REG - Ariana Resources PLC - GOLD CONFIRMED AT KLIROU SECTOR, CYPRUS

Ariana ResourcesAnnouncement

17/02/2022 07:00

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RNS Number : 9162B  Ariana Resources PLC  17 February 2022

17 February 2022

AIM: AAU

GOLD CONFIRMED AT KLIROU SECTOR, CYPRUS

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 recent drilling results obtained from the Klirou Sector of
the Magellan Project ("the Project") which is 100% owned by Venus Minerals Ltd
("Venus").  Venus is focused on the exploration and development of copper and
gold assets in Cyprus and is 50% owned by Ariana.

Highlights:

·    Gold confirmed to be a significant component of the Klirou deposit.

 

·    Key intercepts from the new drilling at Klirou include:

 

o  22.0m @ + 0.72g/t Au + 0.38% Cu + 1.64% Zn

o  16.0m @ 0.73g/t Au + 0.34% Cu

o  14.0m @ 0.64g/t Au + 0.34% Zn

Dr. Kerim Sener, Managing Director, commented:

"These initial drilling results at the Klirou Sector have confirmed the
presence of significant gold within the deposit.  Like Kokkinoyia, it appears
there is a metal zonation at Klirou, with gold mineralisation most closely
correlated with zones of zinc mineralisation.  While these drilling results
are preliminary and have tested only one part of the deposit, they reinforce
our understanding of the Klirou VMS system.  The results further suggest that
future exploration needs to focus on the gold-rich zones, which have also been
identified recently in several surface outcrops.

"These results also indicate that the mineralisation is likely to be more
structurally controlled than previously considered, with high-grade gold
mineralisation encountered along metre-wide structures; this observation will
need to be taken into account in future programmes.  Follow-up work at Klirou
will probably involve a detailed geophysical survey, to help identify
extensions to the mineralisation at depth and along strike, prior to a future
round of drilling.  Meanwhile, Venus is continuing to progress towards its
planned IPO in London and we look forward to providing further updates on this
in due course."

* Further information about Venus Minerals and its projects is available on
the Company's website, www.venusminerals.co (http://www.venusminerals.co) .

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

Between May and June 2021, four inclined diamond drill holes were completed at
the Klirou Project for a total of 910 metres.  The primary aims of this
programme were to 1) conceptually test historic drilling, 2) understand the
distribution and controls of mineralisation and 3) confirm the presence of
gold within the Klirou system (Figure 1).

Drilling was undertaken to an average depth of 227m (minimum depth 200m,
maximum depth 260m).  A combination of PQ and HQ diamond drilling was used to
test specifically the Klirou East area, where a substantial part of the
current Mineral Resource lies.  This programme represents the first to be
completed at Klirou using inclined holes (typically 50-65 degrees), and
provides a test for the continuity of mineralisation between multiple historic
holes.  It also provides a test for steeply dipping structural controls,
which are apparent within some surface outcrops.

The drilling results from the 2021 Klirou programme include (Table 1):

·    VMD015 (135m-157m): 22.0m @ + 0.72g/t Au + 0.38% Cu + 1.64% Zn

o  Including 8.0m @ 1.53g/t Au + 0.81% Cu + 3.28% Zn

 

·    VMD014 (128m-144m): 16.0m @ 0.73g/t Au + 0.34% Cu

 

·    VMD014 (124-126m): 2.0m @ 4.28g/t Au + 2.85% Cu + 1.77% Zn

 

·    VMD013 (114m-128m): 14.0m @ 0.64g/t Au + 0.34% Zn

These results provide a new and more detailed understanding of the style and
structural controls of VMS mineralisation at Klirou.  It is now understood
that Klirou has very similar metal zonation as is characteristic at the
Kokkinoyia Sector (see announcement dated 2 December 2021).  Gold is clearly
a major component of the mineralisation system, and is generally present
throughout the deposit including gold-only areas, but mostly noted in higher
concentrations in association with zinc (as was also noted at Kokkinoyia).

