REG - Ariana Resources PLC - RESOURCE AND RESERVE UPDATE: KIZILTEPE SECTOR
01/02/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220201:nRSA2102Aa&default-theme=true
RNS Number : 2102A Ariana Resources PLC 01 February 2022
1 February 2022
AIM: AAU
RESOURCE AND RESERVE UPDATE: KIZILTEPE SECTOR
19% Increase in Total Resources
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 a resource update for the Kiziltepe Sector, including the
satellite projects of Kepez, Kizilcukur and Ivrindi. Kiziltepe is owned by
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:
· Increase in global (undepleted) Mineral Resource Estimate to over
380,000 oz Au and 6,100,000 oz Ag contained metal*.
· Ore Reserves of 1.10Mt @ 2.38 g/t Au and 43.16g/t Ag for over
80,500 oz Au and 1,400,000 oz Ag, equivalent to approximately three years of
production*.
· Resource update represents a c. 19% increase over the previous
(2020) undepleted global resource estimate (announced in April 2020) on a gold
ounce only basis.
· Over 1.33Mt of ore has been mined from the open pits at Kiziltepe
to the end of December 2021, of which approximately 1.03Mt has been processed
(quoted as dry tonnes).
*All Mineral Resource and Ore Reserve figures in the announcement are quoted
gross with respect to Zenit of which Ariana owns 23.5%.
Dr. Kerim Sener, Managing Director, commented:
"This updated Resource Estimate, demonstrating a 19% increase in total
resources compared with our 2020 estimate, is an excellent result and
represents the culmination of a full year of work at Kiziltepe, involving over
15,000m of drilling and other detailed technical studies by the Zenit and
Ariana teams. This work highlights the resource upside remaining at
Kiziltepe, as operations proceed successfully into their sixth year. Our
total depleted resource is broadly equal to the undepleted resource before
mining commenced, inclusive of the satellite prospects. This highlights the
value of the exploration undertaken over recent years, with approximately
125,000 ounces of gold having been added to the resource base since start-up.
"For the first time since our Feasibility Study, we are also reporting a major
update to our Reserves since operations commenced in 2017. This is
particularly relevant given we have now produced more gold from Kiziltepe than
envisaged in the Feasibility Study, despite having only mined for 5 years out
of a projected 8-year mine life. Significantly our remaining Resources and
Reserves include the remaining parts of Arzu South, Arzu North, Derya and
possible future mining areas at Banu, Kepez West, Karakavak, Kizilcukur and
Ivrindi. Late last year we commenced mining and haulage of high-grade ore
(7-8 g/t Au) from Kepez North, and this is likely to be followed by many other
satellite operations in the coming years.
"The increase in Reserves is an outstanding success, with our current Reserve
tonnage of 1.1Mt being equal to that of our pre-operational Reserves in early
2017. This revised Reserve is expected to support at least three years of
additional higher-throughput production at a conceptual rate of c. 25,000
ounces of gold per annum, and enable the doubling of total life of mine
output, as compared to the Feasibility Study. With the additional conversion
of Resources to Reserves in the coming years, we are currently expecting
operations at Kiziltepe to continue through to 2026 and are planning
accordingly. In addition, several significant Exploration Target areas,
which are not included in current conceptual planning, could be converted to
Resources and Reserves with further exploration and resource development work
within the next few years."
Introduction
Between late 2021 and early 2022, the Ariana and Zenit teams undertook a
significant new drilling programme across the Kiziltepe Sector (Figure 1),
following which an extensive re-estimation of Mineral Resources, Ore Reserves
and Exploration Targets were completed. Additionally, the team have also
re-assessed historically announced resources contained within other deposits
which are located within potential haulage distance of the Kiziltepe
Processing Plant. These deposits include the satellite areas of Kepez,
Kizilcukur and Ivrindi.
This announcement summarises the modelling and Resource Estimation methods, in
addition to the approach taken for Reserve Estimation and the definition of
the Exploration Target at Kiziltepe. The classified resources include all
Kiziltepe Sector resources, as detailed in the separate JORC Table 1's
specific to each project which are provided on the Ariana Resources website
for further reference.
This latest iteration of the Resource Estimate includes the addition of 12,579
metres of new diamond drilling data, which was announced systematically
through 2021, as assay results became available. The 2021 drilling programme
focused on the expansion of resources at four main areas within Kiziltepe:
Arzu South, Arzu North, Derya and Banu. Where possible, additional drilling
was also completed to enable the better definition of peripheral Exploration
Target areas.
Also included here are the summary results of a new pit optimisation study
which uses and integrates the latest resource model and mine reconciliation
data. This work was completed internally by the Zenit Mining team and is
incorporated into Ariana's own evaluations. With the aim of outlining a
Global Resource for the Kiziltepe Sector, the total resource and reserve
figures stated within this announcement also include the following areas:
· Kepez West (RNS 31 May 2018, unrevised) and Kepez North (RNS 21
July 2021, updated here), located 16.7km haulage distance from Kiziltepe Mine;
since November 2021, haulage of surface scree material commenced from Kepez
North.
· Kizilcukur (RNS 11 May 2020, unrevised).
· Ivrindi (RNS 29 Oct 2013, unrevised) completed in accordance with
JORC 2004.
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Figure 1: Kiziltepe Sector summary map (top) and Kiziltepe, Kepez and
Karakavak area map (bottom) showing estimated resources, primary access routes
and locations of significant mineralisation and exploration opportunities.
Kiziltepe Resource and Reserve Estimate
The new Mineral Resource and Reserve Estimate is prepared in accordance with
JORC 2012 and is based on 275 diamond drill holes (26,235 m), 164 RC drill
holes (16,066 m), 15 rotary air blast (RAB) holes (348 m) and 130 rock-saw
channels (975 m) as well as in-pit grade control sampling data (over 101,830 m
across 2,111 lines perpendicular to mineralisation).
This data was collectively reviewed and modelled to create representative
three-dimensional mineralisation domains for the vein mineralisation and host
rock alteration typical of the Kiziltepe deposit. Estimation of grade and
tonnage was attributed to the mineralisation models based on internal and
external laboratory assay data, and drill core density studies (where
available), undertaken by the on-site geologists.
A three-dimensional block model was constructed from the mineralisation model
based on optimal data spacing parameters as defined by the Zenit mining team.
This was then reconciled against all existing production numbers since
operations commenced in 2017. This reconciliation was completed on a
pit-by-pit and bench-by-bench basis to ensure that any remaining or newly
defined down-dip and/or along strike mineralisation was accurately modelled
within the grade/tonnage expectations of the mining team.
Finally, the appropriately reconciled mineralisation model and associated
block models were subjected to a new open-pit optimisation study completed
internally by the Zenit mining team, under revised economic input parameters
according to the latest economic and processing factors. Measured and
Indicated Resources captured by the latest pit-shells produced during this
study are included as Proven and Probable Ore Reserves. Taking the Arzu
North area as an example, it is apparent that the existing open-pit can be
expanded further to the northwest based on the revised Mineral Resource
Estimate (Figure 2).
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Figure 2: Current status of the Arzu North open-pit, taken from the
southeastern pit wall. The main vein structure is seen in the far northwest
wall of the pit (reddish tinged rock) and continues for a further 570 m in
that direction beyond the pit boundary. This is likely to become an
important exploration and resource development area in the future.
Kiziltepe Geological Modelling
The Kiziltepe vein system is low-sulphidation epithermal in character and
typically dips 75-85° towards the northeast, and occurs with associated
wallrock alteration halos which are also mineralised in places. This vein
system is modelled here using assay data, geological logging and
three-dimensional interpolation modelling methods. This was completed within
Leapfrog Geo 6.0, using the "Vein System" tool to define mineralisation
domains based on manually isolated economic drill composites. Economic
composites with up to one meter of internal dilution were defined by nominal
0.5g/t Au, 1.0g/t Au and 2.0g/t Au modelling cut-offs (depending on the vein
being modelled). Lower grade or peripheral intercepts were domained as
Alteration Halos using standard interpolation modelling methods and lower
modelling cut-offs set at 0.25g/t Au, then clipped using the vein model
volumes to create an interlocking vein and alteration model. The continuity
of the various structures is reflected in the Mineral Resource classification.
Exploration target areas on the periphery of the vein system are defined by
surface vein mapping, rock-chip and channel sampling assay results and
drilling where available. A 0.25g/t Au modelling cut-off was applied to
define the JORC Exploration Targets.
Kiziltepe Estimation Methodology for Resources
Tonnage and grade estimation of the defined mineralisation and alteration
domains was completed using Leapfrog EDGE. This was done using an Inverse
Distance Weighting Squared (IDWS) estimation method, with a three-pass search
approach to outline mineralisation to enable later classification according to
the spacing of sample and assay data.
Top-cuts applied to the mineralisation model (where required) ranged from 8g/t
Au to 20g/t Au and 200g/t Ag to 400g/t Ag for vein domains. Additional
top-cuts were also applied to the alteration halo model domains. These were
applied based on specific areas within the vein system; Arzu South 10g/t Au
and 200g/t Ag, Arzu North 5g/t Au and 200g/t Ag and Derya 5g/t Au and 100g/t
Ag. Further details concerning the use of top-cuts is described in JORC Table
1 for Kiziltepe (see Appendix).
Compositing of assay data was completed within Leapfrog EDGE, using a 1m best
fit routine within the domain boundaries. Hard domain boundaries were
applied to all deposit models, which forced all samples to be included in one
of the composites by adjusting the composite length, while keeping it as close
as possible to the selected intervals of 1m.
Specific density averages were applied to both the mineralisation and
alteration models based on diamond drill core data defined from 4,794 sample
measurements. A statistical review of this data captured within each
geological domain has highlighted that density varies across the Kiziltepe
system with depth, varying locally from vein cluster to vein cluster. For
the purposes of this MRE update, average densities applied to the various
areas within the Kiziltepe area are as follows:
Vein Area Average density applied (g/cm(3))
Arzu South Vein 2.60
Arzu South Alteration Halo 2.50
Arzu North Vein 2.45
Arzu North Alteration Halo 2.40
Derya Vein 2.55
Derya Alteration Halo 2.50
Banu Vein 2.50
Exploration Targets 2.50
Waste Rock 2.53
The block model used is a non-rotated conventional model with no sub-blocking
applied (Figure 3). The block models were constructed using a 1m E by 5m N
by 5m RL parent block size. Isotropic search ellipses and ranges were
used. The variable orientation function (dynamic anisotropy) was used in
Leapfrog EDGE to better represent the grade distribution. Estimation was
carried out using IDWS at the parent block scale using a three-pass estimation
using all available composites within the hard boundary. The IDWS method was
selected as the most suitable method of interpolation for this deposit, as
there is not sufficient nugget affect to warrant an IDWC method.
The estimates were completed separately for vein and alteration halo.
Domaining the alteration halo separately minimises cross-boundary
extrapolation of grades from the main vein to the alteration halo and vice
versa. Areas of alteration and Exploration Targets have been modelled above
a 0.2g/t Au cut-off grade and reported above a 0.75g/t Au cut-off grade
(Figure 4). Veins have been modelled above a 1.0g/t Au cut-off and reported
above a 1.0g/t Au cut-off grade. Cut-off grade is based on assumptions
concerning mining and processing cost, metallurgical recovery and metals
prices.
