1 June 2009
AIM / PLUS Markets: AAU
FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2008
35% increase in JORC resource
Initial revenues expected shortly
Ariana Resources plc ("Ariana" or "the Company"), the gold
exploration and development company focused on Turkey, announces its
final results for the year ended 31 December 2008. The period was
one of excellent progress on a number of fronts and the Company has
made the transition from exploration to mine development.
Ariana's near term objective is to establish a profitable gold mining
operation in Turkey, and trial mining has commenced since the period
end. This will create a platform for achieving the longer term goal
of establishing a gold resource of at least one million ounces
through further exploration on existing properties.
Â§ Current resource base of 401,000 oz gold equivalent
Â§ Tavsan gold project purchased from Odyssey Resources Limited
Â§ JV with European Goldfields progressing in north-eastern Turkey
Â§ Â£928,551 investment by European Goldfields Limited
Post Period Events:
Â§ Additional Â£500,000 fundraising in January
Â§ Trial mining and processing underway at Kiziltepe
Â§ Muratda gold project purchased from Newmont Mining
Michael Spriggs, Chairman, commented:
"2008 saw major advances for the Company. Among a number of key
areas of progress, Ariana has made the all-important transition from
exploration to mine development.
"We have significantly increased the resource base of the Company
and, having weathered a difficult period, we believe the outlook is
now substantially brighter with initial revenues expected shortly."
The report and accounts for this period will be posted to
shareholders and will be available on the website
Ariana Resources plc Tel: 020 7407 3616
Michael Spriggs, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited Tel: 020 7628 3396
Lothbury Financial Tel: 020 7011 9411
Michael Padley / Libby Moss
Alexander David Securities Limited Tel: 020 7448 9820
Nick Bealer / David Scott
Loeb Aron & Company Ltd Tel: 020 7628 1128
Peter Freeman / Frank Lucas
Dr Kerim Sener, BSc (Hons), MSc, PhD, is the Managing Director of
Ariana Resources plc. A graduate of the University of Southampton in
Geology, he also holds a Master's degree from the Royal School of
Mines (Imperial College, London) in Mineral Exploration and a
doctorate from the University of Western Australia. He is a Fellow
of The Geological Society of London and has worked in geological
research and mineral consultancy in Southern Africa and Australia.
He has read and approved the technical disclosure in this regulatory
About Ariana Resources
Ariana is an exploration and development company focused on
epithermal gold-silver and porphyry copper-gold deposits in Turkey.
The Company is exploring a portfolio of prospective licences selected
on the basis of its in-house geological and remote-sensing database,
on its own in western Turkey and in Joint Venture with European
Goldfields Limited in north-eastern Turkey.
The Company's flagship assets are its Sindirgi and Tavsan gold
projects. Both projects contain a series of prospects, within two
prolific mineralised districts in the Western Anatolian Volcanic and
Extensional (WAVE) Province in western Turkey. This Province hosts
the largest operating gold mines in Turkey and remains highly
prospective for new porphyry and epithermal deposits. These core
projects, which are separated by a distance of 75km, are presently
being assessed as to their economic merits. The total resource
inventory of the Company stands at 401,000 ounces of gold
Loeb Aron & Company Ltd. and Alexander David Securities Limited are
joint brokers to the Company and Beaumont Cornish Limited is the
Company's Nominated Adviser.
For further information on Ariana you are invited to visit the
Company's website at www.arianaresources.com.
At Ariana Resources we pride ourselves on our ability to
differentiate our Company's activities from those of similar-sized
AIM exploration companies. We place great emphasis on our ability to
deliver on our stated objectives. Ariana's near term objective is to
establish a profitable gold mining operation in Turkey. This will
create a platform for achieving our longer term goal of establishing
a gold resource of at least one million ounces through further
2008 saw major advances for the Company. Among a number of key areas
of progress, which I highlight below, Ariana has made the
all-important transition from exploration to mine development. At
the same time, the Company has continued to develop its clearly
defined regional strategy in western Turkey and established an
exploration Joint Venture with European Goldfields Limited in
Ariana is developing two principal projects in western Turkey,
Sindirgi and Tavsan, and is exploring several other advanced project
areas. Between these two principal projects, our resource inventory
now contains 401,000 ounces gold equivalent (gold plus silver),
representing a 35% increase in our resource base since last year.
