TIDMAAU
RNS Number : 1750R
Ariana Resources PLC
13 June 2018
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13 June 2018
AIM: AAU
KIZILCUKUR DEVELOPMENT UPDATE
Ariana Resources plc ("Ariana" or "the Company"), the
exploration and development company with gold mining operations in
Turkey, is pleased to announce a development update for the
Kizilcukur Project ("Kizilcukur" or "the Project"). Kizilcukur is
located outside of the Red Rabbit Joint Venture ("JV") with Proccea
Construction Co. and is 100% owned by Ariana. The project lies 22km
to the northeast of the Kiziltepe Mine ("Kiziltepe").
Highlights:
-- Metallurgical testwork derived from a bulk sample of c. 7.4
tonnes demonstrates high gold recoveries ranging from c. 83 to
92%.
-- Precious metal content of the samples ranged up to 7.7 g/t Au
and 160 g/t Ag, with coincident base metals (avg. 3.8 g/t Au and
136 g/t Ag).
-- Trial mining conducted in 2017 produced an initial c. 4,000
tonnes of material currently stockpiled on site; further trial
mining is planned for 2018/19.
-- Kizilcukur vein system demonstrates potential to extend
across an area of 2.3km x 0.3km; further mineralisation has been
encountered in the NE part of the licence.
-- Revised economic study for the project has commenced to
consider the viability of mining and trucking of the Kizilcukur ore
to the Kiziltepe plant.
Dr. Kerim Sener, Managing Director, commented:
"We are delighted that the latest work at Kizilcukur continues
to highlight the potential for the project to become a satellite
source of ore for the Kiziltepe Mine. Recent metallurgical tests
demonstrate that the Kizilcukur ore responds well to the leach
conditions utilised within the Kiziltepe processing plant, with
very high gold recovery. Further work will be conducted on the ore
to determine the variability of recovery over a greater range of
grade and other characteristics.
"Recent geochemical exploration has also shown potential for the
Kizilcukur vein system to extend over an area of 2.3km by 0.3km,
with further potential now identified in the still underexplored NE
part of the licence. The Company is planning further work across
this licence area during 2018 and is looking forward to updating
the market in due course."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Metallurgical Testwork
Trial mining of Kizilcukur conducted during 2017 yielded 4,025
tonnes of variably mineralised material, which was stockpiled on
site (Figure 1). Approximately 7.35 tonnes of ore grade material
was taken as a bulk sample and trucked 50km to the Kiziltepe plant
site. This bulk sample was split in to several sub-samples which
were subsequently subjected to metallurgical testwork at the
Kiziltepe mine laboratory. The results of this testwork were highly
encouraging, demonstrating potential for the Kizilcukur material to
be treated through the Kiziltepe processing plant.
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Figure 1: Map of the Kizilcukur Project, showing the main
resource areas in yellow outline (representing the optimised pit
limits). The 2017 trial mining area from which metallurgical
samples were derived is shown in blue outline. Selected drill hole
results are also identified in these areas.
Kizilcukur ore typically consists of oxidised quartz veins
containing gangue manganese-oxides, rhodochrosite and haematite.
Deeper within the vein system (+80m from surface) sulphide minerals
become more recognisable, mainly in the form of pyrite,
chalcopyrite, galena and sphalerite. As much of the current
resource sits within pit shells defined to a maximum depth of 90m,
oxide ore has been the focus of the metallurgical test work.
However, consideration may be given in future testwork to determine
the flotation characteristics of the sulphide dominant
mineralisation in order to consider whether this represents a
viable beneficiation route.
Three samples were used for the analyses reported here; a
manganese-oxide rich sample (1.03 g/t Au, 97 g/t Ag), a more
typical vein quartz sample (7.70 g/t Au, 160 g/t Ag) and a wallrock
sample (2.70 g/t Au, 150 g/t Ag). These samples were pulverised to
-75 micron and then subjected to the leach conditions utilised
within the Kiziltepe processing plant, alongside a control sample
of Kiziltepe ore (3.50 g/t Au, 49 g/t Ag), which was also tested in
order to act as a comparator for the Kizilcukur results.
