REG - Ariana Resources PLC - 240% INCREASE IN JORC RESOURCE AT KOKKINOYIA
02/12/2021 07:00
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RNS Number : 2992U Ariana Resources PLC 02 December 2021
2 December 2021
AIM: AAU
240% INCREASE IN JORC RESOURCE AT KOKKINOYIA SECTOR
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral
exploration and development company with interests in gold mining operations
in Europe, is pleased to announce the results of a review of the Mineral
Resource Estimate ("MRE") for the Kokkinoyia Sector of the Magellan Project.
The Project is 100% owned by Venus Minerals Ltd ("Venus") which is focused
on the exploration and development of copper and gold assets in Cyprus and is
50% owned by Ariana.
Highlights:
· JORC 2012 MRE updated internally by Ariana and Venus using new and
historical drilling data.
· Total Indicated and Inferred Resource of c. 12.3 Mt at a grade of
0.31 to 2.25% Cu and 0.27 to 0.57 g/t Au across multiple zones of
mineralisation at Kokkinoyia*.
· Gold mineralisation occurs across several distinct zones, along with
zinc and silver in places.
· Exploration Target for gold established for an additional tonnage of
3-4Mt at a grade of 0.3-0.4 g/t Au, for an additional 30,000 to 70,000 oz of
gold.
· Joint UK and Cypriot partnership advancing copper mining
opportunities in Cyprus.
Dr. Kerim Sener, Managing Director, commented:
"This is an exceptional result and we are very proud of the Ariana and Venus
teams having successfully completed the drilling programme and in pulling
together this new resource estimate for Kokkinoyia. Not only has the overall
tonnage increased by 240% but we have now successfully brought a significant
part of the resources into the higher confidence Indicated category.
"In addition, as we had predicted, the Kokkinoyia deposit contains a
substantial amount of gold, in association with copper and zinc. The fact
that the deposit contains a substantial tonnage of mineralised material across
several domains beyond what was already understood from the historical work
bodes well for future exploration and resource drilling. We are already well
on track with not only meeting but also exceeding our management target for
the project and any additional work at this site is likely to yield further
upside.
"Venus will now be looking into the potential to integrate a part of the
Kokkinoyia Sector with the planned Apliki Copper Mine development project as a
means to fast-tracking this deposit into production."
* Further information about Venus Minerals and its projects is available on
the Company's website, www.venusminerals.co (http://www.venusminerals.co) .
* All Mineral Resource figures in the announcement are quoted gross with
respect to Venus, of which 50% is owned by Ariana.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
Introduction
Since 2018, the Venus and Ariana teams have worked to understand the
characteristics of the Kokkinoyia Sector and, more importantly, the
distribution of various major metals within the deposit. In October 2020
(see announcement date 15 Oct 2020), the first modern MRE was completed at
Kokkinoyia, following an extensive review of all historical logging, assay and
structural data available for the Project. The result of this work led to a
detailed understanding of the style of copper mineralisation, the distribution
of High Grade Copper massive sulphides, and the controls on resource domains
due to structural discontinuities. However, the limited nature of the assay
database only provided enough information to understand copper and pyrite
distribution within the deposit, which at the time of drilling (1950's-1980s),
was the primary focus for the Project.
Mining records for Kokkinoyia from the 1970s show that the copper concentrates
contained on average 5g/t of gold, suggesting that gold was a major component
of the mineralisation system. In following up this observation, the Venus
team collected a total of 29 grab and composite samples from historic
stockpiles to analyse for gold and other elements. Almost all samples
returned anomalous gold values, with the best results including:
· 5.16g/t Au + 37.6g/t Ag
· 3.56g/t Au + 27.8g/t Ag
· 2.16g/t Au + 9.6g/t Ag
· 1.55g/t Au + 22.9g/t Ag
· 1.29g/t Au + 18.0g/t Ag
The average gold content of all 29 grab samples was 0.8g/t Au. This
represented a significant pivot point for the future planning of exploration
activities at Kokkinoyia. It was clear that the next phase of the Project's
development would require a full suite of multi-element analysis, with a
particular emphasis on gold. It was also necessary for Venus to plan several
drill holes to specifically test significant historic intercepts, as this
would be key to increasing confidence in the existing 41,315 meters of
historic drilling at Kokkinoyia.
On 7 July 2021, the first Venus drilling results for Kokkinoyia were
announced. This was later followed up with further results announced on 6
October 2021. A combination of angled PQ and HQ diamond drilling was used to
test the eastern and western flanks of the historic Kokkinoyia open pit, where
the holes aimed to test residual mineralisation beneath and around existing
workings, primarily over the Kokkinoyia West area of the deposit. Further
work on Kokkinoyia East is planned and will be scheduled in the next phase of
drilling at the Project.
Key intercepts from the 2021 diamond drilling include:
· VMD002 (128m to 146.9m) for 18.9m @ 0.86% Cu + 1.54g/t Au + 0.55% Zn
o Including 138m to 141m for 3m @ 4.40% Cu + 6.24g/t Au + 0.82% Zn
· VMD004 (90m to 132.2m) for 42.2m @ 0.55g/t Au + 0.27% Zn
· VMD002 (77m to 92m) for 15m @ 0.54% Cu + 0.16g/t Au
· VMD010 (55m to 64m) for 9m @ 0.72% Cu + 0.43g/t Au + 0.29% Zn
o Including 58m to 61m for 3m @ 1.44% Cu + 0.72% Au + 0.38% Zn
These results from Venus' 2021 work provided confidence to several major
historic intercepts forming the bulk of the mineralisation volume for
Kokkinoyia West, and as a result, a major proportion of the Kokkinoyia West
resources have been upgraded, and now classified as Indicated.
Closer inspection of historic drilling versus the new 2021 drilling has
confirmed that historic grades and intercept widths are locally overstated,
likely a result of the historic drilling methods (including downhole smearing)
and limitations to laboratory techniques/equipment, and as such until further
drilling can be completed, the majority of the Project's resources expanding
beyond Kokkinoyia West will remain in the Inferred category.
In addition to confirming the copper grades of historic drilling, the 2021
drilling also identified significant extensions of new and highly anomalous
copper and gold mineralisation where sections of the historic drilling appear
to have not been sampled (likely due to the low content of visible sulphides),
or where there was a lack of gold assay values, and/or where low copper grades
(0.1-0.2% Cu) may not have been appropriately defined by historic laboratory
equipment.
Portable XRF analysis was systematically undertaken on all the 2021 drill core
at 1m intervals, resulting in the identification of all possible
mineralisation zones before the core was cut for laboratory geochemical
analysis. These newly identified zones have added a significant new
understanding and additional mineralisation volume to the Kokkinoyia deposit.
Notable zinc values, ranging from 0.1% to 4.06%, have also been identified
within several key mineralisation intercepts. Like gold, zinc assays within
the historic data are also largely absent, and the new 2021 drilling results
provide insight into the potential distribution of the metal within the
deposit.
A significant new development in the Kokkinoyia geological modelling for the
2021 MRE is the domaining of sulphur values as a means for capturing the full
extents of the Kokkinoyia system (Figure 1 and Figure 2). Sulphur is the
most abundant assay result throughout all the historic data, and represents
the presence and concentration of pyrite, which is the most notable sulphide
mineral associated with all (copper, gold and zinc) mineralisation zones
documented at Kokkinoyia.
