REG - Ariana Resources PLC - Kizilcukur Drilling and New Geophysical Targets

Ariana ResourcesAnnouncement

24/07/2023 07:00

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RNS Number : 8820G  Ariana Resources PLC  24 July 2023

 

 

 

24 July 2023

AIM: AAU

KIZILCUKUR DRILLING AND NEW GEOPHYSICAL TARGETS

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 airborne magnetic survey and the
commencement of drilling 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 commenced,
following the receipt of new forestry permits.

 

●     An automated multi-sensor core scanner (BoxScan) was used to
obtain digital logging data on the historical Kizilcukur drill core to assist
in the building of a revised 3D model.

 

●     An airborne magnetic survey has better defined the controlling
structures of the Kizilcukur vein system.

 

●     New potential gold mineralisation zones have been identified along
strike of the known veins.

To read a pdf version of the release, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/8820G_1-2023-7-23.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8820G_1-2023-7-23.pdf)

Dr. Kerim Sener, Managing Director, commented:

"Following the completion of the data processing and analysis of our recent
airborne magnetic survey, the receipt of forestry permits over several target
areas, and the detailed multi-sensor scanning of about 2,500m of historical
drill core, we are commencing a new resource drilling campaign at the
Kizilcukur Project.  Up to 3,000m of drilling has been planned and the
programme will be managed jointly by the Ariana and Zenit teams.  The
programme will progress in an iterative manner, with each drill hole informing
the final planning of each subsequent hole.  This is to ensure optimal
targeting and capital efficiency.

Ultimately, we expect to define a high-grade Reserve at this satellite project
capable of being mined by open-pit methods and then trucked to the Kiziltepe
processing plant. The current global Mineral Resource Estimate across
Measured, Indicated and Inferred categories is c. 21,100 oz gold (Au) and 0.62
Moz silver (Ag) contained metal across three main veins at an overall average
grade of about 2.6 g/t Au and 75 g/t Ag. The new drilling programme has been
designed to provide further confidence to the Resource prior to conversion to
a Reserve, in addition to testing certain vein extensions."

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

The last phase of drilling completed at Kizilcukur (see announcement of 6 June
2019), led to a substantial upgrade in resource classification of the Zeki
Main Vein, with additional improvements to the Mineral Resource.  However,
additional drilling is required to provide the confidence required to complete
a conversion of the Resource to Reserve, in addition to further testing along
known mineralised structures, both at depth and along strike.

Since the completion of the 2019 drilling and an Unmanned Aerial Vehicle
("UAV") geophysics programme, the team have prepared a definitive drilling
programme to convert the Resource largely into the Measured category.  This
pending programme consists of up to 3,000m of drilling across 48 locations
(Figure 1).

The Ariana and Zenit exploration teams have recently initiated the drilling
programme (Figure 2).  Further exploration drilling, primarily expanding on
the results of the UAV geophysics, and anomalous surface sampling of vein
outcrop extensions to the south-east of the Zeki, Ziya and Zafer proposed pits
may be investigated through future exploration-focused drilling campaigns.

Figure 1: The 2023 planned diamond drilling programme.  Planned collars are
highlighted in yellow.  The current extents of the 2020 MRE mineralisation
domain is shaded in red.

 

Figure 2: The drill rig on site for the 2023 Kizilcukur drilling programme,
now commencing.

Drill-core Scanning

 

An automated multi-sensor core scanner (BoxScan) was used to obtain data on
geochemistry, mineralogy, magnetic susceptibility, core topography and
high-resolution RGB colour imagery of the Kizilcukur drill core across 30
holes from the 2007, 2018 and 2019 drill programmes, totalling over 2,530m
(712 core trays).  Single-element and multi-element analysis methods were
applied to the new data to aid machine learning by training the system on the
known lithologies.  The alteration and mineralisation zones were also defined
for use in improving the 3D geological model.

