REG - Ariana Resources PLC - MAJOR INCREASE IN APLIKI MINERAL RESOURCE
18/08/2022 07:00
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RNS Number : 4043W Ariana Resources PLC 18 August 2022
18 August 2022
AIM: AAU
MAJOR INCREASE IN APLIKI MINERAL RESOURCE
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 an updated Mineral Resource Estimate ("MRE") for the
Apliki Copper Project, for which Venus Minerals Ltd. ("Venus") has entered
into a formal conditional 50:50 Joint Venture agreement with Hellenic Apliki
Mines Ltd. ("HAM"). Venus is focused on the exploration and development of
copper and gold assets in Cyprus and is 50% owned by Ariana.
Highlights:
· MRE updated to a global Measured, Indicated, and Inferred Resource of
c. 17 Mt at a grade of 0.26% to 0.69% Cu (0.34% Cu average)* across Apliki,
after further detailed assessment and modelling of historic data.
· Increase recorded by the addition of the Apliki Mine Pit Wall
Resources for an additional 6.47Mt @ 0.32% Cu, compared to the 2021 MRE.
· Apliki represents an already developed open-pit with significant
unmined resources available for modern extraction.
* MRE stated gross with respect to HAM. Venus is to acquire 50% of HAM and
Ariana holds 50% of Venus.
Dr. Kerim Sener, Managing Director, commented:
"Within two years, through Venus, Ariana has achieved its objective of
establishing a substantial copper resource base in Cyprus, which now comprises
34Mt with a grade range of circa 0.3 to 1.10% copper. Even at the lower end
of this grade range, and excluding the potential of by-product metals, such as
gold, this represents substantial in-ground (risked) value.
"This updated MRE follows the original MRE on Apliki completed last December
in which we had noted that there were areas of potential resource upside,
particularly in the Apliki Mine area and its related stockpiles, and that
further work by the Venus team would be undertaken in these areas in order to
continue building the resource base.
"This updated MRE for Apliki comes at an opportune time, ahead of the proposed
IPO of Venus on AIM. Venus will also soon implement further project
optimisation work to advance the Apliki Mine development programme with
Hellenic Apliki Mines.
"Although market conditions remain less favourable than we would like, and
while we cannot influence the markets, we are nevertheless eager to continue
developing the assets within the Venus portfolio to enhance the value of the
company ahead of a listing. In the meantime, we are pleased to note that Venus
has extended its option over Apliki to 31 December 2022.
"Venus is a British and Cypriot-owned company which represents one of the most
exciting near-term European copper mining opportunities in play today, in a
jurisdiction that has been prized for its high-quality copper for time
immemorial."
* Further information about Venus Minerals and its projects is available on
the Company's website, www.venusminerals.co (http://www.venusminerals.co) .
Introduction
Following the release of the Apliki MRE on 1 December 2021, the Venus and
Ariana teams have continued to evaluate historic drilling data across Apliki.
In particular, an area outlined previously as a zone of "significant
interest" within the north-east wall of the historic Apliki Mine (Figure 1)
has demonstrated sufficient drilling density and assay data to define a c. 55%
overall increase in the MRE. The management team considered the data reviewed
of sufficient quality to support resource classification up to Indicated.
However, since this area is yet to be verified with new drilling, the
resources outlined within this release have been reported as Inferred only
across most zones, with Indicated and Inferred Resources defined for West
Apliki.
http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf
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Figure 1: Plan view of the Apliki Project, showing the 2021 due-diligence
drill collar positions and historical collars. All Apliki MRE domains are
highlighted in red apart from the Apliki Mine Pit Wall are shown in yellow.
Areas with further potential, which require follow-up work are outlined in
dashed purple.
Resource Estimation
The MRE is based on a detailed review of all available drill data acquired
between 1968-2011, as well as three due-diligence drillholes drilled in
2021. These data comprise churn, rotary wet, rotary air and diamond drill
holes for a total of 24,538m of drilling (all historic holes and the 2021
due-diligence drilling) and covers all major areas of Apliki (West Apliki,
Apliki Mine, Apliki Mine Pit Wall and Apliki Stockpiles). The use of modern
software with improved estimation methods and statistical analysis enables the
calculation of a Resource Estimate with sufficient confidence to be classified
as Indicated and Inferred. However, the drill hole spacing density for the
project is generally appropriate to support a higher classification of
resources in some areas, but this will require more confirmatory drilling to
validate and further increase confidence in the historic data. JORC Table 1
for Apliki provides more detail on sampling techniques and data used in this
estimation.
Estimation Methodology
Ariana completed the geological modelling of all mineralised zones at Apliki
in Leapfrog Geo 6.0.5 (see JORC Table 1, Appendix 1). Five mineralisation
domains were modelled from sectional interpretations and associated
interpolation, representing the most current geological data and
understanding. The MRE is separated into four main areas: 1) West Apliki, 2)
Apliki Mine, 3) Apliki Mine Pit Wall and 4) Apliki Stockpiles (Figure 2).
http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf)
Figure 2: 2021 MRE block model domains of all major Apliki mineralisation
areas including the 2022 Apliki Mine - Pit Wall.
Interpolation and wireframe modelling of the mineralised zones in Leapfrog
EDGE was completed using a 0.1% Cu modelling cut-off grade (CoG), for all
domains. Higher-grade mineralisation was not sub-domained, as it was not
deemed necessary to do so. All models created were based upon interval
selections that referenced the copper grades, lithological descriptions and
structural interpretation, where appropriate. Where continuity was not
established between sections, the strike extrapolation was limited both
manually (wireframes) and statistically (interpolations). The continuity of
the various structures is reflected in the Mineral Resource classification.
A density of 2.4g/cm(3) was applied to in-situ mineralisation across the
Project as a whole, however, a density of 2.0g/cm(3) was used for the
stockpile material. Further work is required to more appropriately define
density variations throughout the deposit. Previous studies completed by
Ariana for other deposits in the area utilised sulphur assays as a proxy for
sulphide distribution from which a density model could be created, although
the historic data for Apliki only contain copper values, and mostly represent
oxide mineralisation. Based on HCM's own internal work, they have defined
2.4g/cm(3) to be the average density of the remaining mineralisation
encountered at Apliki.
