REG - Ariana Resources PLC - Year-End Update on Asgard Investments

Ariana ResourcesAnnouncement

13/11/2023 07:00

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RNS Number : 1620T  Ariana Resources PLC  13 November 2023

13 November 2023

AIM: AAU

YEAR-END UPDATE ON ASGARD INVESTMENTS

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral
exploration and development company with gold mining interests in Europe, is
pleased to provide an update on the 100% owned Asgard Metals Fund ("Asgard")
and its associated investments.  Since the update provided in late 2022,
Asgard has made two new investments and participated in some additional
placings within some of its existing investments; the existing investee
companies raised approximately A$5.5m in total during the year to fund their
operations.  Please see www.asgardmetals.com.au
(http://www.asgardmetals.com.au) for more information.

Highlights:

·    Rockover Holdings Limited ("Rockover") - 1.3% held (new position):
Rockover is a highly-successful private exploration company operating in
Africa, with the Dokwe Gold Project ("Dokwe") as its flagship project near
Bulawayo, Zimbabwe (visit: www.rockover.net (http://www.rockover.net) ).

o  Feasibilty-stage Dokwe Project discovered under Kalahari cover containing
1.3Moz gold (JORC Measured, Indicated and Inferred)*, comprising Dokwe North
and Dokwe Central.

o  Positive pre-feasibility study completed providing for gold production of
60,000 ounces per annum over 12 years from a single open pit, with potential
to increase resources through further exploration.

o  Project exclusivity secured and team on site to complete the detailed
investigation of the project including a diamond drilling programme for due
diligence ("DD") purposes.

o  Subscription agreement completed for US$250,000 at US$1.25 per Rockover
share; funding to enable the DD programme and for general working capital
requirements.

o  For the year ended 31 December 2022, Rockover's unaudited Accounts showed
a loss before taxation of US$187,042 and total assets of US$18,422,290.

·    Panther Metals Limited (ASX: PNT) - 3.1% held (previously 3.2%):
Focused on a major laterite nickel resource at the Coglia Project of 70.6Mt at
0.7% nickel and 460ppm cobalt (JORC Inferred) near Laverton, Western
Australia, in proximity to the Glencore-owned Murrin-Murrin nickel operation
(announced on 27 June 2022).

o  Follow-up drilling programme completed at Coglia targeting lateritic
mineralisation in the periphery of the Mineral Resource, with new
nickel-bearing ground acquired in the vicinity including Marlin, which
contains an intercept of 20m at 1.02% Ni from 12m.

o  High-Pressure Acid Leach (HPAL) testwork undertaken on the lateritic
nickel-cobalt mineralisation yielding very high nickel (92.6%) and cobalt
(73.9%) extraction, from a blended sample at the -38μm size fraction.

o  Exploration underway across several gold projects in the Laverton region
including the recent greenfields discovery of the 40 Mile Camp gold prospect
with aircore drilling.

·    Annamite Resources Holdings Pte. Ltd. - 6.3% held (previously 5.8%):
Focused on a significant porphyry Cu-Au-Mo system discovered at the Sokdee
Project in Laos, which returned encouraging scout drilling results in the
Namthom and Mouk areas (announced on 21 December 2022).

o  Annamite recently partnered with Rio Tinto Exploration Pty. Ltd. which is
injecting US$810,000 this year into further exploration of the project,
including geophysics and drilling.

o  Six prospects are now defined within the Sokdee Project after trenching,
RC drilling and IP surveys were undertaken in April-July 2023 at the Spine,
Palm, Grassy and Mouk targets, to assist with drill target definition.

o  Phase Two drilling completed from July-October 2023, included four holes
into the Mouk target as well as one hole at Namthom; full assay results are
expected in December 2023.

·    Pallas Resources Limited - 6.0% held (unchanged): Completion of field
programmes involving geochemistry and geophysics over nine exploration
licences (2,027km(2)) in Kazakhstan; encouraging results for gold and/or
copper observed across all areas and at Sarybastau and Ulkensur in particular.

o  Continuing to develop the portfolio to encompass a variety of high
exploration potential metallogenic provinces across Kazakhstan for a number of
strategic commodities, including gold, copper, nickel and lithium.

o  Newly acquired exploration licences include Dzhezkazgan East (23km(2)),
Satpaev (90km(2)) and Southeast Bay (490km(2)) which lie within the Chu-Sarysu
basin, the third largest sediment-hosted copper basin globally.

o  Satpaev which includes historical drilling results of 19m @ 1.1% Cu from
surface and 27m @ 1.2% Cu from 14m, otherwise remains poorly explored.

