Ariana Resources plc
Turkish Gold
June 2013
Ariana Resources plc Turkish Gold June 2013 Disclaimer: The - - PowerPoint PPT Presentation
Ariana Resources plc Turkish Gold June 2013 Disclaimer: The Presentation is being distributed on request only to, and is directed at, authorised persons The content of information contained in these slides and the accompanying or exempt
June 2013
| Ariana Resources Plc | June 2013
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The content of information contained in these slides and the accompanying verbal presentation (together, the “Presentation”) has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). Reliance upon this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. If any person is in any doubt as to the contents of this Presentation, they should seek independent advice from a person who is authorised for the purposes of FSMA and who specialises in advising in investments of this kind.
This Presentation is being supplied to you solely for your information. This Presentation has been prepared by, and is the sole responsibility of, Ariana Resources plc (the “Company”). The directors of the Company have taken all reasonable care to ensure that the facts stated herein are true to the best of their knowledge, information and belief. This Presentation does not constitute, or form part of, an admission document, listing particulars
invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied upon in connection with, or act as any inducement to enter into any contract therefor. No reliance may be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness, accuracy or fairness thereof, nor is any responsibility accepted for any errors, misstatements in, or omission from, this Presentation or any direct or consequential loss however arising from any use of, or reliance on, this Presentation or otherwise in connection with it. By accepting this Presentation you confirm, represent and warrant that you have consented to receive information in respect of securities of the Company and other price-affected securities (as defined in the Criminal Justice Act 1993 (“CJA”)) which makes you an “insider” for the purposes of Part V of the CJA, and you agree not to deal in any securities of the Company until such time as the inside information (as defined in the CJA) of which you have been made aware has been made public for the purposes of the CJA and until such time that the Placing has been publicly announced by the Company, or the Company decides not to proceed with the Placing. This Presentation may not be reproduced or redistributed, in whole or in part, to any other person,
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unless such offer or sale would qualify for an exemption from registration under the US Securities Act and/or any other applicable securities laws. Forward-looking Statements This Presentation and/or documents referred to in it contain forward-looking statements. These statements relate to the future prospects developments and business strategies of the Company and its subsidiaries (the “Group”). Forward-looking statements are identified by the use of such terms as “believe”, “could”, “envisage”, “estimate”, “potential”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward-looking statements contained in this Presentation are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. If one or more of these risks or uncertainties materialises, or if underlying assumptions prove incorrect, the Group’s actual results may vary materially from those expected, estimated or projected. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements. These forward-looking statements speak only as at the date of this Presentation. No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees or advisers or any other person as to the accuracy or the completeness of the information or
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Strategy
Red Rabbit Gold Project (RRGP)
driving assets up the development curve to production
with multi-million ounce gold potential
Operation
prospective, politically and economically stable
management team with extensive local and geological knowledge
Strategic partnerships
with Proccea Construction Co.
Gold Corp
Tigris Resources
Exploration Discovery Development Production Increase in market cap
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Shares in Issue
417.0 m
Market Capitalisation
£4.38 m
at 1.05p
Warrants
3.0 m
3.0m: 2p expiry 19 Apr 2018
Options
16.0 m
12.5m: 5p expiry 21 Mar 2018 2.2m: 8.8p expiry 19 July 2015 1m: 13p expiry 22 Aug 2015 0.3m: 13p expiry 1 Sept 2016
Fully Diluted
436.0
Date of Listing
28 July 2005
1.45p (18 Mar 2013) 1.02p (30 May 2013)
Average Daily Volume (3M)
3,473,090
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Share Price p Volume x1,000000
Name % held
Beaufort Nominees Ltd 8% Eldorado Gold Corporation 7% TD Direct Investing Nominees Ltd 6% Mr Bruce Rowan 6% Barclayshare Nominees Ltd 6% Hargreaves Lansdown Nominees Ltd 6% Starvest 5% SVS Nominees Ltd 5% Harewood Nominees Ltd 4% Share Nominees Ltd 3% Remainder of the top 20 13% Management 3% Other shareholders 19%
1 2 3 4 5 6 7 Mar 13 Apr 13 May 13 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 Mar 13 Apr 13 May 13
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Managing Director
BSc Geology, MSc Mineral Exploration, PhD Gold Metallogenesis
Michael Spriggs
Chairman
BA & MA Geology, MSc Geology & Mineral Sciences
company chairman
Warburg (now UBS)
