REG - Ariana Resources PLC - SUCCESSFUL DRILLING RESULTS FOR APLIKI, CYPRUS

Ariana ResourcesAnnouncement

08/11/2021 07:05

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RNS Number : 5741R  Ariana Resources PLC  08 November 2021

 

 

 

 

8 November 2021

AIM: AAU

SUCCESSFUL DRILLING RESULTS FOR APLIKI, CYPRUS

Ariana now owns 50% of Venus Minerals

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration
and development company operating in Europe, is pleased to announce recent Due
Diligence drilling results obtained from the Apliki Project ("Apliki").
 Ariana has completed its earn-in to 50% of Venus Minerals Ltd ("Venus"),
which is in discussions with leading Cypriot mining company Hellenic Copper
Mines for a 50:50 JV agreement for the development of Apliki.  Venus is
focused on the exploration and development of copper and gold assets in
Cyprus.

Highlights:

·    Robust copper results confirmed in all Due Diligence drilling
undertaken at the Apliki Project.

 

·    Significant results include:

 

o  44.5m @ 0.77% Cu from 51.5m, including 8m @ 1.40% Cu

o  28.0m @ 0.86% Cu from 16.0m including 6m @ 1.59% Cu

 

·    Abundant bornite, chalcocite and covellite observed, confirming the
ore will be amenable to hydrometallurgical copper recovery.

 

·    Ariana has completed its earn-in to 50% of Venus Minerals, making
Venus 50% UK owned and 50% Cypriot owned (Semarang Enterprises Limited); the
UK and Cypriot joint ownership is planned as a long-term strategic
partnership.

Dr. Kerim Sener, Managing Director, commented:

"These drilling results confirm Venus' expectations of the Apliki Copper
Project in Cyprus.  The results have yielded several high-grade copper
intercepts within an overall envelope comprising mineralisation which appears
to be represented by dominantly oxidised material containing secondary
sulphides.  This bodes well for the proposed hydrometallurgical recovery of
copper from the Apliki area utilising the same processing plant which was
previously located at the nearby Skouriotissa operation.

"We are excited by the latest developments in Cyprus and the trajectory of
Venus towards becoming the only copper producer on the island in the near
term.  In addition, recent exploration results are continuing to provide
confidence in the development of a long-life mining opportunity utilising the
very latest technologies for the efficient extraction of high-purity copper
via electrowinning.

"Through our 50% interest in Venus, we are keen to be participants in the
copper industry of Cyprus, which has a proud legacy spanning as far back as
the Bronze Age, representing the earliest records of metal mining by human
civilisation. Venus is well positioned as a first mover in the resurgence of
Cyprus' renowned mining industry and we look forward to providing further
updates with regards to its intended joint venture agreement with Hellenic
Copper Mines in due course."

* Further information about Venus Minerals and its projects is available on
the Company's website, www.venusminerals.co (http://www.venusminerals.co) .

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

Venus Minerals recently reported the agreement of a Heads of Terms with
Hellenic Copper Mines ("HCM") to form a joint venture to develop the Apliki
deposits using a hydrometallurgical processing operation.  In line with this,
Venus has been undertaking technical due diligence of the resources and
process design.  Central to the resources review is the repeatability of the
historical drilling, the geological and mineralisation models and the
mineralogy; the latter being crucial for a successful heap-leaching operation.

 

An initial desktop data review of the West Apliki Main and West Apliki
deposits was completed in June 2021 for the purpose of defining suitable
locations for three Venus Minerals Due Diligence ("DD") diamond drill holes
(VMD006, VMD007 and VMD008).  The Venus Minerals DD drilling consisted of
three c. 50-degree angled HQ diamond holes, totalling 383.8m (Figure 1).
VMD006 and VMD007 were drilled in a scissor orientation through the main body
of West Apliki Main.  These holes aimed to test lateral extension of
high-grade copper (1-5% Cu) from a cluster of several historic '900 series'
drill holes, mainly; 947, 947A, 980, 982, 994, 998, 999.

 

VMD008 was drilled approximately 200m NE of the first two holes, and tested
the West Apliki area.  The hole was designed to drill down dip through the
thickest region of the mineralisation.  VMD008 achieved its primary objective
of verifying mineralisation from historic drilling, as well as determining the
continuity between several key historic holes (AW9, AW17 and AW18A).

