REG - Ariana Resources PLC - Western Tethyan Completes Due Diligence

Ariana ResourcesAnnouncement

02/03/2023 07:01

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RNS Number : 5838R  Ariana Resources PLC  02 March 2023

2 March 2023

AIM: AAU

WESTERN TETHYAN COMPLETES DUE DILIGENCE ON THE SLIVOVA GOLD

PROJECT, KOSOVO

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 that its 75% held Western Tethyan Resources Ltd ("WTR")
subsidiary has completed its due diligence on the Slivova Gold Project ("the
Project") in Kosovo, which is owned by TSX-V listed Avrupa Minerals Ltd.
("Avrupa").  Accordingly, WTR is expecting to complete a definitive Earn-In
Agreement on the Project.

Highlights:

·   Slivova Concept Study completed during the Due Diligence phase
contemplates a low initial capex and moderate operating cost project, offering
attractive economics.

·    WTR has now initiated a Preliminary Economic Assessment Study (PEA)
for the project with UK-based consultants Bara Consulting UK and Knight
Piesold.

·    Earn-In Agreement is expected to be completed by the parties within
the coming weeks.

·    As previously announced, Slivova represents a sediment-hosted gold
deposit containing 640,000t @ 4.8 g/t gold and 14.69 g/t silver and several
less explored potential satellites.

Dr. Kerim Sener, Managing Director, commented:

"We are looking forward to further advancing the development of the attractive
Slivova Gold Project in Kosovo.  We see a number of upside possibilities for
the project and will be investigating these systematically during the period
of earn-in, once agreed, by Western Tethyan and Avrupa Minerals."

Mentor Demi, Managing Director of Western Tethyan Resources, added:

"We are very pleased to have successfully completed the Due Diligence on the
Slivova Gold Project and to be entering into the Definitive Earn-In Agreement
with Avrupa Minerals Ltd in due course.  Our systematic exploration approach
has resulted in the confirmation of potentially economic resources at Slivova
with significant upside opportunities. We look forward to providing further
updates on the Slivova PEA in addition to the exploration results, in the near
future."

Paul W. Kuhn, President and CEO of Avrupa Minerals Ltd, added:

"We are excited that the Slivova Gold Project is moving forward after several
years of dormancy.  WTR and Ariana will be great partners due to strong
exploration abilities from both groups and experience in building small, but
highly successful gold mining operations from Ariana.  By deciding to go
straight into a PEA/Scoping Study from due diligence says a lot of good about
the deposit and the partnership."

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").

Summary of Project

The Slivova Gold Project covers 32km(2) and is valid for 7 years of
exploration (Figure 1).  The license area was subject to a previous joint
venture between Avrupa and Byrnecut International Ltd ("Byrnecut"), until 2019
when the license was terminated after Byrnecut had incurred exploration
expenditures in excess of US$ 7 million.

The Peshter Main Gossan and Gossan Extension zones are hosted within a
steeply-dipping package of intercalated pebble to cobble conglomerates and
finer-grained sandstone units with subordinate shale horizons. The
mineralisation is interpreted to be controlled by the host lithology and is
associated with strong silicification and de-calcification. Gold
mineralisation in the Main Gossan and Gossan Extension is concentrated in the
calcareous pebble conglomerate and calcareous sandstone. The reactive nature
of the matrix appears to have provided the best environment for base and
precious metal mineralisation.

A total of 40 drill holes define the Mineral Resource for 4,161.65 m of
predominantly HQ, NQ and NWT diameter diamond drilling core.  Drill hole
spacing in the core of the deposit is approximately 15m x 15m.  An Indicated
Mineral Resource (NI 43-101) was subsequently defined at Slivova of 640,000 Mt
@ 4.8 g/t gold and 14.68 g/t silver, for approximately 98,700 ounces of gold
and 302,000 ounces of silver (see:
https://avrupaminerals.com/wp-content/uploads/2018/08/NI43101_AvrupaMinerals_Slivovo.pdf
(https://avrupaminerals.com/wp-content/uploads/2018/08/NI43101_AvrupaMinerals_Slivovo.pdf)
).  A significant part of the exploration licence remains to be explored in
detail and there are indications of further mineralisation in the immediate
vicinity (Figure 1), which will require drill-testing.

Significant sulphide mineralisation in the form of pyrite, with minor amounts
of sphalerite, chalcopyrite, pyrrhotite and arsenopyrite occurs with the gold
and silver mineralisation, although it is interpreted that the main high-grade
gold mineralising event occurred after the sulphidation event.  Leach
analyses on 255 mineralised samples from four holes evenly spaced through the
deposit demonstrated that the majority of the mineralisation is amenable to
conventional hydrometallurgical processes.  Further metallurgical testwork
will be undertaken as a priority to determine the optimal process route.

 

Figure 1: Main resource area and surrounding prospects at the Slivova Project,
showing the surface sampling results of prior exploration.  Inset on the top
right is the same area, shown within the boundaries of the licence.  Inset on
the bottom right is the Slivova licence, shown in relation to the borders of
Kosovo.

