REG - Ariana Resources PLC - SIGNIFICANT INCREASE IN TAVSAN RESOURCE
29/11/2022 07:00
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RNS Number : 8542H Ariana Resources PLC 29 November 2022
All figures and tables referred to in this announcement can be viewed via the
following link:
http://www.rns-pdf.londonstockexchange.com/rns/8542H_1-2022-11-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/8542H_1-2022-11-29.pdf)
29 November 2022
AIM: AAU
SIGNIFICANT INCREASE IN TAVSAN RESOURCE
Ariana Resources plc ("Ariana" or the "Company"), the AIM-listed mineral
exploration and development company with gold mining interests in Europe, is
pleased to announce an update to its JORC Resource Estimate for the Tavsan
Mine. The mine is currently in construction and being operated 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:
· Global Resource increased by 22% over the previous Mineral Resource
Estimate ("MRE") to 6.6 Mt at 1.44 g/t Au and 5.26 g/t Ag for 307,000 oz Au
and 1.1 million oz Ag (all categories)*.
· High-grade domain of 1.1 Mt at 2.74 g/t Au and 4.89 g/t Ag for 96,000
oz Au and 171,000 oz Ag (all categories)* is defined for the first time.
· Significant additional potential of 1.7Mt of below cut-off grade
material occurs in the 0.5 to 0.7 g/t Au range for c.34,000 oz Au (not
currently classified as Resources)*.
· Resource is further de-risked with 83% now classified in the Measured
& Indicated JORC Resource categories.
· Exploration targets previously defined in the East and South zones
are being assessed and up to 4,600m of drilling is currently underway to test
resource extensions; resource is not closed-off in several areas.
*All Mineral Resource figures in the announcement are quoted gross with
respect to Zenit of which Ariana owns 23.5%.
Dr. Kerim Sener, Managing Director, commented:
"This MRE represents a tremendous enhancement for Tavsan, as construction
continues on site. Not only has the total resource grown to c.7 Mt but about
1 Mt of this is now attributed to a newly defined high-grade domain containing
sufficient resources to potentially satisfy up to three years of gold output
in its own right. This is all the more impressive considering that the 2016
Scoping Study had only considered a total mine life of four years from the
entire resource. Current planning is consequently focusing on a mine life of
eight years.
"When we acquired the project in 2008, we did so with the expectation that the
resource could grow to this scale. Now that we have achieved this
significant milestone, and after having completed additional work, we see that
there is further room for growing the resource. This is already apparent
when considering the potential impact of a lower cut-off grade of 0.5 g/t,
which could add a further 34,000 oz of gold to the resource currently, which
could aid the further extension of mine life.
"This resource estimate will be updated again in 2023 following the conclusion
of a new drilling programme which commenced a couple of weeks ago and is
continuing to test for further resource extensions. The current resource
estimate will now be used to update our financial models and mine
optimisations, which we are aiming to complete and announce as our Definitive
Feasibility Study in due course.
"Tavsan represents our most significantly de-risked project after Kiziltepe,
which contains resources now larger than those remaining at our operating
mine. As a result, Tavsan is expected to become a more significant operation
than Kiziltepe in the coming years."
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
Introduction
Between late 2021 and early 2022, the Ariana and Zenit teams undertook a
significant new drilling programme across the Tavsan Sector for 4,355m (Figure
1) comprising 112 diamond drillholes (including twelve geotechnical drill
holes for 374.6m), following which a revised Mineral Resource Estimate ("MRE")
was completed. This phase of estimation has involved integrating the latest
drilling data (see RNS 16 June 2022), which has, in addition to increasing the
global resource, enhanced confidence in resource classification within the
MRE. Updates to the Tavsan MRE have been reviewed by the Ariana and Zenit
geological teams in detail.
This announcement summarises the modelling and resource estimation methods.
The classified resources are as detailed in the JORC Table 1.
Tavsan Resource Estimate
The new Tavsan JORC 2012 compliant MRE is prepared in accordance with JORC
2012 and based on 159 diamond drill holes (6,205m), 128 RC drill holes
(4,119m) and 156 rock-saw channels (1,169m) representing a total of 11,493m of
drilling. The mineralised zones represent the most current geological data and
understanding.
This data was collectively reviewed and modelled to create representative
three-dimensional mineralisation domains for the Tavsan deposit. Estimation of
grade and tonnage were attributed to the mineralisation models based on
internal and external laboratory assay data and drill core density studies
(where available). A three-dimensional block model was constructed from the
mineralisation model based on optimal block size parameters of 10x10x5m as
defined by the Zenit mining team.
The mineralisation model and associated block model will be subjected to a new
open-pit optimisation study to be completed internally by the Zenit mining
team under revised economic input parameters according to the latest economic
and processing factors.
Figure 1: Plan view of the Tavsan area, showing all recent drill collar
positions, rock-saw channel samples, mapped jasperoid outcrops, and the
surface projection of the 2022 Tavsan high-grade and low-grade MRE domains.
Geological Modelling
Gold mineralisation at Tavsan is epithermal in style, with associated silver
and antimony, broadly located along the thrust contact between
Jurassic-Cretaceous massively bedded limestone and an overlying Upper
Cretaceous multi-lithic ophiolite sequence. In addition, a karstic network
within the limestone and fractures within the ophiolitic rocks potentially
acted as conduits for the development of jasperoidal and generally silicified
rocks, several tens of metres, below and above the thrust fault contact,
respectively.
The mineralised jasperoid developed along the thrust contact is irregular in
form on a ten meter-scale but broadly follows the gentle topography on a
hundred meter-scale and is largely exposed at surface (Figure 2). In the
vicinity of a NE-SW trending fault zone, the thrust is steeper than the
topographic gradient, resulting in a more steeply dipping zone of
mineralisation. The greatest thickness of gold-bearing jasperoid is observed
in the vicinity of the NE-SW fault zone. However, gold concentration appears
to have a dominant NW-SE control within the jasperoid as a whole, suggesting
the potential for steeply dipping conduit structures cross-cutting the
limestone units in the footwall.
