REG - Ariana Resources PLC - ARZU SOUTH DRILLING RESULTS

Ariana ResourcesAnnouncement

17/08/2021 07:00

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RNS Number : 8058I  Ariana Resources PLC  17 August 2021

 

 

 

 

 

 

17 August 2021

AIM: AAU

 

ARZU SOUTH DRILLING RESULTS

 

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral
exploration and development company with joint-venture gold mining operations
in Europe, is pleased to announce recent and substantial resource drilling
results obtained from the Arzu South area of the Kiziltepe Mine ("Kiziltepe"
or "the Project").  Kiziltepe is part of the Zenit Madencilik San. ve Tic.
A.S. ("Zenit") Joint Venture ("JV") with Proccea Construction Co. and Ozaltin
Holding A.S. and is 23.5% owned by Ariana.

Highlights:

 

·    New significant intercepts within the Arzu South area include:

 

o  13.9m @ 1.67g/t Au + 17.5g/t Ag

o  8.2m @ 2.49g/t Au + 43.5g/t Ag

o  5.0m @ 2.70g/t Au + 27.6g/t Ag

 

·    Full Kiziltepe Mineral Resource Estimation update study based on the
drilling completed up to the end of June 2021 now underway.

 

·    Remaining Arzu South resource to be assessed for extraction via an
expanded open-pit along strike and to greater depth.

 

 

Dr. Kerim Sener, Managing Director, commented:

 

"These drilling results have confirmed the opportunity to expand the open-pit
at Arzu South, particularly at the NW end and also at further depth.  Some of
the deeper drilling undertaken at Arzu South this year aimed to provide
further definition to some higher-grade mineralised shoots, though the
continuity to depth of these is now considered less likely.  We are, however,
very encouraged to see the opportunities for pit expansion and to bring Arzu
South back into operation.  Being the highest-grade vein system overall at
Kiziltepe, this is an important development.  Further work, including
engineering, will be undertaken following the completion of an updated Mineral
Resource Estimate.  Encouragingly, we have both identified and confirmed the
presence of additional narrow but potentially higher-grade veins in both the
hanging wall and footwall of the main Arzu South vein, which furthers the
opportunity to build an enhanced resource.

 

"After having received additional permits at Kiziltepe, the JV has determined
to further extend its drilling programme.  The drill rig is currently
completing an expanded programme of drilling at Kepez, following which it will
be returned to Kiziltepe to continue drilling at Arzu North and Derya, within
the newly named 'Parallelogram' target area."

 

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").

 

Drilling Programme

 

Since late December 2020, the Ariana and Zenit exploration teams have drilled
11,490 metres of diamond drill core for 91 holes.  The programme is the
Company's most significant drilling campaign to date, which aims to expand on
the open-pittable and potential underground resources, in addition to testing
several significant exploration targets within the Kiziltepe Sector.  This
announcement is the fifth in a series of updates following the release of
further assay results from the Kiziltepe Mine Laboratory.  Earlier
announcements include those encompassing the Arzu Central (11 August 2021),
Derya (24 June 2021), Banu (17 May 2021) and Arzu North (29 April 2021) areas.
 This release focuses on the Arzu South area of the Kiziltepe Mine.

 

Arzu South is the most significant area of gold and silver mineralisation
within the Kiziltepe Sector.  Mining of the Arzu South vein system (within
the Feasibility Study permitted areas) commenced in November 2016 and was
completed in August 2020, following the extraction of 656,000 tonnes of ore at
an average grade of 4.17g/t Au and 59.6 g/t Ag.  Further work since late 2019
has continued at Arzu South with the aim of increasing the confidence of the
remaining mineral resources sufficiently to allow re-permitting of the
open-pittable area. This work is now largely completed, and the results
presented here represent the final input for a total re-evaluation of Arzu
South's remaining resources, which are to be assessed for further open pit
expansion and/or underground development.

 

Drilling Results

 

During the 2021 Arzu South drilling campaign, a total of 5,389 metres of
diamond drilling was completed for a total of 31 holes.  The drill holes
targeted mineralisation in and around the Arzu South open pit to a depth of
50-150m (maximum 213.2m), infilling and increasing confidence to drilling
completed during 2020.