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Figure 3: Oblique view of the Kiziltepe undepleted block model of veins and
alteration halos (shown in g/t Au) forming the Mineral Resource Estimate and
Exploration Target areas, facing north (top). Current and newly (2022)
optimised pits for Arzu South, Arzu North, Derya and Banu are shown (bottom).
The Kepez area is not included in this figure.
During the review of the Kiziltepe MRE, a visual validation between drillhole
data, composite data and block model data was carried out. The estimate was
also compared to reconciliation data. No mining factors (i.e., dilution, ore
loss, recoverable resources at selective mining block size) have been applied
to the Resource Estimate. Likewise, no metallurgical factors have been
applied, however, the Kiziltepe Processing Plant has life of mine (LOM)
average recoveries of 92% and 75% for gold and silver, respectively. It is
assumed that the remaining ore will be mined via open-pit operations with ore
material hauled to the Kiziltepe Processing Plant for gold and silver
extraction using the carbon-in-leach (CIL) method.
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Figure 4: Kiziltepe vein system showing current mining areas and exploration
target areas, including working pit outlines and 2022 optimisation pit
outlines. This map does not show the Kepez area.
Kiziltepe Estimation Methodology for Reserves
For each of the stated Reserves documented here, no estimation input
parameters were altered (with one exception, as detailed below), from the
Mineral Resource Estimate reported. Conversion of Mineral Resources to Ore
Reserves occur following the application of modifying factors, including
economic studies, metallurgical response and permitting.
Recent work completed during the Kiziltepe annual mine reconciliation review
determined that the application of a soft boundary with a 1-meter range to the
vein or primary mineralisation domain resulted in more accurate correlation
between modelled resources and reported ore mined, specifically in the areas
of Arzu North and Derya. Accordingly, the estimation input parameters were
modified to provide more realistic optimisation inputs for forward mine
planning. This result is particularly significant in the Arzu North area,
where vein swarms are significantly more stockwork-like in nature.
Changes in the estimation boundary type from hard to soft allows for more
accurate representation of what is classified as ore, enabling the grade of
material classed as "quartz veins" to be marginally influenced by the grade of
"altered wall-rock" material. This has been proven in practice, particularly
during the mining of Arzu North where vein widths of less than 1.5m in altered
wallrock (defining lower grade ore) become mixed with the primary ore,
lowering its overall grade. Further details on these modifications to the
Kiziltepe Mineral Resource Estimate vs Ore Reserve Estimate is noted in the
attached JORC Table 1. These changes were applied only to the main Kiziltepe
veins (Arzu South, Arzu North and Derya) in the absence of data for other
areas.
Kiziltepe Pit Optimisation Study
Through early January 2022, the Zenit mining team have completed an extensive
peer review of the Ariana MRE studies, adding specific guidance on their
experiences of mining at Kiziltepe over the last five years. The Kiziltepe
resource model was then subjected to a revised open-pit optimisation study
using revised 2021/2022 economic input parameters in line with current
production forecasts (Figure 5). Mineral Resources classified as Measured
and Indicated, and captured within the latest optimisation study, have been
defined as Proven and Probable Reserves, respectively. The latest open-pit
optimisation results based on the addition of the 2021 drilling and the latest
Measured and Indicated Mineral Resources for Kiziltepe only (not including the
Reserves defined at Kepez or Kizilcukur), indicate a mine life of
approximately two years, for approximately 52,500oz Au and 871,000oz Ag (Table
4). The addition of production from satellite areas such as Kepez and
Kizilcukur could extend mine life further to approximately three years.
Minor variation on the Reserves based on the optimisations are expected as a
result of future mine design requirements.
Details of key input parameters for the 2022 Kiziltepe optimisation study can
be found within Section 4 of the Kiziltepe JORC Table 1.
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Figure 5: Oblique projection of the Kiziltepe vein system, showing the
important development areas of Arzu South, Arzu North, Derya and Banu, with
the veins shown in red. The open-pits currently in place or being worked
toward are the 2019 designed pits. The revised pits will approximate the
shape of the 2022 optimisation outputs.
Kepez North Resource Estimate
In July 2021, a MRE update was announced for Kepez North (Figure 6). This
was based on new drilling completed as part of the wider Kiziltepe Sector
development programme. Since the publication of this MRE, a second phase of
drilling was completed during September 2021 on a grid pattern. This
drilling was completed as a priority to support the commencement of mining
activities, which were scheduled to commence in November 2021. The
additional drilling brings the total drilling at Kepez North to 2,470m across
45 holes, of which 1,173m was drilled for 23 holes in 2021. 158m of channel
sampling was used to support the estimate. An average specific gravity value
of 2.6 g/cm(3) was used for vein and 2.55 g/cm(3) for scree material based on
specific gravity measurements on core samples and operational data from the
Kiziltepe Mine. The new drilling data is incorporated into the resource
model and the revised estimation is presented here.
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Figure 6: Kepez North block model, with designed pit outline, shown facing
east (top) and in section facing north (bottom).
Kiziltepe Sector JORC Exploration Targets
Through 2021, the Ariana team continued to develop various exploration targets
areas within and around Kiziltepe. This work is critical for generating
future sources of potential ore for production at the Kiziltepe Processing
Plant following the depletion of current Reserves. The areas included in the
Exploration Target include a series of underexplored outcropping sub-cropping
epithermal quartz veins situated at the periphery of more well-defined parts
of the Kiziltepe vein system and elsewhere across the Kiziltepe Sector.
These targets include, but are not limited to: Ceylan, Derya West, Fidan, Hale
and Karakavak.
The Exploration Target defined here is prepared in accordance with JORC 2012
and are defined by Ariana with the support of a variety of data sources to
which a range of confidence is applied. The ranges of potential volumes,
tonnages and grades for these Exploration Targets are expressed in accordance
with the guidance of JORC 2012. This Exploration Target is based on
geological modelling and estimated separately from the Mineral Resources
provided here. As with Inferred Resources, the defined Exploration Targets
are not included in further economic studies.
The Exploration Target summarised here is defined by surface geological
mapping (1:1,000 to 1:5,000 scale), surface rock-chip and channel sample assay
results and any available drilling. As an example, the Exploration Target
defined at Karakavak is supported by over 1,000m of diamond and RC drilling,
soil assay and pXRF analysis, and systematic rock-saw channel sampling.
However, in this case, this area still lacks sufficient data to
appropriately upgrade to Inferred Resources.
Tonnages for all defined targets are generated from volumes produced during
interpolation modelling from mapped surface outcrops, associated geochemistry
and drilling. The models produced are generated using a 0.25g/t Au modelling
cut-off, and are constrained to a maximum thickness, typically ranging from
1.5-3.0m, based on outcrop measurements and drill intercept true thickness
lengths. Estimated gold and silver grade ranges are defined either using the
arithmetic mean of surface samples or drill intercept samples. Whichever
variable produces the lowest mean results is used to represent the minimum
grade and vice versa. For silver grades, where sample values are typically
low (less than 5g/t) a set value of 5g/t Ag was applied based on evidence of
broader mineralisation from known and defined vein extensions within the area.
Resource Classification
The Mineral Resource is classified and reported in accordance with the 2012
JORC Code (JORC Table 1) as Measured, Indicated and Inferred (Table 1 and 2)
and is reported in both undepleted and depleted forms, inclusive of Reserves
(Table 4). The classification is determined based on search pass spacing,
with confidence increasing with proximity to drill holes. Table 3 shows the
Exploration Target reported in accordance with JORC (2012).
Table 1: Summary of undepleted 2022 Kiziltepe Sector MRE (including Kiziltepe,
Kepez, Kizilcukur, and Ivrindi), classified and reported in accordance with
JORC 2012 (see associated JORC Table 1's for details). Reporting is based on
cut-off grades as noted in the table. See Table 2 for depleted resources.
All figures are quoted gross with respect to Zenit. Figures in the table
may not sum precisely due to rounding.
KIZILTEPE SECTOR Average Value Material Content
UNDEPLETED RESOURCE Cut-off Grade Density Volume Mass Au Ag Au Ag
Classified g/t Au g/cm(3) m(3) t g/t g/t oz oz
Kiziltepe Measured 0.75 halo, 1.00 vein 2.52 738,780 1,857,180 3.04 45.55 181,400 2,719,690
Dec-21
Appendix 1
Indicated 0.75 halo, 1.00 vein 2.51 294,680 740,930 2.39 45.94 56,850 1,094,250
Inferred 0.75 halo, 1.00 vein 2.49 437,430 1,097,640 2.12 38.49 74,660 1,358,360
Kepez North Measured 1.00 2.6 vein, 2.55 scree 69,430 179,650 4.90 44.92 28,320 259,480
Sep-21
Appendix 2
Indicated n/a
Inferred
Kepez West Measured n/a
May-18
Appendix 3
Indicated
Inferred 1.25 2.55 59,210 150,990 1.89 12.50 9,180 60,440
Kizilcukur Measured 1.00 2.55 51,180 130,510 2.79 84.11 11,720 352,940
May-20
Appendix 4
Indicated 1.00 2.55 34,430 87,800 2.60 69.01 7,340 194,830
Inferred 1.00 2.55 14,650 37,340 1.75 57.31 2,100 68,810
Ivrindi Measured n/a
Oct-13
(JORC 2004, no Table 1)
Indicated
Inferred 1.00 2.50 82,800 207,000 1.65 n/a 11,000 n/a
GLOBAL TOTAL Measured 2.52 859,380 2,167,340 3.18 47.82 221,430 3,332,110
Indicated 2.52 329,110 828,740 2.41 48.38 64,190 1
,
2
8
9
,
0
8
0
Inferred 2.51 594,080 1,492,970 2.02 30.99 96,940 1
,
4
8
7
,
6
1
0
TOTAL 2.52 1,782,570 4,489,050 2.65 42.33 382,560 6
,
1
0
8
,
8
0
0
Table 2: Summary of depleted 2022 Kiziltepe Sector MRE (including Kiziltepe,
Kepez, Kizilcukur and Ivrindi), classified and reported in accordance with
JORC 2012 (see associated JORC Table 1's for details) and excluding material
mined to end November 2021. Reporting is based on cut-off grades as noted in
the table. See Table 1 for undepleted resources. All figures are quoted
gross with respect to Zenit. Figures in the table may not sum precisely due
to rounding.