Previous MREs at Kokkinoyia focused on capturing and domaining the extents of
copper mineralisation only, as no other assay data was available to correlate
sulphur rich zones with zinc or gold, resulting in a very limited volume for
resource estimation. Using the sulphur assay values to create a much larger
mineral system volume has allowed the latest estimation work to build
sub-domains for the various attributing metals resulting in a more
comprehensive MRE. However, to date, only Kokkinoyia West has sufficient
supporting multi-element data to suitably create metal subdomains. Further
drilling is required to test Kokkinoyia East and all peripheral areas
including the potential resources at depth.
http://www.rns-pdf.londonstockexchange.com/rns/2992U_1-2021-12-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2992U_1-2021-12-1.pdf)
Figure 1: Plan view of the Kokkinoyia Project, showing the 2021 drill collar
positions and historical collars. The 2020 MRE mineralisation domain is
highlighted in pink and the new 2021 MRE 1% sulphur domain is outlined in
yellow. Copper, gold and zinc domains were sub-domained within the extents of
the sulphur parent domain.
Resource Estimation
The MRE is based on a detailed review of all available drill data acquired
between 1950s-1980's, as well as nine diamond drillholes drilled in 2021.
This data comprises of wireline, rotary open hole percussion, Schramm T64 and
diamond drill holes for a total of 42,895 meters of drilling (all historic
holes and the 2021 drilling) and covers all major areas of the Kokkinoyia
project (Kokkinoyia West and Kokkinoyia East). The use of modern software
with improved estimation methods and statistical analysis enables the
calculation of a MRE with sufficient confidence to be classified as Indicated
and Inferred. However, the drill hole spacing for the project is generally
appropriate to support higher classification of resources in some areas, but
this will require more confirmatory drilling to validate and increase
confidence in the historic data. JORC Table 1 (Appendix 1) for Kokkinoyia
provides more detail on sampling techniques and data used in this estimation.
Estimation Methodology
Ariana completed the geological modelling of all mineralised zones at
Kokkinoyia in Leapfrog Geo 6.0.5 (see JORC Table 1, Appendix 1). Six
mineralisation domains, representing metal zoning within the deposit, were
modelled from sectional interpretations and associated interpolation,
representing the most current geological data and understanding. The MRE is
separated into two main areas: 1) Kokkinoyia West, and 2) Kokkinoyia East.
Parent Sulphur Domain
In excess of 85% of the Kokkinoyia deposit is identified as sulphide or
sulphide transitional to oxide, with the major contributing sulphide mineral
of the deposit being pyrite. Therefore, to create a representative volume of
the Kokkinoyia mineralisation extents, the distribution of pyrite was modelled
using composites of sulphur at a 1% modelling cut-off (CoG) across the
Kokkinoyia area as a whole. This parent volume was then used to create
sub-domains of copper, zinc and gold within, where enough data was available
(Figure 2).
Zinc Domain
Zinc shows a generally weak association with copper and appears to primarily
form in association with gold in its own zone at the upper limits of the
deposit, forming an enriched "cap", with only partial overlap across
lower-grade copper mineralisation which occurs directly below. The 2021
drilling has provided enough data to construct a zinc domain clipped to within
the parent sulphur domain.
High Grade Copper Domain
High Grade (HG) copper (>1% Cu) in the form of massive sulphide lenses is
well known and documented within the Kokkinoyia deposit. These are notably
clustered within the deposit in two main areas, Kokkinoyia East and Kokkinoyia
West, which are separated by a SE-NW normal fault, dissecting and
compartmentalising the two areas, without significant offset. Generally, the
Kokkinoyia East area is more structurally complex and contains higher grades
of mineralisation. Kokkinoyia West is estimated to contain more resource
tonnage than Kokkinoyia East. High Grade Copper attributed as massive
sulphides were modelled or sub-domained within the sulphur parent domain using
copper composites at 1% Cu (CoG). It is important to note that the mass
majority of HG copper at Kokkinoyia has been mined by historic underground
extraction, and where tested by the 2021 drilling, showed minimal remaining
mineralisation. However, voids intersected contained backfill which mostly
contained significantly anomalous zinc, gold and copper (see announcement
dated 6 October 2021).
Low Grade Copper Domain
Low grade (LG) copper (<1% Cu) mostly as disseminated sulphides within
highly altered pillow lavas, were remodelled within the deposit since the
October 2020 MRE was announced. In this latest iteration, LG copper was
modelled using calculated composites at a 0.1% Cu modelling CoG. This was
done to allow better continuity between the main LG copper domain and isolated
copper zones, but also to ensure suitable filling of the sulphur parent domain
where lower (0.1-0.2%) copper grades were present.
Confirmed Gold Domain
Gold within Kokkinoyia is noted to exceed 0.1g/t within all metal zones
throughout the system, but particularly in association with zinc. More
interestingly, gold appears to also form in isolation of the other metals
towards the base of the deposit, where zones of highly silicified host rocks
display finely disseminated sulphides and pyritic veinlets. Further analysis
of all the gold assay results from the 2021 diamond drilling identified at
least two statistical populations of gold, further supporting multiple
relationships or phases of gold mineralisation within the deposit. Gold in
isolation was modelled using calculated composites at a 0.1g/t modelling CoG.
Extrapolated Gold - Exploration Target
Based on the domaining of gold in isolation, and where sufficient coverage
from the 2021 drilling has demonstrated mineralisation continuity, it has been
noted that gold at concentrations of 0.1-0.5g/t are associated with sulphur
values averaging 10%. Therefore, any volume within the parent sulphur domain
which has not been occupied by the zinc, copper (HG and LG) or confirmed gold
subdomains and, where filtered using sulphur concentrations at 10%, would
represent a likely gold target volume.
http://www.rns-pdf.londonstockexchange.com/rns/2992U_1-2021-12-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2992U_1-2021-12-1.pdf)
Figure 2: 2021 MRE model domains of all Kokkinoyia mineralisation areas.
Interpolation and wireframe modelling of the mineralised zones in Leapfrog
EDGE was completed using various metal cut-off grades (CoG) as stated above.
High Grade Copper mineralisation lenses within the Kokkinoyia Sector were
individually and separately reviewed. As a result, these zones are modelled
with their own mineralisation domains using a 1% Cu modelling CoG. All
models were created based upon interval selections that referenced appropriate
copper, zinc and gold grades, lithological descriptions and structural
interpretation, where appropriate. Where continuity was not established
between sections, the strike extrapolation was limited both manually
(wireframes) and statistically (interpolations). The continuity of the
various structures is reflected in the MRE classification.
Specific gravity was determined using a regional statistical study of Cypriot
VMS systems, detailing the variation of density with increasing sulphur
content. Using this data, bulk density was filtered into each block
according to its attributed average sulphur value. Densities ranged from
2.1g/cm(3) where sulphur is <5%, and up to 3.5g/cm(3) where sulphur
exceeded 30%.
Compositing was completed in Leapfrog EDGE as part of a Quantitative Kriging
Neighbourhood Analysis (QKNA), identifying 3m composites as statistically
appropriate for the Kokkinoyia Sector. Hard domain boundaries were applied to
the deposit models, which forced all samples to be included in one of the
composites by adjusting the composite length, while keeping it as close as
possible to the selected intervals of 3m.
Top-cut analysis was completed by viewing in three-dimensions the composite
distributions according to grade within the various domains. Generally, high
grade samples correlate well with logged massive sulphide lenses or are
distributed in clusters. These were accordingly modelled as individual
high-grade domains. Exceptions to this included the Kokkinoyia East high-grade
domain, where the upper limits were fixed to 8% Cu. Other modelled domains
generally did not have undue bias at higher-grades and therefore no other
top-cut was applied.
