REG - Ariana Resources PLC - New Discoveries at the Dokwe Project

Ariana ResourcesAnnouncement

26/11/2024 07:00

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RNS Number : 5682N  Ariana Resources PLC  26 November 2024

 

26 November 2024

AIM: AAU

NEW DISCOVERIES AT THE DOKWE PROJECT

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral
exploration and development company with gold project interests in Africa and
Europe, is pleased to provide an update on new exploration being undertaken
across the 100% held Dokwe Gold Project in Zimbabwe, focusing on areas for
which resources have not yet been defined. Several opportunities have been
identified to date.

Highlights:

·    Soil sampling and pXRF analysis at Dokwe South have led to the
discovery of a quartz vein breccia.

·    A preliminary rock-chip sampling programme of 22 samples returned
seven samples showing >10.0g/t silver, peaking at 35.2g/t silver.

·    A new regional pXRF soil sampling programme is underway which will
ultimately cover the whole claims area.

·    Regional exploration and resource infill drilling is in the final
stages of planning; all prospects at the Dokwe Project are within 7km of where
the Dokwe processing plant is expected to be located.

 

Dr. Kerim Sener, Managing Director, commented:

"Our recent exploration work across the Dokwe Project is already yielding
positive results which is continuing to build on the exploration upside of
this opportunity. Work undertaken near Dokwe North and Central has identified
the potential for resource blue sky and the broader prospectivity of the
project area has increased following the exploration results outlined here. We
look forward to updating the market as we develop our work at the Dokwe
Project."

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.

 

Background

 

In recent months, the geology team have been assessing the prospectivity of
the wider Dokwe Project in areas previously less explored and away from the
two gold deposits defined to date. The prospective Archaean rocks at the Dokwe
Project were buried, deformed, metamorphosed, and mineralised, before being
uplifted and partially eroded to form a basin into which the post-Permian
Karoo sedimentary and volcanic rocks were deposited. The Karoo aged rocks and
the later Kalahari sediments form a cover layer over the Archaean rocks,
ranging in thickness from zero to a few metres at Dokwe South, gradually
thickening northwards to be about 40 metres at Dokwe North (Figure 1).

 

Considering the successful recognition of arsenic and copper in the soils,
Ariana has commenced a regional pXRF programme, which ultimately will provide
total coverage for a range of pathfinder elements across the entire claims
area (42km(2)). Furthermore, soil samples have been collected along two
orientation lines over the known deposits, which are to be analysed by
detectORE(TM) at the Dokwe site laboratory, to evaluate the potential for this
technique to detect subtle gold and silver anomalies in the cover rocks. Of
particular interest is a copper anomaly that was followed up by Ariana during
a reconnaissance pXRF soils programme at Dokwe South.

 

 

Figure 1: Map and schematic cross-section highlighting the nature of Karoo
cover across the Dokwe Project.

 

Maboe Prospect: Dokwe South

 

The Maboe Prospect is situated 7km south of Dokwe North, in an area of broad
gold, copper and silver anomalism delineated during the original Dokwe soil
sampling programmes in the early 2000s (Figure 3). Ariana has recently
followed up on these original results with pXRF soil sampling, which has
confirmed a significant coincident copper anomaly. The spatial association of
the gold and copper anomalism in soils is interpreted to reflect a proximal
source, located along a subtle change in topography on the southern flank of
the anomalies.

 

Further field investigations have identified a quartz vein breccia along a
subtle east-west ridge that is intermittent over a strike length of
approximately 600m. The initial interpretation of the host rock is that it is
a strongly brecciated and silicified felsic volcanic rock. Fine to
medium-grained disseminated sulphides are observed and interpreted to have
been introduced during silicification.

 

Twenty-two rock chip samples were collected over a strike length of 300m, and
analysed for gold, silver and copper. Assay results have been received, and
whilst the gold values are low, several of the samples contain significant
amounts of silver with seven samples returning >10.0g/t silver, and the
highest returning 35.2g/t silver. It should be noted that the in-country
laboratory used is not yet accredited for silver assays, and some uncertainty
is to be expected with the silver results. External lab checks will be
completed in due course.

 

 

Figure 2: Gold in soil contour (1.2ppb Au) that led to the discovery of the
Dokwe North and Central gold deposits.

 

Figure 3: Gold anomaly map defined from historic soil sampling, with pXRF soil
sample points shown. Rockchip sample locations shown over the outcropping
quartz vein breccia at the Maboe Prospect.

 

 

Figure 4: pXRF copper anomalies in soil over the Maboe Prospect area.

 

 

Figure 5: Rock chip samples from the Maboe Prospect, Dokwe South, displaying
silver in ppm.

 

 

Figure 6: Maboe Prospect; Top left, looking west along the sub-cropping quartz
vein breccia; Top right, a boulder of quartz vein breccia; Bottom, hand
specimens of breccia (l) and siliceous host rock (r).

 

Siduli Pan

 

To the northeast of the Maboe Prospect, a second broad zone of gold anomalism
is identified from the soil sampling programmes at Siduli Pan. This area has
seen some follow-up exploration, including very limited drilling, and presents
a significant target area for further drill testing, where the cover is
predicted to be less than 20m thick.

 

The Siduli Pan Prospect is highlighted by a significant gold soil anomaly that
was delineated in the original soil sampling programmes (Figure 2). The
thickness of cover in the area ranges from 11 to 18m. Two geophysical
programmes with sparse follow-up drilling were conducted in the area in
2003/4, and 2018/19.

