TIDMAAU
RNS Number : 7198X
Ariana Resources PLC
02 September 2020
2 September 2020
AIM: AAU
NEW HIGH-GRADE VEIN DISCOVERED AT KIZILTEPE
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
exploration and development company operating in Europe, is pleased
to announce new resource and exploration drilling results obtained
from the Kiziltepe Mine ("Kiziltepe" or "the Project") in Turkey.
Kiziltepe is part of the Red Rabbit Joint Venture ("JV") with
Proccea Construction Co., and is 50% owned by Ariana through its
shareholding in Zenit Madencilik San. ve Tic. A.S. ("Zenit").
Highlights:
-- A new high-grade vein has been discovered in the hanging-wall
of the Arzu South vein, providing the following results:
o 12.8m @ 6.09g/t Au + 107.58g/t Ag
o 2.10m @ 4.75g/t Au + 14.76g/t Au
-- Further significant results identify the potential for
underground development at Arzu South, including:
o 10.8m @ 3.39g/t Au + 40.35 g/t Ag
o 9.60m @ 3.31g/t Au + 53.53g/t Ag
o 10.5m @ 2.18g/t Au + 31.68g/t Ag
-- Conceptual underground mining plans completed for Arzu South
are undergoing further review, supported by geotechnical studies
being undertaken at the Middle East Technical University,
Ankara.
Dr. Kerim Sener, Managing Director, commented:
"We are very pleased with the results of this drilling
programme, which clearly demonstrate the potential for mining to
continue along the northwest extension of the Arzu South vein. The
recognition of an additional and consistent high-grade structure in
the hangingwall of the Arzu South vein is a fantastic result and
its discovery is a credit to the intelligence of our exploration
team.
We are now investigating the opportunities for further
exploration and resource drilling in this area, along with
progressing additional underground mining studies. Based on the
initial work completed to date, there are opportunities to either
extend the Arzu South pit to the northwest by at least 200m or to
develop this area by underground mining methods. We are keen to
undertake further studies in parallel with the completion of
drafting of our new joint venture agreements with Ozaltin Holding
A.S. and Proccea Construction Co., which we are focused on
finalising in the coming weeks.
I would specifically like to take this opportunity to thank our
exploration team for their dedication to the initiation and
completion of this drilling programme through a period of
significant uncertainty caused by COVID-19. Of course, it does not
go without saying that their efforts were supported at all times by
our JV mining team at Kiziltepe, who helped ensure a safe operating
environment for our drilling contractors and exploration staff. We
are deeply appreciative of their collective efforts."
Drilling Programme
Since December 2019, the Ariana team has worked to revise its
geological model at Kiziltepe. One of the primary objectives of
this work was to identify opportunities for underground development
beneath and along strike of the Arzu South open-pit. A secondary
objective was to better define subsidiary veins that may have been
intercepted on the periphery of the main vein system, particularly
along its northwest extension.
In January 2020, the Ariana exploration team designed a drilling
programme specifically to test mineralisation under the Arzu South
open-pit. In particular, the drilling was designed to target
extensions of known plunging shoots that have become apparent
through historic drilling, geological modelling and active
mining.
Between April and June 2020, the Ariana and Zenit JV teams
successfully completed a 2,390.5 meter diamond drilling programme
at Arzu South (Table 1). The programme consisted of 13 diamond
drill-holes of PQ to HQ diameter, targeting mineralisation at an
average depth of approximately 100m, and testing multiple targets
to an average depth of c.120m and a maximum of up to c.170m below
surface.
The programme was designed to follow-up on and provide infill
data for the initial exploration drilling work, which had targeted
underground extensions, and was completed during the summer of 2019
(see announcement of 17 December 2019). The latest programme
provided infill data between existing holes to give further
confidence to the geological modelling in Zone A and Zone C of Arzu
South (Figure 1). No further drilling was completed within Zone B
at this time, since this area was sufficiently drill tested
historically and more recently with the drilling completed in
2019.
http://www.rns-pdf.londonstockexchange.com/rns/7198X_1-2020-9-1.pdf
Figure 1: Long-section of the Arzu South vein, showing recent
(red dots) and historic drilling (yellow dots) results and the
outline of the current Arzu South pit. The position of long-section
line X-Y is shown in the top inset plan (showing the open pit) and
the bottom inset long-section shows the true thickness of the vein
with orange to red indicating a width greater than 4m (the position
of the open pit is also shown).
Zone A, the northwest extension of Arzu South into the Arzu
Central Zone, remains one of the most promising areas in which to
initiate underground mining. The latest infill drilling provided
robust data which enables the geological model of Arzu South to be
extended a further 50m into the Arzu Central Area. As a result, the
Arzu South vein currently extends a total of 200m into the Arzu
Central Area. This is demonstrated by the following significant
assay results:
KTP-D07-20: 10.8m @ 3.39g/t Au + 40.35 g/t Ag;
KTP-D08-20: 9.60m @ 3.31g/t Au + 53.53g/t Ag, and;
KTP-D10-20: 10.5m @ 2.18g/t Au + 31.68g/t Ag.
