TIDMAAU
RNS Number : 0540X
Ariana Resources PLC
17 December 2019
17 December 2019
AIM: AAU
ARZU SOUTH DRILLING RESULTS
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
exploration and development company, 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:
-- Recent exploration drilling to test for deeper extensions of
Arzu South included 16m @ 3.04 g/t Au + 67 g/t Ag and 3m @ 6.25 g/t
Au + 129 g/t Ag.
-- Top historical intercepts from three zones of drilling beyond
the Arzu South open-pit include 20m @ 3.16 g/t Au + 31 g/t Ag, 8m @
3.95 g/t Au + 79 g/t Ag and 9m @ 2.37 g/t Au + 126 g/t Ag.
-- Potential for secondary structures associated with Arzu
South, in the hangingwall and footwall are highly probable: Arzu
South Parallel is a specific example.
-- Revised resource estimates for Kiziltepe are due to be completed during Q1 2020.
Dr. Kerim Sener, Managing Director, commented:
"These drilling results demonstrate the continuity of the Arzu
South mineralised structure at depth which may form the basis for
establishing an underground mineral resource. The structure clearly
extends to a depth of about 50-100m beneath the bottom of the
current open pit. Grades and widths of gold mineralisation
encountered suggest that this structure has the potential to be
developed via underground mining methods, although additional
drill-testing is now warranted to determine the extent of this
opportunity.
"We look forward to planning this follow-up drilling and also to
undertake a new resource estimate for the Kiziltepe Mine,
encompassing areas drill-tested in the past year and including all
known veins. We are expecting to conclude this resource estimation
work during Q1 2020, with a view to identifying opportunities to
extend mine life beyond the eight years determined in the
Feasibility Study."
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. The programme
focused on progressively increasing the resources at Kiziltepe, and
was initiated in July 2019, 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. Samples from the
programme were submitted to the mine site laboratory for fire assay
analysis for gold and silver only.
Results from Objective 1 and Objective 2 were announced on the
17 October and 18 November 2019 respectively. All results from
Objective 3 have now been processed by the Zenit laboratory and
checked by the Ariana team. A total of 2,150 meters of samples were
assayed at the onsite laboratory for all three objectives. Of this,
624 meters of samples from 10 holes were from Arzu South (Table
1).
Drilling at Arzu South, from within and outside of the existing
open pit, was designed to infill historic drill data (Table 2) to
assist the definition of an underground resource up to 100m below
the current planned pit. To date, there are now 44 drill holes
intercepting mineralisation to a maximum depth of approximately
200m below surface (120m below final planned pit). Results from the
latest round of drilling include (Table 1):
-- KTP-RC02-19: 16m @ 3.04 g/t Au + 67 g/t Ag (30 meters below final pit).
-- KTP-RC03-19: 2m @ 3.33 g/t Au + 110 g/t Ag (60 meters below final pit).
The true thickness of the Arzu South vein below the current pit
varies according to depth and the orientation of plunging shoots.
The average thickness ranges from 2-4 meters within the first 50
meters below the planned pit. On deeper intercepts (50-100m below
current pit) the average vein thickness ranges from 0.5m to 1.6m,
however, locally throughout the Arzu South structure, there are
numerous plunging shoots, where true vein thickness can vary from
5-8 meters. These are high priority areas for future drill
testing.
In addition to the Arzu South primary vein, there are numerous
subsidiary veins within the Arzu South mineralisation and
alteration envelope, which may also be considered targets for
underground resource development. Most notably, drill-hole
KTP-RC08-19, intercepted 3m @ 6.25 g/t Au + 129 g/t Ag
approximately 40 meters to the north of the existing northern pit
wall. Additional sampling from KTP-RC09-19 will be completed as
soon as possible to determine the potential continuity of this
structure along strike and at depth. Currently, there is
insufficient data to incorporate the subsidiary veins into the
pending underground resource, but future drilling programmes will
be designed to test for these additional structures.