This was achieved through further exploration at Kiziltepe and the
acquisition of Tavsan.
At the Sindirgi Project, the additional drilling completed during the
year at Kiziltepe resulted in an increased JORC-compliant resource of
186,000 oz gold equivalent. Geophysical work on Kiziltepe, completed
in September, identified several strong anomalies suggesting vein
continuity beneath an area of surface cover located between the Arzu
South and Arzu North vein systems. In November, mine permitting at
Kiziltepe was completed, paving the way for trial mining.
At the Tavsan Project, acquired from Odyssey Resources Limited, a
JORC-compliant resource of 215,000 oz gold equivalent was
established: representing an acquisition cost of US$ 3.7 per ounce.
Metallurgical testwork undertaken on the ore from Tavsan demonstrated
its amenability to heap leach processing. Meanwhile, exploration
undertaken in northeastern Turkey by the European Goldfields Joint
Venture identified promising new porphyry-type targets at the Ardala
Project. Some of these targets are scheduled to be drilled in 2009.
Post year-end, in January 2009, the Company completed a placing for
Â£500,000 (gross of share issue costs). The placing was supported by
the Board and by our major shareholders, including European
Goldfields Limited, which maintained its position in Ariana at
approximately 20%. In March 2009, the Company finalised a trial
processing agreement for the Kiziltepe deposit with local mining
group Eti GÃ¼mÃ¼s A.S.
In April 2009, Ariana acquired the Muratdag Gold Project from Newmont
Mining Corp. The addition to Ariana's portfolio of this advanced
exploration asset has further increased the value of the Company's
project pipeline in western Turkey. Consistent with our medium term
strategy, we intend to carry out the work necessary to advance this
project up the project value curve.
In my report last year, I promised a year of exciting developments. I
had not intended this as a euphemism to describe the trying market
conditions which then unfolded. As it turned out, Ariana was obliged
to take several tough measures towards the latter part of the year in
order to maintain our strategic course. To conserve funds, we
reduced exploration expenditure in 2008, a decision which regrettably
meant we had to reduce our professional workforce in Turkey. Work
continued on Sindirgi, but we were obliged temporarily to curtail
work at Tavsan, and on our broader exploration programme.
Having weathered a difficult period for the AIM market, we believe
the outlook is now substantially brighter. Since late 2008, the gold
price has progressively risen and is maintaining levels around US$900
per ounce. This strength reflects in large part continuing concerns
about the global economy, and it is significant that Western
governments have sought to repair their financial systems via
increased spending. A corollary of this is that greater funding is
becoming available for the AIM mining sector, particularly for those
companies able to demonstrate near-term production. The improvement
in Ariana's share price this year reflects this and it is a
The funding secured from our January 2009 placing has provided
additional support and given us the flexibility to proceed with our
plans for trial mining at Kiziltepe. In this context, our
exploration team is assessing other opportunities for near-term
cash-flow in the vicinity of Kiziltepe and, at the time of writing,
we had reported very encouraging sampling results from the nearby
Kepez prospect. Provided trial mining at Kiziltepe proceeds to plan,
Ariana can expect initial cash flows from this operation in the near
future. We are also aiming to determine the optimum route for
turning the Tavsan project to account.
In terms of future exploration we will continue to concentrate our
efforts on the Western Anatolian Volcanic and Extensional (WAVE)
Province in western Turkey, which remains highly prospective for the
discovery of large epithermal and porphyry deposits. This is an area
in which we have developed unique expertise, accumulated an enormous
amount of technical data, established invaluable local relationships,
and where we have already had considerable exploration success.
As I have demonstrated above, Ariana is now entering an exciting
stage of its development, and the coming year will see the pace of
these activities maintained. We offer our sincere thanks to our
loyal shareholders who have continued to support us through a
challenging period. In recognition of this support, we are offering
all shareholders the opportunity to subscribe for one warrant for
every five shares currently held.
I want also to express the gratitude of the Board for the sterling
efforts of our exploration and administrative teams in Turkey. They
have borne the brunt of our cost-cutting measures, and their
enthusiastic dedication to achieving successful outcomes for our
Company is a source of great pride for us. Finally, I thank my
fellow Board members for their tireless support, encouragement and
29 May 2009
Ariana has made solid progress during the year and made the
transition from exploration to mine development. At the same time,
the Company has continued to develop its regional strategy in western
Turkey, and is enhancing its resource growth opportunities through
focused exploration and acquisition in the region.