 

The drilling at Arzu South was completed with two main objectives in mind: 1)
to complete infill resource drilling along strike (particularly to the
northwest), and at depth beneath the existing Arzu South open-pit (Figures 1
and 2) and; 2) to complete additional drilling to target a new vein recently
discovered during drilling completed in 2020 (see announcement dated 02
September 2020).

 

The latest drilling returned 27 new mineralisation intercepts ranging from
5.45g/t Au to 1.0g/t Au with true thickness varying from 0.5m to 9.0m.  Key
intercepts within this data include:

 

KTP-D01-21 (56.6m - 70.5m) 13.9m @ 1.67g/t Au + 17.5g/t Ag

KTP-D10-21 (135.2m - 143.4m) 8.2m @ 2.49g/t Au + 43.5g/t Ag

KTP-D01-21 (46.6m - 51.6m) 5.0m @ 2.70g/t Au + 27.6 g/t Ag

KTP-D59-21 (136.1m - 141.2) 5.1m @ 2.16g/t Au + 44.2g/t Ag

 

Drilling results for the "New 2020 Vein" discovered at Arzu South include:

 

KTP-D63-21 1m @ 5.45g/t Au + 10.0g/t Ag

KTP-D64-21 1m @ 2.84g/t Au + 19.0g/t Ag

KTP-D67-21 2m @ 1.17g/t Au + 4.0g/t Ag

 

Conceptual pit optimisation work completed during early 2021 was used to guide
the latest Arzu South drilling programme, which has now resulted in a dataset
which provides significantly more confidence to the final round of pit
optimisation studies planned for Arzu South.  These results will enable the
development of a revised geological model for Arzu South, which will allow an
updated Mineral Resource Estimation to be calculated in the following weeks.

 

Table 1: Intercepts calculated for Arzu South 2021 drilling, using a 0.5g/t Au
minimum cut-off and allowing for up to 2m internal dilution.

 

 Hole ID      From (m)  To (m)  Interval (m)  Au g/t  Ag g/t
 KTP-D01-21   16.2      17.4    1.2           0.77    3.0
              33.2      34.2    1.0           0.92    2.0
              46.6      51.6    5.0           2.7     27.6
              56.6      70.5    13.9          1.67    17.5
              77.6      78.6    1.0           0.69    8.0
              80.4      81.4    1.0           0.93    9.0
 KTP-D07-21   5         6       1.0           0.5     29.0
              32.7      33.7    1.0           0.6     10.0
              34.7      42.5    7.8           1.27    14.4
 KTP-D07A-21  32.3      34.6    2.3           0.86    8.5
              157.6     158.6   1.0           1.03    34.0
 KTP-D10-21   135.2     143.4   8.2           2.49    43.5
 KTP-D31-21   60.1      61.3    1.2           1.38    4.0
 KTP-D36-21   104.4     105.4   1.0           1.57    6.0
              107.4     108.4   1.0           0.8     3.0
              120.6     121.65  1.1           0.53    40.0
              125.3     127.8   2.5           1.6     72.8
 KTP-D39-21   145.8     147.8   2.0           0.68    1.5
              150.4     151.4   1.0           0.5     45.0
              152       155.9   3.9           0.8     63.6
 KTP-D41-21   177.4     178.4   1.0           0.67    86.0
 KTP-D43-21   102.2     103.2   1.0           0.62    50.0
 KTP-D47-21   180.9     181.9   1.0           0.56    33.0
              186.8     187.8   1.0           0.55    42.0
 KTP-D50-21   141.8     145     3.2           0.99    35.8
 KTP-D52-21   204.6     206     1.4           1       9.5
 KTP-D55-21   209.2     210.2   1.0           1       2.0
              213.2     214.2   1.0           0.53    52.0
 KTP-D57-21   162.9     163.9   1.0           0.67    50.0
              165.1     169.1   4.0           1.09    52.8
 KTP-D59-21   30.2      31.2    1.0           0.64    17.0
              84.2      85.2    1.0           0.68    2.0
              136.1     141.2   5.1           2.16    44.2
              150.5     153.1   2.6           0.72    32.8
 KTP-D61-21   81.6      86.7    5.1           1.07    19.5
              89.7      90.7    1.0           0.59    0.0
 KTP-D62-21   4.2       5.2     1.0           0.71    0.0
 KTP-D63-21   38        39      1.0           5.45    10.0
              52        53.1    1.1           0.7     0.0
              107.5     109     1.5           2.33    132.0
              123       124     1.0           0.52    0.0
 KTP-D64-21   25.5      26.5    1.0           2.84    19.0
              66.5      67.5    1.0           1.52    101.0
 KTP-D65-21   174.2     176.3   2.1           0.94    110.8
 KTP-D66-21   119       120.2   1.2           1.63    73.0
 KTP-D67-21   34.2      35.5    1.3           0.81    9.0
              50.5      51.5    1.0           0.77    8.0
              64.9      66.9    2.0           1.17    4.0
 KTP-D68-21   100       101.2   1.2           0.8     5.0
              148       149     1.0           2.18    18.0

