REG - Ariana Resources PLC - DRILLING COMMENCES AT SALINBAS AND TAVSAN

Ariana ResourcesAnnouncement

15/11/2021 07:05

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RNS Number : 3053S  Ariana Resources PLC  15 November 2021

 

 

 

 

15 November 2021

AIM: AAU

DRILLING COMMENCES AT SALINBAS AND TAVSAN

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 commencement of drilling programmes at
Salinbas and Tavsan.  These projects are part of the Zenit Madencilik San. ve
Tic. A.S. ("Zenit") Joint Venture ("JV") with Proccea Construction Co. and
Ozaltin Holding A.S. and are 23.5% owned by Ariana.

Highlights:

·    Commencement of diamond drilling programme at the Salinbas Project.

 

·    Imminent start-up of diamond drilling programme at the Tavsan
Project.

 

·    Over 2,300m of resource and exploration drilling planned at Salinbas
to increase confidence in resource and extend the peripheries of the current
model.

 

·    Over 2,000m of resource drilling planned at Tavsan prior to
commencement of mining.

 

·    Kiziltepe Sector drilling programme has concluded following the
completion of over 15,000m, representing the most significant single programme
conducted to date.

Dr. Kerim Sener, Managing Director, commented:

"We are delighted to be commencing our drilling programmes at Salinbas and
Tavsan.  These programmes were repeatedly delayed through this year, largely
as a result of COVID-19-induced limitations on both our teams and on the
drilling companies.  Up until one month ago, we had expected an RC programme
to commence, but even this had to be cancelled and we have now opted to
undertake diamond drilling across both projects.  A mid-winter programme
presents some challenges, but as we will now be proceeding with diamond
drilling this also provides some advantages.  We are now looking forward to
seeing the results of these new programmes and wish the teams involved much
success."

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

The drilling programmes at Salinbas and Tavsan are commencing following
completion of the Kiziltepe Sector drilling programme of over 15,000m which
started in December 2020.  As with the Kiziltepe drilling, the activities of
the JV team will be supported by the Ariana exploration team during the course
of the drilling programmes at Salinbas and Tavsan.  Both teams have now
mobilised to their respective sites.

Salinbas

 

Diamond drilling (HQ, with top of hole in PQ due to thick colluvium layer) has
commenced at the Salinbas Project, located in north-eastern Turkey within the
multi-million ounce Artvin Goldfield.  The 4,000m programme has begun with
the Phase 1 drilling (Figure 1) which is comprised of holes located
exclusively on private land.  Phase 1 of the programme, consisting of 2,320m
across 16 holes, aims to increase confidence in the resource by means of
infill drilling.  Some exploratory holes have also been planned to target the
periphery of the current model, to potentially expand the resource.  Later
phases of the programme will focus on exploration targets, some of which
require forestry permits, for which applications have been made.  Additional
holes will be added to this drilling programme as twin holes to provide
material for metallurgical test work.

 

A drilling programme in 2019 completed a total of 2,210m on the Salinbas
Project which improved the understanding of the relationship between the
Salinbas-style of mineralisation and the Ardala Porphyry Complex (see new
release 11 July 2019).  To date, 21,277.60 m of drilling has been completed
across 134 holes at the Salinbas Project.  These previous drilling programmes
helped to define the current JORC Measured, Indicated and Inferred Resource of
1.5 million ounces of gold (see news release 30 July 2020) split between the
high-grade Salinbas Deposit and the lower-grade, high-tonnage Ardala Porphyry
Complex.

 

http://www.rns-pdf.londonstockexchange.com/rns/3053S_1-2021-11-14.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3053S_1-2021-11-14.pdf)

 

Figure 1: Map showing planned drillhole collar locations for the Phase 1
Salinbas resource drilling programme.

 

Tavsan

 

Diamond drilling (HQ) is planned to start at the Tavsan Project before the end
of the month, with 85 holes planned for a total of over 2,000m of drilling
(Figure 2).  Opportunities for resource expansion at Tavsan have been
demonstrated and thus the aim of this programme is primarily infill and
resource step-out drilling, with some additional exploration holes.

 

The majority of the drilling at Tavsan was completed prior to 2005.  To date,
5,879m of drilling has been completed at Tavsan across 171 holes (max.  depth
159m, avg. 34m, min. 7m).  Based on this drilling, the Tavsan Project has a
current JORC Measured, Indicated and Inferred Resource of 253,000 ounces gold
and 0.7 million ounces silver (as at June 2020).

 

The EIA permit for the Tavsan Project to be developed as a gold and silver
mine, targeting production of up to 30,000oz of gold per year over 8 years,
was approved recently (see news release 14 October 2021).  Zenit is managing
the development of the Tavsan Mine, with construction to commence following
the receipt of final permits, including those for construction, health and
safety, and forestry, among others, and with production expected to commence
within 12 months after the initiation of construction.

 

http://www.rns-pdf.londonstockexchange.com/rns/3053S_1-2021-11-14.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3053S_1-2021-11-14.pdf)

 

Figure 2: Map showing planned drillhole collar locations for the Tavsan
Project.

 

 

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. 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). Operations comprise 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 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 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 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:

 

"EIA" Environmental Impact Assessment;

 

"JORC" the Joint Ore Reserves Committee;

 

"m" Metres

 

 

Ends.

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