REG - Ariana Resources PLC - Dokwe Project: Due Diligence Completion

Ariana ResourcesAnnouncement

06/06/2024 07:00

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RNS Number : 2990R  Ariana Resources PLC  06 June 2024

 

6 June 2024

AIM: AAU

DOKWE PROJECT: DUE DILIGENCE COMPLETION

Ariana Resources plc ("Ariana" or "the Company") is pleased to announce an
update on its due diligence review of the c.1.3Moz Dokwe Gold Project in
Zimbabwe ("Dokwe" or "The Project"). Ariana is an AIM-listed mineral
exploration and development company with gold project interests in Africa and
Europe, and recently entered into a conditional agreement to acquire 100% of
Dokwe by way of Merger ("the Merger") with Rockover Holdings Limited
("Rockover"), in which Ariana currently holds circa 2.1%. As part of its due
diligence review, Ariana has completed four diamond drill holes for a total of
1,222m, two each at the Dokwe North and Dokwe Central deposits.

 

Highlights:

·    Ariana has largely completed its Due Diligence ("DD") review of the
Dokwe North and Dokwe Central deposits, following 1,222 metres of diamond
drilling for four holes, with best intercepts including:

o  DPD129: 45m @ 2.75 g/t Au from 86m

§ including 15m @ 4.55g/t Au from 86m

§ and 12.1m @ 4.15 g/t Au from 104.9m

o  DPD129: 22m @ 1.57 g/t Au from 136m

o  DPD130: 14m @ 4.44g/t Au from 247m

§ including 1m @ 35.47 g/t Au from 250m

o  DPD131: 20m @ 1.39g/t Au from 71m

§ including 5m @ 4.27g/t Au from 76m

·    Re-logging and portable X-ray Fluorescence ("pXRF") analysis of
21,662 metres of historic drill core has also been completed.

·    Completion of detailed assessment of critical data to support the
Mineral Resource Estimation, including density data, historic collar
verification, grade checks and structural analysis.

·    Revised Mineral Resource Estimate is underway for both Dokwe North
and Dokwe Central.

To read a pdf version of the announcement, please click
here: http://www.rns-pdf.londonstockexchange.com/rns/2990R_1-2024-6-5.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2990R_1-2024-6-5.pdf)

Dr. Kerim Sener, Managing Director, commented:

"This announcement marks the completion of our technical assessment of the due
diligence drilling programme of the Dokwe Gold Project, following more than
six months of detailed work on site by our team. We have been able to both
confirm historical drilling results, the distribution and nature of gold
mineralisation within the Dokwe North and Central deposits and their
geological controls, including new insights into the structural controls on
mineralisation. The results from the holes at Dokwe Central in particular are
critical for us to estimate resources at this deposit, and the three holes we
have assays for so far have yielded lengthy zones of high and moderate-grade
gold mineralisation.

"We are now in the closing stages of our technical programme, with work on the
revised Mineral Resource Estimate for both Dokwe North and Dokwe Central well
underway. We are looking forward to announcing the new estimate in the coming
weeks, in advance of the General Meeting to approve the Merger with Rockover."

About the Dokwe Project

The Dokwe North and Dokwe Central gold deposits are located 2km apart ("Dokwe"
or "Dokwe Project") and are situated in the Tsholotsho District, 110km WNW of
Bulawayo, Zimbabwe (Figure 1). Bulawayo is the second largest city in Zimbabwe
(population: 660,000) with excellent road, rail and air links to the rest of
the country and internationally, and represents significant mining services
and educational centre, hosting both the Zimbabwe School of Mines and the
National University of Science and Technology.

The Dokwe Project was discovered by Rockover in 2002, utilising innovative
soil geochemical exploration methods capable of detecting mineralisation
beneath cover, and subsequently drill-tested for the first time in 2004. It
represents the largest undeveloped gold project in Zimbabwe and is currently
owned by Rockover in which Ariana currently holds circa 2.1%.

Due Diligence Work Completed

The primary objective of the DD programme was to evaluate the nature and
grades of mineralisation documented in both Dokwe North and Central, build
detailed geological models using multi-element geochemistry to define key
lithologies and estimate the Mineral Resources with the support of more robust
geological models. This work included:

Between November 2023 and May 2024, the Ariana team has undertaken the
following:

·    Re-organisation and re-formatting of all historic databases.

·    Re-logging and portable X-ray Fluorescence (pXRF) analysis of 21,662
metres of drill core to provide representative multi-element geochemistry of
lithologies.

·    Completion of 1,222 metres of diamond drilling (612 metres Dokwe
North and 610 metres Dokwe Central).

·    Laboratory fire assay analysis for gold, for 610 metres of drill core
(DPD129, DPD130 and DPD131), one further hole pending.