·   Altai Resources Limited - 8.4% held(#) (new position): Altai is a
majority owned subsidiary of Pallas Resources, which has been established to
focus on a major nickel sulphide province in eastern Kazakhstan.

o  Kokpekty Project Area (307km(2)) hosts multiple targets with surface Ni-Cu
occurrences in a geological environment analagous to Norilsk: large-scale
concentrations of polymetallic sulphides formed by magma interaction with
evaporites.

o  Internationally renowned nickel expert, Dr. Steven Beresford is a founding
member of Altai and is responsible for driving the targeting strategy.

o  Investment of £100,000 made into the Altai seed capital round, with
£37,500 of agreed consulting input paid in shares*.

* Including Dokwe North and Dokwe Central.

(#) Subject to certain regulatory consents in Kazakhstan.

Dr. Kerim Sener, Managing Director, commented:

"We are very pleased with the dynamism shown by all of our investee companies
over the past year despite the challenges presented by the market. Notably,
our investee companies successfully raised additional funds both privately and
through the capital markets, totalling circa A$5,500,000, which has been a
real achievement and stands as a testament to the quality of the teams and
their portfolios.

"During the year, we made certain additional investments in some of our
investee companies and welcome adding two new companies to the portfolio,
Rockover Holdings, operating in Zimbabwe through a wholly-owned subsidiary,
and Altai Resources, operating in Kazakhstan. To date our total investments
across the portfolio now amount to approximately A$1,600,000 with a further
A$625,000 in agreed consulting input paid or payable in investee company
shares.

"Rockover Holding's project in Zimbabwe represents the most advanced potential
project we have investigated to date, having already achieved a positive
pre-feasibility outcome, yet with significant exploration upside. Following a
week-long site visit undertaken in July, we have now completed a subscription
agreement with Rockover to help fund a short drilling programme for our own
due diligence purposes, while we consider further involvement in the project.
Our team are currently on site and making preparations ahead of the drilling
programme.

"A site visit was also undertaken to the Coglia nickel-cobalt project of
Panther Metals in June, just as the new drilling programme commenced on the
project. This drilling programme was focused on testing the exploration
targets defined in the periphery of the JORC Resource identified in 2022 and
determining the limits of the lateritic nickel-cobalt horizon. In addition,
the 40 Mile Camp gold anomaly area was visited just in advance of a maiden
drilling programme which subsequently defined gold mineralisation in the
bedrock.

"Recent updates from Annamite have been most encouraging, with a recent deal
having been concluded with Rio Tinto Exploration to fund a second drilling
programme on the Sokdee copper-gold-molybdenum project. The new drilling
programme was recently completed, looking at a number of new targets across
the project. Based on the success of recent exploration in Laos, we are
planning to work closely with Annamite in the coming months to assist with
their goal to achieve an ASX listing during 2024.

"Work on Pallas and Altai was also undertaken to support some of their
activities during the year.  Both companies have been successful in securing
further prospective ground across multiple mineral provinces in Kazakhstan.
Exploration across both portfolios has been highly encouraging and Altai was
partially spun out of Pallas, enabling Asgard to participate in its seed
capital round. Following a successful geophysical programme and field
follow-up with internationally renowned nickel expert, Dr. Steven Beresford,
we are engaging with Altai with a view to potentially achieving a stock
exchange listing in 2024-5.

"Further investment opportunities across the existing portfolio are being
reviewed in addition to certain other select projects currently under
investigation. We have also commenced the provision of commercial consulting
input to junior companies independent of investment, as there is now
recognition in the market of the broad range of exploration and development
skill sets we are capable of bringing to bear on any project. The Company
looks forward to updating the market on the Asgard portfolio again in 2024."

Contacts:

 

 Ariana Resources plc                           Tel: +44 (0) 20 7407 3616
 Michael de Villiers, Chairman
 Kerim Sener, Managing Director
 Beaumont Cornish Limited (Nominated Adviser)   Tel: +44 (0) 20 7628 3396
 Roland Cornish / Felicity Geidt
 Panmure Gordon (UK) Limited (Joint Broker)     Tel: +44 (0) 20 7886 2500
 John Prior / Hugh Rich / Atholl Tweedie
 WHIreland Limited (Joint Broker)               Tel: +44 (0) 207 2201666

 Harry Ansell / Katy Mitchell / George Krokos

 Yellow Jersey PR Limited (Financial PR)        Tel: +44 (0) 7983 521 488
 Dom Barretto / Shivantha Thambirajah /         arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)

Bessie Elliot

 

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 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 and is currently in
construction.  A NSR royalty of up to 2% on future production is payable to
Sandstorm Gold.

 

The Salinbas Gold Project is located in north-eastern 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, UK and Zimbabwe.

 

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 Mining Corporation
(www.newmont.com) and is separately earning-in to up to 85% of the Slivova
Gold Project.

 

Ariana owns 58% 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 and WH Ireland Limited are brokers to the Company
and Beaumont Cornish Limited is the Company's Nominated Adviser.

 

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

 

 

Ends.

 

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