Copper is mostly identified in lenses of structurally-controlled
massive-to-strongly disseminated sulphide zones, which generally contain some
low-level gold (0.1-0.7g/t Au).  Importantly, the new inclined drilling
indicates that most of the mineralisation at Klirou may be controlled by
steeply dipping structures, which potentially also explains some of the
erratic results encountered in a number of vertically drilled historic holes.
 This is an observation that the Venus team will continue to develop and
understand in future exploration and resource assessment work.

In contrast with Kokkinoyia, Klirou appears to have more significant
concentrations of zinc throughout the deposit.  However, whether this
observation is an artifact of the current limited data requires further
evaluation.  At Kokkinoyia, zinc is dominantly concentrated at the upper
limits of the deposit.  Therefore, if this understanding is applicable to
Klirou, then it strongly suggests that the current drilling may only be
defining the upper limits of a faulted deposit, and that further potential to
find the main body of mineralisation may exist in the form of down faulted
blocks to the east of the current resource area.  This concept will need to
be investigated further through geophysical exploration methods in particular.

http://www.rns-pdf.londonstockexchange.com/rns/9162B_1-2022-2-16.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9162B_1-2022-2-16.pdf)

Figure 1: Plan view of the Klirou area, showing all recent drill collar
positions and the projection of the orebody to surface.

Table 1: Significant intercepts calculated for all Venus drilling completed at
Klirou.  Stated intercepts use 0.2g/t Au, 0.1% Cu and 0.1% Zn minimum
cut-offs, allowing for up to 1m internal dilution.

 Hole ID        From (m)  To (m)  Interval (m)  Au g/t     Cu %                Zn%
 VMD013         108       109     1                4.08       0.81                0.10
                114       128     14               0.64       0.05                0.34
                141       144     3                0.61           -                   -
                162       166     4                0.09       1.04                0.10
 VMD014         124       126     2                4.28       2.85                1.77
                128       144     16               0.73       0.34                0.10
          incl  128       132     4               1.19       1.29                0.10
                158       168     10               0.22       0.09                0.20
          incl  158       162     4               0.49       0.10                0.10
                168       171     3                0.23       0.69                0.20
          incl  169       171     2               0.31       0.85                0.27
                173       174     1                0.19       0.07                0.20
                175       189     14               0.03       0.03                0.33
 VMD015         135       158.8   23.8             0.67       0.30                1.50
          incl  135       157     22              0.72       0.38                1.64
          incl  135       143     8               1.53       0.81                3.28
          incl  146       153     7               0.27       0.21                0.90
 VMD016         178       179     1                0.03       0.06                0.24

Sampling and Assaying Procedures

All diamond drill core was analysed at ALS Laboratory Services in Ireland
("ALS Ireland").  HQ and PQ size drill-core samples from the drilling
programme at Klirou were cut by a diamond saw into quarter core. Quarter core
is sent for analysis in batches in line with the Company's quality control
procedures, whilst one quarter is held back for future metallurgical analysis
and the remaining half core is archived. The Klirou 2021 drilling contained a
total of 184 samples (including 30 QA/QC samples).

 

Drill core recoveries for all the Klirou drilling ranged between 50% and 100%,
with an overall average for mineralised intercepts and host rocks of 96.7%.
 Drill hole down-hole surveys at time of drilling returned unexplained
erratic results unsuitable for appropriate data analysis.  However, since
completing the campaign, the drilling contractor resurveyed VMD013, VMD014,
and VMD016 (VMD015 could not be resurveyed due to collapse), using a new Gyro
survey tool.  These results have been reviewed in field and in parallel with
the existing model, and are now deemed satisfactory for exploration level
work.  Further confidence in these drill holes is required if their data is
to be used in future resource work.

 

All samples were assayed for gold using a 50g fire assay (Au-AA23) and
ME-ICP41 for copper and other elements.  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 crush and pulp 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) 20 3004 9512
 Dominic Barretto / Henry Wilkinson / Matthew McHale  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 February 2021). 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 2021). 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 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 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 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 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:

 

"Au" chemical symbol for gold;

 

"Cu" chemical symbol for copper;

 

"g/t" grams per tonne;

 

"JORC" the Joint Ore Reserves Committee;

 

"m" Metres;

 

"Zn" chemical symbol for zinc;

 

Ends.

 

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