Compositing was completed in Leapfrog EDGE using a 1m best-fit routine with a
hard domain boundary. This composite length was increased to 3m for the
estimation of all Apliki Mine Resources (Pit Floor and Pit Wall). General
mineralisation trends and continuity were identified within Leapfrog Geo by
use of trend planes and their associated attributes. Variography analysis
was not completed but is recommended in future work to: 1) verify the current
mineralisation orientations and trends, and 2) to identify potentially more
accurate mineralisation trends.
A top-cut was not deemed necessary for the Apliki Mine as the high grades have
been confirmed by historical production. Based on the reporting of twin hole
studies completed by HCM and peak grades associated with the due-diligence
drilling, a top-cut of 3% Cu was applied to all search passes within the West
Apliki domains. This was primarily to minimise the extrapolation of
high-grades within the block model as a result of historic holes (900 series
drilling) overstating copper grades (which recorded up to 5.76% Cu), that
could not be verified by either HCM or the due-diligence drilling. Such
areas generally returned check results of 2-3% Cu for these higher-grade
zones.
A non-rotated regular block model was established for West Apliki, Apliki
Mine, Apliki Mine Pit Wall and the Apliki Stockpile 1 (Figure 3). Block
sizes were determined by drill spacing within the dataset and wireframe
geometry. The optimal block sizes used within the block-model were 10m x 10m x
3m (X, Y, Z). This is the same block size used by the HCM team in their
internal estimations. Grades for the block models were estimated using
Inverse Distance Weighted Squared ("IDWS"), adopting a multi-pass
methodology.
http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf)
Figure 3: Cross section with a wide (500m) swath to highlight all the 2021 MRE
Apliki block models as illustrated.
Geochemical data for Apliki, with the exception of the three 2021 drill holes
at West Apliki, only contain copper values. Therefore, only copper was
estimated for the defined extents of the deposit. Multi-element data that
does exist, suggests that other trace metals within the West Apliki area would
not be economic.
Resource Classification
The MRE is classified in accordance with the JORC Code (2012) as Measured,
Indicated and Inferred Resources (Table 1 & 2). The Apliki Mine and West
Apliki deposits have sufficient subsurface geological and geochemical data for
the resource to be classified with higher confidence as Measured or Indicated.
However, such a classification is currently limited by the historic nature
of the majority of the drilling database and these data cannot be audited, as
no reference samples have been archived. Further validation will be required
for an upgrade in classification, using twin-holes where necessary.
The MRE for the Project uses a reporting cut-off of 0.2% Cu for Apliki Mine,
Apliki Mine Pit Wall and West Apliki, and demonstrates that there are
reasonable prospects for eventual economic extraction (Table 1). A reporting
cut-off of 0.15% Cu is used for Apliki Stockpiles. Confidence in the Resource
Estimate is sufficient to allow the results to be used in further technical
and economic studies. Additional confidence in the data obtained from
historic drilling is required in order to advance further understanding of the
Project.
Due-diligence drilling provides greater confidence across parts of the West
Apliki deposit and in such areas the resources have been classified as
Indicated. However, all remaining resources have been classified as Inferred
until further drilling work is completed. As well as significant
classification upgrades, there is potential for an increase in resource
tonnage with further drilling.
The styles of mineralisation have been identified, the controls on
mineralisation are sufficiently understood and measurements and sampling
completed to a reasonable degree of confidence for the mineralisation
present.
The Apliki Stockpiles have been surveyed by DGPS to calculate the potential
tonnages available for processing. Trenching and drilling have been completed
to use in grade estimations for Stockpile 1. Based on HCM's own optimisation
evaluations and partial mining results of Stockpile 1, the captured/optimised
component was classified as Probable Reserves. These numbers have been
confirmed by Ariana's internal estimates. As a result of Ariana's ongoing
data evaluations, the Stockpile 1 resources captured by HCM's optimisation
studies have been re-classified by Ariana as Measured, as it is now deemed
that HCM's optimisation input parameters are out-dated based on the current
economic setting. The Stockpile 1 resources are reported at a lower cut-off
grade than the in-situ resources due to their associated lower mining cost.
Table 1: Summary of 2022 Apliki Mineral Resource Estimate, in accordance with
JORC 2012, based on 248 drill holes (24,538m) across the Apliki Sector (15
August 2022). Reporting is based on 0.2% Cu cut-off grade for in-situ
domains, and 0.15% Cu for stockpile resources. Figures in the table may not
sum precisely due to rounding. The re-classified Measured Resource (previously
Probable Reserves) for Stockpile 1 is provided at a reporting cut-off of 0.15%
Cu.
RESOURCES Classification Reporting Volume Density Mass Cu Cu
cut-off grade
(% Cu) (m³) (g/cm³) (t) (%) (t)
Apliki Stockpile 1 Measured 0.15 403,500 2.00 807,000 0.30 2,400
West Apliki Indicated 0.20 1,645,200 2.40 3,950,000 0.38 15,200
Inferred 0.20 1,512,300 2.40 3,630,000 0.29 10,500
Apliki Mine Inferred 0.20 347,400 2.40 830,000 0.69 5,800
Apliki Mine Pit Wall Inferred 0.20 2,697,600 2.40 6,470,000 0.32 20,700
Apliki Stockpile 1 Inferred 0.15 651,900 2.00 1,304,000 0.26 3,300
TOTAL All Categories 7,258,000 2.34 16,991,000 0.34 57,900
Table 2: Summary of 2022 Apliki Mineral Resource Estimate, in accordance with
JORC 2012, reported on a net attributable basis to Ariana. See caption for
Table 1 for other details concerning the reporting parameters.
RESOURCES Classification Reporting Volume Density Mass Cu Cu
cut-off grade
(% Cu) (m³) (g/cm³) (t) (%) (t)
Apliki Stockpile 1 Measured 0.15 100,900 2 201,800 0.30 600
West Apliki Indicated 0.20 411,300 2.4 987,500 0.38 3,800
Inferred 0.20 378,100 2.4 907,500 0.29 2,600
Apliki Mine Inferred 0.20 86,900 2.4 207,500 0.69 1,500
Apliki Mine Pit Wall Inferred 0.20 674,400 2.4 1,617,500 0.32 5,200
Apliki Stockpile 1 Inferred 0.15 163,000 2 326,000 0.26 800
TOTAL All Categories 1,814,500 2.34 4,247,800 0.34 14,500
Exploration Target
An Exploration Target has been defined for stockpiled low-grade mineralised
material not included in the resources outlined above and is referred to here
as Stockpile 2. This stockpile requires further sampling to confirm and model
accurately. This is reported gross with respect to HAM and Venus.