Further drilling has been undertaken at the Sindirgi Project,
resulting in a revised JORC compliant resource at Kiziltepe of
186,000 oz gold-equivalent. A JORC-compliant resource was also
established on the Tavsan Project of 215,000 oz gold-equivalent.
Meanwhile, the Joint Venture with European Goldfields Limited has
identified new targets at the Ardala Project in eastern Turkey, which
are scheduled to be drilled in 2009.
Post year end, the Company completed a placing for Â£500,000 in
January in which European Goldfields Limited maintained their
position in Ariana at approximately 20%. The Company also finalised
a trial processing agreement with Eti GÃ¼mÃ¼s A.S. in March: the
agreement entails a large scale metallurgical test of ore delivered
from a trial mine at Kiziltepe.
Ariana's resource inventory now contains 401,000 ounces gold
equivalent, of which approximately 342,000 ounces are gold. This
figure represents an increase of almost 35% in our resource base
since last year, which was achieved through additional drilling at
Kiziltepe and a revised geological model at Tavsan.
CORE PROJECT AREA
The Company dedicates its effort to the Western Anatolian Volcanic
and Extensional (WAVE) Province in western Turkey. This province
hosts three operating gold mines (total reserves of about 7 Moz) and
remains highly prospective for large epithermal and porphyry
deposits. The Company considers the exploration and development risk
in this region to be low due to excellent infrastructure and
established gold mining operations.
Ariana is developing two core projects within the WAVE Province,
Sindirgi and Tavsan, in addition to exploring several other advanced
project areas including Ivrindi, Demirci and Muratdag. The region
surrounding these projects is named the WAVE Project Area, with our
base of operations in Sindirgi located strategically at its core.
The Company is targeting the development of one or more of its core
projects as environmentally friendly small-footprint mines in the
coming years. Other exploration projects will be joint-ventured or
sold to ensure focus is maintained on the further exploration and
development of the Sindirgi and Tavsan projects.
In addition to containing our advanced projects, the Project Area
encompasses the majority of our exploration tenements in western
Turkey. Excluding tenements held for core or advanced projects, 32
exploration licences in this area have been optioned to European
Goldfields Limited for one year.
Ariana is targeting a resource of 1Moz of gold within the WAVE
Project Area and our strategy is designed to build steadily on our
existing resource base in the region via exploration and future
acquisitions. New exploration opportunities are being evaluated on
an ongoing basis to further enhance the early-stage value of the
The Sindirgi Gold Project ("Sindirgi") lies 130km northeast of the
coastal city of Izmir and 130km west of the GÃ¼mÃ¼skÃ¶y silver plant.
Sindirgi was acquired in early 2005 from Newmont for US$400,000,
with a royalty of up to 2.5% on future gold production from the
project since assigned to Franco-Nevada Corporation. Current JORC
resources stand at 186,000 ounces gold equivalent (Table 1).
The project encompasses an important regional trend of epithermal
gold mineralisation, known as the Sindirgi Gold Corridor, which
contains four distinct prospects: Kiziltepe, Kepez, Karakavak and
KizilÃ§ukur. To date, a total of 45km of veins have been identified
in outcrop on the project. Since January 2008, 3,020m of
diamond-drilling has been completed on the Kiziltepe deposit.
Table 1: JORC resource statement for Kiziltepe.
Classification Vein Tonnage Grade Grade Au (oz) Ag (oz) Au
(Kt) Au Ag equivalent
(g/t) (g/t) (oz)
Measured Arzu 390 6.4 101 80,257 1,266,559 105,588
Indicated Arzu 110 5.7 106 20,161 374,920 27,659
Arzu 50 2.3 38 3,698 61,093 4,920
Inferred Arzu 100 2.2 29 7,074 93,248 8,939
Banu 130 2.6 82 10,868 342,765 17,723
Derya 170 2.9 53 15,852 289,711 21,646
Total 137,910 2,428,296 186,476
Au equivalent (oz) is the sum of the gold ounces and the gold
equivalent ounces of silver based on a gold/silver price ratio of
The Kiziltepe deposit contains 20km of outcropping low-sulphidation
epithermal quartz veins, which are hosted by dacitic volcanic units
of Miocene age. The vein field occurs in an area covering
approximately 3km by 1km and is well serviced by asphalt road and
forestry tracks. Individual veins are exposed at surface for 750m in
strike length and are between 1m and 14m wide. Four of these vein
systems were drilled during the year.