 

http://www.rns-pdf.londonstockexchange.com/rns/8058I_1-2021-8-16.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8058I_1-2021-8-16.pdf)

 

Figure 1: Long-section of the Arzu South vein, showing recent (red dots) and
historic drilling (yellow dots) results and the outline conceptual pit
optimisation work completed at Arzu South. The position of long-section line
X-Y is shown in the top inset plan (showing the open pit) and the bottom inset
long-section shows the true thickness of the vein with orange to red
indicating a width greater than 4m (the position of the open pit is also
shown).

 

http://www.rns-pdf.londonstockexchange.com/rns/8058I_1-2021-8-16.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8058I_1-2021-8-16.pdf)

 

 

Figure 2: Plan of the Arzu South area, showing all of the major Kiziltepe
vein areas and illustrating with a star symbol where major exploration
potential currently exists for future production. Early 2021 conceptual pit
optimisation work is superimposed (purple line) over the outline of the
original Arzu South Pit (yellow).

 

 

Sampling and Assaying Procedures

 

All diamond drill core is currently being processed at the Kiziltepe Mine Site
and analysed at the Kiziltepe Mine Laboratory.  Results are being assessed
systematically and are being grouped according to individual vein systems at
the Kiziltepe Sector.

 

HQ size drill-core samples from the drilling programme at the Kiziltepe
deposit were cut in half by a diamond saw and sent for analysis in batches in
line with the Company's quality control procedures.  For all the Arzu South
drilling, a total of 2,954 samples (including 466 QA/QC samples) were
submitted to the Kiziltepe Mine Laboratory.  Core recovery for all drilling
conducted at Arzu South during this campaign was 92% for a total of 2,446
measurements.

 

All samples were assayed for gold using a 30g fire assay.  Reviews of the
assay results have determined that all Quality Control and Quality Assurance
samples (blanks, standards and duplicates) passed the quality control checks
established by the company, with duplicate samples showing excellent
correlation.  Laboratory sample preparation, assaying procedures and chain of
custody are appropriately controlled.  The Company maintains an archive of
half core samples and a photographic record of all cores for future reference.

 

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) 7951 402 336
 Dom Barretto / Joe Burgess / Henry Wilkinson  arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)

 

Editors' Note:

 

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 0.7 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 3.7
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 is currently earning-in to 75% of 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 is also earning-in to 50% of UK-registered Venus Minerals Ltd ("Venus")
and has to date earned into an entitlement to 37.5%. Venus is focused on the
exploration and development of copper-gold assets in Cyprus which contain a
combined JORC Inferred Resource of 9.5Mt @ 0.65% copper (excluding additional
gold, silver and zinc).

Ariana operates its wholly-owned 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;

 

"g/t" grams per tonne;

 

"JORC" the Joint Ore Reserves Committee;

 

"m" Metres;

 

"oz" Troy ounces;

 

 

Ends.

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