KIZILTEPE SECTOR Average Value Material Content
DEPLETED RESOURCE Cut-off Grade Density Volume Mass Au Ag Au Ag
Classified g/t Au g/cm(3) m(3) t g/t g/t oz oz
Kiziltepe Measured 0.75 halo, 1.00 vein 2.51 167,450 420,430 2.20 43.47 29,800 587,620
Dec-21
Appendix 1
Indicated 0.75 halo, 1.00 vein 2.51 277,830 698,260 2.33 46.09 52,310 1,034,790
Inferred 0.75 halo, 1.00 vein 2.51 409,830 1,029,220 2.12 38.55 70,070 1,275,460
Kepez North* Measured 1.00 2.6 vein, 2.55 scree 69,430 179,650 4.90 44.92 28,320 259,480
Sep-21
Appendix 2
Indicated n/a
Inferred
Kepez West Measured n/a
May-18
Appendix 3
Indicated
Inferred 1.25 2.55 59,210 150,990 1.89 12.50 9,180 60,440
Kizilcukur Measured 1.00 2.55 51,180 130,510 2.79 84.11 11,720 352,940
May-20
Appendix 4
Indicated 1.00 2.55 34,430 87,800 2.60 69.01 7,340 194,830
Inferred 1.00 2.55 14,650 37,340 1.75 57.31 2,100 68,810
Ivrindi Measured n/a
Oct-13
(JORC 2004, no Table 1)
Indicated
Inferred 1.00 2.50 82,800 207,000 1.65 n/a 11,000 n/a
GLOBAL TOTAL Measured 2.54 288,060 730,600 2.97 51.09 69,830 1,200,050
Indicated 2.52 312,260 786,070 2.36 48.65 59,650 1
,
2
2
9
,
6
2
0
Inferred 2.51 566,480 1,424,550 2.02 30.67 92,340 1
,
4
0
4
,
7
1
0
TOTAL 2.52 1,166,800 2,941,220 2.35 40.55 221,820 3
,
8
3
4
,
3
8
0
Table 3: Updated Exploration Target (reported in accordance with JORC 2012)
originally established in 2017 for several additional vein systems and vein
extensions at Kiziltepe based on geological modelling and grade estimations
provided by along-strike and down-dip extrapolation of average grades from
drilled sections of the same vein systems (January 2022). A density of 2.5
g/cm(3) is applied to estimated volumes to determine tonnage. All figures
are quoted gross with respect to Zenit. Figures in the table may not sum due
to rounding.
Kiziltepe Sector Mass Average Value Material Content
Exploration Targets
Min Max Au Min Au Max Ag Min Ag Max Au Min Au Ag Ag
Max Min Max
Jan-22 t t g/t g/t g/t g/t oz oz oz oz
Kiziltepe 986,900 1,023,200 1.25 3.40 22.00 64.00 32,620 89,720 576,410 1,673,830
Karakavak 195,100 195,240 0.90 1.45 2.00 5.00 9,770 17,055 22,035 55,090
TOTAL 1,182,000 1,218,440 1.12 2.73 15.75 44.13 42,390 106,775 598,445 1,728,920
Reserve Classification
The Ore Reserves are classified and reported in accordance with the 2012 JORC
Code (JORC Table 1) as Proven and Probable (Table 4). The classification is
determined based on search pass spacing, with confidence increasing with
proximity to drill holes. In addition to in-situ Reserves, stockpiled ore
amounting to 308,350 tonnes, is also included as Proven Ore Reserves.
Reserves stated below in Table 4 are included in the resources stated in
Tables 1 and 2.
Table 4: Summary of the 2022 Kiziltepe Sector Reserves (Kiziltepe, Kepez and
Kizilcukur), classified and reported in accordance with JORC 2012, based on
the 2022 Kiziltepe Sector Resources with modifying factors applied.
Reporting is based on a 0.75 and 1g/t Au economic cut-off grade for
alteration halos and veins, respectively. Kiziltepe Reserves include ore in
stockpiles to end of December 2021. Reserves are included in the Resources
stated in Tables 1 and 2. All figures are quoted gross with respect to
Zenit. Figures in the table may not sum precisely due to rounding.
KIZILTEPE SECTOR Average Value Material Content
RESERVES
Cut-off Grade Density Volume Mass Au Ag Au Ag
g/t Au g/cm(3) m(3) t g/t g/t oz oz
Kiziltepe Proven 1.00 2.50 171,660 428,810 1.90 29.30 24,830 385,210
Dec-21
Probable 1.00 2.52 134,900 339,390 2.37 42.45 25,800 461,470
Sub-total 1.00 2.51 310,140 777,150 2.10 35.05 52,530 871,200
Kepez Proven 1.00 2.60 14,140 36,770 5.11 84.18 6,030 99,500
Sep-21
Probable 1.00 2.60 43,090 112,050 3.52 32.09 12,690 115,600
Sub-total 1.00 2.60 57,230 148,810 3.91 44.96 18,730 215,100
Kizilcukur Proven n/a
Jan-22
Based on May 2020 model
Probable 1.00 2.55 48,290 123,130 2.27 92.54 8,990 366,340
Sub-total 1.00 2.55 48,290 123,130 2.27 92.54 8,990 366,340
TOTAL 1.00 2.52 417,520 1,053,720 2.38 43.16 80,580 1,462,310
Sampling and Assaying Procedures
All diamond drill core was processed at the Kiziltepe mine site and analysed
at the Kiziltepe Mine Laboratory. The analytical results were assessed
systematically according to each individual vein system within the Kiziltepe
Sector.
For the most recent drilling programme, HQ size drill-core samples from
Kiziltepe were cut in half by a diamond saw and sent for analysis in batches
in line with the Company's quality control procedures. QA/QC sample
insertion rates vary depending on the batch size accepted by the laboratory.
For samples sent to Kiziltepe Mine Laboratory, a batch consists of 20
samples (incl. 1 blank, 1 CRM, 1 field duplicate and 1 internal Zenit lab
sample) with an insertion rate of 16%. For samples sent to ALS Global,
Izmir, a batch consists of 35 samples (incl. 1 blank, 1 CRM, 1 field duplicate
and 1 pulp duplicate) for an insertion rate of 11%.
Core recovery for all drilling conducted at Kiziltepe is >90% for all
mineralised zones, with >93% for diamond and >88% for RC drilling for
all core (vein and host rock). Core recovery for the 2021 Kiziltepe drill
programme is 92%. Drilling completed at Kepez in 2021 resulted in an average
recovery for all core at 77%, the lower recovery due in part to the
significant drilling which occurred in already broken rock. More detail on
recoveries for each project is available in JORC Table 1 specific to each
project.
Between 2020 and 2021, the Kiziltepe Mine Laboratory has been undergoing an
extensive expansion to meet the significant demands for sample assaying, from
both the mining and exploration teams. This expansion is now largely
complete with the onsite laboratory now housing seven furnaces, two ICP-OES
instruments, two Atomic Absorption Spectrometers (AAS), three drying ovens,
three crushers and three pulverisers. The laboratory upgrades now allow the
Zenit team to increase their sampling throughput by 48% (70 samples per day to
135). The two major upgrades for 2021 included with the above mentioned is the
addition of 1) a multi-element ICP-OES (PerkinElmer Avio 550) analyser, and 2)
an Elementrac CS-i sulphur-carbon analyser. The ICP-OES is currently
operational and now provides the team with a full suite of elements on
selected samples (as opposed to just gold and silver). However, new operating
procedures are currently being internally reviewed and calibrations of the new
instruments are being assessed. As part of this, the laboratory team are
sending in excess of 10% of their crushed rejects from selected drill core
samples to ALS Global in Izmir for check assays. To date, these results have
not yet been received, and as such, a full validation of Zenit's new
laboratory procedures has not been fully completed. However, Zenit's
internal QA/QC data and sample duplicates have been reviewed, and are
considered satisfactory for Ariana's reporting purposes. In addition, the
Kiziltepe laboratory meets the standard of "TS EN ISO/IEC 17025 General
Requirements for the Competence of Experimental and Calibration Laboratories".
All samples were assayed for gold using a 30g or 50g fire assay, depending on
the generation of drilling and lab-specific protocols since 2006 (and any
drilling undertaken prior to Ariana). Reviews of the assay results have
determined that all Quality Control and Quality Assurance samples (blanks,
standards and duplicates) passed the quality control checks established by the
Company, with duplicate samples showing excellent correlation. Laboratory
sample preparation, assaying procedures and chain of custody are appropriately
controlled. The Company maintains an archive of half core samples and a
photographic record of all cores for future reference.
Contacts:
Ariana Resources plc Tel: +44 (0) 20 3476 2080
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
John Prior / Hugh Rich / Atholl Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 20 3004 9512
Dominic Barretto / Henry Wilkinson / Matthew McHale arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)
Editors' Note:
The Mineral Resource estimate was prepared by Zack van Coller, BSc (Hons),
Special Projects Geologist, a Competent Person as defined by the JORC Code.
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. Chief Mine Planning Engineer, Kadir
Turan BSc, is responsible for the optimisation study and mine designs. 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. Miss Bektas and Dr.
Sener have reviewed the technical and scientific information in this press
release relating to the Mineral Resource and Reserve estimates 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 2021). The joint venture comprises the Kiziltepe Mine and the
Tavsan and Salinbas projects.
The Kiziltepe Gold-Silver Mine is located in western Turkey and contains a
depleted JORC Measured, Indicated and Inferred Resource of 222,000 ounces gold
and 3.8 million ounces silver (as at February 2021). The mine has been in
profitable production since 2017 and is expected to produce at a rate of
c.20,000 ounces of gold per annum to at least the mid-2020s. A Net Smelter
Return ("NSR") royalty of 2.5% on production is being paid to Franco-Nevada
Corporation.
The Tavsan Gold Project is located in western Turkey and contains a JORC
Measured, Indicated and Inferred Resource of 253,000 ounces gold and 0.7
million ounces silver (as at June 2020). The project is being progressed
through permitting and an Environmental Impact Assessment, with the intention
of developing the site to become the second joint venture gold mining
operation. A NSR royalty of up to 2% on future production is payable to
Sandstorm Gold.
The Salinbas Gold Project is located in north-eastern Turkey and contains a
JORC Measured, Indicated and Inferred Resource of 1.5 million ounces of gold
(as at July 2020). It is located within the multi-million ounce Artvin
Goldfield, which contains the "Hot Gold Corridor" comprising several
significant gold-copper projects including the 4 million ounce Hot Maden
project, which lies 16km to the south of Salinbas. A NSR royalty of up to 2%
on future production is payable to Eldorado Gold Corporation.
Ariana owns 100% of Australia-registered Asgard Metals Fund ("Asgard"), as
part of the Company's proprietary Project Catalyst Strategy. The Fund is
focused on investments in high-value potential, discovery-stage mineral
exploration companies located across the Eastern Hemisphere and within easy
reach of Ariana's operational hubs in Australia, Turkey and the UK.
Ariana owns 75% of UK-registered Western Tethyan Resources Ltd ("WTR"), which
operates across Eastern Europe and is based in Pristina, Republic of Kosovo.
The company is targeting its exploration on major copper-gold deposits across
the porphyry-epithermal transition.
Ariana owns 50% of UK-registered Venus Minerals Ltd ("Venus") which is focused
on the exploration and development of copper-gold assets in Cyprus which
contain a combined JORC Indicated and Inferred Resource of 16.6Mt @ 0.45% to
1.10% copper (excluding additional gold, silver and zinc).
Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish
Limited is the Company's Nominated Adviser and Broker.
For further information on Ariana you are invited to visit the Company's
website at www.arianaresources.com (http://www.arianaresources.com) .
