Ariana Resources Investor Presentation - Proactive Investors

Ariana Resources plc 

Turkish Gold 

October-November 2012

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2 

| Ariana Resources Plc | October 2012

Ariana Resources plc: 

An overview 

Discovery 

Production 

Exploration 

Development 

Increase in market cap 

Strategy 

• Targeting production at the 

Red Rabbit Gold Project 

(RRGP) 

• Create long-term value by 

driving assets up the 

development curve to 

production 

• Generate exploration targets 

with multi-million ounce gold 

potential 

Operation 

• Turkey: geologically 

prospective, politically and 

economically stable 

• Highly experienced 

management team with 

extensive local and 

geological knowledge 

Strategic partnerships 

• RRGP JV in western Turkey 

with Proccea Construction 

Co. 

• JV NE Turkey with Eldorado 

Gold Corp 

• Strategic investment in 

Tigris Resources 

3 


Key Data: 

Market fundamentals 

Shares in Issue 

317.1 m 

Market Capitalisation £4.8 m (at 1.58p) 

Warrants 15.3 m 12.3m:1p expiry 14 Jan 2013 

3m:13p expiry 1 Apr 2013 

Options 15.9 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 348.3 Potentially raising £1.5m over 6 years 

Price / Date of Listing 12p 28 July 2005 

Max. / Min. Price 16.4p (12 May 2006) 

1.3p (27 Feb 2009) 

Average Daily Volume (3M) 1,449,810 

4 


Shareholding 

Share Price p 

Volume x1,000000 

Key Data: 

Market fundamentals 

3% 

22.4% 

8.1% 

2.1 

1.9 

1.7 

9.1% 

1.5 

1.3 

29.3% 

1.1 

0.9 

7.8% 

0.7 

0.5% 

0.3% 

1% 

5.6% 6.6% 

6.3% 

0.5 

Aug 12 Sep 12 Oct 12 

12 

Management 

The Bank of New York (Nominees) Ltd 

European Eldorado Goldfields Corp. Limited 

Bruce Rowan Esq 

Starvest plc 

Barclayshare Nominees Ltd 

TD Direct Investing Nominees Ltd 

Odyssey Resources Limited 

Richard Osman Esq 

KEFI Minerals plc 

Other Significant Accounts (in top 20) 

Private / Other Institutions 

10 

8 

6 

4 

2 

0 

Aug 12 Sep 12 Oct 12 

5 


Directors & Management: 

A century of experience 

Dr. Kerim Şener 

Managing Director 

BSc Geology, MSc Mineral Exploration, 

PhD Gold Metallogenesis 

• Founder director, Turkish background 

• Expert in gold deposit geology 

• Director of Mediterranean Resources 

(TSX) 

Michael Spriggs 

Chairman 

BA & MA Geology, MSc Geology & Mineral 

Sciences 

• Experienced geologist and mining 

company chairman 

• Former investment banker with SG 

Warburg (now UBS) 

Erhan Şener 

General Manager 

BA Economics, MA Western European Integration 

• Experienced general manager in 

extractive industries and manufacturing 

• Chairman of Zenit Madencilik 

Michael de Villiers 

Director 

B.Comm Professional Accountant 

• Experienced mining company director 

• Involved in gold & industrial mineral 

operations in Africa, Central Asia & Europe 

• Director of Eurasia Mining (AIM) 

William Payne 

CFO 

BA Accountancy 

• Experienced in accountancy, audit & 

finance 

• Director of several companies 

• Partner in top 20 UK accounting firm 

Soner Koldaş 

Technical Director 

BSc Mining & Mineral Process Engineering, 

MSc Rock Mechanics & Mining Geology 

• Extensive operation and management 

experience in South Africa and Turkey 

• Experienced in design, planning and 

execution of mine and process plants 

6 


Turkey: 

A unique mineral resource destination 

• Tethyan Metallogenic Belt: significant 

destination for greenfields gold exploration 

Turkey 

• Europe’s largest gold producer with seven 

operating gold mines and a further six 

producers in the near term 

• 710 tonnes of defined gold reserves with 

the potential to host approx 6,500 tonnes* 

• 11 major gold deposits with gold resources 

estimated at 23 million ounces 

• 9 million ounces silver produced in 2011 

• Turkey hosts the 7th largest silver mine 

globally 

* Source: Ümit Akdur, the chairman of Gold Miners Association 

Tethyan Metallogenic Belt 

Operating gold mines 

7 


Turkey: 