Good variogram model fits were primarily achieved for the Low Grade Copper
domain. Data examined for Kokkinoyia East generally contained a sufficient
sample population for variography analysis, however, good variography was
difficult to achieve, probably due to structural complexities which require
the domain to be further sub-domained for better variography analysis.
Sample populations for the High Grade Copper, Zinc and Gold domains were
generally low, however, using visual checks and trend surfaces, representative
variography was achieved.
A non-rotated sub-block model was established for the whole of Kokkinoyia.
Block sizes were determined by the completion of a QKNA study. The optimal
parent block sizes were determined to be 15m x 10m x 5m (X, Y, Z), sub-blocked
to 5m x 5m x 5m (X, Y, Z). Sub-blocks received parent block grades during
estimation and grades were estimated using Ordinary Kriging, adopting a
multi-pass methodology.
http://www.rns-pdf.londonstockexchange.com/rns/2992U_1-2021-12-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2992U_1-2021-12-1.pdf)
Figure 3: Plan and sectional view of the Kokkinoyia block model colour coded
according to the metal zoning in the deposit (blue = zinc, orange = LG copper,
magenta = HG copper, yellow = gold only and grey = gold target.
Resource Classification
The MRE is classified in accordance with the JORC Code (2012) as Indicated and
Inferred resources (Tables 1A - 1D). The Kokkinoyia deposit has sufficient
subsurface geological and geochemical data for the resource to be classified
with higher confidence as Measured or Indicated resources. However, such a
classification is currently limited by the historic nature of the majority of
the drilling database and this data cannot be audited, as no reference samples
have been archived. Further validation will be required for an upgrade in
classification, using twin-holes where necessary.
The MRE for the Project (Table 1) uses a reporting cut-off of 0.2% Cu and 1%
Cu for Low Grade and High Grade Copper (massive sulphide) domains,
respectively, and demonstrates that there are reasonable prospects for
eventual economic extraction (Table 1A - 1B). A reporting cut-off of 0.2g/t
Au is used for the gold (Table 1C) and zinc (Table 1D) domains. Confidence
in the MRE is sufficient to allow the results to be used in further technical
and economic studies. Additional confidence in the data obtained from
historic drilling is required in order to advance further understanding of the
Project.
Recent drilling provides greater confidence across parts of the Kokkinoyia
Project, and in such areas the resources have been classified as Indicated.
However, all remaining resources have been classified as Inferred until
further drilling work is completed. As well as significant classification
upgrades, there is potential for an increase in resource tonnage with further
drilling.
The styles of mineralisation have been identified, the controls on
mineralisation are sufficiently understood and measurements and sampling
completed to a reasonable degree of confidence for the mineralisation present.
Depletion of the resource in the High Grade Copper Domains by means of
historical underground production has been calculated based on government
production records for Kokkinoyia for over 470kt ore. The High Grade Copper
Domain in the final resource was then depleted by these assumed underground
production figures of 474,500 tonnes. Future studies will aim to determine the
true positioning and extent of UG workings, and calculate a spatially more
accurate depletion for the UG part of the resource.
Table 1: Summary of 2021 Kokkinoyia MRE, in accordance with JORC 2012, based
on 210 drill holes (42,895 m) across the Kokkinoyia Sector (2 December
2021). Each domain is presented separately in detail in Table 1A-1D, below.
Figures in the tables may not sum precisely due to rounding. The MRE is
reported gross to Venus of which 50% are net attributable to Ariana's 50%
ownership of Venus.
Table Classification Domain Average Value Material Content
Volume Density Mass Cu Au Zn S Cu Au Zn S
m³ g/cm³ t % g/t % % t oz t t
A Inf HG Cu 246,900 3.18 785,800 2.25 n/a n/a 27.70 17,700 n/a n/a 217,700
B Ind LG Cu 1,510,000 2.74 4,140,900 0.39 0.27 n/a 11.17 16,200 35,900 n/a 462,500
B Inf 2,321,400 2.47 5,727,500 0.31 0.27 n/a 7.47 17,500 49,700 n/a 427,600
C Inf Au 216,800 2.67 579,800 n/a 0.36 0.10 10.75 n/a 6,800 600 62,300
D Inf Zn 424,300 2.61 1,109,000 0.33 0.57 0.36 9.89 3,700 20,300 4,000 109,600
Table 1A: Summary of the High Grade Copper Domain resources comprised of
Massive Sulphide Material. Reporting is based on a 1% Cu cut-off grade. Gold
is likely to be present in this Massive Sulphide material, but there is not
sufficient data at present to determine this with sufficient confidence. The
resource has been depleted based on historical production figures which state
474,500kt of ore was mined. The MRE is reported gross to Venus of which 50%
are net attributable to Ariana's 50% ownership of Venus.
Kokkinoyia 2021 MRE Average Value Metal Content
DEPLETED
HG Copper Domains
Volume Density Mass Cu S Cu S
m³ g/cm³ t % % t t
Inferred High Grade 246,900 3.18 785,800 2.25 27.70 17,700 217,700
Table 1B: Summary of the Low Grade Copper Domain resources. Reporting is based
on a 0.2% Cu cut-off grade. The gold grade has been extrapolated from the
Indicated resources onto the Inferred resources, as not enough data exists in
the inferred resource estimation to calculate gold content. The MRE is
reported gross to Venus of which 50% are net attributable to Ariana's 50%
ownership of Venus.
Kokkinoyia 2021 MRE Average Value Material Content
LG Copper Domain
Volume Density Mass Cu Au S Cu Au S
m³ g/cm³ t % g/t % t oz t
Indicated Low Grade 1,510,000 2.74 4,140,900 0.39 0.27 11.17 16,200 35,900 462,500
Inferred Low Grade 2,321,400 2.47 5,727,500 0.31 0.27 7.47 17,500 49,700 427,600
Total 3,831,400 2.58 9,868,300 0.34 0.27 9.02 33,800 85,700 890,100
Table 1C: Summary of the Gold Domain resources. Reporting is based on a 0.2g/t
Au cut-off grade. The MRE is reported gross to Venus of which 50% are net
attributable to Ariana's 50% ownership of Venus.
Kokkinoyia Average Value Material Content
2021 MRE
Gold Domain
Volume Density Mass Au Zn S Au Zn S
m³ g/cm³ t g/t % % oz t t
Inferred 216,800 2.67 579,800 0.36 0.10 10.75 6,800 600 62,300
Table 1D: Summary of the Zinc Domain resources. Reporting is based on a 0.2g/t
Au cut-off grade, rather than zinc, so as to better define the contained gold
resources. The MRE is reported gross to Venus of which 50% are net
attributable to Ariana's 50% ownership of Venus.
Kokkinoyia Average Value Material Content
2021 MRE
Zinc Domain
Volume Density Mass Cu Au Zn S Cu Au Zn S
m³ g/cm³ t % g/t % % t t. oz t t
Inferred 424,300 2.61 1,109,000 0.33 0.57 0.36 9.89 3,700 20,300 4,000 109,600
The limited nature of assay data for gold in the database has significantly
limited the extent of the gold domain to the area in which gold data is
available. Data analysis has shown a strong and reliable correlation of gold
with sulphur grades, for which data is available across the whole deposit.
Using this correlation, an Exploration Target for gold across the Kokkinoyia
project has been defined through modelling of sulphur distribution (Table 2).
Table 2: Exploration Target for Gold at Kokkinoyia, based on sulphur content
of the gold domain defined in this MRE.