Glossary of Technical Terms:
"Ag" chemical symbol for silver;
"Au" chemical symbol for gold;
"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;
"g/t" grams per tonne;
"IDWC" Inverse Distance Weighted Cubed is a conventional mathematical method
used to calculate the attributes of mineral resources. Near sample points
have a greater weighting than samples further away for any given resource
block. The cubed method gives even stronger weighting to close samples than
the squared method;
"IDWS" Inverse Distance Weighted Squared is a conventional mathematical method
used to calculate the attributes of mineral resources. Near sample points
have a greater weighting than samples further away for any given resource
block, although the squared method gives less weighting to close samples than
the cubed method;
"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.
"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;
"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;
"Mt" million tonnes;
"oz" Troy ounces;
"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;
"Proven Ore Reserve" is the economically mineable part of a Measured Mineral
Resource. A Proven Ore Reserve implies a high degree of confidence in the
Modifying Factors.
Ends.
JORC Code, 2012 Edition - Table 1
Kiziltepe, Western Turkey (data to end November 2021, MRE reported January
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 · Reverse circulation (RC) chips were collected at 1 m intervals
specific specialised industry standard measurement tools appropriate to the and in some cases over 0.5 m intervals over the mineralised zone. The chips
minerals under investigation, such as down hole gamma sondes, or handheld XRF were collected into plastic sample bags from a cyclone to ensure maximum
instruments, etc). These examples should not be taken as limiting the broad recovery. The samples were split using a standard riffle-splitter to around
meaning of sampling. 0.25 to 0.5 kg per sample.
· Include reference to measures taken to ensure sample representivity · Diamond drillcore is split using a diamond rock saw, and
and the appropriate calibration of any measurement tools or systems used. half-core samples are taken at variable intervals. Core recovery is recorded
into the database.
· Aspects of the determination of mineralisation that are Material to
the Public Report. · Samples were sent to an ISO accredited ALS laboratory in Romania
for Au and Ag analysis by fire assay and latterly to a similar ALS laboratory
· In cases where 'industry standard' work has been done this would be in Izmir, which is still used as an external laboratory for QA/QC purposes.
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire · Samples are now prepared and analysed at Zenit laboratory at
assay'). In other cases more explanation may be required, such as where there Kiziltepe Mine, for Au (fire assay), Ag (AAS), and 4-acid digest for all other
is coarse gold that has inherent sampling problems. Unusual commodities or elements.
mineralisation types (eg submarine nodules) may warrant disclosure of detailed
information. · Under normal Company operational procedures, sampling undertaken
as early-stage exploration or reconnaissance is submitted to the laboratory
for 30g fire assay analysis. However, sampling undertaken on more advanced or
resource stage projects are submitted for 50g fire assay analysis, where it is
expected that the larger samples mass will provide marginally more
representative results.
· Through 2021, the Kiziltepe Mine Laboratory, under its current
transforming setup, is only able to analyse samples at a 30g fire assay sample
shot capacity. Therefore, check samples sent to ALS in Izmir for external
review have been, and will continue to be sent as a mixture of both 30g and
50g assay shot capacities, so that the various teams involved can
appropriately reconcile the minor variation in the compared datasets.
· As of January 2022, the Zenit Laboratory houses two ICP-OES
(PerkinElmer Avio 550 and PerkinElmer Optima 8000) instruments, two Atomic
Absorption Spectrometers (PerkinElmer's PinAAcle 900F), three drying ovens,
three crushers, three pulverisers and seven furnaces.
· Portable X-ray Fluorescence (pXRF) analysis is typically used on
1m intervals on all drill core not sampled for assaying. This is primarily for
geological modelling purposes.
· Pulp rejects from all assayed samples are also analysed using
pXRF analysis. This data is not used for mineral resource estimation purposes,
but rather for internal evaluations conducted by the exploration team. pXRF
certified reference standards are used on a regular basis in line with company
procedures.
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or
standard tube, depth of diamond tails, face-sampling bit or other type, http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
whether core is oriented and if so, by what method, etc). (http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
· Pre-2018 drilling programmes included percussion drilling,
reverse circulation (RC, 130 mm diameter) and diamond drilling (NQ diameter).
· 2018 drilling was undertaken by NQ diamond drilling (918 m)
· 2019 drilling was undertaken by RC drilling (3,186 m)
· 2020 drilling was undertaken by HQ diamond drilling (2,391 m)
· 2021 drilling was undertaken by HQ diamond drilling (12,579 m)
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Note: x = drill hole numbering
Drill sample recovery · Method of recording and assessing core and chip sample recoveries · Recoveries were monitored and recorded into the sampling
and results assessed. database. Drill recoveries for all mineralised intercepts exceeded 90%
recovery.
· Measures taken to maximise sample recovery and ensure
representative nature of the samples. · Overall core recovery for diamond drilling is >93%. The recent
drilling (2021) had overall recovery of 92%.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of · Overall recovery for RC drilling is >88%.
fine/coarse material.
· There is no bias between sample recovery and grade.
Logging · Whether core and chip samples have been geologically and · All diamond core holes were logged lithologically using a coded
geotechnically logged to a level of detail to support appropriate Mineral logging system for rock type, grain size, colour, alteration and any other
Resource estimation, mining studies and metallurgical studies. relevant observations.
· Whether logging is qualitative or quantitative in nature. Core (or · Mineralised zones were identified from observation of mineralogy
costean, channel, etc) photography. and lithological characteristics. Portable XRF (pXRF) analysis was conducted
post drilling, to provide supporting geochemical data for non-sampled
· The total length and percentage of the relevant intersections regions. Areas identified as geochemically anomalous by pXRF were further
logged. sampled. The pXRF was checked by use of certified referenced standards to
ensure good quality data was produced.
· Logging of RC samples was carried out on washed samples with
geological characteristics recorded into a database.
· All drilled metres [275 diamond drill holes (26,235 m), 164 RC
drill holes (16,066 m), 15 rotary air blast (RAB) holes (348 m) and 130
rock-saw channels (975 m)] were logged regardless of presence of
mineralisation.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · Samples from diamond drill core were collected from sawn halves
taken. of identified zones of interest. Half core remains in the core tray for
reference.
· If non-core, whether riffled, tube sampled, rotary split, etc and
whether sampled wet or dry. · RC sampling: Samples were collected at 1 m intervals and split
using a two-stage riffle splitter, running each sample through the splitter
· For all sample types, the nature, quality and appropriateness of twice. Wet intervals were sub-sampled with scoop or spear. Samples were
the sample preparation technique. oven-dried at the laboratory if necessary.
· Quality control procedures adopted for all sub-sampling stages to · Sample preparation technique is appropriate to the mineralisation
maximise representivity of samples. style.
· Measures taken to ensure that the sampling is representative of the · Splitting and sample preparation conducted on samples at the
in situ material collected, including for instance results for field Zenit laboratory:
duplicate/second-half sampling.
o Drying at 105(O)C
· Whether sample sizes are appropriate to the grain size of the
material being sampled. o Crushing whole sample to ≤2mm
o Splitting of crushed sample to analyse
o Pulverising sub-sample to 80% passing ≤75μm
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
· Splitting and sample preparation conducted on samples at the ALS
laboratory:
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · QC procedures employed in all drill programmes prior to 2019
laboratory procedures used and whether the technique is considered partial or included the insertion of certified reference standards (1:22), blank samples
total. (1:22), pulp and crush duplicates (2:22) to monitor the accuracy and precision
of laboratory data when samples were submitted to ALS Global, Izmir. Insertion
· For geophysical tools, spectrometers, handheld XRF instruments, rate of 18%.
etc, the parameters used in determining the analysis including instrument make
and model, reading times, calibrations factors applied and their derivation, · In drill programmes since 2019, samples have been submitted in
etc. batches of 35 to ALS Global, Izmir, to include 1 blank, 1 CRM, 1 field
duplicate and 1 pulp duplicate. Insertion rate of 11%.
· 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.
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
· Samples submitted to Zenit Laboratory are in batches of 20 to
include 1 blank, 1 CRM, 1 field duplicate and 1 internal Zenit Lab sample.
Insertion rate of 16%.
· 10% of all drill samples are duplicated to submit to ALS Global,
Izmir, as check samples at an external laboratory to confirm internal Zenit
Laboratory results, whilst the laboratory expansion is taking place.
· The overall quality of QA/QC procedures is considered adequate to
ensure the validity of the data used for resource estimation purposes.
· The handheld XRF is an Olympus Vanta. A series of 10 blank and
certified reference material samples are used to check the quality of the pXRF
data. These are scanned at a rate of 1 blank and 1 CRM for every 100 samples.
The device does not require further calibration.
Verification of sampling and assaying · The verification of significant intersections by either independent · All samples before 2019 were submitted to the internationally
or alternative company personnel. accredited laboratory of ALS Global in Izmir, Turkey (ISO 9001:2008
accredited).
· The use of twinned holes.
· Samples taken in 2019, 2020 and 2021 have been submitted to Zenit
· Documentation of primary data, data entry procedures, data Laboratory at the Kiziltepe Mine, with 10% also selected for check assays at
verification, data storage (physical and electronic) protocols. ALS Global in Izmir throughout the sampling programme. Samples are chosen from
areas suspected to be mineralised.
· Discuss any adjustment to assay data.
· Primary data, data entry procedures, data verification and data
storage protocols are in line with industry best-practice.
· Assay data has not been adjusted.
· All samples (30g or 50g) are analysed using fire assay with AAS
(Au-AA23) and aqua regia with ICP-AES (ME-ICP41).
· Since early 2021 the Zenit Mine Laboratory has been undergoing
expansion to deal with increased sample capacity. Initial verification of
assay results from newly installed laboratory instruments is still undergoing
internal review. To date, only partial check results from the external
laboratory (ALS Izmir) have been received and reviewed. Initial checks have
demonstrated that received assay data and associated QA/QC samples fall within
expected levels. Evaluations of incoming check data for the Zenit and ALS
laboratories will continue to be assessed through 2022 until results
conclusively prove that all new instruments are appropriately calibrated and
operating as intended.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar · All collar positions were located initially by hand-held GPS
and down-hole surveys), trenches, mine workings and other locations used in (Garmin Etrex 10 and 30) and later surveyed by a professional surveyor using
Mineral Resource estimation. dGPS equipment.
· Specification of the grid system used. · Holes were surveyed using a standard Electronic Multi-shot
Magnetic survey deviation tool (Devico PeeWee). All holes were surveyed in the
· Quality and adequacy of topographic control. 2021 drilling programme.
· All coordinates are collected by dGPS, converted to the local
grid and recorded in UTM ED50 35N.
· Topographic data is collected by dGPS and regular surveys are
completed to update the topography in areas being mined.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · At Kiziltepe, drill section spacing is typically 10 to 12.5 m
with several holes often being collared from a single site.
