REG - Ariana Resources PLC - Drilling Completed at Kizilcukur

Ariana ResourcesAnnouncement

28/11/2023 07:00

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RNS Number : 8128U  Ariana Resources PLC  28 November 2023

28 November 2023

AIM: AAU

DRILLING COMPLETED AT KIZILCUKUR

A strong set of results from the Kizilcukur drilling programme

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral
exploration and development company with gold mining interests in Europe, is
pleased to announce positive results from a recent drilling programme at the
Kizilcukur Project ("Kizilcukur" or "the Project") of the Kiziltepe Sector.
Kizilcukur is part of Zenit Madencilik San. ve Tic. A.S. ("Zenit"), in
partnership with Proccea Construction Co. and Ozaltin Holding A.S. and is
23.5% owned by Ariana.

Highlights:

●     Resource infill and extension drilling programme has been
completed, testing all three main zones of mineralisation, identifying
potential extension zones.

 

●     Initial results of drilling include:

 

6.0m @ 4.75g/t Au + 135.2g/t Ag

7.3m @ 2.43g/t Au + 36.3g/t Ag

4.5m @ 3.76g/t Au + 17.7g/t Ag

 

●     Process metallurgical testwork of the Kizilcukur mineralisation
yields an average gold recovery of 97%, significantly higher than Kiziltepe.

 

●     A rock-chip sampling programme designed to test the extensions to
outcropping zones returned grades up to 15.47g/t Au.

 

●     Re-analysis of historic core samples confirms the historic gold
grades.

 

Dr. Kerim Sener, Managing Director, commented:

"This is a great set of results from the Kizilcukur drilling programme. The
vein system has now been sufficiently well tested for the Zenit mining team
and the incoming data is continuing to demonstrate the continuity of gold and
silver mineralisation in many of the areas tested. The Zenit team have
commenced the detailed work to bring Kizilcukur into the Kiziltepe Sector
mining plan.

"At this stage, we are confident that Kizilcukur will yield a small,
high-grade resource capable of being converted to a reserve, which will
augment the ongoing operations at Kiziltepe. Metallurgically the ore performs
very well with exceptionally high gold recovery, which is in part the result
of nuggety free-gold. We expect Kizilcukur will be operated as a satellite
mine to Kiziltepe within the next eighteen months."

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

This drilling programme was designed to increase the confidence in the
resource, and upgrade the classification, in addition to further testing along
known mineralised structures, both at depth and along strike (Figure 1). In
particular, the vein systems at Ziya and Zafer were targeted, which had
previously received only limited drill testing. In addition, in-fill drilling
at depth and along strike was completed at the Zeki main vein system.

From the end of July through to November 2023, Ariana and Zenit exploration
teams completed the HQ diamond drilling programme of 56 holes, totalling
3,563.8m. At the peak of the programme, two drill rigs were operating
simultaneously. The average depth for all drilling was approximately 63
metres, with a minimum depth of 28.6 meters and a maximum depth of 118.8
metres. The dip angles were planned from 45° to 77° to test the extents of
the mineralisation.

Figure 1: Map showing historic and new drill collars at the Kizilcukur
Project, with quartz veins mapped at surface shown in red. Holes for which
assays have been received are shown in dark blue and holes for which data is
still to be received are shown in light blue.

Results have returned for 20 holes to date (Table 1), with the most
significant intercepts within the expected target zones including:

·    KCR-D01-23: 6.0m @ 4.75g/t Au + 135.2g/t Ag

o  including 1.0m @ 5.95g/t Au + 268.8g/t Ag

o  including 1.1m @ 6.42g/t Au + 7.6g/t Ag

·    KCR-D02-23: 7.3m @ 2.43g/t Au + 36.3g/t Ag

·    KCR-D19-23: 4.5m @ 3.76g/t Au + 17.7g/t Ag

·    KCR-D20-23: 2.3m @ 4.55g/t Au + 78.4g/t Ag

Table 1: Significant gold and silver intercepts calculated for all 2023
drilling to date, using a 0.5g/t Au minimum cut-off and allowing for up to 1m
internal dilution. Intercepts calculated using KML data.