·    A full review of historic resources and the estimation methods
employed.

·    Collection and evaluation of 426 detailed structural measurements
from orientated drill core.

·    An evaluation of historic specific gravity data and the collection of
158 new density check readings spanning all major lithologies within Dokwe
North and Dokwe Central.

 

Summary of Drilling

 

Four oriented diamond drill holes were drilled by Ariana during the DD period
(Figure 1). Two holes (DPD129 and DPD130) were designed to test the Dokwe
North deposit. The remaining two holes (DPD131 and DPD132), were planned to
validate mineralisation at Dokwe Central. Drill holes within Ariana's
programme were dominantly drilled using standard HQ drill rods. However, some
holes were collared with PQ-sized rods to approximately 100m. Deeper holes
(>250 metres), were drilled to final depth using NQ rods after HQ (DPD132).

 

Figure 1: Summary map of Dokwe North and Central showing the outline of the
designed pre-feasibility pit for Dokwe North and the optimised pit (not
included in the pre-feasibility) for Dokwe Central. The 2023-2024 due
diligence drilling collars are also shown in magenta.

Assay results have been received for three of the drill holes (DPD129, DPD130
and DPD131). DPD129 was drilled into the central area of the Dokwe North
deposit, and was designed as a twin hole of historical hole DPD49, a
well-mineralised hole containing representative mineralisation of the
transitional and sulphide zones within the deposit. DPD129 was collared
approximately 5m northeast of DPD49, and successfully tested all major zones
of mineralisation documented within the historical hole. Overall, DPD129
returned somewhat higher grades than the historical hole, the main zone
providing 45m @ 2.75g/t Au from 86m, which includes 15m @ 4.55g/t Au from 86m,
and 12.1m @ 4.15g/t Au from 104.9m, announced on AIM: 9 May 2024
(https://www.londonstockexchange.com/news-article/AAU/dokwe-gold-project-revised-pre-feasibility-study/16460992)
. DPD129 is considered to have adequately confirmed the results from DPD49.

 

Figure 2: Northwest-southeast cross-section through DPD129 and DPD49. DPD129
is a near-perfect twin of DPD49, and intercepted mineralised material where
expected, whilst never deviating more than 6m from DPD49.

DPD130 was designed to target the high-grade northern end of Dokwe North, and
test it to the base of the 2022 optimisation pit, but drilled in the opposite
direction (NW to SE) to the majority of historic drilling to improve the
understanding of the structural controls on mineralisation. A total of 127m of
mineralisation was intercepted at various depths between 57m and 329m, with
highlights being a best intercept of 14m @ 4.44g/t Au from 247m, a shallow
intercept of 6m @ 3.18g/t Au from 57m and the longest intercept of 23m @
0.73g/t Au from 306m.

 

Drillhole DPD131 was Ariana's first test hole into Dokwe Central, and was
designed to provide additional confidence to the 2011 Dokwe Central Mineral
Resource by infilling between historical holes at the base of the optimisation
pit (Figure 3). Once again broad zones of mineralisation were intercepted,
including 20m @ 1.39g/t Au from 71m and 14m @ 1.68g/t Au from 100m, confirming
historical results.

 

DPD132 was an exploration hole, currently being used for internal research to
develop our understanding the nature of the Dokwe Central mineralisation at
depth. Assay results from this hole are yet to be receieved.

Figure 3: An east-west cross-section through Dokwe Central, primarily
highlighting DPD131, which was strategically planned to infill a gap in the
historic Mineral Resource model at the base of the optimisation pit.

 

Table 1: Significant intercepts from DPD129 to DPD131, with a minimum cut of
10 gramme x metres gold. Results for DPD129 were originally announced by
Ariana on the 9 May 2024, whilst those from DPD130 and DPD131 have not been
announced before. Intercepts are calculated using a 0.3g/t Au cut-off and
allowing for up to six metres internal dilution and preserving shorter
higher-grade intercepts where applicable.

 

 Hole ID  From (m)  To (m)  Interval (m)  Gold g/t  Gramme/Metres
 DPD129   86        131     45            2.75      124
 incl.    86        101     15            4.55      68
 incl.    104.9     117     12.1          4.15      50
 DPD129   136       158     22            1.57      35
 DPD130   57        63      6             3.18      19
          116       129     13            2.33      30
          247       261     14            4.44      62
 incl.    250       251     1             35.47     35
 DPD130   273       278     5             2.17      11
          289       293     4             2.76      11
          306       329     23            0.73      17
 DPD131   71        91      20            1.39      28
 incl.    76        80      5             4.27      21
 DPD131   100       114     14            1.68      24
          138       164     26            0.39      10

 

Summary of Portable XRF Analyses

A detailed pXRF and core logging study of selected historic drillholes were
completed. The study includes 21,662 multi-element readings at approximately
1m spacing over 37 drill holes. Results from the new data have identified
distinct chemical signatures for most of the lithological units known to host
mineralisation. This has added significant confidence to the geometry of all
major lithological units within both Dokwe North and Central, and importantly
defined lithological boundaries very accurately. A further 25 holes are
currently being analysed by pXRF to provide additional information on the
peripheral extents of both deposits.