· Whether the data spacing and distribution is sufficient to
establish the degree of geological and grade continuity appropriate for the · 275 diamond drill holes (26,235 m), 164 RC drill holes (16,066
Mineral Resource and Ore Reserve estimation procedure(s) and classifications m), 15 rotary air blast (RAB) holes (348 m) and 130 rock-saw channels (975 m)
applied. were used to model the vein systems. In-pit grade control sampling data
(over 101,830 m across 2,111 lines perpendicular to mineralisation) was also
· Whether sample compositing has been applied. included in the geological modelling of veins and alteration.
· Exploration targets are defined typically on sample drill collars
spacing from 50m to a maximum of 200m, and must be supported by surface
geological mapping, soil sampling and/or other forms of
geochemical/geophysical verification.
· Sample compositing has not been applied at the sampling stage.
· Sample spacing and distribution is sufficient to establish the
geological and grade continuity required for modelling and resource
estimation.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · The dip of the mineralisation for most of the deposit is 75-85°
possible structures and the extent to which this is known, considering the towards the northeast.
deposit type.
· Local grade continuity follows the dip of the mineralisation for
· If the relationship between the drilling orientation and the the entire deposit. All drilling is angled, thus intersecting the
orientation of key mineralised structures is considered to have introduced a mineralisation obliquely.
sampling bias, this should be assessed and reported if material.
· No biases are expected from the drilling direction.
Sample security · The measures taken to ensure sample security. · Samples are stored at a secure company facility (Sindirgi Depot)
in a clean area free of any contamination.
· During drilling programmes pre-2019 samples were delivered to ALS
Global, Izmir once a week by Aras Cargo, Sindirgi. The measures taken to
ensure sample security for samples used for analysis and QA/QC include the
following:
1. Chain of Custody is demonstrated by both the Company and ALS Global
in the delivery and receipt of sample materials.
2. Upon receipt of samples, ALS Global delivers by email to the
Company's designated Quality Control Manager, confirmation that each batch of
samples has arrived, with its tamper-proof seal intact, at the allocated
sample preparation facility.
3. Any damage to or loss of samples within each batch (e.g., total
loss, spillage or obvious contamination), must also be reported to the Company
in the form of a list of samples affected and detailing the nature of the
problem(s).
· In all drilling programmes since 2020, the majority of samples
have been analysed by the laboratory at the Kiziltepe Mine. Samples are
delivered securely from the drill site to the laboratory by the exploration
team and are securely held at the laboratory in the fenced off and guarded
mine site, with no unauthorised access.
Audits or reviews · The results of any audits or reviews of sampling techniques and · Ariana has implemented QA/QC programmes covering all aspects of
data. sample location and collection that meets or exceeds the currently accepted
industry standards.
· Ariana implemented a QA/QC programme based on international best
practice during the initial exploration work and subsequent drilling
programmes. The company has continued to review and refine the QA/QC
programme as these exploration campaigns have progressed.
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 Kiziltepe area is within one of three operating licences in
agreements or material issues with third parties such as joint ventures, the Sindirgi District of Balikesir Province in western Turkey owned by Zenit
partnerships, overriding royalties, native title interests, historical sites, Madencilik San. ve Tic. A.S. ("Zenit") Joint Venture ("JV") with Proccea
wilderness or national park and environmental settings. Construction Co. and Ozaltin Holding A.S. (23.5% owned by Ariana). Licence
numbers:
· The security of the tenure held at the time of reporting along with
any known impediments to obtaining a licence to operate in the area. o Yolcupinar licence: 44830
o Coturtepe licence: 20065879
o Umurlar licence: 44828
· Royalties include the State Right payable to the Turkish
Government and a Net Smelter Return ("NSR") royalty of up to 2.5% on
production is payable to Franco-Nevada Corporation.
· There are no known impediments to current operations.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · In 1990, Eurogold Madencilik A.S. conducted regional BLEG
stream-sediment sampling around the Kiziltepe area. This led to the initial
discovery of anomalous gold in the district. Follow-up work led to the
identification of several gold-bearing low sulphidation epithermal veins.
· The Kiziltepe deposit was then explored from 1991 by a Tuprag
Madencilik Ltd. and Newmont Overseas Exploration Ltd. joint venture. In 1992
the licence area was acquired via state auction by Tuprag following the
identification of areas of potential hydrothermal alteration, as defined in
Landsat colour-composite imagery. The Kiziltepe and Kepez areas were
drill-tested for the first time.
· In 1994, Normandy La Source acquired the project from the joint
venture. No further exploration was carried out and the licence areas were
relinquished.
· Newmont acquired the key licences via state auction in 2000. In
2002, Newmont undertook an exploration targeting exercise using Landsat
structural interpretations and new BLEG stream-sediment geochemistry across
the Sindirgi district, which led to the rediscovery of the epithermal veins.
They completed an extensive programme of regional and detailed rock-chip
sampling. Newmont completed 19 diamond drillholes in 2002/2003 on the
Kiziltepe deposit (for 2,987.5 m).
· By 2005 a total of 4,378 m of diamond drilling had been completed
on the project before Galata Madencilik San. ve Tic. Ltd. This wholly owned
subsidiary of Ariana acquired the licences in early 2005 from Newmont.
· Since 2006 Ariana Resources and Zenit Madencilik have completed
new mapping and sampling, including diamond drilling (HQ, NQ), reverse
circulation drilling (RC), rotary air blast drilling (RAB), rock-saw channel
sampling of vein outcrop and composite rock-chip sampling.
Geology · Deposit type, geological setting and style of mineralisation. · The Kiziltepe area is dominated by Miocene volcanic rocks,
comprising a series of dacitic volcanoclastic units, which host the
low-sulphidation epithermal gold-silver style mineralisation. An upper dacitic
ignimbrite unit, covers parts of the vein field. The dimensions of the
en-echelon quartz veins vary and are typically between 100 m and 1200 m in
strike length, although smaller vein systems are also present. The veins dip
steeply and dip lengths are typically 100 m to 200 m. Vein widths are
typically 2 m to 5 m, with some exceeding 7 m. A general 30° south plunge
is noted on the veins in the Kiziltepe area.
Drill hole Information · A summary of all information material to the understanding of the · All drilling prior to 2021 has been reported. The table below
exploration results including a tabulation of the following information for summarises the 2021 HQ diamond drilling programme (UTM ED50 35N).
all Material drill holes:
o easting and northing of the drill hole collar
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
o elevation or RL (Reduced Level - elevation above sea level in metres) of (http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
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, · Metal equivalents have not been used.
maximum and/or minimum grade truncations (eg cutting of high grades) and
cut-off grades are usually Material and should be stated. · Significant down-hole intercepts calculated for the Kiziltepe 2021
drilling programme, using a 1.0 g/t Au minimum cut-off and allowing for 0.5 m
· Where aggregate intercepts incorporate short lengths of high grade internal dilution:
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.
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
· The assumptions used for any reporting of metal equivalent values (http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · Down hole length, true width not known. All drilling has previously
Exploration Results. been reported and modelled in three-dimensions accordingly.
· If the geometry of the mineralisation with respect to the drill
hole angle is known, its nature should be reported.
· If it is not known and only the down hole lengths are reported,
there should be a clear statement to this effect (eg 'down hole length, true
width not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of KIZILTEPE
intercepts should be included for any significant discovery being reported
These should include, but not be limited to a plan view of drill hole collar http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
locations and appropriate sectional views. (http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Derya
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Arzu North
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Arzu South
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Banu
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · Intercepts depths stated in the drill hole information but not
practicable, representative reporting of both low and high grades and/or stated in the data aggregation methods section are lower grade intersections.
widths should be practiced to avoid misleading reporting of Exploration Widths of intercepts are stated.
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · Ariana completed IP/resistivity geophysics from 2008 to 2010 over
reported including (but not limited to): geological observations; geophysical the Kiziltepe vein field. These survey results were initially modelled in 2D
survey results; geochemical survey results; bulk samples - size and method of and then later as 3D inversions in 2012. The results highlighted several
treatment; metallurgical test results; bulk density, groundwater, geotechnical anomalous areas representing potential mineralisation at depth and beneath
and rock characteristics; potential deleterious or contaminating substances. cover.
· In October 2014, Ariana commenced a ground magnetic survey over
the Kiziltepe Sector JV licences (totalling 50 km(2)). The geophysical survey
was undertaken by the Ariana field team utilising two backpack magnetometers
with continuous readings undertaken along N-S oriented lines spaced 200 m
apart.
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
· Prior to the initiation of the geophysical survey the Company
collected approximately 15,000 soil samples across the JV licence area
(totalling 100 km(2)) and analysed these using a portable X-ray fluorescence
(pXRF) device. The soil samples were collected every 50 m along N-S oriented
lines spaced 100 m apart. The resulting XRF geochemical maps have provided an
unprecedented amount of data coverage for key trace elements (e.g. antimony,
arsenic, copper, lead, manganese, molybdenum and zinc) that can be used as
vectors to gold and silver mineralisation.
Further work · The nature and scale of planned further work (eg tests for lateral · Substantial at surface and near surface exploration targets exist
extensions or depth extensions or large-scale step-out drilling). within the immediate and surrounding areas of the Kiziltepe Sector. These
generally exist as strike extensions of known gold bearing quartz veins that
· Diagrams clearly highlighting the areas of possible extensions, have not been drill tested adequately or are currently being drill tested
including the main geological interpretations and future drilling areas, according to exploration priority. Notable targets include; 1) the 600 m vein
provided this information is not commercially sensitive. extension between Arzu South and Arzu North, where geochemical, drilling and
geophysical evidence suggests vein continuity to exist under a 60-100 m thick
rhyo-dacite cap rock; 2) the 600 m strike extension of Arzu North, where
geological mapping and surface rock-chip sampling and recent drilling shows
strong geological continuity of gold bearing quartz veins; and 3) the 700 m
Ceylan vein structure as defined by three early stage exploration drill holes,
surface rockchip sampling and geological mapping. These three major
exploration zones are combined to form the Company's Parallelogram Target,
where significant exploration is currently underway.
· Detailed exploration targets:
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
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 · The Kiziltepe resource data was stored in Datashed. Data has now
example, transcription or keying errors, between its initial collection and been transferred to MX Deposit, the database management system used by the
its use for Mineral Resource estimation purposes. company, which started in Q3 2021.
· Data validation procedures used. · Data was logged onto field sheets which were then entered into
the data system by data capture technicians.
· Data was validated on entry into the database, or on upload from
the earlier MS Access databases, by a variety of means including the
enforcement of coding standards, constraints and triggers. These are features
built into the data model that ensure data meets essential standards of
validity and consistency.
· Laboratory data has been received in digital format and uploaded
directly to the database.
· Original data sheets and files have been retained and are used to
validate the contents of the database against the original logging.
· Zenit Madencilik and independent consultants such as Tetra Tech
and Odessa Resources Pty Ltd performed a visual validation by reviewing drill
holes on section and by subjecting drill hole data to data auditing processes
in specialised mining software (e.g. checks for sample overlaps etc.).
· Independent consultants Tetra Tech performed a visual validation
by reviewing drill holes on section in Datamine Studio RM mining software.
· Ariana Resources performed validation checks in Leapfrog GEO and
EDGE v. 6.0.