 Hole ID     From (m)  To (m)  Length (m)  Au (g/t)  Ag (g/t)
 KCR-D01-23  20.9      26.9    6.0         4.75      135.2
 incl.       20.9      23.8    1.0         5.95      268.8
 incl.       25.8      26.9    1.1         6.42      7.6
 KCR-D02-23  0.0       2.1     2.1         1.54      125.3
             13.2      20.5    7.3         2.43      36.3
             31.4      32.7    1.3         0.72      13.5
 KCR-D04-23  39.7      41.5    1.8         0.66      89.1
 KCR-D05-23  55.7      56.6    0.9         0.52      4.5
             79.3      81.5    2.2         1.89      88.0
 KCR-D06-23  77.6      78.6    1.0         0.50      0.3
             82.6      83.6    1.0         1.13      22.2
 KCR-D07-23  63.4      65.2    1.8         0.90      208.6
 KCR-D08-23  58.7      59.7    1.0         0.73      98.1
             60.4      60.9    0.5         0.62      47.9
 KCR-D09-23  74.0      78.9    4.9         0.82      46.2
 KCR-D10-23  15.9      17.7    1.8         2.25      62.0
 KCR-D13-23  43.4      44.7    1.3         0.77      172.5
             57.3      59.3    2.0         0.50      38.2
             60.5      61.7    1.2         0.52      5.3
 KCR-D14-23  55.5      56.5    1.0         1.29      16.3
 KCR-D15-23  2.0       3.0     1.0         4.30      30.0
             8.0       12.3    4.3         1.58      50.6
             15.3      16.3    1.0         0.81      2.1
             23.0      24.0    1.0         0.56      65.2
 KCR-D16-23  0.0       1.0     1.0         0.57      27.8
 KCR-D18-23  20.0      22.9    2.9         2.91      2.7
             78.7      79.7    1.0         3.33      16.6
 KCR-D19-23  94.1      98.6    4.5         3.76      17.7
 KCR-D20-23  10.3      12.6    2.3         4.55      78.4
 incl.       11.5      12.6    1.1         6.42      85.8
 KCR-D51-23  25.0      26.0    1.0         1.06      1.9
             39.5      42.9    3.4         1.07      126.3

 

The drilling programme also highlighted the complex multi-phase mineralisation
characteristic of the Kizilcukur deposit (Figure 2). Three different
mineralisation phases have been identified and will be evaluated following the
receipt of all assay results. These represent epithermal quartz veins,
manganese rich zones, and a deeper sulphidic lead and zinc zone, which are
suggestive of a low to intermediate sulphidation type system.

Figure 2: An example of the mineralised zones seen at Kizilcukur.

 

A total of 90.30m drill core from 5 selected historic drill holes have been
re-analysed for gold, silver and multi-elements to check the results, which
all returned results within reasonable confidence intervals. The results of
the highest grade re-analysed zone are seen below in Table 2. Photon assay is
being considered as a check analysis for core samples as a potential nugget
effect has been noted.

 

Table 2: Original and repeat assay results for historic hole.

 Hole ID  From      To      Interval  Au g/t           Ag g/t

          m         m       m
          Original          Repeat           Original        Repeat
 KDTD013  109.65    111.00  1.35      14.50  30.21     39.0  35.1
          111.00    111.52  0.52      0.40   0.26      66.5  37.5
          111.52    112.50  0.98      26.50  35.03     70.5  60.0
          112.50    113.60  1.10      0.10   0.29      22.6  20.5

 

Metallurgical Testwork

 

Two HQ diamond holes were drilled to twin the best representative
mineralisation intervals of the 2015 RC and 2019 diamond drilling programmes.
The whole core representing 2.90m and 3.20m were sampled with average grades
of 5.17g/t and 2.20g/t Au, respectively. Both samples were crushed and sieved
to -106 micron and subjected to NaCN leach tests. The average recovery of gold
was 97%, following 72 hours leach time. Silver showed recoveries of up to 75%
after 72 hours.

 

Rock-chip Sampling

 

A total of 66 rock-chip samples were collected to sample the untested
subparallel and extensional zones of the known Kizilcukur vein system (Figure
3). The highest gold grade from this sampling programme is 15.47g/t, proving
that the new zones are potential targets for further gold mineralisation and
will be used to define new drill targets. Areas to the NW of Zeki and to the
SE of Zafer, in addition to a parallel vein system to Ziya, are of particular
interest.

 

Figure 3: Results of the Kizilcukur rock-chip sampling, with highest grades
labelled.

 

Project Summary

 

The Kizilcukur Project consists of one operational licence located in
Balikesir Province in Western Turkey. The property lies 22km to the northeast
(straight line) and 70km by road from the Kiziltepe Mine. The Kizilcukur
Project is one of the 3 satellite projects which have been sold to Zenit (see
announcement of 2 December 2020).

 

The Project covers an area containing a series of sub-parallel quartz veins
hosted by ophiolitic (dominantly basaltic) units that trend northwest and
extend for about two kilometres. The veins exhibit classic low-sulfidation
epithermal textures and attain a maximum true width of 8m. The Zeki Vein
extends over a strike length of 820m. Composite rock-chip sampling of 80m
strike along this quartz vein returned encouraging assay results of 6m at
3.3g/t Au, 2m at 9.6g/t Au and 1m at 7.2g/t Au prior to drill testing. The
peak rock-chip assay result in this area was 152g/t Au and 1,320g/t Ag,
suggesting the potential for substantial near-surface enrichment.

