasibility Study and Environmental Impact Assessment.
Despite this issue, the team is continuing to advance the project via additional technical work on the Feasibility Study and on new exploration.
This exploration has been exceptionally pleasing with new vein systems being confirmed by drilling and bonanza grades being reported from the gap-zone between Arzu South and Arzu North.
One intercept within this gap-zone showed the highest grades ever reported from Kiziltepe of 3.2m @ 38.7 g/t Au + 511 g/t Ag (48.0 g/t Au equiv.) and which itself included 1m @ 65.9 g/t Au + 760 g/t silver (Ag) (79.7 g/t Au equiv.).
During the reporting period, Ariana has also been acquiring much of the freehold land over the Arzu South pit-area via our 99% owned subsidiary, Camyol.
These land acquisitions have been funded by Ariana directly and represent a significant part of our project budget.
The acquisitions have enabled the Company to substantially de-risk our primary resource/reserve area, which represents a major advancement for the project overall.
We are continuing to explore funding options for the Red Rabbit Joint Venture with Proccea Construction Co., and relevant technical documentation, including our Pre-Feasibility report, has been shared with several banks and institutions.
Pending resolution of the permitting for drilling of the Tailings Management Facility, the Company expects to conclude its Feasibility Study and its Environmental Impact Assessment.
This will act as the next major catalyst in the development of the Red Rabbit Project.
We are presently committed to initiating a drilling programme on our Artvin Joint Venture property of Salinbas, which is 49% held by Ariana.
The Joint Venture is being funded by our partners Eldorado Gold Corporation, with an allocated budget of US$1.77 million in 2012-2013.
This property has yielded several highly encouraging intercepts and the orebody remains open to the south and to the east, in the direction of the Ardala Cu-Au-Mo porphyry, which remains under licence to the Joint Venture.
Past results from Salinbas include 21.5m @ 6.63 g/t Au + 19.8 g/t Ag and 12.0m @ 6.78 g/t Au + 36.5 g/t Ag from drilling and 55m @ 7.80 g/t Au + 9.2 g/t Ag and 46m @ 8.33 g/t Au + 39.0 g/t Ag from trenching.
Post-period end, the Company participated in a share placement for Tigris Resources, to help enable Tigris to continue with its first drilling programme on a porphyry-related target in Tunceli Province in SE Turkey.
We are encouraged to note that Tigris has successfully identified a major intrusive centre, which is mineralised by sheeted-veins and stockworks, carrying grades of up to 37.8 g/t Au in composite channel samples.
Drilling of this intrusive centre is underway with 1,500 metres budgeted.
Additionally, we completed a share placing for 625,000 in July 2012 which along with a Standby Equity Distribution Agreement supported US$2 million loan facility secured earlier in the year, places the Company in an adequate position to implement our present work programmes and in to 2013.
Importantly, this placing has enabled Ariana to follow up on its exploration of licences acquired via government auction earlier in the year.
Going forward we are also considering a number of new opportunities within Turkey that are being made available through the auction process.
We are also looking at opportunities in the wider area, in line with our strategy to become one of the key companies operating in the region.
I would like to take this opportunity to thank our loyal shareholders, Board of Directors and management team for their support over the period.
With the high level of background activity underway, I look forward to reporting against key milestones on several fronts during the latter part of this year and in to the next
** ENDS **
Contacts:
Ariana Resources plc
Tel: +44 (0) 20 7407 3616
Michael Spriggs, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited
Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Fairfax I.S.
PLC
Tel: +44 (0) 20 7598 5368
Ewan Leggat / Laura Littley
St Brides Media & Finance Ltd
Tel: +44 (0) 20 7236 1177
Susie Geliher / Lottie Brocklehurst
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 Masters 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 Ariana Resources:
Ariana is an exploration and development company focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey.
The Company is developing 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 Eldorado Gold Corporation in north-eastern Turkey.
Eldorado owns 51% of this joint venture and is fully funding all exploration work on the JV properties, while Ariana owns 49% and is the operator.