Exploration Target for Gold
Tonnage 3 - 6 Mt
Grade 0.3 - 0.4 g/t Au
Metal content 30 - 70 koz Au
Contacts:
Ariana Resources plc Tel: +44 (0) 20 3476 2080
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
John Prior / Hugh Rich / Atholl Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 20 3004 9512
Dominic Barretto / Henry Wilkinson / Matthew McHale arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)
Editors' Note:
The MRE was prepared by Zack van Coller BSc (Hons), Special Projects
Geologist, Ariana Resources plc. Mr. van Coller is a Competent Person as
defined by the JORC Code, 2012 Edition. The estimate was reviewed internally
by Ruth Bektas BSc (Hons) CGeol EurGeol, Projects Analyst, Ariana Resources
plc. Miss Bektas is a Competent Person as defined by the JORC Code, 2012
Edition. The results are reported in accordance with the JORC Code, under the
direction of Dr. Kerim Sener BSc (Hons), MSc, PhD, Managing Director of Ariana
Resources plc, and a Competent Person as defined by the JORC Code. Mr. van
Coller and Dr. Sener have reviewed the technical and scientific information in
this press release relating to the ME estimates and approve the use of the
information contained herein.
The information in this announcement that relates to exploration results is
based on information compiled by Dr. Kerim Sener BSc (Hons), MSc, PhD,
Managing Director of Ariana Resources plc. Dr. Sener is a Fellow of The
Geological Society of London and a Member of The Institute of Materials,
Minerals and Mining and has sufficient experience relevant to the styles of
mineralisation and type of deposit under consideration and to the activity
that has been undertaken to qualify as a Competent Person as defined by the
2012 edition of the Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code) and under the AIM
Rules - Note for Mining and Oil & Gas Companies. Dr. Sener consents to the
inclusion in the report of the matters based on his information in the form
and context in which it appears.
About Ariana Resources:
Ariana is an AIM-listed mineral exploration and development company with an
exceptional track-record of creating value for its shareholders through its
interests in active mining projects and investments in exploration companies.
Its current interests include gold production in Turkey and copper-gold
exploration and development projects in Cyprus and Kosovo.
The Company holds 23.5% interest in Zenit Madencilik San. ve Tic. A.S. a joint
venture with Ozaltin Holding A.S. and Proccea Construction Co. in Turkey which
contains a depleted total of c. 2.1 million ounces of gold and other metals
(as at July 2020). The joint venture comprises the Kiziltepe Mine and the
Tavsan and Salinbas projects.
The Kiziltepe Gold-Silver Mine is located in western Turkey and contains a
depleted JORC Measured, Indicated and Inferred Resource of 227,000 ounces gold
and 3.7 million ounces silver (as at April 2020). The mine has been in
profitable production since 2017 and is expected to produce at a rate of
c.20,000 ounces of gold per annum to at least the mid-2020s. A Net Smelter
Return ("NSR") royalty of 2.5% on production is being paid to Franco-Nevada
Corporation.
The Tavsan Gold Project is located in western Turkey and contains a JORC
Measured, Indicated and Inferred Resource of 253,000 ounces gold and 0.7
million ounces silver (as at June 2020). The project is being progressed
through permitting and an Environmental Impact Assessment, with the intention
of developing the site to become the second joint venture gold mining
operation. A NSR royalty of up to 2% on future production is payable to
Sandstorm Gold.
The Salinbas Gold Project is located in north-eastern Turkey and contains a
JORC Measured, Indicated and Inferred Resource of 1.5 million ounces of gold
(as at July 2020). It is located within the multi-million ounce Artvin
Goldfield, which contains the "Hot Gold Corridor" comprising several
significant gold-copper projects including the 4 million ounce Hot Maden
project, which lies 16km to the south of Salinbas. A NSR royalty of up to 2%
on future production is payable to Eldorado Gold Corporation.
Ariana owns 75% of UK-registered Western Tethyan Resources Ltd ("WTR"), which
operates across Eastern Europe and is based in Pristina, Republic of Kosovo.
The company is targeting its exploration on major copper-gold deposits across
the porphyry-epithermal transition.
Ariana owns 50% of UK-registered Venus Minerals Ltd ("Venus") which is focused
on the exploration and development of copper-gold assets in Cyprus which
contain a combined JORC Indicated and Inferred Resource of 16.6Mt @ 0.45% to
1.10% copper (excluding additional gold, silver and zinc).
Ariana owns 100% of Australia-registered Asgard Metals Fund ("Asgard"), as
part of the Company's proprietary Project Catalyst Strategy. The Fund will be
focused on investments in high-value potential, discovery-stage mineral
exploration companies located across the Eastern Hemisphere and within easy
reach of Ariana's operational hubs in Australia, Turkey and the UK.
Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish
Limited is the Company's Nominated Adviser and Broker.
For further information on Ariana you are invited to visit the Company's
website at www.arianaresources.com (http://www.arianaresources.com) .
Glossary of Technical Terms:
"Ag" chemical symbol for silver;
"Au" chemical symbol for gold;
"CoG" cut off grade;
"Cu" chemical symbol for copper;
"JORC" the Joint Ore Reserves Committee;
"m" Metres;
"MRE" Mineral Resource Estimate;
"S" chemical symbol for sulphur;
"Zn" chemical symbol for zinc
Ends.
JORC Code, 2012 Edition - Table 1
Kokkinoyia, Cyprus
(data as at Oct 2021, MRE reported Nov 2021)
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Sampling techniques · Nature and quality of sampling (e.g. cut channels, random chips, · Historic mining operations, photogrammetric surveying, pXRF
or specific specialised industry standard measurement tools appropriate to the outcrop sampling and drilling (42,895m) were used to delineate areas of
minerals under investigation, such as down hole gamma sondes, or handheld XRF mineralisation.
instruments, etc.). These examples should not be taken as limiting the broad
meaning of sampling. · Mineralisation consists of Cu-Au (+Zn and Ag) Volcanic Massive
Sulphide (VMS) mineralisation contained within two widespread volcanic basalt
· Include reference to measures taken to ensure sample pillow lava sequences.
representativity and the appropriate calibration of any measurement tools or
systems used. · All drilling to date on the project consists of diamond,
wireline, rotary open hole percussion and Schramm T64 drilling.
· Aspects of the determination of mineralisation that are Material
to the Public Report. · Percussion chips in mineralised zones were collected at 1m
intervals. Samples were split on the drill site using a 2-tier riffle
· In cases where 'industry standard' work has been done this would splitter to a sub-sample of approximately 3-5kg. Duplicates were also split on
be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 site and randomly placed in the sample stream. Samples were transferred to the
m samples from which 3 kg was pulverised to produce a 30 g charge for fire Mitsero processing plant, where they were sun- or oven-dried before being
assay'). In other cases, more explanation may be required, such as where sub-sampled to 250g, then pulverised and then sent to the Nicosia Chemical
there is coarse gold that has inherent sampling problems. Unusual Laboratories, for wet chemical analysis for base metals and sulphur, and fire
commodities or mineralisation types (e.g. submarine nodules) may warrant assay for gold (but this involved only a few samples).
disclosure of detailed information.
· Percussion samples were split to form composite samples ranging
from 0.3m to a maximum of 14m.
· No drill core or chips sample archives exist for historical
drilling.
· Diamond drill core was sampled as quarter core.
· Drill samples void of mineralisation were not a priority for
sampling and therefore not all drill holes/drill runs have been sampled once
mineralisation controls were established.