This mineralisation is modelled using assay data, geological logging and
three-dimensional interpolation modelling methods. This was completed within
Leapfrog Geo 6.0.5, using the "vein" tool to define mineralisation domains
based on manually isolated economic drill composites. Economic composites with
up to one metre of internal dilution were defined using a nominal 0.5 g/t Au
modelling cut-off for lower grade or peripheral intercepts whilst a 1.5 g/t Au
modelling cut-off was applied to define the high-grade domains. The continuity
of the various structures is reflected in the Mineral Resource classification.
Exploration target areas on the periphery of the system are defined by surface
mapping, soil pXRF, rock-chip and rocksaw-channel sampling assay results and
drilling where available.
Figure 2: New geological interpretation of the Tavsan deposit based on 1:2,000 and 1:5,000 scale mapping completed during Summer 2022.
Estimation Methodology
Tonnage and grade estimation of the defined mineralisation domains was
completed using Leapfrog EDGE. A 10 g/t Au top-cut was applied to the assay
data (where required). It was determined that silver did not require a
top-cut.
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 domains, 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 the mineralisation domains based on
a total of 896 density measurements acquired from diamond drill core during
the 2021/2022 programme. Accordingly, the Tavsan mineralisation has been
determined to range from 2.60 g/cm(3) to 2.64 g/cm(3), depending on the
intensity of brecciation and/or silicification. Density values have been
determined for each zone based on this data.
The block model used is a non-rotated conventional model with no sub-blocking
applied (Figure 3). The block model was constructed using a 10m E by 10m N by
5m RL parent block size, which is deemed suitable by the Zenit mining team.
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 Inverse Distance
Weighting Squared (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.
The estimates were completed separately for High-grade and Low-grade domains.
Domaining the High-grade zones separately minimised cross-boundary
extrapolation of grades from the High-grade zone to the Low-grade zone and
vice versa. Low-grade domains have been modelled above a 0.5 g/t Au cut-off
and reported above a 0.7 g/t Au cut-off grade, whilst High-grade domains have
been modelled and reported above a 1.5 g/t Au cut-off grade. Cut-off grade is
based on assumptions concerning mining and processing cost, metallurgical
recovery and metals prices, as defined by the Zenit mining team.
The effect of a lower cut-off of 0.5 g/t Au was also assessed, and it was
determined that a further 1.7 Mt at 0.61 g/t Au (for 34,000 oz Au) of below
cut-off grade material exists within the 0.5-0.7 g/t Au grade range. This
will be assessed further in the coming studies, as this represents a
considerable tonnage of currently sub-economic but otherwise significant
mineralisation.
During the review of the Tavsan MRE, a visual validation between drillhole
data, composite data and block model data were carried out. 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. It is assumed that the ore will be mined via
open-pit operations with Heap Leach used for gold and silver extraction.
Figure 3: Top left: Tavsan mineralisation domains, showing High-grade domains
modelled at 1.5 g/t Au in red, and Low-grade domains modelled at 0.5 g/t Au in
yellow. Top right: Tavsan 2022 block model colour coded according to defined
classification in accordance with JORC 2012. Bottom: Tavsan 2022 block model
coded according to mineralisation grades for both gold (left) and silver
(right).
Tavsan Sector Exploration Upside
During 2021 and 2022, the Ariana team continued to develop drilling targets
within the Tavsan Sector. This work is critical for generating future sources
of potential ore for production. These areas include a series of underexplored
outcropping or sub-cropping mineralised units at the periphery of more
well-defined parts of the Tavsan mineralisation. The drilling targets are
defined by surface geological mapping (1:2,000 to 1:5,000 scale), surface
soil, rock-chip and channel sample assay results and any available drilling.
Recent mapping and sampling have confirmed the potential of some of these
areas, notably in the East and South zones.
Tavsan 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). The
classification is determined based on search pass spacing, with confidence
increasing with proximity to drill holes. Importantly, 50% of the Resource
sits within the Measured category, with 33% in Indicated and 17% in Inferred
categories.
Table 1: Summary of 2022 Tavsan Sector MRE classified and reported in
accordance with JORC 2012 (see associated JORC Table 1 for details). Reporting
is based on cut-off grades as noted in the table. All figures are quoted gross
with respect to Zenit. Figures in the table may not sum precisely due to
rounding.
TAVSAN Average Value Material Content
November 2022
Classification Volume Density Mass Au Ag Au Ag
m³ g/cm³ t g/t g/t t. oz t. oz
High-grade Domain MEASURED 241,500 2.62 632,700 3.00 4.76 60,980 96,800
Cut-off: 1.5g/t Au
INDICATED 135,000 2.62 353,000 2.55 4.55 28,950 51,660
INFERRED 39,000 2.60 101,400 1.75 6.87 5,720 22,400
Sub-total 415,500 2.62 1,087,200 2.74 4.89 95,650 170,860
Low-grade Domain MEASUSRED 935,000 2.62 2,447,400 1.19 5.15 93,300 405,080
Cut-off: 0.7g/t Au
INDICATED 728,500 2.61 1,902,000 1.19 5.64 73,000 344,790
INFERRED 457,500 2.61 1,196,100 1.19 5.24 45,660 201,320
Sub-total 2,121,000 2.61 5,545,500 1.19 5.33 211,960 951,190
TOTAL MEASURED 1,176,500 2.62 3,080,100 1.56 5.07 154,280 501,880
INDICATED 863,500 2.61 2,255,100 1.41 5.47 101,950 396,450
INFERRED 496,500 2.61 1,297,500 1.23 5.36 51,380 223,710
Total 2,536,500 2.61 6,632,700 1.44 5.26 307,610 1,122,040
Sampling and Assaying Procedures
All diamond drill core is being processed at the Kiziltepe mine site and
analysed at the Kiziltepe Mine Laboratory. Results are assessed
systematically and are grouped according to individual mineralised zones at
the Tavsan Sector.
HQ size drill-core samples from the drilling programme at the Tavsan deposit
were cut in half by a diamond saw and sent for analysis in batches in line
with the Company's quality control procedures. A total of 3,997 samples
(including 631 QA/QC samples) were submitted to the Kiziltepe Mine
Laboratory. A total of 2,347 samples (including 301 QA/QC samples) were
submitted to ALS Global, Izmir as an external laboratory check to add
confidence to the Kiziltepe Mine Laboratory results, particularly during
laboratory expansion works.