The Companys flagship assets are its Sindirgi and Tavsan gold projects which form the Red Rabbit Gold Project.
Both 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 and now form part of a Joint Venture with Proccea Construction Co.
The total resource inventory of the Company stands at 448,000 ounces of gold equivalent.
Ariana also has a strategic investment in Tigris Resources Limited (www.tigrisresources.com), a private Jersey-based exploration company, which is focused on the exploration of copper and gold deposits in southeastern Turkey.
Ariana retains 12.5% of Tigris Resources Limited.
Fairfax I.S.
PLC are brokers to the Company and Beaumont Cornish Limited is the Companys Nominated Adviser.
For further information on Ariana you are invited to visit the Companys website at www.arianaresources.com.
Ends
Unaudited Condensed Consolidated Interim Financial Statements
for the six months ended 30 June 2012
Condensed consolidated statement of comprehensive income
Restated
Note
6 months to
30 June
2012
6 months to
30 June
2011
12 months to
31 December
2011
000
000
000
Continuing Operations
Administrative costs
(322)
(403)
(1,291)
General exploration expenditure
(41)
-
(181)
Share options
-
(478)
-
Other income
14
23
74
Operating Loss
(349)
(858)
(1,398)
Finance costs
4
(90)
-
-
Investment income
25
3
51
Loss on ordinary activities before tax
(414)
(855)
(1,347)
Taxation
6
-
-
-
Loss for the period
(414)
(855)
(1,347)
Other comprehensive income:
Exchange differences on translating foreign operations
52
(94)
(239)
Other comprehensive income for the period, net of tax
52
(94)
(239)
Total comprehensive income for the period
(362)
(949)
(1,586)
Loss for the period attributable
to owners of the parent company
(414)
(855)
(1,347)
Total comprehensive income attributable
to owners of the parent company
(362)
(949)
(1,586)
Loss per share (pence):
Basic and diluted
7
0.15
0.35
0.54
Condensed consolidated balance sheet
Condensed consolidated interim statement of financial position
Restated
Note
30 June
2012
000
30 June
2011
000
31 December
2011
000
ASSETS
Non-current assets
Trade and other receivables
12
83
12
Available for sale investments
169
72
169
Land, property, plant and equipment
426
197
311
Intangible assets
8
5,125
4,446
4,627
Total non-current assets
5,732
4,798
5,119
Current assets
Trade and other receivables
720
288
340
Cash and cash equivalents
725
1,445
908
Total current assets
1,445
1,733
1,248
Total Assets
7,177
6,531
6,367
Equity
Called up share capital
9
2,694
2,518
2,597
Share premium
6,843
6,201
6,481
Other reserves
720
720
720
Share options
578
578
578
Translation reserve
(124)
(31)
(176)
Retained earnings
(4,664)
(3,758)
(4,250)
Total equity attributable to equity holders
of the parent
6,047
6,228
5,950
Liabilities
Current liabilities
Borrowings
10
654
-
-
Trade and other payables
476
303
417
Total current liabilities
1,130
303
417
Total Equity and Liabilities
7,177
6,531
6,367
Condensed consolidated interim statement of changes in equity
Condensed consolidated interim statement of changes in
Share capital
Share premium
Other reserves
Share options
Trans-lation
reserve
Retained losses
Total attributable to equity holder of parent
000
000
000
000
000
000
000
Balance at 1 January 2011
2,220
5,167
720
100
63
(2,903)
5,367
Changes in equity
to 30 June 2011
Other comprehensive income-
Exchange differences on retranslation
of foreign operations
-
-
-
-
(94)
-
(94)
Loss for the period
-
-
-
-
-
(855)
(855)
Total comprehensive income
-
-
-
-
(94)
(855)
(949)
Issue of share capital
298
1,092
-
-
-
-
1,390
Share issue costs
-
(58)
-
-
-
-
(58)
Share options
-
-
-
478
-
-
478
Balance at 30 June 2011
2,518
6,201
720
578
(31)
(3,758)
6,228
Changes in equity
to 31 December 2011
Other comprehensive income-
Exchange differences on retranslation
of foreign operations
-
-
-
-
(145)
-
(145)
Loss for the period
-
-
-
-
-
(492)
(492)
Total comprehensive income
-
-
-
-
(145)
(492)
(637)
Issue of share capital
79
280
-
-
-
-
359
Balance at 31 December 2011
2,597
6,481
720
578
(176)
(4,250)