· Historic drilling and sampling procedures are only partly
available.
Drilling techniques Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air · In total 42,894.8 of drilling for 210 drillholes has been
blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or completed across the Kokkinoyia Project.
standard tube, depth of diamond tails, face-sampling bit or other type,
whether core is oriented and if so, by what method, etc.). · Drilling on the project can be summarised as follows:
· 1951-1955 initiation of first exploration and resource drilling
all by Hellenic Mining Company Ltd (HMC).
· 1960s to 1970s exploration and resource drilling on north-eastern
extents of deposit (HMC).
· 1970s to 1980s final resource and exploration drilling on known
extensions of the deposit (HMC).
· 2021 confirmatory resource diamond drilling with multi-element
assay data.
· Drilling methods used during the HMC work described above
included wireline, rotary open hole percussion and Schramm T64 drilling.
· HQ diamond drilling was used during the 2021 drilling programme.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Drill core recoveries for the diamond drilling (9 holes) averaged
results assessed. 95.3%. These were manually calculated by measuring the total core recovery
against the drilling runs noted by the drilling company.
· Measures taken to maximise sample recovery and ensure representative
nature of the samples. · Drilling recoveries for historic drilling were not recorded.
However, detailed notes regarding core loss, hole collapse and voids were
· Whether a relationship exists between sample recovery and grade and documented on historic logging sheets.
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
Logging · Whether core and chip samples have been geologically and · All historic percussion drill holes were geologically logged in
geotechnically logged to a level of detail to support appropriate MRE, mining the field using rinsed chips returned after every drilled metre. Logs were
studies and metallurgical studies. then drafted post laboratory analysis to produce detailed hardcopy assay
lithological logs.
· Whether logging is qualitative or quantitative in nature. Core
(or costean, channel, etc.) photography. · Diamond drill core processing and logging was completed at the
Mitsero core storage facilities.
· The total length and percentage of the relevant intersections
logged. · Logging intervals are based on lithologies.
· Logging is to a standard suitable to support a MRE.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all · Sampling was undertaken across all mineralised zones and extended
core taken. into un-mineralised rock.
· If non-core, whether riffled, tube sampled, rotary split, etc. · Some drill-run samples with no mineralisation were not sampled
and whether sampled wet or dry. once mineralisation controls were established.
· For all sample types, the nature, quality and appropriateness of · Percussion samples were taken at regular 1m intervals, from the
the sample preparation technique. top of the hole to the bottom, however not all samples that were taken were
sent for assay.
· Quality control procedures adopted for all sub-sampling stages to
maximise representativeness of samples. · For diamond drilling (9 holes): HQ size drill-core samples were
cut by a diamond saw into quarter core. Quarter core is sent for analysis in
· Measures taken to ensure that the sampling is representative of batches in line with the Company's quality control procedures, whilst one
the in situ material collected, including for instance results for field quarter is held back for future metallurgical analysis and the remaining half
duplicate/ second-half sampling. core is archived.
· Whether sample sizes are appropriate to the grain size of the · Historic samples were submitted to the Nicosia Chemical
material being sampled. Laboratories, located within the city of Nicosia (approx. 35km from the
project site). Sample preparation was completed at the Mitsero processing
plant, and included crushing, milling, homogenisation and sample splitting in
accordance with company standards.
· Typical sampling protocols are presented below. However,
historically not all samples were assayed for gold.
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Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · HMC applied a random quality control (QC) programme during its
laboratory procedures used and whether the technique is considered partial or historic drilling campaigns, whereby standards and blanks were entered into
total. the sample stream erratically and at random.
· For geophysical tools, spectrometers, handheld XRF instruments, · No internal reporting of HMC's QA/QC sampling results was
etc., the parameters used in determining the analysis including instrument reviewed. A number of hardcopy assay documents are preserved within the Venus
make and model, reading times, calibrations factors applied and their Minerals offices in Nicosia, but no obvious records of QA/QC evaluations were
derivation, etc. found.
· Nature of quality control procedures adopted (e.g. standards, · The diamond drill core was analysed at ALS Laboratory Services in
blanks, duplicates, external laboratory checks) and whether acceptable levels Ireland ("ALS Ireland") for gold using a 50g fire assay (Au-AA23) and ME-ICP41
of accuracy (i.e. lack of bias) and precision have been established. for copper and other elements.
· For drilling completed in 2021 by Venus, an industry standard
QA/QC programme was employed using;
o CRM gold and copper standards purchased from CDN Laboratories and
Geostats,
o Representative field blanks with pre-programme check analysis results
o Field duplicates
o Crush duplicates
o Pulp duplicates
· An insertion rate of 14.29%
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Verification of sampling and assaying · The verification of significant intersections by either · No drill core or representative drill samples are available for
independent or alternative company personnel. the historic holes at the project, and therefore, it was not possible for the
competent person (Mr. Zack van Coller) to conduct physical verification of
· The use of twinned holes. historical logging or assaying.
· Documentation of primary data, data entry procedures, data · Logging procedures are sufficient to meet industry standards.
verification, data storage (physical and electronic) protocols. However, it was not possible to comprehensively evaluate historic sampling
procedures.
· Discuss any adjustment to assay data.
· Prior to resource estimation, assay results below detection limit
are replaced with values of zero.
· The 2021 diamond drill core archived at the Mitsero depot was
inspected by Mr. Zack van Coller on 15(th) November 2021. Zones of significant
mineralisation were verified and compared to copper assay results of
neighbouring historic holes.
· All available historic archives are stored in both hardcopy and
digital formats at Venus' Cyprus offices in Nicosia.
Location of data points · Accuracy and quality of surveys used to locate drill holes · Historical collar locations were recorded in local Cassini
(collar and down-hole surveys), trenches, mine workings and other locations coordinate system, converted graphically to UTM European Datum 1950, Zone 36
used in MREs. North. Later data were collected by a professional surveyor using DGPS
equipment in the local Cypriot coordinate format (CGRS 1993 LTM), and also
· Specification of the grid system used. converted to the ED50 36N system.
· Quality and adequacy of topographic control. · No down hole survey of historic holes exists due to the vertical
drilling of these holes.
· A 5.0cm per pixel resolution drone photogrammetry survey was
completed over the entire Kokkinoyia deposit during 2018, using a DJI Phantom
Advanced 3 drone.
· A 3D photogrammetric topographic mesh was constructed from the
DJI drone data using Pix4D software, and was re-registered using DGPS ground
control points for increased accuracy to within 50cm.
· The 2021 diamond drill holes were surveyed from surface to end of
hole using a DeviShot multi-shot downhole survey tool. Readings were taken on
25m intervals.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · The resource area was typically drilled on a regular pattern
allowing for 15-30m spacing between collars.
· Whether the data spacing and distribution is sufficient to
establish the degree of geological and grade continuity appropriate for the · The Kokkinoyia Sector is currently split into five main related
MRE and Ore Reserve estimation procedure(s) and classifications applied. mineralisation domains: Kokkinoyia High Grade East, Kokkinoyia High Grade
West, Kokkinoyia Low Grade, Kokkinoyia Gold and Kokkinoyia Zinc domains. A
· Whether sample compositing has been applied. sulphur domain was created for the purposes of defining an Exploration Target.
· Average collar spacing within the core of the Kokkinoyia Sector
is 13.7m (based on 18 measurements).
· Average collar spacing on the periphery of the Kokkinoyia core is
30.25m (based on 30 measurements).
· Samples were composited to 3m prior to estimation using Leapfrog
EDGE software.
