TIDMAAU
RNS Number : 1505Q
Ariana Resources PLC
17 October 2019
17 October 2019
AIM: AAU
DERYA DRILLING RESULTS
Ariana Resources plc ("Ariana" or "the Company"), the
exploration and development company with gold mining operations in
Turkey, is pleased to announce recent resource drilling results
obtained from the Kiziltepe Mine ("Kiziltepe" or "the Project").
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:
-- Infill resource drilling results from the Derya Vein include
16m @ 2.04 g/t Au + 14 g/t Ag, 2m @ 9.88 g/t Au + 4 g/t Ag, and 2m
@ 5.80 g/t Au + 70 g/t Ag.
-- Confirmation of several mineralised structures between Derya
and Arzu North, including the Aybor Vein.
-- New geological modelling and pit optimisation studies
underway in order to revise the resources for the Derya and Arzu
North areas.
-- Mining at Derya has commenced following receipt of necessary
forestry permissions earlier in the year.
Dr. Kerim Sener, Managing Director, commented:
"The latest drilling results from the Derya area continue to
reinforce the continuity of mineralisation at depth and to the east
along strike of the currently open-pittable reserve. The grades and
widths of mineralisation encountered increase our confidence in the
current resource model and also demonstrate the potential for a
further extension of the open-pit to the east and/or mining by
underground methods in the future. It is also apparent that the
area between Derya and Arzu North contains several other
gold-silver mineralised veins, some showing potential to be
economic. Mining activities have recently commenced at Derya, so
these results represent important and timely additions to our
knowledge-base."
Drilling Programme
During the summer of 2019, the Ariana exploration team completed
a Reverse Circulation (RC) programme of resource infill drilling
over the Arzu South, Derya and Arzu North vein systems within the
Kiziltepe Sector of the Red Rabbit Project area. An earlier phase
of the 2019 drilling programme focused on Arzu North, and concluded
in December 2018, with results announced on the 7th May 2019.
The current phase of the programme focused on progressively
increasing the resources at Kiziltepe. This programme was initiated
in July, aiming to achieve three primary objectives:
1) Complete infill drilling at the eastern end of the Derya
resource prior to the commencement of mining in Q4 2019.
2) Complete additional drilling at Arzu North, following the
results from May 2019, to test for probable extensions to the NW
and to the SE.
3) Conduct initial testing for any underground potential at Arzu
South to support an underground resource estimation.
A total of 3,162 meters of RC drilling for 25 holes was
completed during this latest phase of drilling (Figure 1). Samples
from the programme were submitted to the mine site laboratory for
fire assay analysis for gold and silver only.
To date, all results for drilling conducted within the Derya
area have been returned, completing the first objective from this
second phase of work. A total of 726 meters for six holes have now
been assayed at the onsite laboratory. A further 2,436 meters of
additional drilling for 19 holes is still currently being processed
at the mine laboratory for the Arzu North and Arzu South areas.
Drilling at Derya successfully intercepted significant
mineralisation at key gaps in the current resource (Table 1), which
has been undergoing a full review before the commencement of
open-pit mining during Q4 2019. Significant intercepts from these
initial results of the current programme include:
-- 16m @ 2.04 g/t Au + 14 g/t Ag
-- 2m @ 9.88 g/t Au + 4 g/t Ag
-- 2m @ 5.80 g/t Au + 70 g/t Ag
An additional objective of the drilling completed at Derya, was
to test for likely connecting vein structures that lie between the
Arzu North and Derya vein systems (e.g. the Aybor Vein system). The
discovery of additional mineralisation between Arzu North and Derya
may lead to the development of a single integrated pit in the
future. Results from the current drilling at Aybor have identified
narrow (1-2m wide) mineralised zones, including:
-- 2m @ 1.17 g/t Au + 12 g/t Ag
-- 1m @ 2.33 g/t Au
-- 1m @ 1.27 g/t Au
The results received to date support additional growth of the
Derya and wider resource for the Kiziltepe Sector.
http://www.rns-pdf.londonstockexchange.com/rns/1505Q_1-2019-10-16.pdf
Figure 1: Plan of the Derya Vein, showing certain recent
drilling results, the projection of the Derya orebody to surface
and the outline of the current designed pit. The position of the
bonanza hole drilled in 2012 is also show for reference.