Site visits · Comment on any site visits undertaken by the Competent Person and · Ariana staff have visited the site on numerous occasions, and
the outcome of those visits. supervised all drilling, sampling and other operations at all times in order
to introduce appropriate logging, sampling and drilling protocols.
· If no site visits have been undertaken indicate why this is the
case. · Zack van Coller (BSc) of Ariana Resources has been involved in
all work on the project since 2010.
· Ruth Bektas (BSc, CGeol, EurGeol) of Ariana Resources is acting
as the Competent Person for this study, and has been on site during mining,
active drilling programmes and other exploration activities.
· Ariana Resources (Galata Madencilik) and Zenit Madencilik field
staff are permanently on site.
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological · Veins in the Kiziltepe prospect, comprise WNW-NNW trending,
interpretation of the mineral deposit. sub-parallel, low sulphidation style veins and related stockworks are hosted
by dacite and dacitic pyroclastic units.
· Nature of the data used and of any assumptions made.
· At Arzu North and Banu the veins appear to bifurcate.
· The effect, if any, of alternative interpretations on Mineral
Resource estimation. · Interpretations of geological surfaces are derived from 3D
modelling of drill hole and mine grade control data in Leapfrog GEO and EDGE
· The use of geology in guiding and controlling Mineral Resource v. 6.0.
estimation.
· Interpolation and wireframe modelling of the mineralised zones in
· The factors affecting continuity both of grade and geology. Leapfrog EDGE was completed using a 0.25 g/t and 1.0 g/t Au modelling cut-off
grade (CoG) for alteration and veins, respectively. 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.
Dimensions · The extent and variability of the Mineral Resource expressed as Arzu South
length (along strike or otherwise), plan width, and depth below surface to the
upper and lower limits of the Mineral Resource. · In plan orientation, the deposit is approximately 900 m long and
2 m to 10 m metres wide.
· One primary lode trending 320° and 180 m northerly-trending
southern section separated from main lode by interpreted fault.
· Lodes vary from 2 m to 10 m in thickness with main lode averaging
5 m thickness.
· Mineralisation has vertical extents ranging between 385 metres
above reference level (mRL) and 150 mRL.
Arzu North
· The deposit is approximately 700 m long and comprises several
steeply dipping parallel and partly overlapping 310° trending lodes.
· Mineralisation has vertical extents ranging between 405 mRL and
220 mRL.
Derya
· The deposit is approximately 500 m long and comprises several
steep north dipping sub-parallel and partly overlapping, 290° trending lodes.
· Mineralisation has vertical extents ranging between 390 mRL and
140 mRL (average 100 m down dip distance).
Arzu Central
· The deposit is approximately 350 m long and comprises several
vertical 305° trending lodes.
· Mineralisation has vertical extents ranging between 410 mRL and
250 mRL.
Banu
· The deposit extends over a strike length of 600 m and comprises a
single subvertical 330° trending lode. The lode is disrupted by possible
fault/shear zone that breaks up the lode into several sub-parallel segments.
· Mineralisation has vertical extents ranging between 395 mRL and
245 mRL.
Other Veins
· There are extensions along strike to the main veins listed above.
There are also other less well-defined veins between these, such as Ceylan at
>400 m length.
· Vertical lodes with a general 320° trend.
· Mineralisation has vertical extents ranging between 400 mRL and
200 mRL.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) · Drill hole sample data was constrained within:
applied and key assumptions, including treatment of extreme grade values,
domaining, interpolation parameters and maximum distance of extrapolation from o Systematic vein interpolation models based on manually isolated economic
data points. If a computer assisted estimation method was chosen include a drill intercepts, where all the Kiziltepe vein were modelled using Seequent's
description of computer software and parameters used. "Vein System" model tool to define grade driven domains. Economic intercepts
were defined by nominal 0.5 g/t Au, 1.0 g/t Au and 2.0 g/t Au modelling cut
· The availability of check estimates, previous estimates and/or mine offs (depending on vein).
production records and whether the Mineral Resource estimate takes appropriate
account of such data. o Lower grade or periphery intercepts were domained as Alteration Halos
using standard interpolation modelling methods, then clipped using the vein
· The assumptions made regarding recovery of by-products. model volumes to create an interlocking vein and alteration model.
· Estimation of deleterious elements or other non-grade variables of · Compositing was completed in Leapfrog EDGE using a 1 m best fit
economic significance (eg sulphur for acid mine drainage characterisation). routine. Hard domain boundaries were applied to both deposit models, which
forced all samples to be included in one of the composites by adjusting the
· In the case of block model interpolation, the block size in composite length, while keeping it as close as possible to the selected
relation to the average sample spacing and the search employed. intervals of 1m.
· Any assumptions behind modelling of selective mining units. · An analysis of the grade distribution characteristics of the
domain composites for each deposit was undertaken. In each case one of the
· Any assumptions about correlation between variables. following was identified:
· Description of how the geological interpretation was used to o Noticeable high-grade inflection points on log-probability graphs.
control the resource estimates.
o Significant gaps on disintegration plots.
· Discussion of basis for using or not using grade cutting or
capping. · Top cuts were applied for Au and Ag, specific to each vein and
alteration domain.
· The process of validation, the checking process used, the
comparison of model data to drill hole data, and use of reconciliation data if http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
available. (http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
· Isotropic search ellipses and ranges were used. The variable
orientation function (Dynamic anisotropy) was used in Leapfrog to better
represent the grade distribution.
· The block models were constructed using a 1 mE by 5 mN by 5 mRL
parent block size.
· The block model is a non-rotated conventional block model with no
sub-blocking used.
· Estimation was carried out using inverse distance weighted
squared (IDWS) at the parent block scale using a three-pass estimation using
all available composites within the hard boundary. The Inverse Distance
Weighted Squared (IDWS) method was selected as the most suitable method of
interpolation in this deposit, as there is not sufficient nugget affect to
warrant an IDWC method. Ordinary Kriging was not used as satisfactory
variograms were not obtainable.
· Samples for each block were limited:
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
· Check estimates were carried out and the final estimate was
compared to previous estimates and production figures.
· Gold and silver have been estimated as mining products. No
by-products or deleterious elements have been modelled.
· In general, gold and silver show a positive correlation with each
other.
· A visual validation between drillhole data, composite data and
block model data is carried out. The estimate was also compared to mining
reconciliation data.
· Reserves were estimated with the same parameters as above, but
with soft boundaries with a 1m range applied to the vein domains of Arzu
South, Arzu North and Derya, based on production data and reconciliation
studies.
http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf)
· The application of soft boundaries with a 1m range to the named
above quartz vein domains only, resulted in a more accurate overall estimated
resource; when compared to the Zenit mine production models. This therefore
provided a more accurate model for future production forecast once the revised
models are applied to further economic studies, such as an open-pit
optimisation analysis.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Tonnes have been estimated on a dry basis.
moisture, and the method of determination of the moisture content.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · Alteration and exploration resources have been modelled above a
applied. 0.2 g/t Au cut-off grade and reported above a 0.75 g/t Au cut-off grade.
Veins have been modelled above a 1.0 g/t Au cut-off and reported above a 1.0
g/t Au cut-off grade. Cut-off grade calculated from assumptions on mining
and processing cost, metallurgical recovery and metals prices.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · No mining factors (i.e., dilution, ore loss, recoverable
dimensions and internal (or, if applicable, external) mining dilution. It is resources at selective mining block size) have been applied to the original
always necessary as part of the process of determining reasonable prospects resource.
for eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating · It is assumed that the remaining resources will be open pit
Mineral Resources may not always be rigorous. Where this is the case, this operations with ore material trucked to the Kiziltepe Mine carbon in leach
should be reported with an explanation of the basis of the mining assumptions (CIL) plant for gold and silver extraction.
made.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · No metallurgical assumptions have been built into the resources.
amenability. It is always necessary as part of the process of determining However, metallurgical test work conducted for the Feasibility Study (Tetra
reasonable prospects for eventual economic extraction to consider potential Tech DFS) concluded that recoveries of up to 87% and 64% for gold and silver
metallurgical methods, but the assumptions regarding metallurgical treatment respectively were possible.
processes and parameters made when reporting Mineral Resources may not always
be rigorous. Where this is the case, this should be reported with an · The operating Kiziltepe plant has life of mine (LOM) average
explanation of the basis of the metallurgical assumptions made. recoveries of 92% and 75% for gold and silver respectively.
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 projects.
reasonable prospects for eventual economic extraction to consider the
potential environmental impacts of the mining and processing operation. While · Statutory forestry permits have been approved by the Prime
at this stage the determination of potential environmental impacts, Ministry and issued by the Department of Forestry for the Kiziltepe Sector.
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 · Density is seen to increase with depth, in the sulphide zone, as
assumptions. If determined, the method used, whether wet or dry, the frequency seen in the Arzu South vein with densities varying from 2.4 to 2.8 g/cm(3).
of the measurements, the nature, size and representativeness of the samples.
· Density modelling at Kiziltepe was evaluated from 4,794 drill
· The bulk density for bulk material must have been measured by core measurements taken from diamond drilling between 2016 and 2021. The data
methods that adequately account for void spaces (vugs, porosity, etc), was domained according to the various model volumes. Statistical averages
moisture and differences between rock and alteration zones within the deposit. within each domain were used as a representative value of density. Further
work is needed to code the density to each model to better show density
· Discuss assumptions for bulk density estimates used in the variations to depth and along strike, rather than applying statistical
evaluation process of the different materials. averages.
· For modelling purposes, average specific gravity values ranging
from 2.4 to 2.6g/cm(3) were used for veins and 2.4 to 2.5g/cm(3) for
alteration halos based on specific gravity measurements on core samples and
operational data from the Kiziltepe Mine.
Vein Area Average density applied (g/cm(3))
Arzu South 2.60
Arzu South Alteration Halo 2.50
Arzu North Vein 2.45
Arzu North Alteration Halo 2.40
Derya Vein 2.55
Derya Alteration Halo 2.50
Banu Vein 2.50
Exploration Targets 2.50
Waste Rock 2.53
Classification · The basis for the classification of the Mineral Resources into · The Mineral Resource is classified and reported in accordance
varying confidence categories. with the 2012 JORC code as Measured, Indicated and Inferred. The
classification is determined based on search pass spacing, with increasing
· Whether appropriate account has been taken of all relevant factors confidence with proximity to drill holes. These are given in more detail under
(ie relative confidence in tonnage/grade estimations, reliability of input section "Estimation and modelling techniques".
data, confidence in continuity of geology and metal values, quality, quantity
and distribution of the data). · Measured Mineral Resources have been defined by Pass 1 (up to 30
m x 15 m x 5 m) depending on the vein characteristics and drill hole spacing.
· Whether the result appropriately reflects the Competent Person's
view of the deposit. · Indicated Mineral Resources have been defined by Pass 2 (up to 60
m x 30 m x 10 m) depending on the vein characteristics and drill hole spacing.