Exploration Target Volume Density Mass Cu Cu
(m³) (g/cm³) (Mt) (%) (t)
Apliki Stockpile 2 2.2 - 2.3 million 2.00 4.4 - 4.6 0.15 - 0.25 6,600-11,500
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").
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
Henry Wilkinson / Dom Barretto arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)
Editors' Note:
Qualified Person:
The MRE was prepared by Zack van Coller BSc (Hons), Special Projects
Geologist, Ariana Resources plc. Mr. van Coller is a Competent Person as
defined by the JORC Code, 2012 Edition. The estimate was reviewed internally
by Ruth Bektas BSc (Hons) Cgeol EurGeol, Projects Analyst, Ariana Resources
plc. Miss Bektas is a Competent Person as defined by the JORC Code, 2012
Edition. The results are reported in accordance with the JORC Code, under the
direction of Dr. Kerim Sener BSc (Hons), MSc, PhD, Managing Director of Ariana
Resources plc, and a Competent Person as defined by the JORC Code. Mr. van
Coller and Dr. Sener have reviewed the technical and scientific information in
this press release relating to the MRE's and approve the use of the
information contained herein.
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 253,000 ounces gold and 0.7
million ounces silver (as at June 2020). Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan is being
developed as the second gold mining operation in Turkey. 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% 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), in addition to
pursuing a separate 50:50 JV on Hellenic Apliki Mines, which owns the Hellenic
SX-EW processing plant and the 17Mt @ 0.26% to 0.69% Cu Apliki mine
development project.
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:
"Cu" chemical symbol for copper;
"cut-off grade" the lowest grade, or quality, of mineralised material that
qualifies as economically mineable and available in a given deposit. May be
defined on the basis of economic evaluation, or on physical or chemical
attributes that define an acceptable product specification;
"Indicated Resource" a part of a mineral resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be
estimated with a reasonable level of confidence. It is based on exploration,
sampling and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes. The
locations are too widely or inappropriately spaced to confirm geological
and/or grade continuity but are spaced closely enough for continuity to be
assumed;
"Inferred resource" a part of a mineral resource for which tonnage, grade and
mineral content can be estimated with a low level of confidence. It is
inferred from geological evidence and has assumed, but not verified,
geological and/or grade continuity. It is based on information gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes that may be limited or of uncertain quality and
reliability;
"Inverse Distance Weighted Squared" or "IDWS" a conventional mathematical
method used to calculate the attributes of mineral resources. Near sample
points provide a greater weighting than samples further away for any given
resource block;
"JORC" the Joint Ore Reserves Committee;
"JORC 2012" is the current edition of the JORC Code, which was published in
2012. After a transition period, the 2012 Edition came into mandatory
operation in Australasia from 1 December 2013;
"Kriging" is a geostatistical approach to modelling which relies on the
spatial correlation of the data to determine weighting values, rather than
weighting nearby data points by some power of their inverted distance (e.g.
IDWS). This is a more rigorous approach to modelling, as the spatial
correlation between data points determines the estimated value at an unsampled
point;
"m" Metres;
"Measured Resource" a part of a Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content can be estimated
with a high level of confidence. It is based on detailed and reliable
exploration, sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and
drillholes. The locations are spaced closely enough to confirm geological and
grade continuity;
"MRE" Mineral Resource Estimate.
"Mt" million tonnes;
"Probable Ore Reserve" is the economically mineable part of an Indicated, and
in some cases, Measured Mineral Resource. The confidence in the Modifying
Factors applying to a Probable Ore Reserve is lower than that applying to a
Proven Ore Reserve;
Ends.
JORC Code, 2012 Edition - Table 1
West Apliki (WA) and Apliki Mine (AM), Cyprus
(data as at Oct 2021, MRE first reported Nov 2021, updated Aug 2022)
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques · Nature and quality of sampling (eg cut channels, random chips, or · Drilling for 24,538 metres of drilling was used to delineate
specific specialised industry standard measurement tools appropriate to the areas of mineralisation.
minerals under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad · Mineralised zones were defined on the basis of sulphide
meaning of sampling. percentage following visual inspection.
· Include reference to measures taken to ensure sample representivity · Percussion chips in mineralised zones were collected at 1m
and the appropriate calibration of any measurement tools or systems used. intervals. Samples were split on the drill site using a 2-tier riffle
splitter to a sub-sample of approximately 3-5kg. Samples were transferred to
· Aspects of the determination of mineralisation that are Material to the Mitsero processing plant, where they were sun- or oven-dried before being
the Public Report. sub-sampled to 250g, then pulverised and then sent to the Nicosia Chemical
Laboratories, for wet chemical analysis for base metals and sulphur.
· In cases where 'industry standard' work has been done this would be
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m · Historical CMC sampling between 1930 to 1970s were analysed at
samples from which 3 kg was pulverised to produce a 30 g charge for fire the Xeros processing plant laboratory. No data is currently available of the
assay'). In other cases more explanation may be required, such as where there historical methods or procedures.
is coarse gold that has inherent sampling problems. Unusual commodities or
mineralisation types (eg submarine nodules) may warrant disclosure of detailed · Percussion samples were typically split to form composite samples
information. ranging from 1m to a maximum of 10m. No drill core or chips sample archives
exist.
· Drilling runs void of mineralisation were not a priority and
therefore not all drill holes/drill runs have been sampled once mineralisation
controls had been established.
· Portable handheld XRF analysis has been used on all modern
diamond drilling for initial identification of mineralised zones. PQ and HQ
core is cut by diamond saw. Quarter core was sent to ALS in Ireland for fire
assay for gold and ME-ICP analysis for other elements. Remaining core is
archived and/or used for further geological studies.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · In total 24,538m of drilling for 248 drill holes has been
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or completed across the Apliki Projects.
standard tube, depth of diamond tails, face-sampling bit or other type,
whether core is oriented and if so, by what method, etc). o Apliki Mine: 9,902.24m (100 holes), Min. 3m, Mx. 457m, Avg. 96m.
o West Apliki: 13,435.49m (96 holes), Min. 25m, Max. 355m, Avg. 140m.
o Apliki Stockpiles: 1,117m (49 holes), Min. 6m, Max. 58m, Avg. 22m.
· To date, there have only been 3 diamond drill holes (for DD)
completed on the Project.
· All other drilling to date on the project consists of wireline,
rotary open hole percussion and Schramm T64 drilling.