QA/QC sample insertion rates vary depending on the batch size accepted by the
laboratory. Ariana sampling protocol requires insertion of 4 QA/QC samples per
batch to include 1 blank, 1 CRM, 1 field duplicate and 1 pulp duplicate to
assess the accuracy and precision of all stages of the sampling and analysis.
During the 2021-2022 drilling, Zenit QA/QC protocol required 1 blank, 1 CRM
and 1 field duplicate and over 10% samples analysed at external laboratory.
The Zenit QA/QC protocol is under review by both Ariana and Zenit teams
following the laboratory upgrade.
Core recovery for all drilling conducted at Tavsan during the 2021/2022
campaign was 88%, for a total of 2,854 measurements. 95% of this latest phase
of drilling had over 70% recovery.
Between 2020 and 2021, the Kiziltepe Mine Laboratory has undergone an
extensive expansion to meet the significant demands for sample assaying, from
both the mining and exploration teams. This expansion is complete with the
onsite laboratory now housing seven furnaces, two ICPOES 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 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, with 59% of the Tavsan samples also analysed at ALS. Zenit's internal
QA/QC data and sample duplicates have been reviewed and are considered
satisfactory for Ariana's reporting purposes. In addition, since October 2022
the Kiziltepe Mine Laboratory has been accredited by the Turkish Accreditation
Agency (TÜRKAK) with "TS EN ISO/IEC 17025:2017 General Requirements for the
Competence of Experimental and Calibration Laboratories".
All samples were assayed for gold using a 30g fire assay. Reviews of the
assay results have determined that all Quality Control and Quality Assurance
samples (blanks, standards and duplicates) passed the required 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 7407 3616
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
John Prior / Hugh Rich / Atholl Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 7951 402 336
Dom Barretto / Henry Wilkinson arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)
Editors' Note:
The Mineral Resource estimate was prepared by Zack van Coller BSc (Hons),
Special Projects Geologist, Ariana Resources plc. Mr. van Coller is a
Competent Person as defined by the JORC Code, 2012 Edition. The estimate was
reviewed internally by Ruth Bektas BSc (Hons) CGeol EurGeol, Projects Analyst,
Ariana Resources plc. Ms Bektas is a Competent Person as defined by the JORC
Code, 2012 Edition. The results are reported in accordance with the JORC Code,
under the direction of Dr. Kerim Sener BSc (Hons), MSc, PhD, Managing Director
of Ariana Resources plc, and a Competent Person as defined by the JORC Code.
Mr. van Coller and Dr. Sener have reviewed the technical and scientific
information in this press release relating to the Mineral Resource 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 2022). The joint venture comprises the Kiziltepe Mine and the
Tavsan and Salinbas projects.
The Kiziltepe Gold-Silver Mine is located in western Turkey and contains a
depleted JORC Measured, Indicated and Inferred Resource of 222,000 ounces gold
and 3.8 million ounces silver (as at February 2022). The mine has been in
profitable production since 2017 and is expected to produce at a rate of
c.20,000 ounces of gold per annum to at least the mid-2020s. A Net Smelter
Return ("NSR") royalty of 2.5% on production is being paid to Franco-Nevada
Corporation.
The Tavsan Gold Mine is located in western Turkey and contains an undepleted
JORC Measured, Indicated and Inferred Resource of 307,000 ounces gold and 1.1
million ounces silver (as at November 2022). Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan is being
developed as the second gold mining operation in Turkey. A NSR royalty of up
to 2% on future production is payable to Sandstorm Gold.
The Salinbas Gold Project is located in north-eastern Turkey and contains a
JORC Measured, Indicated and Inferred Resource of 1.5 million ounces of gold
(as at July 2020). It is located within the multi-million-ounce Artvin
Goldfield, which contains the "Hot Gold Corridor" comprising several
significant gold-copper projects including the 4-million-ounce Hot Maden
project, which lies 16km to the south of Salinbas. A NSR royalty of up to 2%
on future production is payable to Eldorado Gold Corporation.
Ariana owns 100% of Australia-registered Asgard Metals Fund ("Asgard"), as
part of the Company's proprietary Project Catalyst Strategy. The Fund is
focused on investments in high-value potential, discovery-stage mineral
exploration companies located across the Eastern Hemisphere and within easy
reach of Ariana's operational hubs in Australia, Turkey and the UK.
Ariana owns 75% of UK-registered Western Tethyan Resources Ltd ("WTR"), which
operates across south-eastern Europe and is based in Pristina, Republic of
Kosovo. The company is targeting its exploration on major copper-gold
deposits across the porphyry-epithermal transition. WTR is being funded
through a five-year Alliance Agreement with Newmont Corporation
(www.newmont.com (http://www.newmont.com) ).
Ariana owns 50% of UK-registered Venus Minerals Ltd ("Venus") which is focused
on the exploration and development of copper-gold assets in Cyprus, containing
a combined JORC Indicated and Inferred Resource of 17Mt @ 0.45% to 1.10%
copper (excluding additional gold, silver and zinc), in addition to pursuing
an option on a 50:50 JV with Hellenic Apliki Mines, which owns an SX-EW
processing plant and the 17Mt @ 0.26% to 0.69% Cu Apliki mine development
project.
Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish
Limited is the Company's Nominated Adviser and Broker.
For further information on Ariana you are invited to visit the Company's
website at www.arianaresources.com (http://www.arianaresources.com)
Glossary of Technical Terms:
"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;
"Indicated Resource" a part of a mineral resource for which tonnage,
densities, shape, physical characteristics, grade and mineral content can be
estimated with a reasonable level of confidence. It is based on exploration,
sampling and testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes. The
locations are too widely or inappropriately spaced to confirm geological
and/or grade continuity but are spaced closely enough for continuity to be
assumed;
"Inferred resource" a part of a mineral resource for which tonnage, grade and
mineral content can be estimated with a low level of confidence. It is
inferred from geological evidence and has assumed, but not verified,
geological and/or grade continuity. It is based on information gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes that may be limited or of uncertain quality and
reliability;
"Inverse Distance Weighted Squared" or "IDWS" or "ID2" a conventional
mathematical method used to calculate the attributes of mineral resources.