Geophysical Programme

This geophysical programme update comprises the last in a series of updates
following an extensive data review of several new geophysical surveys across
the Kiziltepe Sector. The recent geophysical programmes were undertaken over
four prospects located within the Sindirgi Gold Corridor, a north-east
trending mineralised zone extending from the Kiziltepe Mine in the southwest
to the Kizilcukur Project in the northeast. This work included Induced
Polarisation ("IP") / Resistivity surveys over the Kiziltepe mine area, Kepez
Main, Kepez North and an Unmanned Aerial Vehicle ("UAV") magnetic survey over
Kizilcukur (Figure 3).

Figure 3: The Sindirgi Gold Corridor with defined prospects and areas
currently covered by geophysical datasets.

Previous announcements have discussed the geophysics completed at the
Kiziltepe mine site (see announcement of 22 February 2023), and at the Kepez
Main and Kepez North areas (see announcement of 13 March 2023).  The
geophysical results reported in this update are the results from an UAV
magnetic survey conducted over Kizilcukur (Figure 3) covering a total area of
4.5 km².

Data was collected from 24 north-south oriented profiles parallel to historic
IP/Resistivity survey lines at Kizilcukur. The lines were spaced 100m apart
with 3 east-west control lines for a total length of 50km. A UAV with attached
Geometrics MagArrow was used for the survey.  This was paired with a
Geometrics G-852RBS magnetometer as a base station. The average flight
altitude was 40m above the topographic profile. The quality of the data was
assured in line with the pre-set daily quality control procedures. All data
generated by the subcontractor was reprocessed in-house to eliminate noise and
to better define geological structures within the survey area (Figure 4).

 

Figure 4: Overview map showing the UAV magnetic survey data results and the
extent of the known gold-bearing quartz veins.  The map shows the first
vertical derivative of the reduced-to-pole magnetic data.  The relationship
between the mapped and drill-tested quartz veins and distinct NW- to
NNW-trending magnetic anomaly boundaries is clear.  In addition, lithological
boundaries and major regional faults are also identified.

The Kizilcukur mineralisation and its geology is well understood by the
Company following previous testing by various phases of drilling.  The latest
resource estimate (see announcement of 11 May 2020) was completed following
the completion of a diamond drilling programme during the winter of 2018-19,
for a total of 745.8 meters. This magnetic survey aimed to identify potential
extensions of mineralisation and to better define the geological and
structural controls of mineralisation.

The results obtained from the UAV geophysical survey have confirmed several
historic geological studies; primarily the confirmation of known lithological
boundaries, regional faults and the trend of gold-bearing quartz veins. To the
southeast of the Kizilcukur prospect, a portion of a major regional
northeast-southwest fault, characterising the eastern limit of the Sindirgi
Gold Corridor, is also well defined from the newly acquired geophysics. This
is likely to represent a major controlling fault for the Kizilcukur vein
system.

Furthermore, the trend of magnetic anomalies within the Kizilcukur area not
only confirms the extent of known mineralisation but also shows the potential
for strike extensions in a NW to NNW orientation in the immediate vicinity of
the areas previously drilled.

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 gold, 2m at 9.6g/t gold and 1m at 7.2g/t gold prior to drill testing.
 The peak rock-chip assay result in this area was 152g/t gold and 1,320g/t
silver, suggesting the potential for substantial near-surface enrichment.

The global Mineral Resource Estimate is c. 21,100 oz gold (Au) and 0.62 Moz
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:
218,317 t @ 2.72 g/t Au and 77.04 g/t Ag.  46% of the M+I tonnage is located
within the higher-grade Zeki Main Vein, with a grade of 3.62 g/t Au and 82.54
g/t Ag, upon which trial mining operations have previously been undertaken.

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).

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
partnership 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 partnership 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 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) and
is separately earning-in to 85% of the Slivova Gold Project which contains
Measured, Indicated and Inferred Resource of 176,000 oz gold and 646,000 oz
silver (as at July 2023).

 

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;

 

"IP" Induced Polarisation;

 

"km" Kilometres;

 

"m" Metres;

 

"UAV" Unmanned Aerial Vehicle;

 

 

Ends.

 

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