A revised JORC-compliant mineral resource was provided by SRK UK Ltd
("SRK") based on drilling results for both the southern and northern
sections of the Arzu vein system and for several additional veins.
The mineral resource was established to a depth of 125m from
surface, at a cut-off grade of 2 g/t Au (Table 1).
An agreement with Eti GÃ¼mÃ¼s A.S. for trial processing of 5,000 tonnes
of ore was concluded following successful initial bulk metallurgical
testwork undertaken at their GÃ¼mÃ¼skÃ¶y plant, for which recoveries of
82.3% and 89.7% were achieved. Trial mining operations at Kiziltepe
have been completed and 5,177 dry tonnes of ore has been delivered to
the plant for processing.
The northwest-trending and steeply northeast dipping Arzu Vein system
comprises two sections: Arzu South and Arzu North. These two
sections are separated over a strike length of 650m by silicified and
clay altered rhyodacitic ignimbrite cover rocks, which obscure the
vein system beneath. Drill-testing of this covered area has been
planned on the basis of several positive drilling results in the
periphery of the covered area, and the identification of buried
geophysical targets in 2008.
The Arzu South vein system has a strike length of 650m. A segmented
and partially overlapping vein array has been modelled for Arzu
South, with veins typically 5m wide. During the year, drilling
results obtained from the southern extension of the Arzu South vein
included gold-equivalent intersections of 23.25 g/t over 6.9m, 11.99
g/t over 7.3m and 9.07 g/t over 9.4m. These results demonstrate the
potential for further resource growth in the southern part of the
vein, where several plunging shoots of high grade mineralisation have
A mining options study undertaken on the Arzu South vein by Wardrop
Engineering ("Wardrop") evaluated several different mining and
processing scenarios, from which open-pit operations were considered
preferable. The study utilised resource inputs from SRK,
metallurgical results from SGS Lakefield Research Limited and Gekko
Systems Pty. Ltd., and certain Turkish cost estimates.
The Wardrop study considered an open pit production rate of 125,000
tonnes per annum, with a cut-off grade of 1.3 to 2.0 g/t and mine
life of 4 to 3 years, depending on gold price scenarios of US$900 or
US$600 per ounce respectively. Following this study, it was
determined that the most viable route to production in the short-term
was via off-take or toll-treatment using an existing processing
facility. The agreement with Eti GÃ¼mÃ¼s A.S. has now established a
basis for production from the Arzu South vein.
The Arzu North vein system has a strike length of 400m. The vein
system is atypical of veins developed elsewhere on the Kiziltepe
deposit, comprising multiple parallel veins, intervals of stockwork
veins and extensive wall-rock alteration. Whilst there is only one
important vein at this location, the hangingwall contains at least
three subsidiary veins that can be traced on surface and in drill
core. The Arzu North system is interpreted to represent the terminal
splay of the NW-trending structure that hosts the high-grade gold
mineralisation at Arzu South. In 2008, drilling results from Arzu
North included gold equivalent intersections of 11.99 g/t over 6.1m,
5.04 g/t over 6.25m and 2.83 g/t over 10.6m. Approximately 2,000
tonnes of low grade (~2 g/t Au) ore from this location have been
stockpiled on site in accordance with Turkish mining regulations.
Exploratory drilling has been completed on six additional veins at
the Kiziltepe prospect. This work provided results which were
sufficiently encouraging to warrant follow up drilling on three of
these veins and led to resource estimates at Banu and Derya.
The Derya Vein has a strike length of 500m and contains grades up to
6.3 g/t Au and 486 g/t Ag in drilling. There is a marked increase in
gold and silver grade in the eastern extension of the vein towards
the rhyodacitic ignimbrite cover rocks in the Arzu North area. It is
apparent that Derya may be a splay from the Arzu vein system, with
gold and silver grades improving toward the intersection of the two
structures. In drilling, gold-equivalent intersections of 6.22 g/t
over 6.0m, 3.85 g/t over 8.7m and 5.79 g/t over 3.0m have been
recorded in proximity to the Arzu structure.
