TIDMAAU
RNS Number : 9942W
Ariana Resources PLC
29 April 2021
29 April 2021
AIM: AAU
ARZU NORTH DRILLING RESULTS
>350% INCREASE IN JORC EXPLORATION TARGET
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
exploration and development company operating in Europe, is pleased
to announce recent resource drilling results obtained from the Arzu
North area of the Kiziltepe Mine ("Kiziltepe" or "the Project").
Kiziltepe is part of the Zenit Madencilik San. ve Tic. A.S.
("Zenit") Joint Venture ("JV") with Proccea Construction Co. and
Ozaltin Holding A.S. and is 23.5% owned by Ariana.
Highlights:
-- Over 450m of potentially open-pittable extensions confirmed
for the Arzu North area, with significant opportunity to expand
strike of the vein system to 900m.
-- New significant intercepts within the Arzu North vein system along strike include:
o 20m @ 2.18g/t Au + 55.2g/t Ag
o 13.1m @ 1.89g/t Au + 28.2g/t Ag
o 14m @ 1.47g/t Au + 23.7g/t Ag
-- Revised JORC Exploration Target for Arzu Far North now
includes an additional 7,000 to 25,000 ounces of gold and 150,000
to 520,000 ounces of silver, representing a >350% increase, and
demonstrates the opportunity to add a further year of mine life to
Kiziltepe.
Dr. Kerim Sener, Managing Director, commented:
"This is an excellent set of results from the recent drilling at
Arzu North. Collectively these results confirm the potential to
extend the Arzu North open pit both to the northwest and to the
southeast. A revised JORC Exploration Target based on these results
demonstrates the opportunity to add a further year of mine life to
the Kiziltepe operation, which would take production through to at
least 2026.
"With further additions to resources and reserves expected in
the coming years across the other vein systems at Kiziltepe, the
operation remains well on target to reach a full decade of
operational life. Meanwhile, production remains above target for
the year to date, with ample stockpiled material available for the
process plant expansion which remains on plan for commencement from
H2 2021."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Drilling Programme
Since late December 2020, the Ariana and Zenit exploration teams
have been working continuously on the most significant drilling
programme to date at Kiziltepe. The programme aims to significantly
expand on the open-pittable and potential underground resources, in
addition to systematically testing several significant exploration
targets within the Kiziltepe area. As of late April, over 8,000m of
drilling has been completed, representing over 50 diamond drill
holes. Drilling is scheduled to continue over the coming months and
is also expected to test additional prospects within the Kiziltepe
Sector, such as Karakavak and Kepez. This announcement represents
the first of several drilling updates on the drilling programme
which will be made during the coming weeks and months.
In November 2019 (see announcement dated 18 November 2019), a
series of drilling results which confirmed the existence of
non-outcropping strike extensions to the northwest of the Arzu
North vein system, beyond the extents of the geological models and
the designed pit, was announced. This area is designated Arzu Far
North. In February 2021 (see announcement dated 18 February 2021),
the identification of 23 new gold-silver mineralised veins within
the ongoing excavations of the Arzu North pit was announced. These
discoveries allowed for the Arzu North geological model to be
updated, consequently providing the exploration team with the
information required to plan a series of new drill holes which
target the strike extensions of the vein system, both to the
northwest (Arzu Far North) and southeast (Arzu Central). These
results are discussed below and shown in Table 1. The latest
drilling completed at Arzu North comprises eight diamond drill
holes for a total of 909.5m
Arzu Far North Results
Assay results from the Arzu Far North area have confirmed the
presence of a significant subsurface mineralised extension to the
Arzu North vein system (Figure 1 & 2). Drill access based on
existing permits has allowed the team to test this vein extension
for an additional 300m from the current Arzu North pit rim to the
northwestern-most hole. Results from the Arzu Far North extension
include:
-- KTP-D23-21 (45m to 66m) 20m @ 2.18g/t Au + 55.2g/t Ag
-- KTP-D21-21 (45.5-59.5m) 13.1m @ 1.89g/t Au + 28.2g/t Ag
-- KTP-D22-21 (45.5-59.5m) 14m @ 1.47g/t Au + 23.7g/t Ag
The hole furthest to the northwest, KTP-D23-21, returned with
the highest grade intercepted at Arzu North during the current
programme and suggests that the grade of Arzu Far North increases
to the northwest. This intercept also demonstrates the continuity
of the vein system along strike and at depth beyond the current
permitted areas. Planning for further drilling in the Arzu Far
North area will remain a Joint Venture priority, as additional
permits become available.