The drilling completed this year, in addition to all historic
drilling, provides sufficient density of data points to complete an
underground resource estimation and specifically within the first
50 meters below the Arzu South final planned pit. Within 50 meters
below pit, the drill holes are on average spaced approximately 45
meters apart, with a minimum spacing of 20 meters, and a maximum of
90 meters. Additional drilling, currently planned to be completed
from 2020, will aim to define potentially economic mineralisation
up to 100 meters below the current planned pit.
http://www.rns-pdf.londonstockexchange.com/rns/0540X_1-2019-12-16.pdf
Figure 1: Long-section of the Arzu South Vein, showing certain
recent and historic drilling 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).
http://www.rns-pdf.londonstockexchange.com/rns/0540X_1-2019-12-16.pdf
Figure 2: Schematic cross-section of the northwest end of Arzu
South. KTP-RC08 intercepted mineralisation outside of the pit, to
the north of the northern pit wall.
Table 1: Significant intercepts calculated for drilling on the
Arzu South Vein, using a 1 g/t Au minimum cut-off and allowing for
up to 1m internal dilution.
Hole ID From (m) To (m) Interval Grade Au (g/t) Grade Ag (g/t)
(m)
KTP-RC01-19 90 92 2 1.39 107
--------- ------- --------- --------------- ---------------
KTP-RC02-19 51 54 3 1.37 20
------------- --------- ------- --------- --------------- ---------------
57 73 16 3.04 67
------------- --------- ------- --------- --------------- ---------------
75 76 1 1.00 19
------------- --------- ------- --------- --------------- ---------------
KTP-RC03-19 98 100 2 3.33 110
--------- ------- --------- --------------- ---------------
KTP-RC04-19 41 42 1 3.40 195
--------- ------- --------- --------------- ---------------
KTP-RC05-19 18 19 1 1.12 0
------------- --------- ------- --------- --------------- ---------------
29 30 1 1.05 3
------------- --------- ------- --------- --------------- ---------------
40 41 1 1.30 80
--------- ------- --------- --------------- ---------------
45 47 2 1.95 121
--------- ------- --------- --------------- ---------------
73 74 1 1.70 36
------------- --------- ------- --------- --------------- ---------------
KTP-RC07-19 131 132 1 1.05 58
--------- ------- --------- --------------- ---------------
KTP-RC08-19 54 57 3 6.25 129
------------- --------- ------- --------- --------------- ---------------
128 129 1 3.34 105
------------- --------- ------- --------- --------------- ---------------
131 132 1 1.00 46
------------- --------- ------- --------- --------------- ---------------
KTP-RC10-19 125 127 2 1.83 25
--------- ------- --------- --------------- ---------------
Table 2: Selected intercepts (including previously reported
drilling results) calculated for drilling on the Arzu South Vein
for each of the three zones, using a 1 g/t Au minimum cut-off and
allowing for up to 1m internal dilution.
From Interval Grade Grade
Zone Hole ID (m) To (m) (m) Au (g/t) Ag (g/t)
A KTP-RC07-15 66 86 20 3.16 30.85
-------------- ----- ------- --------- ---------- ----------
KTP-RC08B-16 98 107 9 4.44 88.88
--------------------- ----- ------- --------- ---------- ----------
KTP-RC49-16 53 58 5 5.32 30.08
--------------------- ----- ------- --------- ---------- ----------
B KTP-RC02-19 57 73 16 3.04 66.69
-------------- ----- ------- --------- ---------- ----------
KTP-RC05-15 92 100 8 3.95 79.38
--------------------- ----- ------- --------- ---------- ----------
KTP-D07B-06 81.8 88.5 6.7 3.58 33.73
--------------------- ----- ------- --------- ---------- ----------
KTP-RC05-15 92 100 8 3.95 79.38
--------------------- ----- ------- --------- ---------- ----------
C KTP-D03-18 78 87 9 2.37 126.44
-------------- ----- ------- --------- ---------- ----------
KT07 219 220 1.3 4.25 1.6
--------------------- ----- ------- --------- ---------- ----------
KTP-RC01-19 90 92 2 1.39 107
--------------------- ----- ------- --------- ---------- ----------
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 Arzu
South, a total of 739 samples were submitted (including 115 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.
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London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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