LONDON (Alliance News) - Ariana Resources PLC shares rose on Thursday after it said it remains on schedule to start producing gold from the Red Rabbit project in Turkey later this year as construction continues to progress.
Ariana shares were up 8.1% to 0.929 pence per share on Thursday morning.
Ariana, with its partner Proccea Construction Co, is developing the Kiziltepe mine at the Red Rabbit gold project with the aim of pouring its first gold sometime in the second quarter of 2016 before production starts in the second half.
The company provided an update on the ongoing construction and said the site administration, accommodation, depot and laboratory buildings have all been completed, with construction crews beginning to move in as of next week.
Ariana said it has had no delays to its equipment orders, with equipment such as the jaw and cone crushers, screens, automation and drives already being delivered to the site. A haul road to the process plant has also been completed with a new site access road currently being constructed.
The construction of the process plant on two circuits will "commence imminently" along with structural steel for the crushers and ball-mill housing.
"We are very pleased to report on the rapid progress with construction at the Kiziltepe Mine. The joint venture team is operating on schedule and will be commencing the installation of various process plant components during the second half of February," said Managing Director Kerim Sener.
Earth moving has started on the open-pit access ramp and the first blast has been completed. The drainage system has been finalised at the waste-rock dump site, which is now ready for commissioning, it said.
"We are also encouraged to have received our new blasting permit and to see the commencement of work on the open-pit, which marks the beginning of mining operations," Sener added.
"We will provide further guidance on construction progress and the timeline to first gold-pour during the second quarter of 2016. At this stage, we remain on target for first production to commence in the second half of 2016," he added.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Ariana (AAU)