Arzu Central Results
Since 2012, the exploration team has aimed to follow the trend
of the Arzu North veins to the south-east with targeted drilling
beneath a rhyodacitic ignimbrite cap rock (Figure 1 & 2). This
is an area which represents an important structural target; a
potential triple junction between the Arzu South, Arzu North and
Derya vein systems.
Based largely on the work completed between 2016-2018, it is
clear that the Arzu South and Derya vein systems do connect,
however, there is still only partial data to suggest that Arzu
North also connects with this broader structure. The latest results
from the current drilling programme, particularly from hole
KTP-D18-21 (107.2 - 114.1m: 6.9m @ 2.06g/t Au + 36.0g/t Ag),
suggests that the Arzu North main vein ultimately connects to the
Arzu South-Derya structure. The intercept from KTP-D18-21 expands
the Arzu North mineralisation (southeastern extension), a further
150 meters to the southeast of the Arzu North designed pit base.
This is a significant result which further emphasises the
probability of the currently designed pits ultimately being
expanded to encompass the partial merging of the Arzu North, Derya
and Arzu South pit development plans. Additional new results from
this area include:
-- KTP-D25-21 (66-84.3m) 18.3m @ 1.10 g/t Au + 31.1g/t Ag
-- KTP-D27-21 (59.9-63.3m) 3.4m @ 2.52g/t Au + 15.9g/t Ag
-- KTP-D27-21 (73.3-76.3m) 3.0m @ 2.07g/t Au + 58.7g/t Ag
Table 1: Intercepts calculated for drilling at Arzu North Vein,
using a 0.5 g/t Au minimum cut-off and allowing for up to 3m
internal dilution.
Hole ID From (m) To (m) Interval Gold (Au Silver (Ag
(m) g/t) g/t)
KTP-D18-21 98.1 100.1 2 0.63 11.1
------------ --------- ------- --------- --------- -----------
107.2 114.1 6.9 2.06 36.0
------------ --------- ------- --------- --------- -----------
122.25 123.8 1.55 0.68 20.0
--------- ------- --------- --------- -----------
140.9 141.9 1 0.78 0.0
------------ --------- ------- --------- --------- -----------
KTP-D19-21 37.8 43.6 5.8 1.68 27.9
------------ --------- ------- --------- --------- -----------
44.6 45.6 1 0.52 1.0
------------ --------- ------- --------- --------- -----------
KTP-D21-21 11.3 12.5 1.2 1.19 6.0
------------ --------- ------- --------- --------- -----------
15.4 16.4 1 1.23 10.0
------------ --------- ------- --------- --------- -----------
29 34.2 5.2 1.60 13.9
--------- ------- --------- --------- -----------
51.9 65 13.1 1.89 28.2
--------- ------- --------- --------- -----------
74 77.4 3.4 1.59 13.0
------------ --------- ------- --------- --------- -----------
KTP-D22-21 20.6 21.6 1 2.99 17.0
------------ --------- ------- --------- --------- -----------
45.5 59.5 14 1.47 23.7
------------ --------- ------- --------- --------- -----------
62.9 66.5 3.6 1.55 4.3
--------- ------- --------- --------- -----------
70 79.5 9.5 1.65 38.4
--------- ------- --------- --------- -----------
86.7 88.2 1.5 1.00 2.5
--------- ------- --------- --------- -----------
92.2 94.4 2.2 2.20 36.5
------------ --------- ------- --------- --------- -----------
KTP-D23-21 46 66 20 2.18 55.2
------------ --------- ------- --------- --------- -----------
94.3 97.5 3.2 0.99 1.6
------------ --------- ------- --------- --------- -----------
KTP-D25-21 37.1 39.9 2.8 1.90 51.8
------------ --------- ------- --------- --------- -----------
55.7 57 1.3 0.61 7.0
------------ --------- ------- --------- --------- -----------
59.1 60.1 1 0.56 7.0
--------- ------- --------- --------- -----------
66 84.3 18.3 1.10 31.1
------------ --------- ------- --------- --------- -----------
KTP-D27-21 55.3 57.5 2.2 0.57 2.0
------------ --------- ------- --------- --------- -----------
59.9 63.3 3.4 2.52 15.9
------------ --------- ------- --------- --------- -----------
73.3 76.3 3 2.07 58.7
--------- ------- --------- --------- -----------
89.5 93.1 3.6 1.39 49.2
--------- ------- --------- --------- -----------