Other significant results from the drilling programme include
multiple intercepts from a new vein which was first intercepted in
2019 (see announcement of 17 December 2019, KTP-RC08-19: 3m @ 6.25
g/t Au + 129 g/t Ag), within the hanging-wall of the Arzu South
vein (Figure 2). This vein was targeted as a secondary objective
whilst testing the deeper extensions of Arzu South. Results from
this drilling includes:
KTP-D11-20: 12.8m @ 6.09g/t Au + 107.58g/t Ag, and;
KTP-D06-20: 2.10m @ 4.75g/t Au + 14.76g/t Au.
The new vein has now been tested outside of the Arzu South pit
in five separate locations, and appears to attain a true thickness
of about three meters. A new geological model has been created to
accommodate these new intercepts (Figure 2).
Results from Zone C, 50m to 100m (vertical) immediately below
the Arzu South Pit also returned some encouraging results:
KTP-D02-20: 9.20m @ 1.84g/t Au + 56.11, and;
KTP-D01-20: 2.60m @ 2.77g/t Au + 23.5g/t Ag.
These intercepts are individually deemed too low grade to
support underground development, but provide encouragement that the
structure continues at depth and suggests that there may be
opportunities to identify higher grade zones associated with
structural dilation. In order to test this possibility,
significantly deeper drilling would need to be planned in the
context of a dynamic structural model of the vein system.
http://www.rns-pdf.londonstockexchange.com/rns/7198X_1-2020-9-1.pdf
Figure 2: Schematic cross-section of the northwest end of Arzu
South. KTP-RC08-20 intercepted mineralisation outside of the pit,
to the northwest of the northwestern pit wall.
Table 1: Significant intercepts calculated for drilling on the
Arzu South Vein, using a 0.5 g/t Au minimum cut-off and allowing
for up to 1m internal dilution. The data is sorted according to the
gram-metre intercepts from highest to lowest.
Hole ID From (m) To (m) Intercept Gold (g/t Silver
(m) Au) (g/t Ag)
KTP-D11-20 102.1 114.9 12.8 6.09 107.58
--------- ------- ---------- ---------- ----------
KTP-D07-20 81.9 92.7 10.8 3.39 40.35
--------- ------- ---------- ---------- ----------
KTP-D08-20 121 130.6 9.6 3.31 53.53
--------- ------- ---------- ---------- ----------
KTP-D10-20 91.1 101.6 10.5 2.18 31.68
--------- ------- ---------- ---------- ----------
KTP-D13-20 168 179.5 11.5 1.51 42.48
--------- ------- ---------- ---------- ----------
KTP-D02-20 147.8 157 9.2 1.84 56.12
--------- ------- ---------- ---------- ----------
KTP-D06-20 46.1 48.2 2.1 4.75 14.76
--------- ------- ---------- ---------- ----------
KTP-D12-20 80 85.1 5.1 1.64 83.88
--------- ------- ---------- ---------- ----------
KTP-D11-20 95 98 3 2.43 24.67
--------- ------- ---------- ---------- ----------
KTP-D01-20 167.9 170.5 2.6 2.77 23.5
--------- ------- ---------- ---------- ----------
KTP-D07-20 108.3 109.3 1 5.48 76
--------- ------- ---------- ---------- ----------
KTP-D11-20 122 125.6 3.6 1.04 35.5
--------- ------- ---------- ---------- ----------
KTP-D11-20 83.65 85 1.35 2.53 21.63
--------- ------- ---------- ---------- ----------
KTP-D12-20 75.8 78 2.2 1.39 26
--------- ------- ---------- ---------- ----------
KTP-D07-20 119.9 122.3 2.4 1.03 18
--------- ------- ---------- ---------- ----------
KTP-D06-20 137.9 141.5 3.6 0.67 32.36
--------- ------- ---------- ---------- ----------
KTP-D02-20 144.3 145 0.7 3.24 64
--------- ------- ---------- ---------- ----------
KTP-D13-20 161.5 164.2 2.7 0.78 30.44
--------- ------- ---------- ---------- ----------
KTP-D04-20 116.6 118.8 2.2 0.94 33.91
--------- ------- ---------- ---------- ----------
KTP-D11-20 99 101.1 2.1 0.89 10.57
--------- ------- ---------- ---------- ----------
KTP-D02-20 138.2 140 1.8 1.03 49
--------- ------- ---------- ---------- ----------
KTP-D11-20 78.5 79.5 1 1.39 10
--------- ------- ---------- ---------- ----------
KTP-D02-20 80.5 82.2 1.7 0.76 0
--------- ------- ---------- ---------- ----------
KTP-D07-20 112.6 113.6 1 0.9 6
--------- ------- ---------- ---------- ----------
KTP-D08-20 80.5 81.5 1 0.84 0
--------- ------- ---------- ---------- ----------
KTP-D12-20 105 106 1 0.83 4
--------- ------- ---------- ---------- ----------
KTP-D12-20 73 74 1 0.77 4
--------- ------- ---------- ---------- ----------
KTP-D04-20 19.6 20 0.4 1.55 7
--------- ------- ---------- ---------- ----------
KTP-D11-20 118.2 119.2 1 0.62 5
--------- ------- ---------- ---------- ----------
KTP-D01-20 176.5 177.2 0.7 0.62 0
--------- ------- ---------- ---------- ----------
Underground Mining Scoping Study
Early in 2020 the Company commenced an internal underground
mining scoping study. This was based on all drilling completed
along the Arzu South structure to the end of 2019. Following
optimisation for underground mining, a conceptual underground mine
design was completed (Figure 3). The drilling programme discussed
here also provided for three drill holes which were selected for
geotechnical purposes to provide the necessary additional data to
support future underground scoping studies. These drill cores were
sent to the Middle East Technical University in Ankara for
geotechnical logging and other testwork, prior to being split and
assayed.