Gold recoveries were high and varied between 83.2% and 92.0%.
Leach times varied between 56 and 72 hours for maximum recovery of
gold. Silver recoveries were generally poorer ranging between 19%
and 47% over similar leach times and this may be due to the silver
reporting to partially oxidised galena. Variable base metal
contents were recorded, ranging up to 0.14% Cu, 0.22% Pb and 0.73%
Zn (typically an order of magnitude higher than Kiziltepe ore), in
addition to manganese up to 7.9%. Most other elements analysed had
similar concentrations to the Kiziltepe ore.
Recent Exploration
During Q2 2018, the Ariana exploration team commenced further
exploration work on the Kizilcukur Project. A comprehensive
12.5km(2) soil geochemical survey was initiated to cover the whole
licence area. A total of 562 soil samples were collected primarily
on a 200m x 100m grid, with some areas in the NE part of the
licence subjected to sampling along forestry tracks. Samples were
geochemically analysed using a portable X-Ray Fluorescence ("pXRF")
analyser. Significant anomalies in As, Pb and Zn were identified
within and around the Kizilcukur Main and Splay veins, in the
immediate area of the current resource and where recent trial
mining had taken place (Figure 2). Other anomalous geochemical
targets defined include an arsenic anomaly associated with poorly
constrained copper, lead and zinc, possibly associated with quartz
stringer sulphide veinlets and haematite enriched basalts in the
north-east part of the licence area. Further field exploration will
commence in this area though the summer.
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Figure 2: Geochemical map of the Kizilcukur Project, showing the
distribution of zinc anomalism across the licence area. Zinc acts
as a good proxy for the mineralisation at Kizilcukur and has been
successful in delineating the full strike extent of the vein system
in addition to indicating further anomalism which will need to be
followed-up in the NE part of the licence.
Results from the survey have highlighted the full 2.3km long and
0.3km wide surface expression of the Kizilcukur vein system. To
date only 35% (0.8km) of the exposed vein system has been
drill-tested, highlighting the potential for further resource
growth. Future drilling will target significant conventional soil
anomalies (up to 5 ppm gold), identified on the south-eastern
flanks of the Kizilcukur vein system. Induced Polarisation (IP)
studies also generated several additional targets which remain
untested. These data suggest the vein system locally jogs in
places, possibly due to faulting and/or later dyke intrusion. Two
other complementary resistivity/chargeability anomalies are also
identified along strike of the primary ore zones. These targets
will need to be followed-up in future drilling, with estimated
target depths of 70-90m below surface. A longitudinal section of
the drill-tested segments of the Kizilcukur vein system identifies
a series of higher-grade 32-38 degree SE plunging shoots (Figure
3). These are well defined by current drilling to depths up to 60
meters and have potential to extend further at depth.
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Figure 3: Long-section through the Kizilcukur vein system,
showing the metres (true width) x grade (g/t) contours, where
modelled. The optimised pit outlines are shown in yellow. Some of
the apparent low-grade 'holes' in the long-section are believed to
represent old underground workings that have been intercepted in
certain drill-holes.
Project Summary
The Kizilcukur Project consists of one operational licence
located in the Balikesir Province in Western Turkey (coordinates:
626150 mE; 4360440 mN). The property lies 22km to the northeast
(straight line) and 50km by road from the Kiziltepe Sector of the
Company's Red Rabbit Project. A royalty will be payable to Dogu
Akdeniz Mineralleri San. ve Tic. Ltd. of 2% Net Smelter Return on
commercial production from the Project. Ariana has the option to
sell the project to Zenit Madencilik San. ve Tic. A.S. (the
operating company for the Kiziltepe Mine) at three times the
exploration cost.
The Project covers an area containing a series of sub-parallel
quartz veins hosted by ophiolitic units that trend northwest and
extend for about two kilometres. The Main Vein exhibits classic
low-sulphidation epithermal features and attains a maximum true
width of 8m. The western quartz vein extends over a strike length
of 820m. Composite rock-chip sampling of 80m strike along this
quartz vein returned encouraging assay results of 6m at 3.3 g/t
gold, 2m at 9.6g/t gold and 1m at 7.2 g/t gold prior to
drill-testing. The peak rock-chip assay result in this area was 152
g/t gold and 1,320 g/t silver.