5,950
Changes in equity to
30 June 2012
Other comprehensive income-
Exchange differences on retranslation
of foreign operations
-
-
-
-
52
-
52
Loss for the period
-
-
-
-
-
(414)
(414)
Total comprehensive income
-
-
-
-
52
(414)
(362)
Issue of share capital
97
362
-
-
-
-
459
Balance at 30 June 2012
2,694
6,843
720
578
(124)
(4,664)
(6,047)
Condensed consolidated interim cash flow
Condensed consolidated interim statement of cash flows
Restated
6 months to
30 June
2012
6 months to
30 June
2011
12 months to
31 December 2011
000
000
000
Cash flows from operating activities
Cash generated from operations
(612)
(54)
(626)
Net cash outflow from operations
(612)
(54)
(626)
Cash flows from investing activities
Purchase of land, property, plant and equipment
(115)
(41)
(179)
Proceeds from sale of Zenit
-
-
164
Proceeds from sale of investments
-
135
135
Purchase of investments
-
-
(98)
Purchase of intangible assets
(488)
(650)
(960)
Interest received
25
3
51
Net cash used in investing activities
(578)
(553)
(887)
Cash flows from financing activities
Proceeds from borrowings
1,115
-
-
Proceeds from issue of share capital
459
1,332
1,691
Repayment of borrowings
(477)
-
-
Interest and financing fees
(90)
-
-
Net cash proceeds from financing activities
1,007
1,332
1,691
Net increase/(decrease) in cash and cash equivalents
(183)
725
178
Cash and cash equivalents at the beginning of period
908
730
730
Cash and cash equivalents at end of period
725
1,455
908
Notes
Notes to the interim financial statements for the six months ended 30 June 2012
1.
General information
Ariana Resources Plc (the "Company") is a public limited company incorporated and domiciled in Great Britain and whose registered office is Bridge House, London Bridge London SE1 9QR.
The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of gold and other minerals in Turkey.
The Companys shares are listed on the Alternative Investment Market of the London Stock Exchange.
2.
Basis of preparation
The condensed interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard 34 Interim Financial Reporting.
The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2011, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
The condensed interim financial statements set out above do not constitute statutory accounts within the meaning of the Companies Act 2006.
They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union.
Statutory financial statements for the year ended 31 December 2011 were approved by the Board of Directors on 23 May 2012 and delivered to the Registrar of Companies.
The financial information for the periods ended 30 June 2012 and 30 June 2011 are unaudited.
3.
Significant accounting policies
The condensed interim financial statements have been prepared under the historical cost convention.
The same accounting policies have been followed in these condensed interim financial statements as were applied in the preparation of the Groups financial statements for the year ended 31 December 2011.
During the year ended 31 December 2011 the Company changed the method by which it consolidated the results of its joint venture, Zenit Madencilik San ve Tic AS., from acquisition accounting to proportional consolidation.
Further details on this are contained in the Companys annual financial statements for that year, and the consolidated results for the six month period to 30 June 2011 have been amended accordingly.
4.
Finance cost
Restated
Interest on borrowing
6 months to
30 June
2012
000
6 months to
30 June
2011
000
12 months to
31 December 2011
000
Interest on convertible loan
16
-
-
Facility fees
74
-
-
90
-
-
5.
Segmental analysis
Management currently identifies one division as an operating segment - mineral exploration.
This operating segment is monitored and strategic decisions are made based upon this and other non-financial data collated from exploration activities.
Principal activities for this operating segment are as follows:
Mining - incorporates the acquisition, exploration and development of gold resources in Turkey.