· All drilling to date on West Apliki was initiated from 1968 and
all completed by Venus Minerals (VMS), Hellenic Copper Mines (HCM), Hellenic
Mining Company (mother company of HCM) (EME), Cyprus Mining Corporation (CMC)
(see table below).
Drill Series Meters Number of holes Type Year Drilled by Archived material QA/QC procedures
900 5,845.96 29 RC 1968 CMC No Not noted
WA 5,164.45 43 RC 1969 CMC No Not noted
600 323.08 2 RC 1970 CMC No Not noted
AW 2,102.00 22 RC 2000 HCM (1) No Not noted
2011 (AW21) EME (21)
VMD 383.80 3 DDH 2021 VMS Half HQ core QA/QC insertion rate of 15% incl. coarse, pulp and field duplicates.
· Drilling of the EME holes was performed with the Schramm T64
down-the-hole rig, HCM hole with Ingersoll T4 whereas the CMC drilling was
mainly performed by rotary methods (Failing 1250) for the first series
(integer hole identifiers) and by percussion methods (churn drilling) for the
series of holes prefixed WA.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Drill core recoveries for the diamond DD drilling (3 holes)
results assessed. averaged 90%. These were manually calculated by measuring the total core
recovery against the drilling runs noted by the drilling company.
· Measures taken to maximise sample recovery and ensure representative
nature of the samples. · Recovery for historic holes (CMC data) exists in archived
hardcopy memoirs. These, to date, have not been fully reviewed or digitised,
· Whether a relationship exists between sample recovery and grade and and will be a prioroty for the Venus team in the near future.
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
Logging · Whether core and chip samples have been geologically and · All historic percussion drill holes were geologically logged in
geotechnically logged to a level of detail to support appropriate Mineral the field by use of rinsed chips returned after every drilled meter. Logs were
Resource estimation, mining studies and metallurgical studies. then drafted post laboratory analysis to produce detailed hardcopy assay
lithological logs.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography. · VMS holes - logged in detail digitally; CMC holes - logged in
detail in hard-copy; HCM holes - logged digitally; EME holes - no logging.
· The total length and percentage of the relevant intersections logged.
· Logging intervals are based on lithologies.
· Logging is to a standard suitable to support a Mineral Resource
Estimate.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · For diamond drilling (3 holes): HQ size drill-core samples were
taken. 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
· If non-core, whether riffled, tube sampled, rotary split, etc and quarter is held back for future metallurgical analysis and the remaining half
whether sampled wet or dry. core is archived.
· For all sample types, the nature, quality and appropriateness of the · For percussion drilling (145 holes): Samples were prepared on
sample preparation technique. site using a riffle splitter to separate half of the material. Samples were
sun dried, crushed to -12mm, split, dried in oven, pulverised to -300 mesh
· Quality control procedures adopted for all sub-sampling stages to before assay.
maximise representivity of samples.
· Drilling completed of the Apliki stockpiles were completed using
· Measures taken to ensure that the sampling is representative of the an open hole Churn drilling method. Samples were analysed and handled using
in situ material collected, including for instance results for field HCM's own internal procedures.
duplicate/second-half sampling.
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· Whether sample sizes are appropriate to the grain size of the (http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf)
material being sampled.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · HMC applied a random quality control (QC) programme during its
laboratory procedures used and whether the technique is considered partial or historic drilling campaigns, whereby standards and blanks were entered into
total. the sample stream erratically and at random.
· For geophysical tools, spectrometers, handheld XRF instruments, etc, · No internal reporting of HMC's QA/QC sampling results were
the parameters used in determining the analysis including instrument make and available for review.
model, reading times, calibrations factors applied and their derivation, etc.
· The samples collected by CMC were analysed through the
· Nature of quality control procedures adopted (eg standards, blanks, electrolysis method (gravimetric methods) at the company's laboratory in
duplicates, external laboratory checks) and whether acceptable levels of Xeros.
accuracy (ie lack of bias) and precision have been established.
· The samples collected by HCM and EME were analysed through atomic
absorption spectroscopy (AAS) method at the company's laboratory in
Skouriotissa.
· The diamond drill core was analysed at ALS Laboratory Services in
Ireland ("ALS Ireland") for gold using a 50g fire assay (Au-AA23) and ME-ICP41
for copper and other elements.
Verification of sampling and assaying · The verification of significant intersections by either independent · Diamond drill core samples from Venus Minerals' 2021
or alternative company personnel. due-diligence drilling was reviewed by CP. Mr. Zack van Coller in November
2021. These holes were angled holes designed specifically to test multiple
· The use of twinned holes. high-grade intercepts from historic holes at West Apliki.
· Documentation of primary data, data entry procedures, data · No representative samples or archived material exists for the
verification, data storage (physical and electronic) protocols. historic drill holes.
· Discuss any adjustment to assay data. · Logging procedures are sufficient to meet industry standards.
However, it was not possible to comprehensively evaluate historic sampling
procedures.
· Prior to resource estimation, below detection limit assay results
are replaced with values of zero.
· Detailed hardcopy archives of all historic (1920s-1970s) drilling
data are stored at the Skouriotissa Mine offices. Data collected post 1970's
are archived in digital Excel and Access databases at the Skouriotissa Mine
offices.
· Sampling (trenching and bulk sample) locations for Stockpile 1
were visited in 2021 by Mr Zack van Coller, and deemed sufficient to represent
fair testing of volumes and grades in line with existing systematic drilling
and partial mining.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · Historical collar locations were recorded in local Cassini
and down-hole surveys), trenches, mine workings and other locations used in coordinate system, converted graphically to UTM European Datum 1950, Zone 36
Mineral Resource estimation. North.
· Specification of the grid system used. · No down hole survey of any holes exists due to the vertical
drilling of all holes.
· Quality and adequacy of topographic control.
· The 2021 diamond drill holes were surveyed from surface to end of
hole using a DeviShot multi-shot downhole survey tool. Readings were taken on
25m intervals.
· EME and HCM collars have been surveyed by DGPS.
· Shuttle Radar Topography Mission (SRTM) digital elevation data
was used to constrain the MRE data at surface.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · The resource area was typically drilled on a regular pattern
allowing for an average of 30m spacing between collars.
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral · The West Apliki Project is currently split in to two main related
Resource and Ore Reserve estimation procedure(s) and classifications applied. mineralisation areas: WA Main and WA Small, but reported as a whole.