· Inferred Mineral Resources have been defined in areas beyond the
Indicated search radius to the limits of the resource wireframes in Pass 3 (up
to 120 m x 80 m x 20 m). Any material beyond Pass 3 but estimated by a 300 m x
150 m x 30 m pass was also classified as Inferred. However, the expansion of
Inferred resources beyond pass 3 were manually constrained by surface and
down-hole geochemistry and geological mapping.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · The IDWS model was validated against the input drill hole
composites for each vein model by visual comparisons carried out against the
composited drill hole samples and against the modelled block grade.
· The Zenit Mining team conducted their own internal MRE estimation
of Kiziltepe, using both their own and Ariana's input parameters and domain
models, but using different software (Datamine Studio RM). Results between the
Ariana and Zenit estimations were peer-reviewed and discussed until a level of
agreement was met between both parties in terms of correct data
interpretations.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and · The Mineral Resource estimate at the global level for the
confidence level in the Mineral Resource estimate using an approach or Measured and Indicated Resources based on the estimation technique and data
procedure deemed appropriate by the Competent Person. For example, the quality and distribution is considered to be adequate for the
application of statistical or geostatistical procedures to quantify the classification. Inferred Resources have a lower level of confidence outside
relative accuracy of the resource within stated confidence limits, or, if such of this range, and the Exploration Target is categorised separately from
an approach is not deemed appropriate, a qualitative discussion of the factors Mineral Resources.
that could affect the relative accuracy and confidence of the estimate.
· The Mineral Resource estimate was compared to production data and
· The statement should specify whether it relates to global or local appropriately adjusted to improve accuracy (introduction of soft boundaries
estimates, and, if local, state the relevant tonnages, which should be with 1m range), allowing for the introduction of various mining factors (e.g.
relevant to technical and economic evaluation. Documentation should include internal and external dilution). Overall, the 2022 MRE model reconciled with
assumptions made and the procedures used. an average of 7% mass variance, 10% gold variance and 7% silver variance,
which is deemed acceptable to suit Zenit's future mine planning studies.
· These statements of relative accuracy and confidence of the
estimate should be compared with production data, where available. ·
Mine Area Mass variance % Gold variance % Silver variance %
Arzu South 8 3 4
Arzu North 3 9 11
Derya 9 19 6
Average 7 10 7
Classification
· The basis for the classification of the Mineral Resources into
varying confidence categories.
· Whether appropriate account has been taken of all relevant factors
(ie relative confidence in tonnage/grade estimations, reliability of input
data, confidence in continuity of geology and metal values, quality, quantity
and distribution of the data).
· Whether the result appropriately reflects the Competent Person's
view of the deposit.
· The Mineral Resource is classified and reported in accordance
with the 2012 JORC code as Measured, Indicated and Inferred. The
classification is determined based on search pass spacing, with increasing
confidence with proximity to drill holes. These are given in more detail under
section "Estimation and modelling techniques".
· Measured Mineral Resources have been defined by Pass 1 (up to 30
m x 15 m x 5 m) depending on the vein characteristics and drill hole spacing.
· Indicated Mineral Resources have been defined by Pass 2 (up to 60
m x 30 m x 10 m) depending on the vein characteristics and drill hole spacing.
· Inferred Mineral Resources have been defined in areas beyond the
Indicated search radius to the limits of the resource wireframes in Pass 3 (up
to 120 m x 80 m x 20 m). Any material beyond Pass 3 but estimated by a 300 m x
150 m x 30 m pass was also classified as Inferred. However, the expansion of
Inferred resources beyond pass 3 were manually constrained by surface and
down-hole geochemistry and geological mapping.
Audits or reviews
· The results of any audits or reviews of Mineral Resource estimates.
· The IDWS model was validated against the input drill hole
composites for each vein model by visual comparisons carried out against the
composited drill hole samples and against the modelled block grade.
· The Zenit Mining team conducted their own internal MRE estimation
of Kiziltepe, using both their own and Ariana's input parameters and domain
models, but using different software (Datamine Studio RM). Results between the
Ariana and Zenit estimations were peer-reviewed and discussed until a level of
agreement was met between both parties in terms of correct data
interpretations.
Discussion of relative accuracy/ confidence
· Where appropriate a statement of the relative accuracy and
confidence level in the Mineral Resource estimate using an approach or
procedure deemed appropriate by the Competent Person. For example, the
application of statistical or geostatistical procedures to quantify the
relative accuracy of the resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative discussion of the factors
that could affect the relative accuracy and confidence of the estimate.
· The statement should specify whether it relates to global or local
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.
· The Mineral Resource estimate at the global level for the
Measured and Indicated Resources based on the estimation technique and data
quality and distribution is considered to be adequate for the
classification. Inferred Resources have a lower level of confidence outside
of this range, and the Exploration Target is categorised separately from
Mineral Resources.
· The Mineral Resource estimate was compared to production data and
appropriately adjusted to improve accuracy (introduction of soft boundaries
with 1m range), allowing for the introduction of various mining factors (e.g.
internal and external dilution). Overall, the 2022 MRE model reconciled with
an average of 7% mass variance, 10% gold variance and 7% silver variance,
which is deemed acceptable to suit Zenit's future mine planning studies.
·
Mine Area Mass variance % Gold variance % Silver variance %
Arzu South 8 3 4
Arzu North 3 9 11
Derya 9 19 6
Average 7 10 7
Section 4 Estimation and Reporting of Ore Reserves
(Criteria listed in section 1, and where relevant in sections 2 and 3, also
apply to this section.)
Criteria JORC Code explanation Commentary
Mineral Resource estimate for conversion to Ore Reserves · Description of the Mineral Resource estimate used as a basis for · The Measured and Indicated resources for the Kiziltepe area, as
the conversion to an Ore Reserve. reported here, based on data to end November 2021, were used as the basis for
Ore Reserves.
· Clear statement as to whether the Mineral Resources are reported
additional to, or inclusive of, the Ore Reserves. · The Ore Reserves, including adjustment for ore loss and dilution
factors are included within declared Mineral Resources.
Site visits · Comment on any site visits undertaken by the Competent Person and · See above for site visits of Competent Person for resource
the outcome of those visits. estimation.
· If no site visits have been undertaken indicate why this is the · Kadir Turan (BSc) of Zenit Madencilik is the Chief Mine Planning
case. Engineer responsible for the Reserves, optimisation study and mine design.
· Kerim Sener BSc (Hons), MSc, PhD, Managing Director of Ariana
Resources plc, and a Competent Person as defined by the JORC Code is acting as
the Competent Person for the Reserves part of this study.
Study status · The type and level of study undertaken to enable Mineral Resources · The optimization and mine scheduling study was completed by the
to be converted to Ore Reserves. head Mine Planning Engineer of Ariana Resources' JV partner, Zenit Madencilik
using Datamine Studio OP v2.10.200.0 and Auto scheduler plugin, as well as
· The Code requires that a study to at least Pre-Feasibility Study Studio NPVS v.1.0.51.0 for optimisation.
level has been undertaken to convert Mineral Resources to Ore Reserves. Such
studies will have been carried out and will have determined a mine plan that · Kiziltepe is an existing and currently operating mine.
is technically achievable and economically viable, and that material Modifying
Factors have been considered. · A mine plan that is technically achievable and economically viable
has been identified, with an open pit mine life of approximately 2-3 years for
Kiziltepe, not including satellite projects. The mine plan and reserves are
limited to current permit boundaries, and could potentially be expanded beyond
this with the expansion of the permit boundaries.
· All material modifying factors are considered by the Competent
Person to have been accounted for in this Ore Reserve estimate.
Cut-off parameters · The basis of the cut-off grade(s) or quality parameters applied. · To determine the optimum open pit design, a cut-off grade estimate
was performed. The cost per ton for mining, processing and overhead costs,
mining dilution and loss factors, processing plant recoveries and net payable
gold prices were derived from actual mine estimations, as provided by Zenit
Madencilik.
· A cut-off grade of 1g/t Au at a minimum mining width of 1.5 m was
used to identify mineable shapes which formed the basis of the mine design.
· These cut-off grades are currently being used for the mining
operations and are considered by the Competent Person to be appropriate for
the operation, considering the nature of the deposit and the associated
project economics.
· The mine currently produces gold/silver doré bars for sale to the
Istanbul Gold Refinery.
Mining factors or assumptions · The method and assumptions used as reported in the Pre-Feasibility · Open pit designs were updated in 2021 and form the basis of the
or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. updated mine schedule, constrained by applying the following scheduling
either by application of appropriate factors by optimisation or by preliminary parameters:
or detailed design).
o 325 tonnes/hour processing limit (85% operational efficiency, 90%
· The choice, nature and appropriateness of the selected mining mechanical efficiency, 90% usage efficiency)
method(s) and other mining parameters including associated design issues such
as pre-strip, access, etc. o 3 stockpiles (for different ore characteristics) with capacity limits from
10,000t to 350,000t.
· The assumptions made regarding geotechnical parameters (eg pit
slopes, stope sizes, etc), grade control and pre-production drilling. o Total loader capacity limit of 597 tonnes/hour at 100% availability.
· The major assumptions made and Mineral Resource model used for pit o Additional loader (reclaimer) included for movement of ore within
and stope optimisation (if appropriate). stockpiles and to feed the plant.
· The mining dilution factors used. o Constraints on mineable tonnages by season and pit stages as well as areas
which are able to be mined simultaneously.
· The mining recovery factors used.
· The mining methods used for the life of mine schedule are in line
· Any minimum mining widths used. with what is currently used on site.
· The manner in which Inferred Mineral Resources are utilised in · The Competent Person considers the proposed mining method to be
mining studies and the sensitivity of the outcome to their inclusion. appropriate for the size and scale of mineralisation.
· The infrastructure requirements of the selected mining methods. · Pit wall slopes of 41-46(o) (Arzu North), 43-46(o) (Derya) and
45(o) (Banu) were used, with the optimum pit slope selected based on iteration
with a combination of different pit designs. Geotechnical parameters were
based on design work undertaken for the Kiziltepe Feasibility Study by the
Middle East Technical University (METU) Mining Engineering Department in
Ankara, taking into account geological structure, rock type and design
orientation constraints. It was established that the geotechnical parameters
considered for the operation to date are suitable for further mining.
· Mining dilution assumed for the reserve estimation is 10%. Ore
mining recovery factor for reserve estimation is 90-95% depending on the pit:
90% for Arzu North, 95% for Derya and Banu.
· A minimum mining width of 1.5 m and bench height of 10m (production
slice height of 5m) is used based on the nature of the deposit and the
equipment fleet currently in use at the Kiziltepe Mine.
Metallurgical factors or assumptions · The metallurgical process proposed and the appropriateness of that · The ore extracted from Kiziltepe is treated at the Kiziltepe
process to the style of mineralisation. Processing Plant. This plant processes all ore sources from the Kiziltepe
Sector.
· Whether the metallurgical process is well-tested technology or
novel in nature. · Ore is ground using a standard crushing circuit followed by a ball
mill for grinding. The ground ore is thickened and treated by a combination of
· The nature, amount and representativeness of metallurgical test Carbon in Column (CIC) and Carbon in Leach (CIL) processes. Gold and silver
work undertaken, the nature of the metallurgical domaining applied and the loaded carbon undergo standard elution, electrowinning and smelting processes
corresponding metallurgical recovery factors applied. to produce doré bars.