Near sample points provide a greater weighting than samples further away for
any given resource block;
"JORC" the Joint Ore Reserves Committee;
"JORC 2012" is the current edition of the JORC Code, which was published in
2012. After a transition period, the 2012 Edition came into mandatory
operation in Australasia from 1 December 2013;
"m" Metres;
"Measured Resource" a part of a Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content can be estimated
with a high level of confidence. It is based on detailed and reliable
exploration, sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and
drillholes. The locations are spaced closely enough to confirm geological and
grade continuity;
"MRE" Mineral Resource Estimate.
"Mt" million tonnes;
"oz" Troy ounces;
Ends.
JORC Code, 2012 Edition - Table 1
Tavsan, Western Turkey (data to end October 2022, MRE reported November 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 cut using a diamond rock saw, and half-core
and the appropriate calibration of any measurement tools or systems used. samples are taken in lithologically appropriate intervals, ranging from 0.5 m
to 3 m in length, with additional sampling extending before and after
· Aspects of the determination of mineralisation that are Material to mineralisation. Diamond core void of mineralisation was not a priority for the
the Public Report. company and therefore not all core has been sampled once mineralisation
controls were established. Core recovery is recorded into the database. For
· In cases where 'industry standard' work has been done this would be diamond core duplicate sample analysis, half core samples were cut into two
relatively simple (eg 'reverse circulation drilling was used to obtain 1 m quarter core samples, one as the primary sample and the other for duplicate
samples from which 3 kg was pulverised to produce a 30 g charge for fire analysis.
assay'). In other cases more explanation may be required, such as where there
is coarse gold that has inherent sampling problems. Unusual commodities or · Samples were sent to an ISO accredited ALS Chemex in Vancouver,
mineralisation types (eg submarine nodules) may warrant disclosure of detailed British Columbia for Au and Ag analysis by fire assay and latterly to a
information. similar ALS laboratory in Izmir, which is still used as an external laboratory
for QA/QC purposes.
· Samples are now prepared and analysed at Zenit's laboratory at
Kiziltepe Mine, for Au (fire assay), Ag (AAS), and 4-acid digest for several
other elements.
· Under normal Company operational procedures, sampling undertaken
during 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 50 g fire assay
analysis, where it is expected that the larger sample mass will provide
marginally more representative results.
· Through 2021, the Kiziltepe Mine Laboratory, while undergoing
various enhancements, was able to analyse samples at a 30 g 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 30 g and
50 g assay shot capacities, so that the various teams involved can
appropriately reconcile the minor variation in the compared datasets.
· As of January 2022, the Kiziltepe Mine 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. In addition,
since October 2022 the Kiziltepe Mine Laboratory has been accredited by the
Turkish Accreditation Agency (TÜRKAK) with "TS EN ISO/IEC 17025:2017 General
Requirements for the Competence of Experimental and Calibration Laboratories".
· 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.
· Rock-saw channel sampling was completed in early 2020 over 60
outcrops of mapped mineralised jasperoid to support the resource. A petrol
powered dual bladed diamond saw was used to cut 35 millimetre (mm) thick
channels to represent halved HQ core.
· Historic drilling and sampling procedures (pre-2000) were not
available, but work undertaken was completed by reputable exploration
companies. This data amounts to 25% of the drilling database to date. In
2008 Ariana Resources successfully completed check assaying of 42 coarse
reject material samples to test historical drilling to provide additional
confidence to historical Quality Assurance and Quality Control (QA/QC)
procedures.
Drilling techniques · Drill type (eg core, reverse circulation, open-hole hammer, rotary · In total 10,324.3 m of drilling across 287 drill holes has been
air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or completed across the Tavsan deposit. Additionally 1,169 m has been completed
standard tube, depth of diamond tails, face-sampling bit or other type, across 156 rocksaw channels.
whether core is oriented and if so, by what method, etc).
· Diamond drillholes comprise a combination of PQ and HQ diameter
(standard tube). Drilling on the project can be summarised as follows:
o 2022 - 41 DD holes for 2,181.1 m
o 2021 - 71 DD holes for 2,173.7 m
o 2019 - 4 DD holes for 90.5 m (Tavsan Far North)
o 2006 - 87 RC (13.3 centimetre) holes for 1,611 m
o 2004 - 35 PQ DD holes for 1,419 m
o 1997 - 8 DD holes for 341m, 7 RC holes for 543 m
o 1988 - 34 RC holes for 1,965 m
· All historic holes were drilled by Ranger (1988), Teck Cominco
(1997) and, Pusula Madencilik (Odyssey's 100% Turkish subsidiary) and their
various contractors prior to the acquisition of the project by Ariana
Resources plc and latterly Zenit Madencilik San. ve. Tic. A.Ş.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries · Diamond drillcore recoveries were monitored and recorded into the
and results assessed. sampling database. No recovery was calculated for RC drilling conducted at
Tavsan.
· Measures taken to maximise sample recovery and ensure
representative nature of the samples.
· Whether a relationship exists between sample recovery and grade and · Select historic drill holes were examined for core recovery at
whether sample bias may have occurred due to preferential loss/gain of the site, which was deemed to be satisfactory.
fine/coarse material.
· Overall core recovery for 2021/2022 diamond drilling is 88% for
2,854 measurements, with 95% of drilling showing over 70% recovery.
· There is no bias between sample recovery and grade.
Logging · Whether core and chip samples have been geologically and · Core was logged geologically by company geologists using a
geotechnically logged to a level of detail to support appropriate Mineral company standard logging protocol. Logging intervals are based on lithologies.
Resource estimation, mining studies and metallurgical studies. All logging used a coded logging system for rock type, grain size, colour,
alteration and any other relevant observations. All drilled metres were logged
· Whether logging is qualitative or quantitative in nature. Core (or regardless of presence of mineralisation.
costean, channel, etc) photography.
· The core was photographed before logging to provide a permanent
· The total length and percentage of the relevant intersections record of all DD core.
logged.
· Mineralised zones were identified from the observation of
mineralogy and lithological characteristics. Portable XRF (pXRF) analysis
was conducted post-drilling, to provide supporting geochemical data for
non-sampled regions. Areas identified as geochemically anomalous by pXRF
were further 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.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core · Core samples were cut using an electric circular diamond saw with
taken. water supply for dust suppression. 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.