June 2012
Restated
June 2011
December 2011
Mining
Other reconciling items
Group
Mining
Other reconciling items
Group
Mining
Other reconciling items
Group
000
000
000
000
000
000
000
000
000
Administrative costs
-
(322)
(322)
-
(881)
(881)
-
(1,291)
(1,291)
General exploration
expenditure
(41)
-
(41)
-
-
-
(181)
-
(181)
Other income
14
-
14
23
-
23
74
-
74
Finance costs
-
(90)
(90)
-
-
-
-
-
-
Investment income
25
25
-
3
3
-
51
51
Tax
-
-
-
-
-
-
-
-
-
Loss after tax
(27)
(387)
(414)
23
(878)
(855)
(107)
(1,240)
(1,347)
Assets
Segment assets
6,875
302
7,177
5,299
1,232
6,531
5,291
1,076
6,367
Liabilities
Segment liabilities
(138)
(992)
(1,130)
(155)
(148)
(303)
(217)
(200)
(417)
Additions to segment
assets
Intangible assets
488
-
488
650
-
650
960
-
960
Property plant
& equipment
115
-
115
41
-
41
177
2
179
Depreciation
(17)
-
(17)
(17)
-
(17)
(36)
(1)
(37)
Other income includes consultancy and licence fees.
Reconciling items include non mineral exploration costs and transactions between Group and associate companies.
Geographical segments
All of the Group`s mining assets and liabilities are located in Turkey.
June 2012
Restated
June 2011
December 2011
Turkey
United Kingdom
Group
Turkey
United Kingdom
Group
Turkey
United Kingdom
Group
000
000
000
000
000
000
000
000
000
Carrying amount of segment
non current assets
5,563
169
5,732
4,718
80
4,798
4,949
170
5,119
6.
Tax
The Group has incurred tax losses for the period and a corporation tax charge is not anticipated.
7.
Loss per share
The calculation of basic loss per share is based on the loss attributable to ordinary shareholders of 414,000 divided by the weighted average number of shares in issue during the period, being 266,908,645.
8.
Additions and disposals of intangible assets
Exploration, evaluation and development of mineral resources
Six months ended 30 June 2011
000
Opening net book amount 1 January 2011
3,840
Additions and capitalised depreciation
650
Disposals
(44)
Closing net book amount 30 June 2011
4,446
Six months ended 31 December 2011
Opening net book amount 1 July 2011
4,446
Additions and capitalised depreciation
349
Disposals
(74)
Exchange movements
(94)
Closing net book amount 31 December 2011
4,627
Six months ended 30 June 2012
Opening net book amount 1 January 2012
4,627
Additions and capitalised depreciation
488
Disposals
(26)
Exchange movements
36
Closing net book amount 30 June 2012
5,125
9.
Called up share capital and share premium
Authorised share capital of the company is 500,000,000 ordinary shares at 1 pence each
Details of issued capital are as follows:
Number of
Nominal
Value
Share
Premium
shares
000
000
At 1 January 2011
221,979,533
2,220
5,167
Shares issued in period (net of expenses) for cash
29,851,223
298
1,034
Balance at 30 June 2011
251,830,756
2,518
6,201
Shares issued in period (net of expenses) for cash
7,841,578
79
280
At 31 December 2011
259,672,334
2,597
6,481
Shares issued in period (net of expenses) for cash
9,657,175
97
362
Balance at 30 June 2012
269,329,509
2,694
6,843
10.
Borrowings
A convertible loan of $750,000, bearing interest at 10% and repayable within one year, was drawn down in January 2012 and repaid in June 2012, at the same time as a new loan of $1m on the same terms was drawn down.
Under the new loan, conversion into new ordinary shares is at the lenders option at a price 3.77 pence per ordinary share.
11.
Post period events
In July 2012 the company raised 625,000 by issuing 41,666,668 new ordinary shares at 1.5 pence per ordinary share.
12.
Approval of interim financial statements
The interim financial statements were approved by the Board of Directors on 27 September 2012.
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