 

The Mineral Resource Estimate for Kizilcukur is c. 21,100oz gold (Au) and
0.62Moz silver (Ag) contained metal on three main veins (see announcement of
11 May 2020). 85% of the tonnage is in Measured and Indicated (M+I)
categories: 218,317t @ 2.72g/t Au and 77.04g/t Ag. 46% of the M+I tonnage is
located within the higher-grade Zeki Main Vein, with a grade of 3.62g/t Au and
82.54g/t Ag, upon which trial mining operations have been undertaken
previously.

 

Trial mining was completed within the central part of the Zeki Pit in 2017.
This pit is the largest and highest grade of the three pits defined following
Whittle optimisation of the Kizilcukur resource in 2016. The General
Directorate of Mining Affairs approved blasting operations on the licence as
part of the Mining Permit (see announcement of 18 November 2015).

Sampling and Assaying Procedures

All diamond drill core is currently being processed at the Kiziltepe mine site
and analysed at the Kiziltepe Mine Laboratory ("KML"). Results are assessed
systematically and are grouped according to project.

 

HQ-size drill-core samples from the drilling programme at Kizilcukur were cut
in half by a diamond saw and sent for analysis in batches in line with the
Company's quality control procedures. Core recovery for all drilling conducted
at Kizilcukur during this campaign was 90%. A total of 3,621 samples
(including 762 QA/QC samples) were submitted to KML, of which results for
1,615 samples have been received. Samples to be sent to ALS Global, Izmir as
an external laboratory check to add confidence to KML results, have been
selected and are awaiting dispatch.

 

QA/QC sample insertion rates vary depending on the batch size accepted by the
laboratory. Ariana sampling protocol requires insertion of 4 QA/QC samples per
batch to include 1 blank, 1 CRM, 1 field duplicate and 1 pulp duplicate to
assess the accuracy and precision of all stages of the sampling and analysis.
During this drilling programme, Zenit QA/QC protocol required 1 blank, 1 CRM,
1 field duplicate, and 1 pulp duplicate per batch of 19 samples and over 10%
samples analysed at external laboratory.

 

Between 2020 and 2021, KML has undergone an extensive expansion to meet the
significant demands for sample assaying, from both the mining and exploration
teams. This expansion is complete with the onsite laboratory, now housing
seven furnaces, two ICP-OES instruments, two Atomic Absorption spectrometers
(AAS), three drying ovens, three crushers and three pulverisers. The
laboratory upgrades have allowed for a doubling of sampling throughput (70
samples per day to 135). The two major upgrades for 2021 included the addition
of 1) a multi-element ICP-OES (Perkin Elmer Avio 550) analyser, and 2) an
Elementrac CS-I sulphur-carbon analyser. The ICP-OES provides the team with a
full suite of elements on selected samples (as opposed to just gold and
silver).

 

However, new operating procedures are currently being internally reviewed and
calibrations of the new instruments are being assessed. As part of this, the
laboratory team are sending in excess of 10% of their crushed rejects from
selected drill core samples to ALS Global in Izmir for check assays. Zenit's
internal QA/QC data and sample duplicates have been reviewed, and are
considered approved for Ariana's reporting purposes. In addition, since
October 2022 KML has been accredited by the Turkish Accreditation Agency
(TÜRKAK) with 'TS EN ISO/IEC 17025:2017 General Requirements for the
Competence of Experimental and Calibration Laboratory.'

 

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 required 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. Zenit 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 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
 John Prior / Hugh Rich / Atholl Tweedie
 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

 

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 February 2022). 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 222,000 ounces gold
and 3.8 million ounces silver (as at February 2022). 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 Mine is located in western Turkey and contains a JORC
Measured, Indicated and Inferred Resource of 307,000 ounces gold and 1.1
million ounces silver (as at November 2022). Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan is being
developed as the second gold mining operation in Turkey 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 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 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, Turkey, 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 (http://www.newmont.com/) ) and is separately
earning-in to up to 85% of the Slivova Gold Project.

 

Ariana owns 58% 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
17Mt @ 0.45% to 1.10% 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 (http://www.arianaresources.com/) .

Glossary of Technical Terms:

"Au" gold;

"Ag" silver;

"g/t" grams per tonne;

"JORC" the Joint Ore Reserves Committee;

 "km" Kilometres;

"m" Metres;

"Moz" Million ounces;

 

"oz" Troy ounces;

Ends.

 

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