· For all sample types, the nature, quality and appropriateness of · RC sampling: Samples were collected at 1 m intervals and split
the sample preparation technique. using a two-stage riffle splitter, running each sample through the splitter
twice. Wet intervals were sub-sampled with scoop or spear. Samples were
· Quality control procedures adopted for all sub-sampling stages to oven-dried at the laboratory if necessary. Although every metre was sampled
maximise representivity of samples. from top to bottom of each hole, metres which were clearly unmineralised were
not assayed.
· Measures taken to ensure that the sampling is representative of the
in situ material collected, including for instance results for field · Sample preparation technique is appropriate to the mineralisation
duplicate/second-half sampling. style.
· Whether sample sizes are appropriate to the grain size of the · Splitting and sample preparation conducted on samples at the
material being sampled. Kiziltepe Mine Laboratory:
o Drying at 105(O)C
o Crushing whole sample to ≤2 mm
o Splitting of crushed sample to analyse
o Pulverising sub-sample to 80% passing ≤75 μm
· Splitting and sample preparation conducted on samples at the ALS
laboratory:
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and · During Odyssey's drilling campaigns, a quality control (QC)
laboratory procedures used and whether the technique is considered partial or programme was instituted at the beginning of the drill programmes, which
total. consisted of inserting a field duplicate and uncertified/certified reference
material samples into the sample stream. No field blanks were inserted.
· For geophysical tools, spectrometers, handheld XRF instruments, Uncertified standards were typically inserted (1:16 to 1:20 samples). These
etc, the parameters used in determining the analysis including instrument make were determined to not be reliable enough to measure accuracy at the
and model, reading times, calibrations factors applied and their derivation, laboratory. Odyssey's own QA/QC programme has significant shortcomings, but
etc. the lab performance is adequate to support a mineral resource estimation.
Standard and duplicate samples for QA/QC were taken by ALS Izmir and
· Nature of quality control procedures adopted (eg standards, blanks, performance was noted as good. Reporting of ALS's internal QA/QC samples have
duplicates, external laboratory checks) and whether acceptable levels of found the results to fall within the 95% confidence interval assigned to them,
accuracy (ie lack of bias) and precision have been established. as per the lab's internal monitoring standards.
· All suitable measures were taken to ensure that samples were
suitably representative.
· QC procedures employed in all drill programmes prior to 2019
included the insertion of certified reference standards (1:22), blank samples
(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
rate of 18%.
· In drill programmes since 2019, samples have been submitted in
batches of 35 to ALS Global, Izmir, to include 1 blank, 1 CRM, 1 field
duplicate and 1 pulp duplicate. Insertion rate of 11%.
· In the 2021/2022 drilling programme, samples submitted to
Kiziltepe Mine Laboratory are in batches of 20 to include 1 field blank, 1
CRM, 1 field duplicate. The Kiziltepe Mine Laboratory adds an additional
duplicate sample which is a split of the 19(th) sample of each batch. Further
to this the laboratory adds 4 internal standards for their own instrumental
QA/QC checks.
· In addition to routine QA/QC procedures, 59% of all Tavsan drill
samples from the 2021/2022 programme were duplicated to submit to ALS Global,
Izmir, as check samples at an external laboratory to confirm internal
Kiziltepe Mine Laboratory results, whilst the laboratory expansion was taking
place and while laboratory procedures and instrumentation was being checked
internally.
· 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 · Significant intercepts were inspected by Mr. Joe Hirst (Tetra
or alternative company personnel. Tech Competent Person) during the site inspection in 2018. Data input has been
completed in accordance with company procedures, which have been reviewed by
· The use of twinned holes. Tetra Tech during their MRE in 2018 and 2020.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
· Data verification was also independently completed in 2006 by Mr.
· Discuss any adjustment to assay data. Antoine Yassa of P & E Mining Consultants Inc. during an earlier phase of
exploration. 12 check samples were taken. Results were deemed satisfactory and
demonstrated that the grade of gold is very similar in most instances, to what
was originally reported by Odyssey.
· Prior to resource estimation, below detection limit assay results
have been replaced with values of zero.
· Primary data, data entry procedures, data verification and data
storage protocols are in line with industry best-practice.
· All samples (30 g or 50 g) are analysed using fire assay with AAS
(Au-AA23) and aqua regia with ICP-AES (ME-ICP41).
· All samples before 2019 were submitted to the internationally
accredited laboratory of ALS Global in Izmir, Turkey (ISO 9001:2008
accredited).
· Samples taken in 2019, 2020 and 2021 have been submitted to
Kiziltepe Mine Laboratory (TS EN ISO/IEC 17025:2017 accredited since October
2022), with at least 10% also selected for check assays at ALS Global in Izmir
throughout the sampling programme. Samples are chosen from areas suspected to
be mineralised. During the Kiziltepe Mine Laboratory expansion, 59% of Tavsan
samples from the 2021/2022 programme were checked at ALS.
· Since early 2021 the Kiziltepe Mine Laboratory has been
undergoing expansion to deal with substantially increased sample analysis
requirements. Initial verification of assay results from newly installed
laboratory instruments is still undergoing internal review. To date, 1,663
samples were assayed at both Kiziltepe Mine Laboratory and the external
laboratory (ALS Izmir). Results 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. All coordinates are recorded in UTM ED50 35N.
· Specification of the grid system used. · Down hole surveys were not completed at Tavsan as holes were
typically drilled vertically. However, drill holes were surveyed, where
· Quality and adequacy of topographic control. possible, by open hole methods at 20 m intervals from surface, during a
project review in 2015; using a Flexit down hole multi-shot survey device.
· All holes were surveyed in the 2021/2022 drilling programme using
a standard Electronic Multi-shot Magnetic survey deviation tool (Devico
PeeWee).
· Topographic data is collected by DGPS. Additionally, 5 m and 25 m
contours were generated from ortho-rectified WorldView satellite imagery.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · The Resource area has been drilled as access allows, resulting in
an irregular data spacing, typically between 25 m and 100 m between collars
· Whether the data spacing and distribution is sufficient to (average collar spacing between all zones is 45 m).
establish the degree of geological and grade continuity appropriate for the
Mineral Resource and Ore Reserve estimation procedure(s) and classifications · Samples were composited to 1 m prior to estimation.
applied.