· Whether sample compositing has been applied. · The Apliki Mine Deposit is represented by two areas of remaining
in-situ mineralisation. 1) The Apliki Mine Pit Floor and 2) the Apliki Mine
Pit Wall.
· Samples were composited using hard boundaries to 1m and 3m,
respectively for West Apliki and Apliki Mine prior to estimation using
Leapfrog EDGE software.
· The current data spacing in association with geological mapping
is sufficient to establish geological continuity and grade continuity.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · The majority of drilling (245 holes) was completed as vertical
possible structures and the extent to which this is known, considering the holes. The 3 diamond drill holes in 2021 were angled at c.50 degrees. The
deposit type. recent drilling indicated that the WA body may not be as flat lying as
indicated by historic drilling, and may be shallowly dipping instead. A
· If the relationship between the drilling orientation and the structural trend plane orientated to an azimuth of 068(o) with a 40-degree dip
orientation of key mineralised structures is considered to have introduced a was used to re-model the WA geology.
sampling bias, this should be assessed and reported if material.
Sample security · The measures taken to ensure sample security. · Hellenic Mining Company Ltd. was responsible for sample security
between the late 1960s and early 1970s. The precise procedures are not fully
known due to loss of historic records.
· Samples were historically processed and analysed at the Xeros
Mine laboratory and at the Nicosia Chemical Laboratories, which are no longer
operational.
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · Venus Minerals has implemented QA/QC programmes based on
international best practice for the 2021 due-diligence drilling.
· Audits of historic drill samples were not possible.
· Drilling of the EME holes was performed with the Schramm T64
down-the-hole rig, HCM hole with Ingersoll T4 whereas the CMC drilling was
mainly performed by rotary methods (Failing 1250) for the first series
(integer hole identifiers) and by percussion methods (churn drilling) for the
series of holes prefixed WA.
Drill sample recovery
· Method of recording and assessing core and chip sample recoveries and
results assessed.
· Measures taken to maximise sample recovery and ensure representative
nature of the samples.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
· Drill core recoveries for the diamond DD drilling (3 holes)
averaged 90%. These were manually calculated by measuring the total core
recovery against the drilling runs noted by the drilling company.
· Recovery for historic holes (CMC data) exists in archived
hardcopy memoirs. These, to date, have not been fully reviewed or digitised,
and will be a prioroty for the Venus team in the near future.
Logging
· Whether core and chip samples have been geologically and
geotechnically logged to a level of detail to support appropriate Mineral
Resource estimation, mining studies and metallurgical studies.
· Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography.
· The total length and percentage of the relevant intersections logged.
· All historic percussion drill holes were geologically logged in
the field by use of rinsed chips returned after every drilled meter. Logs were
then drafted post laboratory analysis to produce detailed hardcopy assay
lithological logs.
· VMS holes - logged in detail digitally; CMC holes - logged in
detail in hard-copy; HCM holes - logged digitally; EME holes - no logging.
· Logging intervals are based on lithologies.
· Logging is to a standard suitable to support a Mineral Resource
Estimate.
Sub-sampling techniques and sample preparation
· If core, whether cut or sawn and whether quarter, half or all core
taken.
· If non-core, whether riffled, tube sampled, rotary split, etc and
whether sampled wet or dry.
· For all sample types, the nature, quality and appropriateness of the
sample preparation technique.
· Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.
· Measures taken to ensure that the sampling is representative of the
in situ material collected, including for instance results for field
duplicate/second-half sampling.
· Whether sample sizes are appropriate to the grain size of the
material being sampled.
· For diamond drilling (3 holes): HQ size drill-core samples 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.
· For percussion drilling (145 holes): Samples were prepared on
site using a riffle splitter to separate half of the material. Samples were
sun dried, crushed to -12mm, split, dried in oven, pulverised to -300 mesh
before assay.
· Drilling completed of the Apliki stockpiles were completed using
an open hole Churn drilling method. Samples were analysed and handled using
HCM's own internal procedures.
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Quality of assay data and laboratory tests
· The nature, quality and appropriateness of the assaying and
laboratory procedures used and whether the technique is considered partial or
total.
· For geophysical tools, spectrometers, handheld XRF instruments, etc,
the parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
· Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established.
· HMC applied a random quality control (QC) programme during its
historic drilling campaigns, whereby standards and blanks were entered into
the sample stream erratically and at random.
· No internal reporting of HMC's QA/QC sampling results were
available for review.
· The samples collected by CMC were analysed through the
electrolysis method (gravimetric methods) at the company's laboratory in
Xeros.
· The samples collected by HCM and EME were analysed through atomic
absorption spectroscopy (AAS) method at the company's laboratory in
Skouriotissa.
· The diamond drill core was analysed at ALS Laboratory Services in
Ireland ("ALS Ireland") for gold using a 50g fire assay (Au-AA23) and ME-ICP41
for copper and other elements.
Verification of sampling and assaying
· The verification of significant intersections by either independent
or alternative company personnel.
· The use of twinned holes.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
· Discuss any adjustment to assay data.
· Diamond drill core samples from Venus Minerals' 2021
due-diligence drilling was reviewed by CP. Mr. Zack van Coller in November
2021. These holes were angled holes designed specifically to test multiple
high-grade intercepts from historic holes at West Apliki.
· No representative samples or archived material exists for the
historic drill holes.
· Logging procedures are sufficient to meet industry standards.
However, it was not possible to comprehensively evaluate historic sampling
procedures.
· Prior to resource estimation, below detection limit assay results
are replaced with values of zero.
· Detailed hardcopy archives of all historic (1920s-1970s) drilling
data are stored at the Skouriotissa Mine offices. Data collected post 1970's
are archived in digital Excel and Access databases at the Skouriotissa Mine
offices.
· Sampling (trenching and bulk sample) locations for Stockpile 1
were visited in 2021 by Mr Zack van Coller, and deemed sufficient to represent
fair testing of volumes and grades in line with existing systematic drilling
and partial mining.
Location of data points
· Accuracy and quality of surveys used to locate drill holes (collar
and down-hole surveys), trenches, mine workings and other locations used in
Mineral Resource estimation.
· Specification of the grid system used.
· Quality and adequacy of topographic control.
· Historical collar locations were recorded in local Cassini
coordinate system, converted graphically to UTM European Datum 1950, Zone 36
North.
· No down hole survey of any holes exists due to the vertical
drilling of all holes.