94.1 95.1 1 0.60 16.0
--------- ------- --------- --------- -----------
97.1 98.1 1 0.82 7.0
--------- ------- --------- --------- -----------
101.1 102.1 1 1.09 11.0
--------- ------- --------- --------- -----------
109.9 110.9 1 2.87 76.0
--------- ------- --------- --------- -----------
114.1 116.1 2 0.63 0.5
------------ --------- ------- --------- --------- -----------
KTP-D29-21 No mineralisation intercepted
-----------------------------------------------------
http://www.rns-pdf.londonstockexchange.com/rns/9942W_1-2021-4-28.pdf
Figure 1: Plan of the Arzu North pit, showing the pit outline in
yellow and the veins that have been identified from drilling and
grade-control sampling (in pink). The outlines of new vein
intercepts from extension drilling area also shown (in red). It is
probable that other subsidiary mineralised veins exist throughout
the hanging-wall of the main vein system, as is apparent from the
area already mined within Arzu North, further increasing the
resource potential of the extensions.
http://www.rns-pdf.londonstockexchange.com/rns/9942W_1-2021-4-28.pdf
Figure 2: Long-section through the Arzu North pit showing the
latest drilling intercepts (in red) in to the Arzu North main vein
structure. Note that all of these vein extensions were intercepted
beneath the upper ignimbrite cap rock.
JORC Exploration Target
In April 2020 (see announcement dated 23 April 2020), Ariana
announced a JORC Exploration Target for the Arzu Far North area of
32,000 tonnes @ 1.90 g/t Au + 32 g/t Ag for 2,000 ounces Au and
33,000 Ag based on a largely conceptual model. The latest drilling
results have confirmed the presence of the predicted mineralisation
over 300m of strike, in places at higher grades and overall thicker
intervals than modelled originally. Accordingly, a revised JORC
Exploration Target is presented in Table 2.
Table 2: Updated JORC Exploration Target for the Arzu Far North
area. The Exploration Target was established on the basis of a
>= 1.25 g/t Au cut-off and at a density of 2.6 g/cm(3). These
figures are quoted gross with respect to the Zenit Joint
Venture.
Target Tonnage (t) Element Grade (g/t) Contained metal
ounces
---------- ------------------ -------- -------------- ------------------
From To From To From To
---------- -------- -------- -------- ------ ------ -------- --------
Arzu Far
North 130,000 440,000 Au 1.74 1.77 7,000 25,000
---------- -------- -------- -------- ------ ------ -------- --------
Ag 36 37 150,000 520,000
---------- -------- -------- -------- ------ ------ -------- --------
Sampling and Assaying Procedures
All diamond drill core is currently being processed at the
Kiziltepe mine site and analysed at the Zenit mine laboratory.
Results are being assessed systematically and are being grouped
according to individual vein systems at the Kiziltepe Sector.
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. For all the Arzu North drilling, a total of 730 samples
(including 34 duplicates, 38 blanks and 32 standard samples) were
submitted to the Kiziltepe Mine Laboratory. Core recovery for all
drilling conducted at Arzu North during this campaign was 93%, for
a total of 433 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.
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 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 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.
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 0.7 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 3.7 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 also earning-in to 50% of UK-registered Venus Minerals
Ltd ("Venus") and has to date earned into an entitlement to 23%.
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).
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 .
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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