· 159 diamond drill holes (6,205.3 m), 128 RC drill holes (4,119 m)
· Whether sample compositing has been applied. and 156 rock-saw channels (1,169 m) were used to model the mineralisation.
· 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 mineralisation is primarily outcropping at surface and has
possible structures and the extent to which this is known, considering the been drilled primarily vertically, with full intersections. Some inclined
deposit type. holes have been drilled between -80 and -40 degrees of dip, primarily stepped
off from the mineralisation to delineate the edges of the mineralisation at
· If the relationship between the drilling orientation and the depth.
orientation of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material. · No sampling bias is observed from the orientation of drilling
with regards to the mineralised structures. True thickness with respect to
apparent thickness is well understood as most intersections are normal to the
mineralisation.
· No biases are expected from the drilling direction.
Sample security · The measures taken to ensure sample security. · Samples are stored in a secure location (Balikoy Depot) in a
clean area free of any contamination. Full chain of custody documentation is
used when transferring the samples to the laboratory and has been overseen by
the responsible company geologist.
· In drilling programmes pre-2019 the measures taken to ensure
sample security for samples used for analysis and QA/QC include the following:
o Chain of Custody is demonstrated by both Company and ALS Global or
Kiziltepe Mine Laboratory in the delivery and receipt of sample materials.
o Upon receipt of samples, ALS Global delivers by email to the Company's
designated QC Manager, confirmation that each batch of samples has arrived,
with its tamper-proof seal intact, at the allocated sample preparation
facility.
o 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 Kiziltepe Mine Laboratory. 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 · In 2020 Tetra Tech reviewed the protocols and procedures adopted
data. and found the various aspects sufficient to support mineral resource
estimation. Tetra Tech completed an independent analysis of the QA/QC data
completed by Odyssey, and whilst there are shortcomings, the ALS lab QA/QC
programme was robust. The data is deemed appropriate for resource
estimation.
· Ariana has implemented QA/QC programmes covering all aspects of
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 Tavsan Property consists of four operating licenses owned by
agreements or material issues with third parties such as joint ventures, Zenit Madencilik San. ve Tic. A.S. ("Zenit") Joint Venture ("JV") with Proccea
partnerships, overriding royalties, native title interests, historical sites, Construction Co. and Ozaltin Holding A.S. (23.5% owned by Ariana). Licence
wilderness or national park and environmental settings. numbers:
· The security of the tenure held at the time of reporting along with o Örencik license no: 12743, due date of 11.06.2029.
any known impediments to obtaining a licence to operate in the area.
o Kavaklı license no: 59770, due date of 11.06.2029.
o Dağardı license no: 70484, due date of 10.01.2030.
o Evciler license no: 72400, due date of 26.01.2025.
· In 2008, Ariana acquired the Project for US $500,000 in cash and
3 million shares in the Company at 5 pence per share from Odyssey Resources
Limited and a retained royalty of up to 2% on future gold production payable
to Teck Resources Limited. This royalty has since been transferred to
Sandstorm Gold Ltd.
· There are no known impediments to current operations.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other A summary of exploration activities at Tavsan:
parties.
· 1980s - Initially discovered by Australian company Ranger.
· 1988 - Ranger drilled 34 RC holes totalling 1960.5 m in the
primary mineralisation zone. Ranger completed no further work.
· 1995 - The MTA (Turkish government exploration agency) sampled
the primary ore zone.
· 1996 - Cominco acquired the property and conducted several
systematic surface sampling programmes yielding an average grade 2.3 g/t Au at
surface.
· 1997 - Cominco initiated a 341 m DD programme for 8 holes. 265
samples were sent for Inductively Coupled Plasma (ICP) and fire assay using a
30-gram aliquot. A RC programme totalling 543 m for 7 holes was run
concurrently with the DD programme. 362 RC chip samples were analysed for gold
using fire assay on a 30-gram aliquot.
· 2003 - Pusula Madencilik, Odyssey's 100% owned subsidiary company
in Turkey acquired the Tavsan property from Cominco.
· 2004 - Odyssey completed the first of a 3-phase drilling
programme. Phase 1 totalled 1,067.7 m and consisted of 20 DD holes (OD1 -
OD20). Phase 2 consisted of 15 DD holes (OD21 - OD35), totalling 350 m.
· 2005 - Odyssey undertook a surface sampling programme on 11
surface-exposed gold mineralised jasperoid zones.
· 2006 - Odyssey completed Phase 3 of drilling with the addition of
87 RC holes (ODX36-ODX131) totalling 1,611 m.
· 2008 - Ariana Resources acquired the Tavsan project.
Geology · Deposit type, geological setting and style of mineralisation. · The property is located in the Izmir-Ankara suture zone in
north-western Anatolia. The formations present span from Jurassic to
Tertiary and typically comprise metamorphosed sedimentary sequences,
displaying intense compressional tectonic features.
· The Property includes an upper thrust plate of Late Cretaceous
ophiolitic rocks (Dagardi Melange), jasperoid gold-bearing silicification
along the thrust surface and a footwall of Jurassic-Cretaceous Budagan
Formation massive, a massive micritic limestone.
· Through the summer of 2022, the Ariana team completed remapping
of the Tavsan license area to 1:2,000 and 1:5,000 scale.
Drill hole Information · A summary of all information material to the understanding of the · No new exploration data is included in this report. All
exploration results including a tabulation of the following information for relevant data has been reported in press releases.
all Material drill holes:
· The purpose of the 2019 to 2020 rock-saw channel sampling
o easting and northing of the drill hole collar programme was to provide a further increase in the confidence of the resource
classification, and to reduce planned infill drilling meters for future
o elevation or RL (Reduced Level - elevation above sea level in metres) of resource development work. The sampling included areas that are were
the drill hole collar classified as part of the JORC Exploration Target and Inferred Resource, with
a view to improving confidence in the resource estimate and an improvement in
o dip and azimuth of the hole the resource classification. A total of 751 samples (including 118 QA/QC
samples), averaging a length of 1.8 m were extracted during the sampling
o down hole length and interception depth activities. Of these samples, 676 were sent to the Kiziltepe Mine Laboratory
for gold and silver fire assay only. A further 76 samples were sent to ALS
o hole length. in Izmir for gold and silver fire assay and multi-element ICP analysis. The
channel sampling makes up only 10% of the drilling database.