Following the receipt of the geotechnical data, the Company will
commence a second and more detailed phase of the underground
scoping study to assess the potential for underground mine
development at Arzu South. In addition to this, a trade-off study
between further open-pit development and underground mining will be
completed in order to determine the relative economic merits of
either option. This is particularly relevant following the increase
in gold price which has occurred since late 2019 to the present,
which represents an increase in value of approximately 33%.
Furthermore this change in price represents an increase of over 50%
above the feasibility base case for the Kiziltepe Mine.
http://www.rns-pdf.londonstockexchange.com/rns/7198X_1-2020-9-1.pdf
Figure 3: Conceptual underground mine design (in blue), with the
underground block model shown in pink and the Arzu South pit shown
in brown. A spiral decline is envisaged in the southern part of the
Arzu South vein, with level drives proceeding to the northwest.
This is one possible configuration of the conceptual mine design
and is not definitive. A final design will be based on various
technical and economic studies, which are to be completed.
Sampling and Assaying Procedures
HQ size drill-core samples from the drilling programme at the
Kiziltepe 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 1,143 samples (including 120 duplicates, 60
blanks and 60 standard samples) were submitted to the Kiziltepe
Mine Laboratory, with 10% (119 duplicate samples) being sent to ALS
Global in Izmir for gold-silver check analysis.
Three complete holes (KTP-D02-20, KTP-D04-20 and KTP-D08-20)
were sent to the Middle East Technical University in Ankara for
geotechnical logging and analysis. These were then sent back to
Ariana to complete sampling as per the Company's normal operating
procedures. Core recovery for all drilling conducted during this
campaign was 95%, for a total of 1,143 measurements.
All samples were assayed for gold using a 30g fire assay.
Quality control checks have determined that all blanks and all
standards passed and duplicate samples showed excellent
correlations. 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.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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
James Stearns / Atholl Tweedie
Yellow Jersey PR Limited Tel: +44 (0) 20 3004 9512
Dom Barretto / Joe Burgess / Henry arianaresources@yellowjerseypr.com
Wilkinson
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 operating in Europe. It has interests in gold production in
Turkey and copper-gold assets in Cyprus. The Company is developing
a portfolio of prospective licences in Turkey, which contain a
depleted total of c. 2.1 million ounces of gold and other metals
(as at July 2020).
The Red Rabbit Project is comprised of the Company's flagship
assets, the Kiziltepe and Tavsan gold projects, and is part of a
50:50 Joint Venture with Proccea Construction Co. Both assets are
located in western Turkey, which hosts some of the largest
operating gold mines in the country and remains highly prospective
for new porphyry and epithermal deposits. The Kiziltepe Sector of
the Red Rabbit Project is fully permitted and is currently in
production. The total depleted resource inventory at the Project
and its wider area is c. 500,000 ounces of gold equivalent (as at
April 2020). At Kiziltepe a Net Smelter Return ("NSR") royalty of
up to 2.5% on production is payable to Franco-Nevada Corporation.
At Tavsan an NSR royalty of up to 2% on future production is
payable to Sandstorm Gold.
The 100% owned Salinbas Gold Project is located in north-eastern
Turkey and has a total resource inventory of c. 1.5 million ounces
of gold. The project comprises three notable licence areas:
Salinbas, Ardala and Hizarliyayla, all of which are located within
a multi-million ounce Artvin Goldfield. The "Hot Gold Corridor"
contains several significant gold-copper projects including the 4
million ounce Hot Maden project, which lies 16km to the south of
Salinbas and 7km south of Hizarliyayla. A NSR royalty of up to 2%
on future production is payable to Eldorado Gold Corporation on the
Salinbas Gold Project.
Ariana is also earning-in to 50% of UK-registered Venus Minerals
Ltd ("Venus"). Venus is focused on the exploration and development
of copper-gold assets in Cyprus.
Panmure Gordon (UK) Limited are broker 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 .
Glossary of Technical Terms:
"Ag" chemical symbol for silver;
"Au" chemical symbol for gold;
"g/t" grams per tonne;
"JORC" the Joint Ore Reserves Committee;
"m" Metres;
"oz" Troy ounces;
--Ends--
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