The Banu Vein has a strike length of 750m and has the most uniform
grade at surface of all the veins at the Kiziltepe deposit. For 550m
of surface sampled strike length, the vein carries a fairly
consistent grade of approximately 2-3 g/t Au over a true average
width of 2.5m. Evidence from both new and previous drilling
indicates an improvement in grade at depth and along strike to the
southeast. Seven RC drill holes on a 300m section of vein provided
best gold-equivalent intercepts of 3.81 g/t over 6m, 3.78 g/t over 5m
and 2.58 g/t over 7m.
The Kepez prospect lies 6.5km north-east of the Kiziltepe deposit and
is located within the same ten-year operating licence. Kepez hosts
over 2.5km in strike length of gold silver bearing low-sulphidation
epithermal quartz veins, across an area of at least 2km by 1km.
Individual veins are exposed for up to 850m and widths vary between
1m and 25m.
The main structure, named the Karakaya Vein, trends northward, dips
to the west at 50 degrees and is hosted along the contact between
Miocene age dacitic volcanic rocks and Cretaceous ophiolites.
Previous sampling undertaken on the Karakaya Vein returned up to
8.68 g/t Au over 16m and 6.28 g/t Au over 11m across and along the
hangingwall contact of the vein, yet follow up drilling results were
disappointing with the best intersect recorded in historical
drilling: 6.9 g/t Au over 4m.
Following agreement with Eti GÃ¼mÃ¼s A.S. on Kiziltepe, the observed
mineralisation at the Karakaya Vein required re-evaluation as a
potential source of high-grade ore for the GÃ¼mÃ¼skÃ¶y processing plant.
The prospect is scheduled to be drilled with the objective of
establishing a small surface resource.
Table 2: JORC resource statement for Tavsan.
Classification Zone Tonnage Grade Grade Au (oz) Ag (oz) Au
(Kt) Au Ag equivalent
(g/t) (g/t) (oz)
Indicated Main 1,700 1.6 4.2 87,460 229,582 92,051
Inferred Main & 1,300 1.0 3.6 41,801 150,482 44,810
Inferred Satellite 1,900 1.2 3.7 73,312 226,045 77,833
Total 202,572 606,109 214,695
Au equivalent (oz) is the sum of the gold ounces and the gold
equivalent ounces of silver based on a gold/silver price ratio of
The Tavsan Gold Project ("Tavsan") lies 75km from the Sindirgi
Project, 210km northeast of the coastal city of Izmir and 55km west
of the GÃ¼mÃ¼skÃ¶y silver mine. A definitive agreement to purchase the
Tavsan Project from Odyssey Resources was finalised in May 2008. The
agreement involved payment of US$500,000 and 3,000,000 shares in the
Company at 5p per share, with a retained royalty of up to 2% on
future gold production from the project assigned to Teck Cominco.
Current JORC compliant resources stand at 215,000 ounces gold
equivalent (Table 2).
The project is located within an important regional trend of
epithermal gold mineralisation, known as the Dagardi Antimony
Province. The Tavsan project itself contains three distinct gold
prospects: Tavsan, Evciler and Ã‡aldibi. A total of 8km of gold
mineralised jasperoid has been identified in outcrop on the project.
The Tavsan prospect contains 4km of outcropping gold mineralised
jasperoid, which is located along a low-angle thrust fault separating
underlying Jurassic limestone from overlying Late Cretaceous
ophiolitic rocks. The outcropping jasperoid occurs in an area
covering approximately 4km by 4km and is well serviced by asphalt
road and forestry tracks. Individual segments of jasperoid are
exposed at surface for 500m and are up to 20m thick. Due to the
relatively gently dipping nature of the jasperoid, much of the
mineralisation is potentially open-pittable.
Although a formal scoping study was not initiated in 2008, certain
steps were taken to improve understanding of the project, including a
revised resource estimate, heap-leach testwork and a preliminary
economic model. Due to the simplicity of the project and acceptable
metallurgical recoveries reported in column-leach testwork, the
Company considers merit in its development as a heap-leach operation
capable of delivering 30,000 ounces per annum. The Company envisages
production at a rate of 1Mt per annum via the development of a linked
series of shallow pits across the prospect.
The Company is presently considering its options for the further
development of the Tavsan prospect.