· The 2021 diamond drill holes were surveyed from surface to end of
hole using a DeviShot multi-shot downhole survey tool. Readings were taken on
25m intervals.
· EME and HCM collars have been surveyed by DGPS.
· Shuttle Radar Topography Mission (SRTM) digital elevation data
was used to constrain the MRE data at surface.
Data spacing and distribution
· Data spacing for reporting of Exploration Results.
· Whether the data spacing and distribution is sufficient to establish
the degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and classifications applied.
· Whether sample compositing has been applied.
· The resource area was typically drilled on a regular pattern
allowing for an average of 30m spacing between collars.
· The West Apliki Project is currently split in to two main related
mineralisation areas: WA Main and WA Small, but reported as a whole.
· The Apliki Mine Deposit is represented by two areas of remaining
in-situ mineralisation. 1) The Apliki Mine Pit Floor and 2) the Apliki Mine
Pit Wall.
· Samples were composited using hard boundaries to 1m and 3m,
respectively for West Apliki and Apliki Mine prior to estimation using
Leapfrog EDGE software.
· The current data spacing in association with geological mapping
is sufficient to establish geological continuity and grade continuity.
Orientation of data in relation to geological structure
· Whether the orientation of sampling achieves unbiased sampling of
possible structures and the extent to which this is known, considering the
deposit type.
· If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
· The majority of drilling (245 holes) was completed as vertical
holes. The 3 diamond drill holes in 2021 were angled at c.50 degrees. The
recent drilling indicated that the WA body may not be as flat lying as
indicated by historic drilling, and may be shallowly dipping instead. A
structural trend plane orientated to an azimuth of 068(o) with a 40-degree dip
was used to re-model the WA geology.
Sample security
· The measures taken to ensure sample security.
· Hellenic Mining Company Ltd. was responsible for sample security
between the late 1960s and early 1970s. The precise procedures are not fully
known due to loss of historic records.
· Samples were historically processed and analysed at the Xeros
Mine laboratory and at the Nicosia Chemical Laboratories, which are no longer
operational.
Audits or reviews
· The results of any audits or reviews of sampling techniques and data.
· Venus Minerals has implemented QA/QC programmes based on
international best practice for the 2021 due-diligence drilling.
· Audits of historic drill samples were not possible.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including · The Apliki License is owned 100% by Hellenic Copper Mines Ltd.
agreements or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests, historical sites, · Within Cyprus, there is a 1% royalty to the Government on copper
wilderness or national park and environmental settings. sales once produced.
· The security of the tenure held at the time of reporting along with http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf
any known impediments to obtaining a licence to operate in the area. (http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf)
· There are no known impediments to current operations.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other · 1912 Mining Engineer Charles Godfrey travelled to Cyprus after
parties. reading in ancient books that the island was rich in copper and noticing
promising ancient Roman slag heaps in the area.
· 1916 Cyprus Mines Corporation (CMC) was established by Seeley W.
Mudd and Harvey Seeley Mudd. From 1916 to the early 1970's CMC was responsible
for the exploration and discovery of several significant VMS copper deposits
within Cyprus, including Apliki and Apliki West. Drilling contractors and
geologists were sourced from the USA.
· Initial exploration at Apliki started in 1935 and the presence of
sulphide mineralisation was documented in 1937 (Bruce, 1947). Mining of the
deposit started in the 1960s by Cyprus Mines Corporation (CMC) using opencut
methods and ended following the events of 1974.
· Up to the cessation of mining in 1974, approximately 1,650,000
tons with 1.8% Cu and 36% S were mined (Adamides, 1982). On the north side of
the opencut a small amount of low-grade disseminated ore still remains, while
the southern extensions merge into altered ground and are mainly covered by
waste dumps.
Geology · Deposit type, geological setting and style of mineralisation. · The Apliki copper deposits are concentrations of mainly low-grade
cupriferous mineralisation developed in the basal units of the Pillow Lava
Series of the Troodos ophiolite with a well-defined subvertical N-NE fault
playing a major role in controlling the mineralisation. The highest grades are
concentrated on the hanging wall side of the structure, although low-grade
mineralisation locally persists into the footwall side beyond the structure.
· Copper mineralisation at Apliki is associated with Volcanic
Massive Sulphide (VMS) deposition at or near the palaeo-seafloor. ME-ICP
multi-element analysis of the 2021 DD drilling has revealed that Apliki does
not contain associated gold, zinc or lead like other VMS related projects
within Cyprus.
· The mineralogical characteristics of the ore have been described
in previous work (Adamides, 2001), with secondary copper minerals (chalcocite,
covellite, delafossite, chrysocolla) at higher levels, and occurrence of
chalcopyrite at depth, also in association with secondary minerals.
· The principal copper minerals are bornite, covellite and
chalcocite resulting from the breakdown of chalcopyrite. In the upper levels
this replacement is almost total. Secondary copper minerals are also observed
coating pyrite.
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Drill hole Information · A summary of all information material to the understanding of the · No new exploration data is included in this report.
exploration results including a tabulation of the following information for
all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of the
drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
· If the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · No aggregation has been applied beyond the standard 1m sampling
maximum and/or minimum grade truncations (eg cutting of high grades) and interval honouring lithological changes down to 20 cm.
cut-off grades are usually Material and should be stated.
· No metal equivalent has been applied. Metals are reported per
· Where aggregate intercepts incorporate short lengths of high grade metal.
results and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations
should be shown in detail.
· The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · All drill-holes within the Apliki Mine and West Apliki deposit
Exploration Results. were advanced vertically.
· If the geometry of the mineralisation with respect to the drill hole · All intercepts are down-hole, true-width not known.
angle is known, its nature should be reported.
· Diamond drilling completed in 2021 was inclined to approximately
· If it is not known and only the down hole lengths are reported, there 50 degrees, and was designed to test lateral continuity of mineralisation
should be a clear statement to this effect (eg 'down hole length, true width between multiple intercepts of the vertical historic drilling
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf
intercepts should be included for any significant discovery being reported (http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf)
These should include, but not be limited to a plan view of drill hole collar
locations and appropriate sectional views.
Apliki Mine - Pit Wall Mineralisation
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West Apliki and 2021 diamond drilling.
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Balanced reporting · Where comprehensive reporting of all Exploration Results is not · Full balanced reporting of exploration results has been
practicable, representative reporting of both low and high grades and/or undertaken and is disclosed within the technical reporting supporting this
widths should be practiced to avoid misleading reporting of Exploration latest 2021 review.