Michael de Villiers
Director
B.Comm Professional Accountant
William Payne
CFO
BA Accountancy
finance
Soner Koldaş
Technical Director
BSc Mining & Mineral Process Engineering, MSc Rock Mechanics & Mining Geology
experience in South Africa and Turkey
execution of mine and process plants
Erhan Şener
General Manager
BA Economics, MA Western European Integration
extractive industries and manufacturing
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Turkish gold production in tonnes
1 Moz Ovacik mine begins production 16.9 Moz Kisladag mine begins production 1.4Moz Mastra mine begins production 6.3 Moz Copler mine begins production
Europe’s largest gold producer
Ankara
Turkey
Kremnica 1.2Moz Lahoca 1.2Moz Rosia Montana 14.6Moz Chelopech 4.71Moz Mastra 1.4Moz Copler 6.3Moz Bolkardag 0.1Moz Kisladag 16.9Moz Efemcukuru 2.2Moz Ovacik 1Moz Kucukdere 0.3Moz
2.2Moz Efemçukuru mine begins production
1.4 4.3 5.4 5 5 8 10 11 14.5 17 24.4 29.5 5 10 15 20 25 30 35
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Development Discovery Exploration Red Rabbit JV
Production planned for 2014:
21,000oz Au equiv. pa in first 5 years: 8 year mine life
to be defined at Kiziltepe
resource at Tavsan
the Red Rabbit JV in western Turkey
Eldorado Gold JV
Resource expansion:
resource defined for Ardala & Salinbas
at Ardala & Salinbas
Eldorado JV in north-eastern Turkey
WAVE province & strategic
Targeting +1Moz deposits:
through licence auctions
Newmont database for Turkey
Resources - focus on frontier gold province of south-eastern Turkey
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(215Koz)
Au and 39.8 g/t Ag for 115,000 oz Au & 1.47M oz Ag
15 years
tonnes of ore
years
has commenced at Ministry of Environment
at TSF site complete – engineering design now completed
Arzu South
*Definitive Feasibility Study (DFS), Environmental Impact Assessment (EIA)
Kiziltepe Kepez Karakavak Tavsan Kizilcukur
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P r
e c t R i s k
Scoping Study Pre-Feasibility Study Interim-Feasibility Study Definitive-Feasibility Study EIA Certification Construction /
Completion of Finance Q2 2013 Q3 2013 Q4 2013
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processing plant design/build; also a 2.75% shareholder in Ariana
US$8 million
US$1.4 million, management control with Ariana
commitment of US$6.6 million: management control with Proccea
through the EIA process
capital requirement (US$29.5) – discussions have commenced
Trial mining at Kiziltepe
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and construction company with specialist experience in process plant design and implementation
columns
Merrill-Crowe plant, commissioning
Europe, Africa & Middle East
ADR circuit at Kisladag
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financing and loan interest charges.
processing plant and EPCM.
royalties: inclusive of State royalty and 2.5% NSR.
Scenario NPV 10 (US $M) NPV 8 (US $M) IRR (%) Payback year Cash Cost (US $/ oz Au)
Minus 10% 10.0 12.7 19.5 3.2 678 Base case 18.7 22.0 27.1 2.9 682 Plus 10% 27.4 31.3 34.3 2.6 685 US $1,500 /oz Au 36.1 40.6 41.1 2.3 689 US $1,650 /oz Au 44.8 49.8 47.8 2.1 693
* Corporation tax is 20% in Turkey
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Arzu North Arzu South Derya Banu Plant Site Waste Dump TSF 500m
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Kiziltepe deposit including:
North vein system extends southeast beneath cover
towards the Arzu South structure
the Arzu Central zone
planned
Emel vein Derya vein Arzu North Arzu South
Drilling at Kiziltepe
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Au and 1,100,000 oz Ag established at Arzu Central.
base and enhance economics.
life beyond 8 years.
be delineated down-dip of know high grade shoots.
Kiziltepe mine construction 2014.
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prospective areas within the Sindirgi Gold Corridor
resource, enhancing economic fundamentals and extending mine life
>10 years following further discoveries
exploration cost within the Red Rabbit AOI (excluding JV licences)
Kizilcukur Kepez 9,000oz (Indicated) Karakavak Licence recently converted to 10 year operational status Yukaricamli Kiziltepe 224,000oz (Measured & Indicated) Camalani Not yet drill tested Not yet drill tested
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funding all exploration
inferred and indicated
projects and surrounding tenements
million to be spent in 2013: 4000m drilling
@ 6.48 g/t Au + 39.4 g/t Ag, 11.3m @ 4.98 g/t Au + 42.8 g/t Ag
underexplored parts of south-eastern Turkey
copper systems exploration
2012 on the Kolonkaya Project: best result 10m at 6.4 g/t Au with surface samples up to 65.8 g/t Au
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Rock (#25k) Stream (#24k) BLEG* (#18k) Sampling type
drilling.
Project in order to aid the discovery of additional resources for the planned Kiziltepe operation.
within 5km of any data point (excluding existing Ariana tenements).
* Bulk Leach Extractable Gold
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represents immediate resource upside (capacity for additional 30,000 oz p.a. production)
database.
with Eldorado Gold and Tigris Resources
expertise
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Spriggs Ariana Resources PLC T: +44 (0) 207 407 3616 E: info@arianaresources.com
Exploration Discovery Development Production Increase in market capitalisation
Susie Geliher St Brides Media & Finance Ltd T: +44 (0) 207 236 1177 E: susie@sbmf.co.uk