A unique mineral resource destination 

Turkish gold production in tonnes 

Europe’s largest gold producer 

1 Moz Ovacik 

mine begins 

production 

16.9 Moz 

Kisladag mine 

begins production 

2.2Moz 

Efemçukuru 

mine begins 

production 

1.4Moz 

Mastra mine 

begins 

production 

6.3 Moz Copler 

mine begins 

production 

Kremnica 1.2Moz 

Lahoca 1.2Moz 

Rosia Montana 

14.6Moz 

25 

24.4 

Chelopech 4.71Moz 

20 

15 

10 

5 

0 

17.0 

14.5 

10.0 

11.0 

8.0 

4.3 

5.4 5.0 5.0 

1.4 

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 

Kucukdere 0.3Moz 

Ovacik 1Moz 

Efemcukuru 2.2Moz 

Kisladag 16.9Moz 

Ankara 

Turkey 

Bolkardag 0.1Moz 

Mastra 

1.4Moz 

Copler 

6.3Moz 

8 


Strategy: 

Development, discovery & exploration 

Development Discovery Exploration 


Feasibility Study demonstrates: 

Resource expansion 

New vein systems delineated: 

Targeting +1Moz deposits 

WAVE province & strategic : 

• 221,000 oz Au equivalent 

resources at Kiziltepe 

• Resource grade 2.8 g/t Au 

and 43.7 g/t Ag 

• Production of approx. 

21,000oz Au equiv. pa in first 

5 years 

• 8 year mine life 

• Currently 86% of project 

owned by Ariana 

• Current resource at Kiziltepe 

based on 20% of known vein 

system 

• 4 new veins discovered in 

2011/12 at Kiziltepe 

• JV with Eldorado Gold in 

north-eastern Turkey 

• 4,000m drilling programme 

at Salinbas/Ardala 

• New licences secured 

through licence auctions 

• Targeting the discovery of 

multi-million ounce deposits 

• Strategic investment in Tigris 

Resources - focus on 

frontier gold province of 

south-eastern Turkey 

9 


Exploration, discovery & development: 

Across prospective regions in Turkey 

10 | Ariana Resources Plc | October 2012

Development: 


• Global JORC resource of 448,000 oz Au 

equiv. across Kiziltepe and Tavsan 

• Feasibility Study demonstrates: 

• Mine life of 8 years 

• JORC Reserves: 1.1M tonnes for 

115,000 oz Au & 1.47M oz Ag 

• Annual processing capacity of 150,000 

tonnes of ore 

• Approx. 21,000 oz Au equiv. in first 5 

years 

• DFS and EIA underway*: 

• Baseline studies complete - EIA awaiting 

TSF inputs 

• Completion of geotechnical and 

hydrogeological drilling at TSF site 

pending forestry permits 

• Freehold land is being acquired by 

Ariana directly via its subsidiary, Çamyol 

Kizilcukur 

Karakavak 

Kepez 

Kiziltepe 

Tavsan 

*Definitive Feasibility Study (DFS), Environmental Impact Assessment (EIA) 


Development through JV: 


• JV with Turkish partner Proccea Construction 

Co. - Proccea earning into 50% on 

expenditure of US$8 million 

• Phase 1: DFS and EIA with a budget of 

US$1.4 million, management control 

with Ariana 

• Phase 2: Construction with a 

commitment of US$6.6 million: 

management control with Proccea 

• Ariana currently retains 86% of the JV and is 

jointly funding the completion of technical 

studies with Proccea 

• Debt financing planned for the remaining 

CAPEX requirement 

• Ariana can sell resources into the JV at 3X 

exploration cost within the Red Rabbit AOI 

(excluding JV licences) 

Trial mining at Kiziltepe 


Development: 

Mine site layout 

Arzu North 

Derya 

Plant 

Site 

Banu 

Arzu South 


Processing Plant: 

Hybrid CIL and CIC circuit 


Feasibility Study: 

Robust fundamentals 

• Base case of US$ 1,265 / oz gold and US$ 20 / oz silver 

• Financial model established on a pre-tax 100% equity basis, excluding debt financing 

and loan interest charges 

• Capital cost estimated at US$29.5 million, including US$14.2 million for the 

processing plant and EPCM 

• Cash costs comprise operating costs including on-site and all off-site charges and 

royalties 

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 


Discovery: 

Exceptionally mineralised zone 

• Highest grades ever recorded from the 

Kiziltepe deposit including: 

Arzu North 

• 12.1m @ 16.5 g/t Au equiv. 

• Incl. 3.2m @ 48.0 g/t Au equiv. 

• Incl. 1m @ 79.7 g/t Au equiv. 

