Salinbas

Salinbas Project Overview

Overview

A MAJOR GOLD-SILVER & BASE-METAL OPPORTUNITY

With over 1Moz defined, exploration at the Salinbas Gold Project has indicated the potential of the area to host major gold and base-metal mineralised systems. The Salinbas Project represents a significant opportunity for the future growth of Ariana.

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 4Moz Hot Maden project which lies 16km to the south of Salinbas and 7km south of Hizarliyayla.

In addition to Salinbas, at the Ardala copper-gold-molybdenum porphyry there are consistent and strongly anomalous areas for copper, lead and zinc, with significant potential for coincident gold and silver, which have only been partially drill-tested.  Further south, the Hizarliyayla prospect is partially hosted within the same stratigraphic sequence as the Hot Maden discovery.

SCOPING STUDY SUMMARY

Mine Life: 10 years
Cash Costs: US$770/oz
Processing: CIL
Planned Production Rate: 50,000 oz Au pa
JORC Resource: 9.9Mt @ 2.0 g/t Au, 10.2 g/t Ag (Indicated & Inferred)
Net Present Value US$108 million*
Internal Rate of Return 28%*
Payback 3.3 years on US$53.3 million initial capital*
Royalty: State Right and 2% NSR to Eldorado Gold Corporation

*Pre-tax base case at US$1,250/oz for gold as at April 2015 (completed by Auralia Mining Consulting).

Maps

RR01 Red Rabbit location map Turkey
Zone Tonnes (t) Grade Au (g/t) Grade Ag (g/t) Gold (oz) Silver (oz)
Salinbaş1
Indicated 2,290,000  2.10  11.90  156,000  878,000
Inferred 7,760,000  2.00  9.70  493,000  2,396,000
Zone Tonnes (t) Grade (g/t)  Metal2 Metal (t) Gold (oz)
Ardala
Inferred 16,270,000 0.60 Au - 323,000
Inferred 7,760,000 2,175 Cu 10,000  -
Inferred 7,760,000 136 Mo  2,400  -

1. Figures for the Salinbaş Zone are revised according to a Scoping Study announced in Q2 2015.

2. Separate resource domains have been established for the Au, Cu and Mo components of the Ardala porphyry. It is considered reasonable to estimate these domains in this manner because the resource is classified as Inferred in this location and mining parameters have not yet been established. There is a 95% coincidence of the Au and Cu domains, and a 40-50% coincidence of the Au and Mo domains.

Overview

Overview

A MAJOR GOLD-SILVER & BASE-METAL OPPORTUNITY

With over 1Moz defined, exploration at the Salinbas Gold Project has indicated the potential of the area to host major gold and base-metal mineralised systems. The Salinbas Project represents a significant opportunity for the future growth of Ariana.

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 4Moz Hot Maden project which lies 16km to the south of Salinbas and 7km south of Hizarliyayla.

In addition to Salinbas, at the Ardala copper-gold-molybdenum porphyry there are consistent and strongly anomalous areas for copper, lead and zinc, with significant potential for coincident gold and silver, which have only been partially drill-tested.  Further south, the Hizarliyayla prospect is partially hosted within the same stratigraphic sequence as the Hot Maden discovery.

Image