Terms of the Agreement

Under the terms of the HoT, WTR has the right to acquire, in multiple stages,
up to 85% of the Slivova Gold Project, by completing a series of exploration
and development milestones and making staged payments to Avrupa.  WTR also
has the right to withdraw from the Project prior to the end of a six-month due
diligence ("DD") period but it must fund a minimum Euro 25,000 of exploration
work during the first three months of due-diligence.

Due Diligence Phase

Exclusivity from September 1, 2022 ("Effective Date") to March 1, 2023.

·    Euro 35,000 cash payment upon signing;

·   Euro 100,000 investment during the DD Phase; if WTR decides to vacate
the Project before completion of 6-month DD, a minimum of Euro 25,000 must be
spent;

·    Euro 35,000 cash payment at the end of the 6-month DD period;

·    Definitive Agreement to be completed and signed following the DD
period.

Earn-In Phases

Stage 1:

·    Euro 30,000 cash payment on September 1, 2023;

·    If WTR elects to enter the Definitive Agreement, it will invest total
Euro 800,000 during first two years from the Effective Date (minimum of Euro
150,000 must be spent by September 1, 2023, post DD Phase), for exploration,
drilling, baseline environmental and social surveys, landowners, etc., for 51%
of the project.

Stage 2: After completion of Stage 1, during the third year from the Effective
Date, WTR will invest Euro 1,000,000 for NI 43-101 resource estimation,
commencement of full Environmental Impact Statement ("EIS"), etc., for 75% of
the project.

Stage 3: During fourth and fifth year from the Effective Date, WTR must
complete the EIS, Feasibility Study ("FS"), and Mining License application,
for 85% of the Project.

Stage 4: WTR completes success payments to previous JV partner, Byrnecut
accordingly:

·   Euro 125,000 in cash within 30 days of the first to occur of: 1)
Completion of a positive FS (minimum 15% IRR) or; 2) Avrupa or related party
making a decision to proceed with development of a mining operation within the
license area;

·    Euro 125,000 within 30 days of issuance of a mining license for the
Project, and

·    Euro 125,000 within 30 days of commencement of mine construction
within the license area;

·    100 troy ounces of gold within 30 days of commencement of commercial
production ("CCP"), then increasing by 75 troy ounces per year until and
including the third anniversary of commercial production when 325 troy ounces
will be delivered.

Stage 5: Avrupa participates in the mine build or dilutes to 1% NSR.

About Western Tethyan Resources

Western Tethyan Resources Ltd ("WTR") is a UK-registered, mineral exploration
and Development Company focused on South East Europe. The company has a
strategic alliance with Newmont Corporation and Ariana Resources and is
currently focused on exploration for major copper-gold deposits in the Lecce
Magmatic Complex and Vardar Belt. The company is assessing several other
exploration project opportunities across Eastern Europe, targeting major
copper-gold deposits across the porphyry-epithermal transition.

For further information on Western Tethyan Resources you are invited to visit
the Company's website at www.westerntethyanresources.com

About Avrupa Minerals Ltd

Avrupa Minerals Ltd. (www.avrupaminerals.com (http://www.avrupaminerals.com) )
is a growth-oriented junior exploration and development company directed to
discovery of mineral deposits, using a hybrid prospect generator business
model. The Company holds one 100%-owned license in Portugal, the Alvalade VMS
Project, presently optioned to Sandfire MATSA in an earn-in joint venture
agreement. The Company now holds one 100%-owned exploration license covering
the Slivova gold prospect in Kosovo, and is actively advancing four prospects
in central Finland through the recently-announced acquisition of Akkerman
Finland Oy. Avrupa focuses its project generation work in politically stable
and prospective regions of Europe, presently including Portugal, Finland, and
Kosovo. The Company continues to seek and develop other opportunities around
Europe.

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 / Shivantha Thambirajah /   arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)

Bessie Elliot

 

 

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 February 2022). The joint venture comprises the Kiziltepe Mine and the
Tavsan and Salinbas projects.

 

The Kiziltepe Gold-Silver Mine is located in western Turkey and contains a
depleted JORC Measured, Indicated and Inferred Resource of 222,000 ounces gold
and 3.8 million ounces silver (as at February 2022). The mine has been in
profitable production since 2017 and is expected to produce at a rate of
c.20,000 ounces of gold per annum to at least the mid-2020s. A Net Smelter
Return ("NSR") royalty of 2.5% on production is being paid to Franco-Nevada
Corporation.

 

The Tavsan Gold Mine is located in western Turkey and contains a JORC
Measured, Indicated and Inferred Resource of 307,000 ounces gold and 1.1
million 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 which
contain a combined JORC Indicated and Inferred Resource of 17Mt @ 0.45% to
1.10% copper (excluding additional gold, silver and zinc.

 

Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish
Limited is the Company's Nominated Adviser and Broker.

 

For further information on Ariana you are invited to visit the Company's
website at www.arianaresources.com (http://www.arianaresources.com) .

 

 

Ends.

 

 

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