Apliki Summary

The Apliki deposits, comprising Apliki and West Apliki, were discovered by
Cyprus Mines Corporation ("CMC") in the 1960s.  The Apliki deposit was mined
as an open pit, with sulphide ore being processed at the Xeros flotation plant
less than 5km to the north.  The West Apliki Main and West Apliki deposits
were not mined and remain intact.  Following the events of 1974, the Xeros
processing plant was no longer accessible to the mines in the south, such as
Apliki and Skouriotissa, and CMC halted their operation and withdrew from the
island.

In the mid 1990s, HCM recommissioned the Skouriotissa mine, 3km from Apliki,
as a successful hydrometallurgical operation which ran for over 20 years.
 The processing plant was decommissioned in 2019 as primary Skouriotissa ore
became depleted.  This processing plant is to be relocated to Apliki for the
new operation.

The Apliki copper deposits occur as concentrations of cupriferous
mineralisation developed in the basal units of the Pillow Lava Series of the
Troodos ophiolite with a well-defined subvertical N-NE fault playing a major
role in controlling the mineralisation.  The highest grades are concentrated
on the hanging-wall side of the structure, although low-grade mineralisation
locally persists into the footwall side beyond the structure.

Copper mineralisation at Apliki is associated with Volcanic Massive Sulphide
(VMS) deposition at or near the palaeo-seafloor.  ME-ICP multi-element
analysis of the 2021 DD drilling has revealed that Apliki does not contain
associated gold, zinc or lead like other VMS related projects within Cyprus,
and is therefore expected to be processed more straightforwardly.  The
mineralogical characteristics of the ore have been described in previous work
(Adamides, 2001), with secondary copper minerals (chalcocite, covellite,
delafossite, chrysocolla) at higher levels, and occurrence of chalcopyrite at
depth, also in association with secondary minerals.

Drilling

Results for the Apliki DD drilling completed as part of Venus' 2021 drill
programme have been reviewed by the Venus and Ariana exploration teams (Figure
2).  Significant intercepts from these results include:

·    VMD006 (62m to 70m) for 8m @ 1.40% Cu

·    VMD007 (20m to 26m) for 6m @ 1.59% Cu

·    VMD008 (34m to 57m) for 23m @ 0.39% Cu

The DD diamond drilling results were compared to historical drilling (churn,
rotary wet, rotary air).  There is some discrepancy between the results
obtained from different drilling methods, with both under- and
over-estimation.  Churn drilling appears to provide more conservative grade
compared to rotary drilling, however some discrepancy is due to variability of
the mineralisation rather than the sampling technique.  The diamond drilling
results from this programme are considered to be the most reliable in terms of
drilling method and sampling protocol.

The DD drilling has been successful in confirming the presence of
mineralisation, as well as improving the understanding of the mineralisation
and structural controls to enable better modelling in the future.  Visual
inspection of the drill core confirms the principal copper minerals are
bornite, covellite and chalcocite resulting from the breakdown of
chalcopyrite.  In the upper levels, this replacement is almost total.
 Secondary copper minerals are also observed coating pyrite.  These
observations are important as these copper minerals are conducive to
heap-leaching and hydrometallurgical recovery processes as planned for the
Apliki development.

Following the developments of Venus' work at West Apliki, Ariana is conducting
a full review of the Apliki and wider geological models, Mineral Resources,
and optimisation studies that have been completed to date.

http://www.rns-pdf.londonstockexchange.com/rns/5741R_1-2021-11-7.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5741R_1-2021-11-7.pdf)

Figure 1: Plan view of the Apliki area, showing the DD drill collar positions
and historical collars.  Key new intercepts are provided for the West Apliki
area in addition to a few historical hole data in the Apliki Mine area.

http://www.rns-pdf.londonstockexchange.com/rns/5741R_1-2021-11-7.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5741R_1-2021-11-7.pdf)

Figure 2: Cross-section of VMD006, 007 and 008 showing the distribution of new
and historic drilling.

 

Table 1: Significant intercepts calculated for DD West Apliki drill holes
completed during Venus' 2021 drilling programme, using a 0.2% Cu minimum
cut-off and allowing for up to 2m internal dilution.