JOINT VENTURE EXPLORATION
Reconnaissance exploration in eastern Turkey for large porphyry Cu-Au
and related deposits identified potential in north-eastern Turkey and
resulted in the acquisition of the Ardala Project by the Company.
This project, in addition to several other licences, is now being
advanced through a Joint Venture agreement with European Goldfields
Limited. A Joint Venture exploration company, 49% owned by Ariana
Resources and named Pontid Madencilik San. ve Tic. Ltd., was
established in May 2008. The Joint Venture includes a free-carry to
Bankable Feasibility at 20% or 10%, for initial projects or new
projects, respectively. Meanwhile, an earlier Memorandum of
Understanding with Besler Insaat Turizm ve Madencilik San. ve Tic.
Ltd. to explore certain licences in south-eastern Turkey was
cancelled in early 2008 following initial reconnaissance.
The Ardala Prospect is located in the Pontide Metallogenic Province
of Turkey and lies approximately 80km southeast of the coastal city
of Hopa and 20km east of Artvin. The prospect was acquired according
to a royalty agreement for which a 1.5% NSR will be payable in the
event that the project enters production.
The prospect hosts a porphyry copper-gold (plus molybdenum)
mineralised system associated with a series of nested quartz diorite
intrusions of Eocene age within an Upper Cretaceous
volcano-sedimentary sequence. Exposed parts of the porphyry have
dimensions of 600 by 700m and interpretation of ground magnetic data
suggests further lateral continuity beneath limestone units.
Twenty-nine drill holes were undertaken on part of the mineralised
system in the early 1990's for which an outline (non-JORC) resource
of 20Mt at an average grade of 0.25 % Cu, 0.45 g/t Au and 65 ppm Mo
was established. Surrounding gold-bearing skarns, with a peak grade
of 5.16 g/t Au and 0.2% Cu in rock-chips, remain undrilled.
In 2008, a major new soil anomaly, named the Salinbas Target, was
discovered on the property, to the south-west of the area drilled by
previous operators. Rock-chip samples taken from this area included
16.4 and 18.4 g/t Au in gossaniferous breccia, and 1.92 g/t Au in
porphyry and 0.4 g/t Au in skarn. The Salinbas Target is just over
1km from the area drilled in the 1990s and has a strike of about 1km
and width of 0.3km. An additional licence was secured in this area
to cover the Salinbas Target and drilling is scheduled on this and
other targets during 2009.
2008 was a busy and successful year for the Company, which saw the
acquisition of the Tavsan Project, the initiation of a Joint Venture
with European Goldfields, and the further development of Kiziltepe to
enable trial mining to commence in early 2009. The Company is
expecting to receive first cashflow from Kiziltepe in the near
future, laying the foundations for another promising year of growth
for Ariana Resources.
Dr. Kerim Sener
29 May 2009
Summarised Consolidated Income Statement
For the year ended 31 December 2008
Administrative costs (608) (516)
Investment income 29 65
Share of loss of associate (25) -
Loss before tax (604) (451)
Tax - -
Loss for the year attributable to equity shareholders of
the company (604) (451)
Earnings per share:
Basic and diluted loss per share (pence) 0.71 0.84
Summarised Consolidated Balance Sheet
For the year ended 31 December 2008
31 December 31 December
Trade and other receivables 126 124
Intangible assets 3,401 2,082
Land, property, plant and equipment 230 45
Interest in associates - -
Total non-current assets 3,757 2,251
Trade and other receivables 302 179
Cash and cash equivalents 143 1,182
Total current assets 445 1,361
TOTAL ASSETS 4,202 3,612
Called up share capital 927 713
Share premium 4,282 3,419
Other reserves 720 720
Share options 100 7
Translation reserve 63 38
Retained earnings (2,046) (1,442)
Total equity 4,046 3,455
Trade and other payables 156 157
Total current liabilities 156 157
TOTAL EQUITY AND LIABILITIES 4,202 3,612
Summarised Consolidated Statement of Changes in Equity
For the year ended 31 December 2008
Share Share Other Share Translation Retained
capital premium reserves options reserve earnings Total
Â£,000 Â£,000 Â£,000 Â£,000 Â£,000 Â£,000 Â£,000
2007 470 2,738 720 7 (11) (991) 2,933
the year - - - - - (451) (451)
year - - - - - (451) (451)
differences - - - - 49 - 49
capital 243 729 - - - - 972
premium - (48) - - - - (48)
2007 713 3,419 720 7 38 (1,442) 3,455
the year - - - - - (604) (604)
year - - - - - (604) (604)
differences - - - - 25 - 25
payments - - - 93 - - 93
capital 214 863 - - - - 1,077
2008 927 4,282 720 100 63 (2,046) 4,046
Summarised Consolidated Cash Flow Statement
For the year ended 31 December 2008
A 2008 2007
