REG - Ariana Resources PLC - Geophysical Survey Results At Kepez

Ariana ResourcesAnnouncement

13/03/2023 07:00

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RNS Number : 6606S  Ariana Resources PLC  13 March 2023

 

 

13 March 2023

AIM: AAU

GEOPHYSICAL SURVEY RESULTS AT KEPEZ

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 an Induced Polarisation
("IP")/Resistivity geophysical survey conducted at the Kepez North and Kepez
Main areas of the Kiziltepe Sector. Both Kepez Main and Kepez North are 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:

●   Three significant target areas identified within Kepez Main show
potential for gold and silver mineralisation.

 

●    Results from the latest geophysical data support the presence of a
fully intact low-sulphidation epithermal vein system at Kepez Main.

 

●   Additional exploration potential was identified at the high-grade
Kepez North area, which will need to be drill tested further.

 

Dr. Kerim Sener, Managing Director, commented:

"We are highly encouraged by the results of the latest geophysical surveys
undertaken in the Kepez area.  We have potentially identified a fully intact
epithermal vein system preserved beneath a silica cap at Kepez Main, which is
associated with very high-grade silver mineralisation up to almost 400 g/t Ag
with lower-grade gold of about 1.5 g/t Au.  Initial drilling that was
undertaken in the northern part of Kepez Main has identified extensive zones
of silicification and quartz-vein textures indicative of the uppermost parts
of a low-sulphidation epithermal vein system.  The presence of high-grade
gold mineralisation at Kepez North and the discovery of high-grade gold at
Kepez South, either side of the Kepez Main area, indicates the prospectivity
of this system for what could become a major new discovery.

Kepez Main is characterised by several mineralisation, alteration and
geochemical features, among others, which suggest potential for a deep
drilling target which lies near the potential bonanza-zone within an
epithermal system.  Unlike Kiziltepe, which represents a significantly eroded
epithermal system, Kepez Main appears to have the entire system preserved
making it an extremely compelling exploration target.  These are some of the
most exciting exploration results we have ever reported from the broader
Kiziltepe Sector in many years and we are highly motivated to do the work
necessary to make a significant discovery."

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").

Details of the Geophysical Programme

This update comprises part two in a series of updates on an extensive review,
infill and new geophysical surveying of certain areas across the Kiziltepe
Sector and its various prospects. Part one was previously discussed in an
announcement made on the 22(nd) February 2023, focusing on the Kiziltepe mine
area.  The recent geophysical programmes were undertaken over four prospects
located within the Sindirgi Gold Corridor, a northeast-trending mineralised
zone extending from the Kiziltepe mine in the southwest to the Kizilcukur
Project in the northeast. This work included IP/Resistivity surveys over the
Kiziltepe mine area, Kepez Main, Kepez North and an Unmanned Aerial Vehicle
("UAV") magnetic survey over Kizilcukur (Figure 1).

Figure 1: The Sindirgi Gold Corridor with defined prospects and areas
currently covered by geophysical datasets.

The geophysical results reported in this update are from the Kepez Main and
Kepez North prospects (Figure 2) covering a total area of 4 km².  In
addition, historic data from Kepez West is currently undergoing reprocessing
and interpretation.  The results from the UAV magnetic survey at Kizilcukur
are currently being processed and reviewed.

Figure 2: Overview map showing the geophysical IP/Resistivity survey lines
over Kepez Main and Kepez North.

Kepez Main

In late 2022, data was collected from 10 northwest-southeast oriented
IP/Resistivity profiles, which were spaced 200m apart with a total length of
16.8km.  A pole-dipole array was used with a 25m electrode spacing, using a
Canada GDD TxII-5000W transmitter and a France Iris Elrec Pro 10 receiver
operating in the time domain.  The vertical limit of the survey data under
topography is approximately 200m.  The survey lines were designed to cover
the full extent of the Kepez Main vein system and aimed to identify moderate
to deep targets within the vertical limits of the data, while highlighting
structural and mineralisation trends.

Kepez Main extends for a total of 1,800m and is associated with opal,
chalcedony and silica replacement of volcanic host units along a primary
northeast-southwest to north-south trending structure.  Large
chalcedony-quartz vein outcrops, 2-4m wide and up to 3m high, are best exposed
in the northern area of Kepez Main, on the northwestern periphery of the
village of Kepez. In 2021, three initial diamond drill holes were completed in
this area with no significant gold results.  However, quartz showing
low-sulphidation textures was intercepted, suggesting the presence of a silica
cap.  Historic rock-chip and channel sampling over the vein outcrops returned
sporadic anomalous grades of gold and silver.  In addition, portable XRF soil
samples identified anomalous levels of arsenic, antimony and sulphur,
suggesting a low temperature epithermal environment.