Table 1: Significant intercepts calculated for drilling on the
Derya Vein, using a 1 g/t Au minimum cut-off and allowing for up to
2m internal dilution. Internal dilution is 1m apart from the
intervals marked *.
Hole ID From (m) To (m) Interval Grade Au (g/t) Grade Ag
(m) (g/t)
KTP-RC11-19 69 85 16 2.04 14
--------- ------- --------- --------------- ---------
87 91 4 1.84 19
--------- ------- --------- --------------- ---------
KTP-RC12-19 62 64 2 9.88 4
--------- ------- --------- --------------- ---------
77 78 1 1.07 0
--------- ------- --------- --------------- ---------
83 84 1 1.60 0
--------- ------- --------- --------------- ---------
97 104* 7 1.04 1
--------- ------- --------- --------------- ---------
114 115 1 8.90 7
--------- ------- --------- --------------- ---------
KTP-RC13-19 49 50 1 1.10 0
--------- ------- --------- --------------- ---------
52 53 1 1.27 0
--------- ------- --------- --------------- ---------
85 87 2 1.17 12
--------- ------- --------- --------------- ---------
133 136 3 1.67 8
--------- ------- --------- --------------- ---------
KTP-RC14-19 18 20 2 1.04 15
--------- ------- --------- --------------- ---------
23 25 2 5.80 70
--------- ------- --------- --------------- ---------
40 41 1 2.60 17
--------- ------- --------- --------------- ---------
43 47 4 2.22 37
--------- ------- --------- --------------- ---------
49 51 2 1.54 3
--------- ------- --------- --------------- ---------
57 60 3 1.28 7
--------- ------- --------- --------------- ---------
KTP-RC15-19 3 4 1 1.27 3
--------- ------- --------- --------------- ---------
12 16* 4 2.19 21
--------- ------- --------- --------------- ---------
22 27 5 1.43 10
--------- ------- --------- --------------- ---------
47 49 2 1.93 50
--------- ------- --------- --------------- ---------
KTP-RC16-19 88 89 1 2.33 0
--------- ------- --------- --------------- ---------
Sampling and Assaying Procedures
Samples from this drilling programme were produced from a 5 3/4
inch Reverse Circulation RC hammer. Samples and duplicates were
split every meter into independent calico bags via a sample
splitter incorporated into the rig cyclone. Intervals of interest,
identified by logging and pXRF analysis, were organised into
batches in line with Ariana's quality control procedures. For
Derya, a total of 706 samples were submitted (including 111 QA/QC
samples), to the Kiziltepe Mine Laboratory for fire assay
gold-silver analysis.
Drill recoveries for all mineralised intercepts exceeded 90%
recovery. All samples were assayed at the mine laboratory using a
30g fire assay. Samples were analysed in line with normal operating
procedures for grade control analysis conducted for the Kiziltepe
open pit. The addition of blanks, standards and duplicates were
routinely included into the sample batches as part of Ariana's
sampling procedures in adherence to the 2012 JORC Code. To add
additional confidence to the mine laboratory analysis, 90 meters of
mineralised material for the whole programme was sent as duplicate
material to ALS Global in Izmir for 50g gold-silver fire assay and
multi-element ICP. Quality control checks have determined that
blanks and standards passed and duplicate samples showed good
correlations. Laboratory sample preparation, assaying procedures
and chain of custody are appropriately controlled. The Company
maintains an archive of remaining RC chip samples and a
photographic record of all chip-trays 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
Atholl Tweedie / James Stearns
Yellow Jersey PR Limited Tel: +44 (0) 20 3004
9512
Dom Barretto / Harriet Jackson arianaresources@yellowjerseypr.com
/ Henry 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 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 (as at end-2017).
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 (as at end-2017). 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" 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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