Cash flows from operating activities
Cash generated from operations (613) (548)
Net cash outflow from operations (613) (548)
Cash flows from investing activities
Purchase of land, property, plant and equipment (231) (25)
Payments for intangible assets (1,125) (770)
Purchase of an interest in associates (25) -
Interest received 28 54
Net cash used in investing activities (1,353) (741)
Cash flows from financing activities
Proceeds from issue of share capital 927 924
Net cash proceeds from financing activities 927 924
Net decrease in cash and cash equivalents (1,039) (365)
Cash and cash equivalents at beginning of year 1,182 1,547
Cash and cash equivalents at end of year 143 1,182
Principal accounting policies
This statement has been prepared using accounting policies and
presentation consistent with those applied in the preparation of the
statutory accounts of the Group and under the historical cost
1. Basis of preparation
The Group consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS) as
adopted by the European Union, effective for the Group's reporting
for the year ended 31 December 2008. The separate financial
statements of the Company are presented as required by the Companies
These financial statements have been prepared under the historical
cost convention, and the accounting policies have been applied
consistently throughout the Group. These financial statements have
also been prepared on the going concern basis, further details of
which are set out in note 4.
2. Loss per share
The calculation of basic loss per share is based on the loss
attributable to ordinary shareholders of Â£604,000 (2007: Â£451,000)
divided by the weighted average number of shares issued during the
year 85,067,170 (2007: 53,488,941) in issue. There is no dilutive
effect of share options or warrants on the basic loss per share.
3. Events after the balance sheet date
On the 14 January 2009 the Company finalised a placement of
50,000,000 new ordinary shares for Â£500,000 (gross of share issue
costs) and issued 12,300,000 warrants to buy ordinary shares at 1
pence valid for a four year period.
4. Going concern
The financial position of Ariana, its cash flows and liquidity are
described in the summary accounts. The current economic conditions
provide challenges to the board and it is their prime responsibility
to ensure the Company remains a going concern. A placing in January
2009 raised Â£500,000 (gross of share issue costs) and cash-flow from
trial mining is expected in 2009. In the later part of 2008 and in
quarter one 2009 the Company took measures to reduce its overheads.
The directors are aware that the Group will need to raise additional
working capital during 2009 to support corporate overheads and
exploration programmes, and to maintain the Company as a going
concern. The Company is also considering other options, including
the sale of assets to raise finance. Although Ariana has been
successful in raising finance in the past, there is no assurance that
it will obtain adequate finance in the future. However, the
directors have a reasonable expectation that they will secure
additional funding when required to continue operating for the
foreseeable future. For this reason, the directors continue to adopt
the going concern basis in preparing the financial statements.
5. Summary accounts
The summary accounts set out above do not constitute statutory
accounts as defined by Section 240 of the UK Companies Act 1985. The
summarised consolidated balance sheet at 31 December 2008 and the
summarised consolidated income statement, summarised consolidated
statement of changes in equity and the summarised consolidated cash
flow statement for the year then ended have been extracted from the
Group's 2008 audited statutory financial statements. The auditor's
report on the statutory financial statements for the year ended 31
December 2008 was unqualified and did not contain any statement under
Section 237(2) or (3) of the Companies Act 1985.
This announcement includes extracts from the audited statutory
accounts for the year to 31 December 2008 upon which the auditors'
opinion is modified on the basis of an emphasis of matter opinion and
going concern. The comparative figures relating to the year to 31
December 2007 are taken from the audited statutory accounts for that
6. Annual Report
The Annual Report for the year ended 31 December 2008 will be posted
to shareholders shortly. The Annual General Meeting of the Company
will be held at The East India Club, 16 St James's Square, London,
SW1Y 4LH on 29 June 2009 at 12.00 noon.
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solely responsible for the content of this announcement.