· The current data spacing in association with geological mapping
and surface geochemistry is sufficient to establish geological continuity and
grade continuity. This has been established and tested by semi-variograms and
post-estimation assessment.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · The Kokkinoyia Sector is bound by two main parallel NE-SW
possible structures and the extent to which this is known, considering the trending normal faults. The mineralisation has been separated into five
deposit type. domains. Additional less significant normal faulting has resulted in localised
off-sets within the deposit. This is more apparent within the Kokkinoyia NE
· If the relationship between the drilling orientation and the zone.
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material. · The Kokkinoyia SW high and low grade zones have a general trend
of 45˚ (UTM azimuth) with a 50˚ dip towards 75˚ (UTM azimuth).
· The NE high and low grade zones are offset and rotated with a
general trend of 50˚ (UTM azimuth) with a 35˚ dip towards 65˚ (UTM
azimuth).
· The Kokkinoyia mineralisation has been drilled vertically, with
most holes achieving full intersections.
· True thickness with respect to apparent thickness is well
understood as most intersections are normal to the mineralisation.
Sample security · The measures taken to ensure sample security. · Hellenic Mining Company Ltd. (HMC) was responsible for sample
security between the 1950s and 1970s. The precise procedures are not fully
known due to loss of historic records. However, samples were deemed
appropriately analysed and representative of the mineralisation to support
mining operations between 1954 and 1979.
· Samples were historically processed and analysed at the Nicosia
Chemical Laboratories, which are no longer operational, with the chain of
custody appropriately controlled.
· Samples from the 2021 drilling programme were analysed at ALS
Laboratory Services in Ireland ("ALS Ireland") with the chain of custody
appropriately controlled.
Audits or reviews · The results of any audits or reviews of sampling techniques and · Venus Minerals has implemented QA/QC programmes based on
data. international best practice since its initial exploration and project review
work since 2005. The Company has continued to review and refine the QA/QC
protocols as exploration campaigns have progressed.
· Audits of historic drill samples were not possible. However,
representative ore samples were viewed and analysed by fire assay and ME-ICP
methods from historic stockpiles, dumps and from spillages at old ore loading
bays.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Mineral tenement and land tenure status · Type, reference name/ number, location and ownership including · The Kokkinoyia Sector consists of one prospecting licence owned
agreements or material issues with third parties such as joint ventures, 100% by Venus Minerals Ltd, through its Cypriot subsidiary. There are no
partnerships, overriding royalties, native title interests, historical sites, royalties associated with the stated licence.
wilderness or national park and environmental settings.
· The security of the tenure held at the time of reporting along
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· There are no known impediments to current operations.
Exploration done by other parties · Acknowledgment and appraisal of exploration by A summary of exploration activities at Kokkinoyia:
· 1938 - Anonymous Greek Company of Chemical Products and Manures
explored the Kokkinoyia site for gold and silver, concentrating on an area of
outcropping oxidation, which was partly covered by slag. The gold and silver
ore was extracted in stages, initially by trenching and pitting or by shallow
declines and adits. Reported grades reached 106g/t Au and 690g/t Ag.
· 1939 - a series of 61 prospecting pits were excavated for the
discovery of additional resources. This resulted in open-cut mining at four
different levels, with mining lasting between April and July 1939.
· 1951 - first exploration drilling for copper, conducted by
Hellenic Mining Company.
· 1954 to 1979 - copper mining at Kokkinoyia extracted 474,562 tonnes
resulting in concentrates of 285,330 tonnes.
Geology · Deposit type, geological setting and style of mineralisation. · The Kokkinoyia deposit is located approximately 1.5km west of
Mitsero village, within the Lower Pillow Lava sequence of the Troodos
ophiolite close to its contact with the Upper Pillow Lavas. Signs of oxidation
and copper staining are widely present in the area, and these attracted the
attention of ancient miners, as indicated by the presence of localised slag
heaps and old shallow adits.
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· The general geology around the deposit consists of two main NNE
dipping sequences of basaltic pillow lavas, with localised dykes and sheeted
flows. The exposed pillow lavas are partly capped by a sequence of marls and
limestones. The two pillow lava sequences are defined as the Upper Pillow
Lavas and Lower Pillow Lavas, which host the defined mineralisation.
· To the south and west of the deposit are widespread signs of
oxidation, representing the root zones of mineralisation whose upper levels
have been removed by erosion.
· The main direction of faulting which bounds the sector has a
northerly trend.
· Mineralisation within the Kokkinoyia deposit is classified as
Volcanogenic Massive Sulphide (VMS) in nature and is represented at surface by
widespread moderate to strong oxidation and gossans, resulting from the
weathering of sulphide mineralisation. The latter is generally concentrated in
zoned lenses which are structurally controlled and, post formation, offset by
later faulting.
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Drillhole Information · A summary of all information material to the understanding of the · No new exploration data is included in this report.
exploration results including a tabulation of the following information for
all Material drill holes:
· easting and northing of the drill hole collar
· elevation or RL (Reduced Level - elevation above sea level in metres)
of the drill hole collar
· dip and azimuth of the hole
· down hole length and interception depth
· hole length.
· If the exclusion of this information is justified on the basis
that the information is not Material and this exclusion does not detract from
the understanding of the report, the Competent Person should clearly explain
why this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · Metal equivalents are not used in this estimate.
maximum and/ or minimum grade truncations (e.g. cutting of high grades) and
cut-off grades are usually Material and should be stated. · No aggregation has been applied beyond the standard 1m sampling
interval honouring lithological changes down to 20cm.
· Where aggregate intercepts incorporate short lengths of high
grade results and longer lengths of low grade results, the procedure used for · No metal equivalent has been applied. Metals are reported
such aggregation should be stated and some typical examples of such individually.
aggregations should be shown in detail.
· The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting · All drill-holes within the Kokkinoyia Sector were historically
of Exploration Results. drilled vertically. Disseminated mineralisation is defined as shallow dipping
10-15˚ mineralisation fronts, with higher grade lenses of massive sulphides
· If the geometry of the mineralisation with respect to the drill interpreted to have formed at the boundary between two pillow basalt
hole angle is known, its nature should be reported. sequences. Therefore, mineralisation at Kokkinoyia is generally well defined.
· If it is not known and only the down hole lengths are reported, · The latest 2021 drilling consisted of nine angled holes designed
there should be a clear statement to this effect (e.g. 'down hole length, true to test mineralisation continuity between several significant vertically
width not known'). drilled holes, and successfully confirmed most mineralisation, except where
they intercepted undocumented historic workings.
Diagrams · Appropriate maps and sections (with scales) and tabulations of · Top 20 Copper intercepts from all data pre-historic mining.
intercepts should be included for any significant discovery being reported.
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
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Balanced reporting · Where comprehensive reporting of all Exploration Results is not · Full balanced reporting of exploration results has been
practicable, representative reporting of both low and high grades and/ or undertaken and is disclosed within the technical reporting supporting this
widths should be practiced to avoid misleading reporting of Exploration latest 2021 review.
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Modern prospectors were drawn to the Kokkinoyia site by a number
reported including (but not limited to): geological observations; geophysical of slag heaps and ancient portals. Mineralisation was first confirmed by
survey results; geochemical survey results; bulk samples - size and method of drilling during 1951.
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances. · In 1975, the deposit was investigated in detail by Christoforou
(1975), in a study which involved underground mapping and mineralogical
investigations.
· Surface geological mapping at 1:5,000 scale was completed by Dr.