 Hole ID        From (m)  To (m)  Length (m)  Cu (%)  Cut-off grade (%)
 VMD006         -         4.0     4           0.23    0.20
                47        48      1           0.35    0.20
                51.5      96      44.5        0.77    0.20
         incl.  62        70      8           1.40    1.00
         72     74        2       1.66        1.00
         80     84        4       1.28        1.00
                132       136     4           0.20    0.20
                140       144     4           0.25    0.20
 VMD007         16        44      28          0.86    0.20
         incl.  20        26      6           1.59    1.00
         36     38        2       1.16        1.00
         40     44        4       1.07        1.00
                52        56      4           1.90    0.20
                60        68      8           0.97    0.20
         incl.  64        68      4           1.32    1.00
                72        74      2           0.76    0.20
                81        85      4           0.45    0.20
 VMD008         4         16      12          0.23    0.20
                34        57      23          0.39    0.20
                67        75      8           0.27    0.20

 

Conclusions

 

The diamond drilling undertaken by Venus earlier this year has confirmed the
presence of near surface thick zones of medium to low grade copper
mineralisation which will form a significant component of the ore to be
heap-leached at the Apliki hydrometallurgical operation. The drilling has
resulted in a tightening of the geological and mineralisation models.

 

The mineralogy comprises secondary copper minerals which are the result of
near total replacement of chalcopyrite in the upper levels, confirming that
the ore at West Apliki Main and West Apliki will be amenable to the planned
hydrometallurgical proposal under review.

Sampling and Assaying Procedures

The diamond drill core was analysed at ALS Laboratory Services in Ireland
("ALS Ireland"). Results are being assessed systematically.

 

HQ size drill-core samples from the drilling programme at Apliki were cut by a
diamond saw into quarter core. Quarter core is sent for analysis in batches in
line with the Company's quality control procedures, whilst one quarter is held
back for future metallurgical analysis and the remaining half core is
archived.  For the 2021 DD drill holes drilled at Apliki, a total of 132
samples (including 22 QA/QC samples) were submitted to ALS Ireland.

 

Drill core recoveries for all Apliki samples sent to the laboratory averaged
90%, with the average core recovery for Venus's 2021 drilling programme
averaging 95%.

 

All samples were assayed for gold using a 50g fire assay (Au-AA23) and
ME-ICP41 for copper and other elements.  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 crush and pulp 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 / Joe Burgess / Henry Wilkinson  arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)

 

Editors' Note:

 

The information in this announcement that relates to exploration results is
based on information compiled by Dr. Kerim Sener BSc (Hons), MSc, PhD,
Managing Director of Ariana Resources plc. Dr. Sener is a Fellow of The
Geological Society of London and a Member of The Institute of Materials,
Minerals and Mining and has sufficient experience relevant to the styles of
mineralisation and type of deposit under consideration and to the activity
that has been undertaken to qualify as a Competent Person as defined by the
2012 edition of the Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code) and under the AIM
Rules - Note for Mining and Oil & Gas Companies.  Dr. Sener consents to
the inclusion in the report of the matters based on his information in the
form and context in which it appears.

 

About Ariana Resources:

Ariana is an AIM-listed mineral exploration and development company with an
exceptional track-record of creating value for its shareholders through its
interests in active mining projects and investments in exploration companies.
Its current interests include gold production in Turkey and copper-gold
exploration and development projects in Cyprus and Kosovo.

The Company holds 23.5% interest in Zenit Madencilik San. ve Tic. A.S. a 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 July 2020). 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 227,000 ounces gold
and 3.7 million ounces silver (as at April 2020). 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 is currently earning-in to 75% of 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").  Venus is
focused on the exploration and development of copper-gold assets in Cyprus
which contain a combined JORC Inferred Resource of 9.5Mt @ 0.65% copper
(excluding additional gold, silver and zinc).

Ariana operates its wholly-owned Asgard Metals Fund ("Asgard"), as part of the
Company's proprietary Project Catalyst Strategy. The Fund will be 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.

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:

 

"Au" chemical symbol for gold;

 

"Cu" chemical symbol for copper;

 

"g/t" grams per tonne;

 

"JORC" the Joint Ore Reserves Committee;

 

"m" Metres;

 

"MRE" Mineral Resource Estimate

 

Ends.

 

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