TIDMAAU
RNS Number : 8822A
Ariana Resources PLC
17 September 2018
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17 September 2018
AIM: AAU
POTENTIAL TO EXPAND THE IVRINDI GOLD RESOURCE
Ariana Resources plc ("Ariana" or "the Company"), the
exploration and development company operating in Turkey, is pleased
to announce the results of recent exploration and development work
at the Ivrindi Gold Project ("Ivrindi" or "the Project"). Ivrindi
is 100% held by the Company outside of the Red Rabbit Joint Venture
in Western Turkey via its wholly-owned subsidiary, Galata
Madencilik San. ve Tic. Ltd.
Highlights:
-- 1.3km long extension of the mineralised zone at Ivrindi
identified through soil pXRF analyses.
-- Gold mineralisation is encountered at surface in the range
2-10 g/t Au and is developed largely within several discrete zones
of clay alteration.
-- 1,500m Reverse Circulation ("RC") drilling programme being planned in order to test the full strike-length of the mineralised structure.
-- Trial mining recently produced 8,000 tonnes; total of
c.13,000 tonnes of gold mineralised material stockpiled, with
future potential to truck to the Kiziltepe plant.
Dr. Kerim Sener, Managing Director, commented:
"The discovery of a new zone of mineralisation outside of the
areas previously tested with soil geochemistry or drilling,
indicates the potential to grow the resource at Ivrindi
substantially. Meanwhile, trial mining at the project undertaken
during this summer has been completed and a stockpile is being
maintained on site. We are very pleased with these recent
developments at Ivrindi and we are keen to demonstrate that this
resource has the potential to be mined and trucked to the Kiziltepe
processing plant in the future. A drilling programme and
metallurgical testwork are being planned in order to de-risk this
project even further. We fully envisage Ivrindi being developed as
a satellite operation during the later stages of mine life at
Kiziltepe."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Exploration Programme
During August 2018, the Ariana exploration team successfully
completed its pXRF soil sampling programme at the Ivrindi Project.
This work was focused on the key pathfinder elements for gold and
their typical thresholds of anomalism in relation to known
high-grade gold mineralisation exposed at the Ivrindi trial mining
location.
In total, 1,370 soil samples for pXRF analysis were collected
within and around the Ivrindi tenement. Results from these samples
illustrate that elevated levels of arsenic and antimony correlate
significantly with gold occurrences at Ivrindi. Arsenic levels
ranging between 500 and 1,000 ppm in soil generally outline zones
of known gold mineralisation. Arsenic levels exceeding 1,000ppm in
soil, usually correlates directly with outcropping gold
mineralisation, ranging in grade between 2-10 g/t Au. There is also
a good correlation between areas of antimony mineralisation and
higher-grade gold samples in the areas previously sampled and drill
tested.
In particular, the recent exploration involved the follow-up of
all previous data particularly where arsenic anomalism exceeded
500ppm. Detailed pXRF sampling was conducted on approximately 10m
grids around all anomalous samples. Rock-chip samples for assay
were taken from any material exceeding 1,000ppm arsenic. Seven new
highly anomalous targets (exceeding 1,000ppm As) were identified
within the Ivrindi tenement. Five of the newly identified targets
are semi-contiguous over 1.3km and directly along strike of the
main mineralised structure at the Kinik prospect, suggesting that
the mineralisation continues east of the historic easternmost drill
hole (KNK-D08-07 - 3.70m @ 2.51g/t Au). This extension of anomalous
pXRF soil geochemistry for arsenic and antimony, has not previously
been tested by rock-chip sampling or drilling and hence represents
an important new exploration target.
A drilling programme of up to 1,500m of Reverse Circulation
("RC") drilling is being planned in order to fully test the strike
length of the mineralised zone and to improve confidence in the
existing resource.
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Figure 1: pXRF soil geochemical map of arsenic superimposed on
satellite imagery of part of the Ivrindi Project licence area. Much
of the arsenic anomalism coincides with the highest gold grades in
surface outcrops, extending along the controlling mineralised
structure. The trial mining area at the Kinik prospect and previous
drilling is also shown.
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view the associated PDF document.
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Figure 2: pXRF soil geochemical map of antimony superimposed on
satellite imagery of part of the Ivrindi Project licence area. Key
geochemical contours for arsenic are also provided. The trial
mining area at the Kinik prospect and previous drilling is also
shown.
Trial Mining
Trial mining was conducted on the project area during the summer
as part of a programme of work and as specified to the Turkish
Government. Approximately 8,000 tonnes of mineralised material was
extracted from the trial mining area. This adds to previous
stockpiles of approximately 5,000 tonnes. Consideration will be
given to moving this material for stockpiling and ultimately
processing at the Kiziltepe mine site in the future. Initially,
metallurgical testwork based on a bulk sample from Ivrindi will be
conducted to demonstrate the amenability of this material for
processing at the Kiziltepe plant.
Details of the Ivrindi Project
The Ivrindi Project consists of one operational licence located
in Balikesir Province in Western Turkey (coordinates: 545830 mE;
4380450 mN). The property lies 70km to the northwest (straight
line) and 100km by road from the Kiziltepe Sector of the Company's
Red Rabbit Project.
At Ivrindi, mineralisation occurs at the Kinik prospect, which
occurs within a 450m long zone of mineralised alteration within
Miocene age andesitic volcanic rocks. Mineralisation extends from
surface to 70m vertical depth and is developed in part along the
normal faulted contact with Permo-Triassic age limestones. The gold
mineralisation is most well developed in several intensely clay
altered zones associated with haematite and limonite, in which
quartz vein formation is virtually absent.
A JORC 2012 compliant Mineral Resource estimate for the Ivrindi
Project stands at 207,000 tonnes at 1.65 g/t gold (for 11,000 oz
gold) in the Inferred category and demonstrates potential for
further growth with additional drilling. The Mineral Resource is
defined by 14 holes on 9 cross-sections, with section spacing
ranging from 35-90m. The resource comprises five discrete zones,
which are east-west oriented and steeply north-dipping. The
management resource target for future exploration at Ivrindi is
currently 500,000 tonnes at c. 2 g/t gold.
Trial mining commenced within the central part of the resource
area during 2018. Further trial mining is being considered for the
2019/20 period. The project is expected to be within economic
trucking distance from the Kiziltepe operation and is accessible
via asphalt road, which includes lengthy sections of dual
carriageway. Consequently, any potentially open-pittable resources
identified at Ivrindi are expected to be trucked efficiently to the
plant site at Kiziltepe.
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:
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:
"As" the chemical symbol for arsenic;
"Au" chemical symbol for gold;
"g/t" grams per tonne;
"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;
"JORC" the Joint Ore Reserves Committee;
"JORC 2012" the JORC 2012 reporting code;
"m" Metres;
"oz" Troy ounces;
"pXRF" portable X-ray Fluorescence;
"Sb" chemical symbol for antimony.
Ends.
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END
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