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Metallurgical test-work: rolling bottle test and column test for
reported including (but not limited to): geological observations; geophysical Apliki West and Apliki stock completed.
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
Further work · The nature and scale of planned further work (eg tests for lateral · Additional work to be completed at Apliki can be summarised as
extensions or depth extensions or large-scale step-out drilling). following:
· Diagrams clearly highlighting the areas of possible extensions, o Twin more of the historical drill holes to validate the data, enabling an
including the main geological interpretations and future drilling areas, upgrade in resource classification due to increase in confidence.
provided this information is not commercially sensitive.
o Surface mapping to confirm the interpretation of a shallowly dipping ore
body.
o Specific gravity studies to allow a more accurate density to be attributed
to the domains at Apliki.
o Metallurgical test work for the potential mineralisation beyond the east
wall of the Apliki Mine.
o Further evaluations/sampling of Stockpile 1 and Stockpile 2.
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West Apliki and 2021 diamond drilling.
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Balanced reporting
· Where comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
· Full balanced reporting of exploration results has been
undertaken and is disclosed within the technical reporting supporting this
latest 2021 review.
Other substantive exploration data
· Other exploration data, if meaningful and material, should be
reported including (but not limited to): geological observations; geophysical
survey results; geochemical survey results; bulk samples - size and method of
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances.
· Metallurgical test-work: rolling bottle test and column test for
Apliki West and Apliki stock completed.
Further work
· The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
· Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
· Additional work to be completed at Apliki can be summarised as
following:
o Twin more of the historical drill holes to validate the data, enabling an
upgrade in resource classification due to increase in confidence.
o Surface mapping to confirm the interpretation of a shallowly dipping ore
body.
o Specific gravity studies to allow a more accurate density to be attributed
to the domains at Apliki.
o Metallurgical test work for the potential mineralisation beyond the east
wall of the Apliki Mine.
o Further evaluations/sampling of Stockpile 1 and Stockpile 2.
Section 3 Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to
this section.)
Criteria JORC Code explanation Commentary
Database integrity · Measures taken to ensure that data has not been corrupted by, for · Modern laboratory data has been received in digital format and
example, transcription or keying errors, between its initial collection and uploaded directly to the database.
its use for Mineral Resource estimation purposes.
· The database is stored on a server as Excel spreadsheets and
· Data validation procedures used. imported to Geovia Surpac.
· There are hardcopies of the CMC drilling and ChemLab for EME and
HCM drilling.
Site visits · Comment on any site visits undertaken by the Competent Person and the · The Competent Person for this project is Zack van Coller BSc,
outcome of those visits. FGS. Mr. van Coller is Ariana Resource's Special Projects Geologist and
Competent Person as defined by the JORC Code. Mr. van Coller last visited
· If no site visits have been undertaken indicate why this is the case. the project in November 2021.
· The work has been reviewed by Ruth Bektas BSc CGeol EurGeol,
Ariana Resource's Project Analyst and Competent Person as defined by the JORC
Code.
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological · Better correlations across the whole deposit were established for
interpretation of the mineral deposit. all datasets when remodelling the geology as a dipping/plunging body of
mineralisation, rather than flat lying (as previously modelled). A structural
· Nature of the data used and of any assumptions made. trend plane orientated to an azimuth of 068(o) with a 40-degree dip was used
to re-model the WA geology, which resulted in overall better grade
· The effect, if any, of alternative interpretations on Mineral correlations of various high- and low-grade intercepts across the deposit.
Resource estimation.
· Additional drilling and surface mapping is required to add more
· The use of geology in guiding and controlling Mineral Resource detail and confirm this model.
estimation.
· Interpretation was completed by Mr. Zack van Coller, creating 3D
· The factors affecting continuity both of grade and geology. wireframe models according to logged assayed mineralisation above a 0.10% Cu
modelling cut-off grade. Higher-grade mineralisation was not sub-domained, as
it was not deemed necessary to do so.
· Three main mineralised zones have been defined, which are
related, but separated: Apliki Mine, West Apliki and the Apliki Stockpiles.
· The stockpiles at Apliki Mine have been modelled and estimated
separately to the in-situ resources.
· Grade through West Main is generally homogeneous (0.2%-1.0% Cu)
with occasional narrow high-grade zones containing 1-3% Cu.
· The Apliki Mine Pit Floor primarily consist of high-grade (1-3%
Cu) sulphide mineralisation and contributes approximately 5% to the Apliki
global resource. The remaining 95% of the resource is primarily oxide with
secondary copper mineralisation, as seen at Apliki Mine Pit Wall.
· All models created were based upon interval selections that
referenced the copper grades, lithological descriptions and structural
interpretation, where appropriate. Where continuity was not established
between sections, the strike extrapolation was limited both manually
(wireframes) and statistically (interpolations).
Dimensions · The extent and variability of the Mineral Resource expressed as · The West Apliki mineralisation follows a NE trend, dipping
length (along strike or otherwise), plan width, and depth below surface to the approximately 40 degrees to the SE.
upper and lower limits of the Mineral Resource.
· The mineralisation is partly present at the base of the historic
pit, but extends further along strike below the surface.
· West Apliki contains the bulk volume of defined mineralisation,
extending to a vertical depth of approximately 150m.
· West Apliki is approximately 180m by 375m, and 50m to the east is
WA which is approximately 190m by 85m.
· The main body of mineralisation is approximately 60-70m thick in
true thickness.
· Apliki Mine Deposit is 160m by 90m by 100m deep, and trends N-S.
· The remaining resources at Apliki Mine are those occurring at the
base of the historical pit, where approximately 340,000 cubic meters of
moderate (0.5% Cu) to high grade (>1% Cu) mineralisation still remains.
Additionally, a significant amount (c.6.5Mt) of oxide/secondary copper
mineralisation still remains in the north east wall of the open pit. The
approx. dimensions of this mineralisation is 300m x 250m into the pit wall,
with a thickness of approximately 60m.
· Apliki Mine stockpiles are 200m by 315m by 80m deep, as surveyed
by DGPS.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied · Details of the estimation method, parameters and results are
and key assumptions, including treatment of extreme grade values, domaining, contained in the related Apliki 2021 MRE Memorandum (Venus Minerals and Ariana
interpolation parameters and maximum distance of extrapolation from data Resources Internal Report, 2021).
points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used. · The Mineral Resources have been estimated into a block model
prepared in Leapfrog EDGE. The block model comprises the following
· The availability of check estimates, previous estimates and/or mine parameters:
production records and whether the Mineral Resource estimate takes appropriate
account of such data. http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf)
· The assumptions made regarding recovery of by-products.