· 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 · Infill resource drilling and exploration drilling was completed
understanding of the report, the Competent Person should clearly explain why in 2021/2022. Details of this latest drilling programme are given below.
this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, · Metal equivalents have not been used in this estimate.
maximum and/or minimum grade truncations (eg cutting of high grades) and
cut-off grades are usually Material and should be stated. · No aggregation has been applied beyond the standard 1 m sampling
interval honouring lithological changes down to 30 cm.
· Where aggregate intercepts incorporate short lengths of high grade
results and longer lengths of low grade results, the procedure used for such · Significant down-hole intercepts calculated for the Tavsan
aggregation should be stated and some typical examples of such aggregations 2021/2022 drilling programme, using a 1.0 g/t Au minimum cut-off and allowing
should be shown in detail. for 0.5 m internal dilution:
· The assumptions used for any reporting of metal equivalent values
should be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · The majority of the drillholes were advanced vertically. Some
Exploration Results. holes were advanced at between -80 and -40 degrees from horizontal to
intersect dipping structures, or to delineate at depth. The mineralised
· If the geometry of the mineralisation with respect to the drill horizons are commonly flat-lying to gently dipping. As such, the true width
hole angle is known, its nature should be reported. is generally represented by the intersection length. However, recorded
intercept widths are down hole length and should not be regarded as true
· If it is not known and only the down hole lengths are reported, widths.
there should be a clear statement to this effect (eg 'down hole length, true
width not known'). · Three-dimensional wireframe models have been generated for sample
selection to constrain the resource estimate. This process eliminates any
bias imparted by oblique intercepts.
Diagrams · Appropriate maps and sections (with scales) and tabulations of Tavsan Overview
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
locations and appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · Full balanced reporting of exploration results has been undertaken
practicable, representative reporting of both low and high grades and/or and is disclosed within the technical report and press releases.
widths should be practiced to avoid misleading reporting of Exploration
Results. · Intercepts depths stated in the drill hole information but not
stated in the data aggregation methods section are lower grade intersections.
Widths of intercepts are stated.
Other substantive exploration data · Other exploration data, if meaningful and material, should be · In 2022 Ariana completed a 41km(2) geological mapping project
reported including (but not limited to): geological observations; geophysical across the Tavsan licenses. This work included pXRF analysis of lithological
survey results; geochemical survey results; bulk samples - size and method of units, petrography analysis, thin section and magnetic susceptibility studies.
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances. · In 2017 Ariana completed an extensive high-resolution (25 m by 25
m) portable X-ray Fluorescence (pXRF) soil survey. This work was completed
in order to better define and characterise targets for a second phase of
resource-development and to improve confidence in targeting for further
resource drilling.
· Sixteen target areas were highlighted by the 8,265 soil samples
collected, covering an area of approximately 5 square kilometres (km(2)).
Further work · The nature and scale of planned further work (eg tests for lateral Zenit have planned the following drilling for the Tavsan Main, North, South
extensions or depth extensions or large-scale step-out drilling). and West Zones, scheduled for 2023-2024:
· Diagrams clearly highlighting the areas of possible extensions, · 3,610 metres for resource infill
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive. · 5,915 meters for resource step-out
· 5,200 metres for exploration
· Further surface sampling and drilling work will also be scheduled
for Tavsan East Zone.
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 Tavsan resource data was stored in a MS Access database and
example, transcription or keying errors, between its initial collection and managed using MS Access and Excel software. Data has now been transferred to
its use for Mineral Resource estimation purposes. MX Deposit, the database management system used by the 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.
· Archived reports have been used to evaluate potential errors and
liability of historical data.
· Ariana Resources performed validation checks in Leapfrog GEO and
EDGE v. 6.0.5.
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. Mr van Coller last visited the project in
July 2022.
· Ruth Bektas (BSc, CGeol, EurGeol) of Ariana Resources is acting
as the Competent Person for this study, and has been on site during
exploration programmes. Ms Bektas is a Resource Geologist and Competent Person
as defined by the JORC code. Ms Bektas last visited the project in June 2018
and has verified aspects of the data collection and handling for the
project.
· Ariana Resources (Galata Madencilik) and Zenit Madencilik field
staff are permanently on site.
Geological interpretation · Confidence in (or conversely, the uncertainty of ) the geological · Geological interpretation used a combination of surface mapping
interpretation of the mineral deposit. data, geophysics and geological and geochemical boundaries from the drill
holes across the Tavsan deposit. Interpretations of geological surfaces are
· Nature of the data used and of any assumptions made. derived from 3D modelling of drill hole data in Leapfrog GEO and EDGE v.
6.0.5.
· The effect, if any, of alternative interpretations on Mineral
Resource estimation. · Geological Domains were interpreted for the deposit according to
geology, grade and geotechnical structures. Five main mineralised lodes have
· The use of geology in guiding and controlling Mineral Resource been identified, two of which have been subdivided into higher grade and lower
estimation. grade domains.
· The factors affecting continuity both of grade and geology. · The mineralisation is well understood, typically defined as a
single identifiable unit, and geologically constrained.
· Grade continuity analysis within the interpreted mineralised
zones is robust.
· The confidence in geological interpretation is appropriately
reflected in the classification of the Resources.
· Interpolation and wireframe modelling of the mineralised zones in
Leapfrog EDGE was completed using a 0.5 g/t and 1.5 g/t Au modelling cut-off
grade (CoG) for low grade and high grade domains, respectively. Where
continuity was not established between sections, the strike extrapolation was
limited both manually (wireframes) and statistically (interpolations).
Dimensions · The extent and variability of the Mineral Resource expressed as · The mineralisation follows a SW-NE trend where outcrop occurs
length (along strike or otherwise), plan width, and depth below surface to the along the jasperoid unit contact. The mineralisation is generally present at
upper and lower limits of the Mineral Resource. surface. The mineralised zone is approximately 4.5 km long across the SW-NE
trend, and covers an area of approximately 2 km(2).
· The mineralisation has an approximate true thickness of 4.5 m,
ranging between 1 m and 30 m thick.