The pXRF work undertaken by the Ariana and Rockover teams has generated a
significant new understanding of the mineralised systems of both deposits,
their geological settings, structural attributes and much more. A full review
of all data has now been completed, and the Ariana team is well underway with
a new Mineral Resource Estimate for both Dokwe North and Dokwe Central in
accordance with the JORC Code (2012).

Sampling and Assaying Procedures

 

All diamond drill core is currently being processed at the ISO-credited Antech
Laboratory in Zimbabwe. As part of Ariana's normal operational procedures, 10%
of samples are duplicated from spilt core and are being sent to a second
commercial laboratory (ALS Global in Johannesburg), for check assay. Ariana is
yet to receive the results of the check assays.

 

Results are being assessed systematically and are being grouped according to
the individual deposits drilled within the Dokwe Project area. PQ, HQ and NQ
size drill-core samples from the programme were cut in half, and then half
again for a quarter core sample. This was completed using a core saw. Samples
were sent for analysis in batches in line with the Company's quality control
procedures. In most cases, three-quarters of the core remain in the archived
core trays.

 

For all the new drill holes, a total of 635 samples (including 95 QA/QC
samples) were submitted to the Antech Laboratories. Core recovery for all
drilling conducted at the Dokwe Project during this campaign was 98.62% for a
total of 545 measurements.

 

All samples were assayed for gold using a 50g fire assay. Reviews of the assay
results have

determined that all Quality Assurance and Quality Control 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 core samples and a
photographic record of all cores for future reference.

 

Contacts:

 

 Ariana Resources plc                           Tel: +44 (0) 20 7407 3616
 Michael de Villiers, Chairman
 Kerim Sener, Managing Director
 Beaumont Cornish Limited (Nominated Adviser)   Tel: +44 (0) 20 7628 3396
 Roland Cornish / Felicity Geidt
 Panmure Gordon (UK) Limited (Joint Broker)     Tel: +44 (0) 20 7886 2500
 Hugh Rich / Atholl Tweedie / Rauf Munir
 WHIreland Limited (Joint Broker)               Tel: +44 (0) 207 2201666

 Harry Ansell / Katy Mitchell / George Krokos

 Yellow Jersey PR Limited (Financial PR)        Tel: +44 (0) 7983 521 488
 Dom Barretto / Shivantha Thambirajah /         arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)

Bessie Elliot

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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 Türkiye 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 Türkiye
which contains a depleted total of c. 2.2 million ounces gold equivalent (as
at March 2024, using a price ratio of 90 Ag to 1 Au). The joint venture
comprises the Kiziltepe Mine and the Tavsan and Salinbas projects.

 

The Kiziltepe Gold-Silver Mine is located in western Türkiye and contains a
depleted JORC Measured, Indicated and Inferred Resource of 171,700 ounces gold
and 3.3 million ounces silver (as at March 2024). The mine has been in
profitable production since 2017 and has been producing at an average rate of
c.22,000 ounces of gold per annum. A Net Smelter Return ("NSR") royalty of
2.5% on production is being paid to Franco-Nevada Corporation.

 

The Tavsan Gold Mine is located in western Türkiye and contains a JORC
Measured, Indicated and Inferred Resource of 311,000 ounces gold and 1.1
million ounces silver (as at March 2024). Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan is being
developed as the second gold mining operation in Türkiye and is currently in
construction. A NSR royalty of up to 2% on future production is payable to
Sandstorm Gold.

 

The Salinbas Gold Project is located in north-eastern Türkiye 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 100% of Australia-registered Asgard Metals Fund ("Asgard"), as
part of the Company's proprietary Project Catalyst Strategy. The Fund is
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, Türkiye, UK and Zimbabwe.

 

Ariana owns 75% of UK-registered Western Tethyan Resources Ltd ("WTR"), which
operates across south-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. WTR is being funded through a
five-year Alliance Agreement with Newmont Mining Corporation
(www.newmont.com) and is separately earning-in to up to 85% of the Slivova
Gold Project.

 

Ariana owns 61% of UK-registered Venus Minerals PLC ("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
0.80% copper (excluding additional gold, silver and zinc.

 

Panmure Gordon (UK) Limited and WH Ireland Limited are 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.

 

Ends.

 

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