 

The first geophysical programme comprised ten N-S-orientated IP lines, which
identified several chargeability and resistivity highs and lows. Two drill
holes, DSD1 and DSD2 were drilled to test two of these (Figure 6). DSD2
intercepted a narrow (5cm) quartz vein with significant chalcopyrite which
returned an intercept of 81.1g/t Au over 0.5m from 243m down-hole depth. Given
that the Dokwe North and Central deposits extend from such depths to surface,
this area represents an exploration target worthy of further investigation.

 

 

Figure 7: Plan view (top) and north-south section through the Siduli Pan
target area as initially defined by conventional soil analyses. Drill
targeting was undertaken following an IP geophysics study. Chargeability
anomalies were targeted by historic drilling.

 

The second geophysical programme extended 500m westwards from the first. This
was followed by six drill holes, five to approximately 100m depth, and the
sixth to 300m depth. Although no economic gold values were recorded, the
drilling confirmed the presence of felsic tuff and andesite in the area, which
are important host rocks for mineralisation at Dokwe North.

 

The broad soil anomaly, deep intercept and prospective rock types indicate
Siduli Pan is another significant exploration target in the Dokwe Claims Area,
as Ariana widens its exploration focus in the search for additional
mineralisation to complement the Dokwe North and Dokwe Central deposits which
are progressing towards development and production.

 

Summary

 

Reconnaissance exploration work across the Dokwe Project is at an early stage,
yet positive results are already being achieved. The Maboe prospect has been
identified and shown to be anomalous in silver. PortablePPB has been
developing the analytical method to extend its capability to include ppb-level
silver analysis, presenting an opportunity for the anomalous silver in this
area to be investigated further using the on-site detectORE(TM) laboratory in
the future. A regional soil sampling programme has commenced, with samples to
be analysed by a mix of conventional analytical methods, pXRF, and the
detectORE(TM) technique. This will ultimately provide full cover over the
Dokwe claims area for a range of pathfinder elements and focused low-level
gold and silver detection.

 

Sampling and Assaying Procedures

 

All samples are processed at the ISO-credited Antech Laboratory in Zimbabwe.
As part of Ariana's normal operational procedures, samples were sent for
analysis in batches in line with the Company's quality control protocols. In
this phase of sampling, a total of 28 samples (including 5 QA/QC samples) were
submitted to the Antech Laboratory.

 

All samples were assayed for gold using a 50g fire assay, with copper and
silver results provided by AAS (Atomic Absorption Spectrometry). Reviews of
the gold 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. Laboratory sample preparation,
assaying procedures and chain of custody are appropriately controlled.

 

Antech Laboratory is not yet accredited for silver assays, and therefore some
uncertainty is to be expected with the silver results. External lab checks
will be completed in due course.

 

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 Liberum (Joint Broker)                 Tel: +44 (0) 20 7886 2500
 Kieron Hodgson / Atholl Tweedie / Rauf Munir
 Zeus Capital Limited (Joint Broker)            Tel: +44 (0) 203 829 5000

 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

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

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 a major gold development project in Zimbabwe,
gold production in Türkiye and copper-gold exploration and development
projects in Cyprus and Kosovo.

 

Ariana owns 100% of the Dokwe Gold Project ("Dokwe") in Zimbabwe. Dokwe is
made up of the Dokwe North and Dokwe Central gold deposits which are located
in the Tsholotsho District near the city of Bulawayo. The deposits have a
combined JORC Measured, Indicated and Inferred Resource of over 1.83 million
ounces of gold (as at June 2024) and the project represents the largest
undeveloped gold project in Zimbabwe.

 

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
Türkiye which contains a depleted total of c. 2.2 million ounces gold
equivalent (as at March 2024, using a price ratio of 90 Ag to 1 Au). The joint
venture comprises the Kiziltepe Mine and the Tavsan and Salinbas projects.

 

The Kiziltepe Gold-Silver Mine is located in western Türkiye and contains a
depleted JORC Measured, Indicated and Inferred Resource of 171,700 ounces gold
and 3.3 million ounces silver (as at March 2024). The mine has been in
profitable production since 2017 and has been producing at an average rate of
c.22,000 ounces of gold per annum. 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 Türkiye and contains a JORC
Measured, Indicated and Inferred Resource of 311,000 ounces gold and 1.1
million ounces silver (as at March 2024). Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan is being
developed as the second gold mining operation in Türkiye 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 Türkiye 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 76% of UK-registered Western Tethyan Resources Ltd ("WTR"), which
operates across south-eastern Europe and is based in Pristina, Republic of
Kosovo. The company is targeting its exploration on major copper-gold deposits
across the porphyry-epithermal transition. WTR is being funded through a
five-year Alliance Agreement with Newmont Mining Corporation
(www.newmont.com) and is separately earning-in to up to 85% of the Slivova
Gold Project.

 

Ariana owns 61% of UK-registered Venus Minerals PLC ("Venus") which is focused
on the exploration and development of copper-gold projects in Cyprus, some of
which are in application, containing a combined JORC Indicated and Inferred
Resource of 16.6Mt @ 0.45% to 0.80% copper (excluding additional gold, silver
and zinc).

 

Ariana owns several investments in listed and private companies via its
Australian subsidiary Asgard Metals Pty. Ltd. ("Asgard"), which also provides
technical input into the various investee company exploration programmes.
Investments have been made 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, Türkiye, UK and Zimbabwe.
Its most advanced interest is through a 2% holding of Panther Metals Limited
(ASX: PNT).

 

Panmure Liberum Limited and Zeus Capital 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.

 

Glossary of Technical Terms:

 

"Au" chemical symbol for gold;

 

"DD" Due Diligence;

 

"g/t" grams per tonne;

 

"JORC" Joint Ore Reserves Committee;

 

"k" thousand

 

"km" Kilometres;

 

"m" Metres;

 

"M" million

 

"oz" Troy ounces;

 

"t" tonnes;

 

Ends.

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