A JORC 2012 compliant Mineral Resource estimate was prepared for
the Kizilcukur Project and Whittle optimisation conducted in 2016
identified the potential for the development of three open pits
(Figure 1). The Mineral Resource in Indicated and Inferred JORC
categories stands at c.308,000 tonnes at 2.11g/t gold + 73.4g/t
silver (for 33,000 oz gold equivalent) and demonstrates potential
for further growth with additional drilling. The management
resource target for future exploration at Kizilcukur is currently
500,000 tonnes at >2 g/t gold + >70g/t silver.
Trial mining commenced within the central part of the Zeki Pit
during 2017. This pit is the largest and highest grade of the three
pits defined following Whittle optimisation of the Kizilcukur
resource. The General Directorate of Mining Affairs approved
blasting operations on the licence as part of the Mining Permit (as
announced on 18 November 2015). Further trial mining is being
planned for the 2018/19 period.
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
Adam James / James Stearns
Yellow Jersey PR Limited Tel: +44 (0) 7544
275 882
Tim Thompson / Harriet Jackson arianaresources@yellowjerseypr.com
/ Henry Wilkinson
Editors' Note
Dr Kerim Sener, BSc (Hons), MSc, PhD, is the Managing Director
of Ariana Resources plc. A graduate of the University of
Southampton in Geology, he also holds a Master's degree from the
Royal School of Mines (Imperial College, London) in Mineral
Exploration and a doctorate from the University of Western
Australia. He is a Fellow of The Geological Society of London and
has worked in geological research and mineral consultancy in
Africa, Australia and Europe. He has read and approved the
technical disclosure in this regulatory announcement.
About Ariana Resources:
Ariana is an exploration and development company with mining
operations focused on epithermal gold-silver and porphyry
copper-gold deposits in Turkey, the largest gold producing country
in Europe. The Company is developing a portfolio of prospective
licences originally selected on the basis of its in-house
geological and remote-sensing database, which now contain a total
of 1.6 million ounces of gold and other metals. Ariana's objective
is to cost-effectively add value to its projects through focused
exploration and to develop its operations, primarily through
well-financed joint ventures.
The Company's flagship assets are its Kiziltepe and Tavsan gold
projects which form the Red Rabbit Gold Project. Both contain a
series of prospects, within two prolific mineralised districts in
the Western Anatolian Volcanic and Extensional (WAVE) Province in
western Turkey. This Province hosts the largest operating gold
mines in Turkey and remains highly prospective for new porphyry and
epithermal deposits. These core projects, which are separated by a
distance of 75km, form part of a 50:50 Joint Venture with Proccea
Construction Co. The Kiziltepe Sector of the Red Rabbit Project is
fully-permitted and is currently in production. The total resource
inventory at the Red Rabbit Project and wider project area stands
at c. 605,000 ounces of gold equivalent. 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.
In north-eastern Turkey, Ariana owns 100% of the Salinbas Gold
Project, comprising the Salinbas gold-silver deposit and the Ardala
copper-gold-molybdenum porphyry among other prospects. The total
resource inventory of the Salinbas project area is c. 1 million
ounces of gold equivalent. A NSR royalty of up to 2% on future
production is payable to Eldorado Gold Corporation.
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" the chemical symbol for silver;
"Au" the chemical symbol for gold;
"g/t" grams per tonne;
"Indicated resource" a part of a mineral resource for which
tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a reasonable level of
confidence. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. The
locations are too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced closely enough
for continuity to be assumed;
"Inferred resource" a part of a mineral resource for which
tonnage, grade and mineral content can be estimated with a low
level of confidence. It is inferred from geological evidence and
has assumed, but not verified, geological and/or grade continuity.
It is based on information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill
holes that may be limited or of uncertain quality and
reliability;
"m" Metres;
"JORC" the Joint Ore Reserves Committee;
"m" Metres;
"oz" Troy Ounces. One Troy Ounce is equal to 31.1035 grams;
Ends.
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