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New drilling results increase Ariana’s asset value by 20 pct - Edison Investment Research

The latest drill results announced yesterday from Ariana Resources (LON:AAU) puts the value added to the group’s assets at an estimated £1 million, or 20 percent of Ariana’s market capitalisation of the immediately prior to the announcement, Edison Investment Research announced in a note.

“In per share terms, this equates to a 0.45p per share uplift on a share price of 2.25p,” it said.

Ariana was trading up 20 percent in early afternoon deals at 3p.

The Turkey focused gold miner said yesterday the latest drilling results from the Banu and Derya veins at its Red Rabbit project “confirmed the integrity” of the resource at the Kiziltepe prospect with mineralised quartz intersected in every hole for a flawless “hit-rate”. In addition to that, the company said that the gold and silver grades were “robust” and demonstrated economic potential.

Edison stated that “as a result of this drilling, we estimate that Ariana will be able to promote 14,975oz of gold in the Derya vein and 5,434oz from the Banu vein at least from the ‘inferred’ into the ‘indicated’ categories.”