Ariana Resources is moving fast towards increasing gold resources- broker

Broker Fairfax says Ariana Resources (LON:AAU) is moving fast towards increasing its gold resources.

The house broker released a note on the gold firm today following the announcement that Ariana had defined multiple drilling targets on its newly acquired Kizilcukur gold prospect in western Turkey.

The broker feels there should be much to come from the company for investors.

The drill targets at Kizilcukur were identified after a geophysical programme on the property and further underpin the prospectivity of the entire project area within the Sindirgi gold corridor -  a mineralised trend which extends through Ariana’s flagship Red Rabbit gold project, said the company today.

The Kizilcukur area lies within 20km of the production JV licences on Red Rabbit  - held between Ariana Resources and Proccea Construction.

This could enable the trucking of higher grade gold ores to a plant within the JV license, said Fairfax.

"Drilling and defining vein deposits takes time and effort but is proving highly rewarding for many miners in the current gold price environment.

"If Ariana’s inference is correct then Kizilcukur could reward investors with the addition of meaningful ounces outside the production JV but within easy reach of the gold plant if agreement can be reached," said the broker, which recently visited the firm's licences in Turkey.

Ariana said today that with additional exploration work, it hopes to establish a resource for the Kizilcukur prospect.  This resource may then be integrated into Red Rabbit’s development, which will enhance the economic fundamentals of the project, for which production is scheduled in late 2012.

The Red Rabbit resource currently stands at 448,000 ounces of gold equivalent.