During 2013, a highly silver-rich extension of Kepez Main was identified from
grab samples from steep scree slopes on the western side of Kepez Hill.
 These returned grades of 383.0 g/t Ag + 1.50 g/t Au, 234.0 g/t Ag + 1.73 g/t
Au and 196.0 g/t Ag + 1.51 g/t Au (see announcement dated 23(rd) September
2013).  The source of the mineralised scree was traced to several steep
quartz-ginguro banded cliff face exposures downslope of the exposed
chalcedony-quartz vein outcrops.

It is now concluded that the exposures of quartz veins at the top of the Kepez
Hill represent the top of the epithermal vein system, where the concentration
of precious metals is typically low to not present (Figure 3: "Barren-trace
precious metal interval").  Meanwhile, the exposures of ginguro-banded quartz
veins down-slope of the Kepez Hill are interpreted to represent the upper most
region of the "low-moderate grade precious metal interval" (Figure 3).

The results of the Kepez Main IP/Resistivity survey show a series of generally
northeast-southwest trending IP and resistivity anomalies (Figure 3).  The
outcropping Kepez Main hilltop quartz veins correlate exceptionally well with
a northwest dipping high resistivity signature.

 

 

Figure 3: Mineralisation model of a typical low-sulfidation epithermal vein
system shown in cross-section (at left) and 3D resistivity model of the Kepez
Main vein system with the interpreted structures in blue, proposed drill
locations in red to test the deeper epithermal system (at right).

Moderate to high resistivity anomalies noted particularly in the northeast
(Line 6), are interpreted to represent a large silica cap preserving the
system and creating a localised high point in the surrounding terrain.  At
moderate depth levels, the chargeability anomalies increase in intensity,
which likely signifies the presence of sulphide minerals and/or clay
alteration associated with the development of the low-suphidation epithermal
system.

Three different types of targets have been defined from the IP geophysical
survey at Kepez Main:

1. At the north-eastern end and central region of the project area, the IP
resistivity anomalies peak at surface, likely due to unconsolidated rock mass
(quartz scree). Similar peaks are noted at the Kepez North scree slopes.
 Further investigation by sampling, trenching and/or drilling is required to
understand the significance of these surface resistivity peaks and to test
their potential to host mineralised material.

2. Shallow to near surface resistivity anomalies, also located in the
north-eastern and central region of the study area, are of significant
interest.  These appear to correlate to the Kepez Main banded ginguro-quartz
mineralisation and a series of small workings.  These locations are expected
to be tested with a series of closely spaced shallow drill holes.

3. Deep (>150m) chargeability anomalies suggest that the Kepez Main system
continues at depth as a preserved and fully-intact low-sulphidation epithermal
vein system. Some of these deeper targets will be tested on the northwest
slope of Kepez Main.

Kepez North

Data was collected from 5 east-west oriented IP/Resistivity profiles, which
were spaced 100m apart with a total length of 2.75km (Figure 4).  These lines
were designed to cover the Kepez North resource area, testing areas of known
mineralisation, and then extending the lines to the north and south to seek IP
signatures which could suggest the continuity of mineralisation.

Kepez North is positioned at the contact between dacitic pyroclastic and
ophiolitic rocks and dips at 50° to the west.  The majority of the gold
mineralisation in this vein occurs in a matrix supported hydrothermal quartz
breccia hosted within a limited zone of approximately 150m along strike.
 This area was originally defined by significant gold grades obtained from
systematic rock saw sampling and drilling, and has subsequently been mined in
2022.  However, the gold grades at the north and south of this system
appeared not to continue along strike.  The latest geophysics coupled with
the grade control data obtained through mining suggests that the higher-grade
zone of mineralisation plunges towards the southwest along the 50° inclined
plane and this concept is expected to be tested further by drilling.

Figure 4: 3D resistivity (above) and IP model (below) of the Kepez North vein
system (red) with the open pit (black).

The resistivity anomaly confirms that the quartz vein continues north for a
further 150m with a very similar dip angle.  This area will be a priority for
further drilling along with the down-plunge areas of the high-grade
mineralisation towards the south.  In addition, the character of the
chargeability anomalies changes from north to south.  Following the
completion of mining in the Kepez North Reserve in 2022, the geology exposed
in the pit walls provided an improved understanding of the controls on gold
mineralisation.  The sulphide mineralisation encountered in the footwall
block guides the interpretation of the chargeability anomalies in the south
ahead of future drill testing.

Contacts:

 

 Ariana Resources plc                     Tel: +44 (0) 20 7407 3616
 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 / 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 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.  Construction
progress is temporarily suspended pending the outcome of a local court
decision pertaining to the EIA.  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 and the UK.

 

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 Corporation (www.newmont.com
(http://www.newmont.com) ).

 

Ariana owns 50% (increasing to 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 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:

 

"IP" Induced Polarisation;

 

"km" Kilometres;

 

"m" Metres;

 

"UAV" Unmanned Aerial Vehicle;

 

 

Ends.

 

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