Nicos Adamides in the early 1980s.
· Between 2005 and 2015 Venus Minerals (as Eastern Mediterranean
Minerals (EMM)) digitised all acquired underground and hardcopy drill log data
into its digital systems.
· In 2016 detailed 1:1,000 scale mapping was completed by Venus
Minerals by Dr. Nicos Adamides.
· In 2018, Venus Minerals conducted several investigations to
identify potential within old historic dumps, as well as taking steps to
evaluate the project for gold potential, which has historically not been
widely tested for.
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Further work · The nature and scale of planned further work (e.g. tests for · Additional work to be completed at the Kokkinoyia Project can be
lateral extensions or depth extensions or large-scale step-out drilling). summarised as follows:
· Diagrams clearly highlighting the areas of possible extensions, o 2,000-4,000 meters of twin hole drilling (10% of total database) required
including the main geological interpretations and future drilling areas, to increase confidence in historic drill data.
provided this information is not commercially sensitive.
o Additional drilling and assaying specifically for gold rich zones, which
could potentially be a significant contributor to the project. Almost no gold
assaying was completed on any of the primary historic drilling data. Recent
drilling and surface evaluations of old stockpiles showed significant
potential for gold ranging from 0.2g/t Au to over 5g/t Au.
o Detailed metallurgical test work. Particularly focusing on zinc and gold
as potential credits.
o Further shallow drill testing of historic mining dumps to evaluate
potential.
o Laser scanning of accessible adits as a means of calibrating current
digitised underground workings.
o Additional translation and digitising of historic records.
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to
this section.)
Database integrity · Measures taken to ensure that data has not been corrupted by, for · The Kokkinoyia resource data as of 2021 is securely stored and
example, transcription or keying errors, between its initial collection and managed externally by gDat Applied Solutions ('gDat') via its
its use for MRE purposes. password-protected acQuire database system.
· Data validation procedures used. · Historic data was stored and preserved by multiple MS Excel
spreadsheets and hardcopy data, which have now been converted to the gDat
digital archives.
· Drill data was logged onto field sheets which were then entered
into the data system by data capture technicians.
· Data was validated on entry into the database, or uploaded from
the earlier MS Access databases, by a variety of means including the
enforcement of coding standards, constraints and triggers. These are
features built into the data model that ensure data meets essential standards
of validity and consistency.
· Modern laboratory data has been received in digital format and
uploaded directly to the database.
· Original data sheets and files have been retained and are used to
validate the contents of the database against the original logging.
· Venus Minerals and previous independent consultants of Ariana
Resources plc, have performed a visual validation by reviewing drill-holes on
section and by subjecting drill-hole data to data auditing processes in
specialised mining software (e.g., checks for sample overlaps etc.). This work
was repeated and checked by Mr. Zack van Coller (Ariana Resources Competent
Person), during the resource modelling in 2020.
· Archived reports have been reviewed to identify potential errors
and reliability of historical data.
Site visits · Comment on any site visits undertaken by the Competent Person and · The Competent Person for this project is Mr. Zack van Coller BSc,
the outcome of those visits. FGS. Mr. van Coller is Ariana Resource's Special Projects Geologist and
Competent Person as defined by the JORC Code. Mr. van Coller last visited
· If no site visits have been undertaken indicate why this is the the project in November 2021 and has worked on the project as one of the
case. primary exploration and development geologists since 2017. He has verified
aspects of the data collection and handling for the project.
· The work has been reviewed by Ruth Bektas BSc CGeol EurGeol,
Ariana Resource's Project Analyst and Competent Person as defined by the JORC
Code.
Geological interpretation · Confidence in (or conversely, the uncertainty of) the geological · Geological interpretation used a combination of surface
interpretation of the mineral deposit. geological mapping and geochemical boundaries from the drill-holes across the
Kokkinoyia project.
· Nature of the data used and of any assumptions made.
· Interpretation was completed by Mr. Zack van Coller, creating 3D
· The effect, if any, of alternative interpretations on Mineral wireframe models according to geology and mineralisation above a 0.10% Cu
Resource estimation. modelling cut-off for the low grade domain and 1% Cu for the east and west
high grade domains.
· The use of geology in guiding and controlling Mineral Resource
estimation. · Historic mining volumes were clipped or filtered from the
geological models to accommodate historically mined ore. This was confirmed by
· The factors affecting continuity both of grade and geology. government production records.
· Geological domains were interpreted for the deposit according to
the mineralisation grade and structural mapping as defined by the historic
mining records.
· Two main mineralised zones have been defined (Kokkinoyia West and
Kokkinoyia East), which are offset from each other due to northerly trending
normal faults. Six metal domains have been modelled within the Kokkinoyia
deposit, representing metal zoning with the Kokkinoyia VMS system.
· The Kokkinoyia disseminated mineralisation is well understood.
However, additional confirmation drilling is required to establish the true
extent of historic mining galleries and remaining high grade ore.
· Grade continuity analysis within the interpreted mineralised
zones is generally robust.
· The confidence in geological interpretation is appropriately
reflected in the classification of the Resources.
Dimensions · The extent and variability of the MRE expressed as length (along · The Kokkinoyia mineralisation follows a NE-SW trend, dipping
strike or otherwise), plan width, and depth below surface to the upper and approximately 15˚ to the NE.
lower limits of the MRE.
· The mineralisation is partly exposed at surface, and dips below a
rising topography along strike to a maximum known depth of approximately 300m.
There are obvious breaks in the mineralisation trend, which likely represent
faulting of the mineralisation into two main modelled zones (east and west).
· The mineralised corridor, encompassing all modelled resource
domains is approximately 900m long and 200m wide across the NE-SW trend,
extending to over 500m below surface.
· The dimensions of the mineralisation domains are approximately:
· High Grade Copper East domain: 260m x 100m x 25m
· High Grade Copper West domain: 125m x 125m x 50m
· Low Grade Copper domain: 700m x 150m x 150m
· Gold domain: 275m x 75m x 90m
· Zinc domain: 200m x 100m x 175m
· Sulphur domain (exploration targeting): 900m x 120m x 180m
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) · Details of the estimation method, parameters and results are
applied and key assumptions, including treatment of extreme grade values, contained in the related Kokkinoyia 2021 MRE Memorandum (Venus Minerals and
domaining, interpolation parameters and maximum distance of extrapolation from Ariana Resources Internal Report, 2021).
data points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used. · The estimate was compared to previous estimates.
· The availability of check estimates, previous estimates and/ or · The MRE has been estimated into a block model prepared in
mine production records and whether the Mineral Resource estimate takes Leapfrog EDGE. The block model comprises the following parameters:
appropriate account of such data.
· The assumptions made regarding recovery of by-products.
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of economic significance (e.g. sulphur for acid mine drainage
characterisation).
· In the case of block model interpolation, the block size in · A set of copper, gold and zinc grade-based wireframe models were
relation to the average sample spacing and the search employed. created in Leapfrog EDGE to select the samples used in the estimation and to
constrain the interpolation.
· Any assumptions behind modelling of selective mining units.
· Grade estimates were based on 3m composited assay data.
· Any assumptions about correlation between variables.
· Estimation was carried out using Ordinary Kriging at the parent
· Description of how the geological interpretation was used to block scale using a multi-pass estimation using all available composites.
control the resource estimates.
· Estimation parameters:
· Discussion of basis for using or not using grade cutting or
capping.
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· The process of validation, the checking process used, the
comparison of model data to drill hole data, and use of reconciliation data if
available.