Derya vein 

• Exploration drilling has proven the Arzu 

North vein system extends southeast 

beneath cover 

• Additional prospective zone extends 

towards the Arzu South structure 

• 34m @ 1.04g/t Au equiv. 

• 7.6m @ 7.60g/t Au equiv. 

• 5.8m @ 5.71g/t Au equiv. 

• Results highlight significant potential within 

the “gap zone” 

• Follow-up deeper drilling programme is 

planned 

Emel vein 

Arzu South 

Drilling at Kiziltepe 


Discovery: 

Regional targets 

• Ariana and RRGP JV holds under licence all 

prospective areas within the Sindirgi Gold 

Corridor 

• Potential to substantially increase global 

resource, enhancing economic fundamentals 

and extending mine life 

Licence recently 

converted to 10 

year operational 

status 

Kizilcukur 

• Target to keep Kiziltepe plant running for 

>10 years following further discoveries 

Kiziltepe 

224,000oz 

(Measured & 

Indicated) 

Kepez 

9,000oz 

(Indicated) 

Karakavak 

Yukaricamli 

Not yet drill tested 

Not yet drill tested 

Camalani 


Discovery: 

Eldorado Gold JV 

• 49:51 Ariana/Eldorado Gold JV: Eldorado is 

funding all exploration, Ariana is operator 

• Concentrating on the highly prospective 

Ardala and Salinbas projects and surrounding 

tenements in Artvin Province of north-east 

Turkey 

• US$4.5 million spent by JV to date; US$1.8 

million to be spent in 2012-13 

• Work funded to DFS at which point Ariana 

will be diluted to 20% for projects already 

held by the JV and 10% for any new projects 

• Funding of development costs thereafter is 

undertaken on a pro-rata basis and if Ariana 

is diluted to

Discovery: 

Ardala & Salinbas 

• New drilling has defined a gently dipping 

mineralised body 

• Best intercepts related to the follow-up drilling 

include: 

• 9.5m @ 6.48 g/t Au + 39.4 g/t Ag 

• 11.3m @ 4.98 g/t Au + 42.8 g/t Ag 

• 25m @ 3.34 g/t Au + 7.9 g/t Ag 

• 21.5m @ 6.63 g/t Au + 19.8 g/t Ag 

• 42.7m @ 2.78 g/t Au + 13.4 g/t Ag 

• 750m x 500m mineralised body remains open 

in several directions 

• 4,000m drilling programme is currently 

underway at Salinbas/Ardala 

• Two drill rigs have been mobilised, including 

the Ariana rig and crew 

Drilling at Salinbas 


Exploration: 

Tigris Resources strategic investment 

• Strategic investment in Tigris Resources 

(12.3% stake): pioneering exploration 

company 

• Focus on the highly prospective and 

underexplored part of south-eastern Turkey 

• Porphyry and intrusion-related gold and 

copper systems exploration 

• Airborne reconnaissance and ground followup 

work has defined a number of priority 

targets 

• Scope to grow a pipeline of high priority 

targets across the region 

• 1,500m drilling programme commenced in 

July on the Pertek target area 

• Drilling is focused on a porphyry system 

located 100km from Alacer Gold’s 6.3Moz 

Copler project in the same prospective 

mineral belt 

Preparations for drilling at Pertek 


Investment Summary: 

Building value across the portfolio 

• Development: Red Rabbit Gold Project 

• Gold production projected at 21,000 oz Au equiv. per year during first 5 years of operation 

• Mine life of 8 years with significant upside potential from regional exploration & discovery 

• Robust project economics based only on the Kiziltepe Sector - the Tavsan Sector represents 

immediate resource upside 

• Exploration: Western, NE and SE Turkey 

• Extensive exploration footprint across Turkey 

• Comprehensive BLEG database covering Western Turkey and identification of several 

deposits with multi-million ounce potential - licence auctions underway 

• Joint venture and strategic investment - exposure to new discoveries through partnerships 

with Eldorado Gold and Tigris Resources 

• Highly qualified board and management team with strong Turkish networks and local geological 

expertise 


Contacts 

Dr. Kerim Sener, Michael de Villiers & Michael 

Spriggs 

Ariana Resources PLC 

T: +44 (0) 207 407 3616 

E: info@arianaresources.com 

Susie Geliher 

St Brides Media & Finance Ltd 

T: +44 (0) 207 236 1177 

E: susie@sbmf.co.uk 

Discovery 

Production 

Exploration 

Development 

Increase in 

market 

capitalisation

Ariana Resources Investor Presentation - Proactive Investors

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