· Any assumptions or allowances made for deleterious elements. · Ore is blended based on grade to maintain a constant input grade to
the process plant.
· The existence of any bulk sample or pilot scale test work and the
degree to which such samples are considered representative of the orebody as a · As the mine has been operating since late 2016 (first gold pour in
whole. 2017), the metallurgical recoveries of different ore types are well
understood. Metallurgical recovery for this processing plant to this date is
· For minerals that are defined by a specification, has the ore 92% for Au and 75% for Ag.
reserve estimation been based on the appropriate mineralogy to meet the
specifications? · There are no deleterious elements of significance.
· See Section 3 for details on metallurgical test work.
· The ore reserve estimation is based on the appropriate mineralogy
and grades for the Kiziltepe Processing Plant.
Environmen-tal · The status of studies of potential environmental impacts of the · A previous Environmental Impact Assessment (EIA) was completed in
mining and processing operation. Details of waste rock characterisation and 2013. The Kiziltepe vein system is located within the Kiziltepe Licence area
the consideration of potential sites, status of design options considered and, for which the EIA is valid. The processing methods and tailings storage
where applicable, the status of approvals for process residue storage and facility as assessed by the EIA is the same as has been assumed for this Ore
waste dumps should be reported. Reserve estimate.
· Tailings from the process plant are discharged to the tailings dam
after cyanide destruction.
· Baseline environmental monitoring is carried out on and around mine
site, in line with regulations.
· The waste rock has potential for acid rock drainage (ARD) due to
the presence of arsenic and sulphide bearing mineralisation. Limestone
(calcium carbonate) is trucked to the waste rock dump (WRD) from a local
quarry at regular elevation intervals and spread to cover the whole WRD to
minimize any potential ARD. There is a water channel around the WRD diverting
any water from the area. Water draining out of the WRD is channelled into a
concrete sump, where it is monitored and then diverted to the tailings dam.
· A top-soil management plan is in place, with soil stored for
remediation purposes at the end of mine life.
· Stockpile areas for waste rock were identified with sterilization
drilling. Waste material is also utilized for construction of infrastructure
such as road and earthworks.
· Kiziltepe Gold and Silver Mine is an operating mine and is
compliant with all local environmental regulatory requirements and permits.
Infrastructure · The existence of appropriate infrastructure: availability of land · The existing infrastructure is adequate to support the existing
for plant development, power, water, transportation (particularly for bulk operations. The processing facilities were expanded in 2021 to allow greater
commodities), labour, accommodation; or the ease with which the infrastructure ore throughput, accommodating the lower grade and higher tonnage nature of
can be provided, or accessed. other areas of the Kiziltepe Sector.
· The deposits are located within the Company's licence area with
extraction rights according to the General Directorate of Mining and Petroleum
Affairs (Maden ve Petrol İşleri Genel Müdürlüğü: MAPEG). Ore is
processed at the Company's current facilities, with ore delivered by truck
from the pit to the processing plant. Currently there is 1 complete and 2
operating pits, with further pits planned to come online as the others near
the end of their life.
· Offices and mechanical workshop buildings are available. Power for
the offices, workshop and weighbridge is provided via the existing grid
system, with diesel generators as backup.
· Labour is readily available as the operation is in production and
planned extraction rates are consistent with current capacity.
· G&A and processing labour are part of the existing company
staff. Canteen facilities and associated services requirements continue to be
serviced by the current infrastructure.
Costs · The derivation of, or assumptions made, regarding projected capital · Kiziltepe Gold and Silver Mine is an operating open pit mine with
costs in the study. associated infrastructure and an operating processing facility on site.
Capital expenditure is largely limited to that required to sustain the ongoing
· The methodology used to estimate operating costs. operation at the current level.
· Allowances made for the content of deleterious elements. · Operating cost estimates are derived from actual costs incurred by
the existing mining and processing operations within the licence area.
· The source of exchange rates used in the study.
· Average mining operating costs (drill, blast, load, haul) of US$1.1
· Derivation of transportation charges. per ton was assumed, consistent with the current mining rates.
· The basis for forecasting or source of treatment and refining · Assumed processing costs of US$35 per ton processed (including
charges, penalties for failure to meet specification, etc. G&A) for this processing method are based on actual costs to date. The
effect on the design below US$45/t processing costs is minimal.
· The allowances made for royalties payable, both Government and
private. · There are no deleterious elements of significance at this project.
· All financial calculations for the Ore Reserves have been completed
using US Dollars. Local Turkish Lira exchange rates are pegged to the US
Dollar.
· Transportation charges are based on current contracts.
· Gold/silver doré is sold to Istanbul Gold Refinery. Selling costs
of US$160/oz are assumed.
· Royalties and taxes are assumed as a percentage of ounce price plus
smelter costs.
Revenue factors · The derivation of, or assumptions made regarding revenue factors · A life of mine production schedule was derived from the mine design
including head grade, metal or commodity price(s) exchange rates, and the updated geological block model. The production schedule was used to
transportation and treatment charges, penalties, net smelter returns, etc. generate monthly estimates of the mined tonnes and grade.
· The derivation of assumptions made of metal or commodity price(s), · Revenue is based on a gold price of US$1,750 per troy ounce and
for the principal metals, minerals and co-products. silver price of US$24 per troy ounce. These are considered to be reasonable
long-term average prices for the purposes of Ore Reserve estimates.
Market assessment · The demand, supply and stock situation for the particular · The market for gold and silver is well established. The metal price
commodity, consumption trends and factors likely to affect supply and demand is fixed externally, however the Company has reviewed a number of metal
into the future. forecast documents from reputable analysts and is comfortable with the market
supply and demand situation.
· A customer and competitor analysis along with the identification of
likely market windows for the product. · A specific study relating to customer and competitor analysis has
not been completed as part of this project. Gold and silver are openly traded
· Price and volume forecasts and the basis for these forecasts. via transparent open-market systems and marketing of these products is
generally straightforward.
· For industrial minerals the customer specification, testing and
acceptance requirements prior to a supply contract. · Price and volume forecasts have been studied in reports from
reputable analysts, based on metal supply and demand, US$ and global
economics.
Economic · The inputs to the economic analysis to produce the net present · The Kiziltepe Mine is an operating asset and is not subject to
value (NPV) in the study, the source and confidence of these economic inputs project-type analysis.
including estimated inflation, discount rate, etc.
· The mine development and open pit designs are developed or updated
· NPV ranges and sensitivity to variations in the significant on an annual basis and reflect current and projected mine performances for the
assumptions and inputs. Ore Reserves.
· The mine plan created to derive the Ore Reserves is optimised to
maximise cash flow, thus providing positive cash margins in all years when
modifying factors are applied.
Social · The status of agreements with key stakeholders and matters leading · To the best of the Competent Person's knowledge, agreements with
to social licence to operate. key stakeholders pertaining to social licence to operate are valid and in
place.
Other · To the extent relevant, the impact of the following on the project · There are no material naturally occurring risks associated with the
and/or on the estimation and classification of the Ore Reserves: Ore Reserves.
· Any identified material naturally occurring risks. · The Company is currently compliant with all legal and regulatory
requirements and marketing arrangements.
· The status of material legal agreements and marketing arrangements.
· The project is located within a current operating licence area.
· The status of governmental agreements and approvals critical to the
viability of the project, such as mineral tenement status, and government and
statutory approvals. There must be reasonable grounds to expect that all
necessary Government approvals will be received within the timeframes
anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss
the materiality of any unresolved matter that is dependent on a third party on
which extraction of the reserve is contingent.
Classification · The basis for the classification of the Ore Reserves into varying · Measured Mineral Resources that are above the nominated Ore
confidence categories. Reserves cut-off grade criteria and are within the open pit designs (which
have been derived by applying the appropriate modifying factors as described
· Whether the result appropriately reflects the Competent Person's above) have been classified as Proven Ore Reserves.
view of the deposit.
· Indicated Mineral Resources that are above the nominated Ore
· The proportion of Probable Ore Reserves that have been derived from Reserves cut-off grade criteria and are within the open pit designs (which
Measured Mineral Resources (if any). have been derived by applying the appropriate modifying factors as described
above) have been classified as Probable Ore Reserves.
· It is the opinion of the Competent Person for Ore Reserves that the
results are an appropriate reflection of the deposit.
· No Probable Ore Reserves have been classified from Measured Mineral
Resources.
Audits or reviews · The results of any audits or reviews of Ore Reserve estimates. · No external audits or reviews of this Ore Reserves estimate have
been conducted. The Ore Reserves estimate and all work and reports
underpinning the estimate have been internally reviewed by Zenit Madencilik
and Ariana Resources.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and · The Ore Reserve has been completed to a feasibility standard with
confidence level in the Ore Reserve estimate using an approach or procedure the data generated from a closely spaced drilling grid and grade control data,
deemed appropriate by the Competent Person. For example, the application of thus confidence in the resulting figures is considered high.
statistical or geostatistical procedures to quantify the relative accuracy of
the reserve within stated confidence limits, or, if such an approach is not · Extraction of ore from the Kiziltepe Mine will continue.
deemed appropriate, a qualitative discussion of the factors which could affect
the relative accuracy and confidence of the estimate. · Mining costs and haulage costs are as per the current contracts in
place being utilised at Kiziltepe operation (Arzu South, Arzu North, Derya,
· The statement should specify whether it relates to global or local Banu) and other mines in the Kiziltepe Sector.
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include · Project capital is well managed and capital requirements are for
assumptions made and the procedures used. maintenance of ongoing operations only.
· Accuracy and confidence discussions should extend to specific · The Modifying Factors for mining, processing, metallurgical,
discussions of any applied Modifying Factors that may have a material impact infrastructure, economic, gold price, legal, environmental, social and
on Ore Reserve viability, or for which there are remaining areas of governmental factors as references above have been applied to the open pit
uncertainty at the current study stage. designs and Ore Reserves calculation on a global scale and data reflects the
global assumptions.
· It is recognised that this may not be possible or appropriate in
all circumstances. These statements of relative accuracy and confidence of the · Ore Reserves are best reflected as global estimates.
estimate should be compared with production data, where available.
· Other than dilution and recovery factors described above, no
additional modifying factors are applied. There is a high confidence in these
models as the area is well known and well drilled and production data
reconciles well with the Mineral Resource estimate, and thus the Ore Reserve
estimate.
NOTE: Section 5 is not relevant to this work as there is no estimation or
reporting of diamonds or other gemstones in this project.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END DRLQFLFXLFLZBBVRecent news on Ariana Resources
See all newsREG - Ariana Resources PLC - Results of ASX Offer for Dual Listing
AnnouncementREG - Ariana Resources PLC - Director/PDMR Shareholding
AnnouncementREG - Ariana Resources PLC - Dual Listing – Close of ASX Offer
AnnouncementREG - Ariana Resources PLC - ASX Offer Open and Tavsan Update
AnnouncementREG - Ariana Resources PLC - Lodgement of ASX Dual Listing Prospectus
Announcement