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 3D mineralisation models based on manually isolated economic drill
data points. If a computer assisted estimation method was chosen include a intercepts, where all the Tavsan mineralisation was modelled using Seequent's
description of computer software and parameters used. "vein" model tool to define grade driven domains. Economic intercepts were
defined by nominal 0.5 g/t Au and 1.5 g/t Au modelling cut offs.
· The availability of check estimates, previous estimates and/or mine
production records and whether the Mineral Resource estimate takes appropriate · Compositing was completed in Leapfrog EDGE using a 1 m best fit
account of such data. 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
· The assumptions made regarding recovery of by-products. composite length, while keeping it as close as possible to the selected
intervals of 1m.
· Estimation of deleterious elements or other non-grade variables of
economic significance (eg sulphur for acid mine drainage characterisation). · Top cuts were applied to the assay results at 10 g/t Au. Silver
did not require a top cut.
· In the case of block model interpolation, the block size in
relation to the average sample spacing and the search employed. · Isotropic search ellipses and ranges were used. The variable
orientation function (Dynamic anisotropy) was used in Leapfrog to better
· Any assumptions behind modelling of selective mining units. represent the grade distribution.
· Any assumptions about correlation between variables. · The block models were constructed using a 10 mE by 10 mN by 5 mRL
parent block size.
· Description of how the geological interpretation was used to
control the resource estimates. · The block model is a non-rotated conventional block model with no
sub-blocking used.
· Discussion of basis for using or not using grade cutting or
capping.
· The process of validation, the checking process used, the · Estimation was carried out using inverse distance weighted
comparison of model data to drill hole data, and use of reconciliation data if squared (IDWS) at the parent block scale using a three-pass estimation using
available. 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.
· Check estimates were carried out and the final estimate was
compared to previous estimates.
· 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.
· Density was assigned to each zone based on the values in the
density database.
· A visual validation between drillhole data, composite data and
block model data is carried out.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · Tonnage is estimated on a dry basis in accordance with the
moisture, and the method of determination of the moisture content. specific gravity determination.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · Low grade domains have been modelled above a 0.5 g/t Au cut-off
applied. grade and reported above a 0.7 g/t Au cut-off grade. High grade domains were
modelled and reported above a 1.5 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
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions · The deposit is expected to be mined as an open pit heap-leach
made. operation.
· Bench face angle 65°
· Largest operating bench width 40 meters (Main Zone)
· Bench width changes due to mineralization shape in general
o Bench width = 8 meters if bench height = 10 meters
o Bench width = 5 meters if bench height = 5 meters
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
reasonable prospects for eventual economic extraction to consider potential · Basic metallurgical assumptions were made with regards to
metallurgical methods, but the assumptions regarding metallurgical treatment expected processing methods, recoveries from test work and expected
processes and parameters made when reporting Mineral Resources may not always throughputs.
be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made. · In April 2005, 42 samples of coarse reject material from drill
core and 47 pulp samples (mostly from the same drill core samples as the
coarse rejects) were sent to ALS Chemex in Vancouver, Canada for cyanide
soluble testing. The purpose of this test was to substantiate Cominco's 1997
cyanide soluble tests attesting to the fact that cyanide leach is an
appropriate beneficiation method for extraction of gold.
· Results of the tests indicated that the average gold recovery
after one hour for the coarse reject material was 55.6%, and for the pulp
samples was 91.6%, which indicate that cyanide remains a potentially viable
method for the recovery of gold at Tavsan.
· In 2019, a series of metallurgical test works were conducted at
Zenit's Kiziltepe Mine Laboratory to obtain and optimise the basic parameters
for leaching such as sodium cyanide (NaCN) consumption, particle size, flux
(application) rate, agglomeration, and lime consumption rates. Bottle roll
and mixing in two litres flask tests showed higher recoveries hence increasing
the exposed surface area of the ore with the solution.
· The optimum recovery conditions, which resulted 76% Au recovery
in column tests were:
o Particle size: P100:12.5 mm.
o Flux rate: 10-12 litres per hour per square metre (L/hr/m2).
o Sodium Cyanide: 1.3 - 1.5 kg/ton dry ore.
o Lime: 2 kg/ton dry ore.
o Leach cycle: 45 - 60 days.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue · The Competent Person (CP or QP) is not aware of any known
disposal options. It is always necessary as part of the process of determining environmental or 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 Tavsan Sector.
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should · Zenit has carried out a comprehensive Environmental Impact
be reported. Where these aspects have not been considered this should be Assessment. Under this; a Flora and Fauna study has been completed and
reported with an explanation of the environmental assumptions made. reported by Balıkesir University.
· Acid Rock Drainage and Hydrogeological studies have also been
completed.
Bulk density · Whether assumed or determined. If assumed, the basis for the · Density modelling at Tavsan was evaluated from 896 drill core
assumptions. If determined, the method used, whether wet or dry, the frequency measurements taken from diamond drilling in 2021/2022. The data was domained
of the measurements, the nature, size and representativeness of the samples. according to the various model volumes. Statistical averages within each
domain were used as a representative value of density. Further work is needed
· The bulk density for bulk material must have been measured by to code the density to each model to better show density variations to depth
methods that adequately account for void spaces (vugs, porosity, etc), and along strike, rather than applying statistical averages.
moisture and differences between rock and alteration zones within the deposit.
· For modelling purposes, average specific gravity values ranging
· Discuss assumptions for bulk density estimates used in the from 2.60 to 2.64 g/cm(3) were used based on specific gravity measurements on
evaluation process of the different materials. core samples.
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 45
m x 30 m x 10 m) depending on the mineralisation characteristics and drill
· Whether the result appropriately reflects the Competent Person's hole spacing.
view of the deposit.
· Indicated Mineral Resources have been defined by Pass 2 (up to 90
m x 60 m x 20 m) depending on the mineralisation 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 180 m x 120 m x 40 m).
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · The Inverse Distance Weighting Squared (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 Tavsan, 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 composition of the mineralisation, and the grade of the block
· The statement should specify whether it relates to global or local model accurately reflects bulk samples taken at the property for test work.
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
· These statements of relative accuracy and confidence of the
estimate should be compared with production data, where available.
NOTE: Sections 4 and 5 are not relevant to this work as Reserves aren't
being reported and there is no estimation or reporting of diamonds or other
gemstones in this project.
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