· This resource estimation technique is appropriate for the style
of mineralisation.
· The estimation included copper, zinc, gold, sulphur (across
separate domains).
· Zinc assay data is related to the last phases of drilling
completed on the project, and only represents a small area (the historic open
pit) of the deposit. Therefore, it was inappropriate to estimate zinc values
for the whole deposit, and instead is limited to a small 'zinc only' domain.
· Gold assay data is related to the last phases of drilling
completed on the project, and only represents a small area primarily within
Kokkinoyia West. Therefore, it was inappropriate to estimate gold values for
the whole deposit, and instead is limited to a small 'gold only' domain.
· Sulphur assay data is present for most samples, and the
relationship and correlation between sulphur and gold and sulphur and zinc has
been used to estimate an exploration target for gold and zinc across the whole
deposit, within the 'sulphur only' domain - a domain which represents the
values of sulphur (>7% S) found in association with gold and zinc
mineralisation in the smaller gold and zinc only domains.
· Variable density, ranging from 2.1 to 3.5 grams per cubic
centimetre (g/cm(3)), was applied to the block model on the basis of
increasing sulphur content, which was defined from studies completed in
neighbouring VMS deposits within the district.
· Top-cuts were deemed unnecessary for most domains as the High
Grade Copper was modelled as a separate zone, so there was no smearing of high
grade copper values into the lower grade copper domain. However, an 8% Cu
top-cut was applied to the Kokkinoyia East High Grade Copper domain, to
further constrain erratic high grades for a better overall estimation.
· Block model validation was completed with visual inspection on
plan and section, as well as by using swath plot analysis in the X, Y and Z
directions.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Tonnage is estimated on a dry basis in accordance with the
moisture, and the method of determination of the moisture content. specific gravity determination.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · Reporting copper at specified cut-off grades was based upon costs
applied. and recoveries established from the company's internal records. The
reporting cut-off grade varied depending on the characteristics of the domain
for the final classified resource.
· HG Cu east and west domains: 1% Cu
· LG Cu domain: 0.2% Cu
· Au only domain: 0.2g/t Au
· Zn only domain: 0.2g/t Au, not Zn, so as to better define the
contained gold resource.
· S only domain: 7% S
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum · No mining factors (i.e. dilution, ore loss, recoverable resources
mining dimensions and internal (or, if applicable, external) mining dilution. at selective mining block size) have been applied.
It is always necessary as part of the process of determining reasonable
prospects for eventual economic extraction to consider potential mining · The deposit is probably amenable to open pit mining, as
methods, but the assumptions made regarding mining methods and parameters when demonstrated through an open-pit optimisation study in 2019, though the
estimating MREs may not always be rigorous. Where this is the case, this potential for more selective underground mining remains a possibility.
should be reported with an explanation of the basis of the mining assumptions
made. · The width of operating benches is considered to vary between 5m
to 20m with respect to the change in the thickness and orientation of the ore
zone while the bench heights were 5 metres.
· The project was previously operated as both open-pit and
underground.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · Between 1973 and 1979, underground mining commenced at Kokkinoyia
amenability. It is always necessary as part of the process of determining with milling and processing by flotation being conducted at the Mitsero
reasonable prospects for eventual economic extraction to consider potential Processing Plant approximately 3km from the deposit. It is assumed that future
metallurgical methods, but the assumptions regarding metallurgical treatment extraction of residual resources will also be conducted by flotation methods.
processes and parameters made when reporting MREs may not always be rigorous. Additional scoping work is required to determine if this will be optimal.
Where this is the case, this should be reported with an explanation of the
basis of the metallurgical assumptions made. · Re-assessment of metallurgical attributes is required and is a
primary objective of immediate drilling plans.
· Historic records have noted copper recoveries in concentrate to
be 82% and zinc 75%.
· Significant potential exists for gold to be recovered as an
additional credit from flotation. However, further metallurgical scoping work
is required to verify this.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue · The Competent Person is not aware of any known environmental or
disposal options. It is always necessary as part of the process of permitting issues on the project.
determining reasonable prospects for eventual economic extraction to consider
the potential environmental impacts of the mining and processing operation.
While at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
Bulk density · Whether assumed or determined. If assumed, the basis for the · Variable density ranging from 2.1 to 3.5 g/cm(3) was applied to
assumptions. If determined, the method used, whether wet or dry, the the estimation model based on a coding calculation in Leapfrog EDGE according
frequency of the measurements, the nature, size and representativeness of the to sulphur percent content.
samples.
· The bulk density for bulk material must have been measured by
methods that adequately account for void spaces (vugs, porosity, etc.), http://www.rns-pdf.londonstockexchange.com/rns/2992U_1-2021-12-1.pdf
moisture and differences between rock and alteration zones within the deposit. (http://www.rns-pdf.londonstockexchange.com/rns/2992U_1-2021-12-1.pdf)
· Discuss assumptions for bulk density estimates used in the
evaluation process of the different materials.
Classification · The basis for the classification of the MRE into varying · The resource classification at the project considers the
confidence categories. following criteria:
· Whether appropriate account has been taken of all relevant o Confidence in the sampling data and geological interpretation.
factors (i.e. relative confidence in tonnage/ grade estimations, reliability
of input data, confidence in continuity of geology and metal values, quality, o The data distribution (based upon graphical analysis and average distance
quantity and distribution of the data). to informing composites).
· Whether the result appropriately reflects the Competent Person's o Grade continuity analysis.
view of the deposit.
o The quality of geological interpretation, cross-cutting relationships
geological modelling and data weighting.
· Categorical classification of the Kokkinoyia mineralisation has
conservatively been restricted to Indicated and Inferred Resources only. This
is primarily because all historic drilling data to date cannot be
appropriately audited without additional drilling being completed. With an
increase in confidence in the historical data, the classification of the
Kokkinoyia resource can readily be upgraded to higher classifications as
appropriate.
· An exploration target has been defined for the areas with good
potential, but insufficient confidence to be classified as a resource at this
stage.
Audits or reviews · The results of any audits or reviews of MRE estimates. · An internal peer review of the reporting was conducted for this
study. No external reviews or audits have been completed.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and · The resource estimate is deemed appropriately accurate globally,
confidence level in the MRE using an approach or procedure deemed appropriate based upon the informing data. The accuracy and global/local basis of the
by the Competent Person. For example, the application of statistical or resource estimate is suitably accounted for in the resource
geostatistical procedures to quantify the relative accuracy of the resource classification.
within stated confidence limits, or, if such an approach is not deemed
appropriate, a qualitative discussion of the factors that could affect the · Depletion of the resource by means of historical open-pit
relative accuracy and confidence of the estimate. production has been accounted for in the original resource figures as a
post-mining topography has been used to limit the extent of the model.
· The statement should specify whether it relates to global or
local estimates, and, if local, state the relevant tonnages, which should be · Depletion of the resource in the High Grade Copper Domains by
relevant to technical and economic evaluation. Documentation should include means of historical underground production has been calculated based on
assumptions made and the procedures used. government production records for Kokkinoyia for over 470kt ore. The High
Grade Copper Domain in the final resource was then depleted by these assumed
· These statements of relative accuracy and confidence of the underground production figures of 474,500 tonnes. Future studies will aim to
estimate should be compared with production data, where available. determine the true positioning and extent of UG workings, and calculate a
spatially more accurate depletion for the UG part of the resource.
NOTE: Sections 4 and 5 are not relevant to this work as no reserves are
being estimated and there is no estimation or reporting of diamonds or other
gemstones in this project.
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