· A set of copper grade-based wireframe models were created in
· Estimation of deleterious elements or other non-grade variables of Leapfrog EDGE to select the samples used in the estimation and to constrain
economic significance (eg sulphur for acid mine drainage characterisation). the interpolation.
· In the case of block model interpolation, the block size in relation · Grade estimates were based on 1m composited assay data (3m
to the average sample spacing and the search employed. composites for Apliki Mine). A hard domain boundary was applied.
· Any assumptions behind modelling of selective mining units. · Estimation was carried out using inverse distance weighted
squared (IDWS) at the parent block scale using a two (Apliki Mine) or
· Any assumptions about correlation between variables. three-pass (West Apliki) estimation using all available composites.
· Description of how the geological interpretation was used to control · Estimation parameters are as follows:
the resource estimates.
http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf
· Discussion of basis for using or not using grade cutting or capping. (http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf)
· The process of validation, the checking process used, the comparison
of model data to drill hole data, and use of reconciliation data if available.
· The resource estimation technique is appropriate for the style of
mineralisation.
· Only copper was estimated as the historical database does not
contain data for other elements. Multi-element data from 2021 drilling
suggests that there are not economic concentrations of other major metals.
· Top-cut requirements were assessed and a copper top-cut of 3% was
used for West Apliki. No top-cut was used for Apliki Mine or the
stockpiles.
· Block model validation was completed with visual inspection on
plan and section view.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Tonnage is estimated on a dry basis in accordance with the
moisture, and the method of determination of the moisture content. specific gravity determination.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · Reporting copper at specified cut-off grades were based upon
applied. costs and recoveries established from the company's internal records. A
reporting cut-off grade of 0.2% Cu was used for the final classified in-situ
resources. The Apliki Mine stockpiles and dumps were reported at 0.15% Cu
cut-off due to the lower mining costs expected.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · No mining factors (i.e. dilution, ore loss, recoverable resources
dimensions and internal (or, if applicable, external) mining dilution. It is at selective mining block size) have been applied.
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the · The project was previously operated as two open-pits.
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · The copper minerals present are conducive to acid leaching and
amenability. It is always necessary as part of the process of determining hydrometallurgical recovery processes as planned for the Apliki development.
reasonable prospects for eventual economic extraction to consider potential Heap leach is planned.
metallurgical methods, but the assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral Resources may not always · Several hundred thousand tonnes of the Apliki stockpiles were
be rigorous. Where this is the case, this should be reported with an treated at the Skouriotissa acid leach operation at Skouriotissa, proving
explanation of the basis of the metallurgical assumptions made. amenable to the process.
· The Skouriotissa ore treated by the acid leach at Skouriotissa is
similar in many respects to the West Apliki ore, providing considerable
confidence in the processing route.
· HCM operated the acid leach operation at Skouriotissa for almost
25 years. HCM personnel have played a leading role in developing the
processing plan at Apliki, and test work of Apliki ore was important in the
planning.
· The processing will utilise the relocated Skouriotissa plant that
was decommissioned in 2019. HCM personnel are expected to play a leading role
in implementing the mining and processing operations at Apliki.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue · The Competent Person is not aware of any known environmental or
disposal options. It is always necessary as part of the process of determining permitting issues on the project.
reasonable prospects for eventual economic extraction to consider the
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
Bulk density · Whether assumed or determined. If assumed, the basis for the · An assumed density of 2.4 g/cm(3) was applied to the block model
assumptions. If determined, the method used, whether wet or dry, the frequency for in-situ mineralisation.
of the measurements, the nature, size and representativeness of the samples.
· 2.0 g/cm(3) was assigned to the stockpile material.
· The bulk density for bulk material must have been measured by methods
that adequately account for void spaces (vugs, porosity, etc), moisture and · Further measurements are required to determine actual densities
differences between rock and alteration zones within the deposit. more accurately.
· Discuss assumptions for bulk density estimates used in the evaluation
process of the different materials.
Classification · The basis for the classification of the Mineral Resources into · The resource classification at the project considers the
varying confidence categories. following criteria:
· Whether appropriate account has been taken of all relevant factors o Confidence in the sampling data and geological interpretation.
(ie relative confidence in tonnage/grade estimations, reliability of input
data, confidence in continuity of geology and metal values, quality, quantity o The data distribution (based upon graphical analysis and average distance
and distribution of the data). to informing composites).
· Whether the result appropriately reflects the Competent Person's view o Grade continuity analysis.
of the deposit.
o The quality of geological interpretation, cross-cutting relationships
geological modelling and data weighting.
· Categorical classification of the Apliki Mine and West Apliki
mineralisation has conservatively been restricted to Indicated and Inferred
resources only. This is primarily because all historic drilling data to date
cannot be appropriately audited without additional drilling being completed.
With an increase in confidence in the historical data, the classification of
the resource can readily be upgraded to higher classifications as
appropriate.
· Stockpile mineralisation classified by HCM as Probable Reserves
have been re-classified by Ariana as Measured Resources, as the economic
studies supporting the Reserves is now deemed outdated for the current
economic setting. New optimisation studies are currently underway. Mining data
for partial processing of Stockpile 1 is still valid and provides significant
support to the viability of the stockpiled material.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · An internal peer review of the modelling, estimation and
reporting were conducted for this study. No external reviews or audits have
been completed.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · The resource estimate is deemed appropriately accurate globally,
level in the Mineral Resource estimate using an approach or procedure deemed based upon the informing data. The accuracy and global/local basis of the
appropriate by the Competent Person. For example, the application of resource estimate is suitably accounted for in the resource
statistical or geostatistical procedures to quantify the relative accuracy of classification.
the resource within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors that could affect · Additional confidence in the data obtained from historic drilling
the relative accuracy and confidence of the estimate. is required in order to advance further understanding of the Project and this
is likely to be achieved following a further confirmatory diamond drilling
· The statement should specify whether it relates to global or local programme.
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
· These statements of relative accuracy and confidence of the estimate
should be compared with production data, where available.
NOTE: Sections 4 and 5 are not relevant to this work as no reserves are
being estimated and there is no estimation or reporting of diamonds or other
gemstones in this project.
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