TIDMAAU
RNS Number : 1255O
Ariana Resources PLC
06 October 2021
6 October 2021
AIM: AAU
SIGNIFICANT DRILLING RESULTS AT KOKKINOYIA, CYPRUS
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
mineral exploration and development company with interests in gold
mining operations in Europe , is pleased to announce recent
drilling results obtained from the Kokkinoyia Sector of the
Magellan Project ("the Project") which is 100% owned by Venus
Minerals Ltd ("Venus")*. Venus is focused on the exploration and
development of copper and gold assets in Cyprus. Ariana is
continuing its earn-in to 50% of Venus and is currently entitled to
37.5%, with 50% expected to be achieved in early Q4 2021.
Highlights:
-- Gold confirmed in all 2021 Kokkinoyia Sector drill holes,
identifying the deposit as a copper-gold-zinc mineral system.
-- Three new mineralisation zones identified, with significant results including:
o 18.9m @ 0.86% Cu + 1.54g/t Au + 0.55% Zn, including 3m @ 4.40%
Cu + 6.24g/t Au + 0.82% Zn
o 15.0m @ 0.54% Cu + 0.16 g/t Au
o 9.0m @ 0.72% Cu + 0.43g/t Au + 0.29% Zn, i ncluding 3m @ 1.44%
Cu + 0.72g/t Au + 0.38% Zn
-- Metallurgical analysis pending ahead of next phase of project development.
Dr. Kerim Sener, Managing Director, commented:
"These final drilling results from the Kokkinoyia deposit
reinforce our understanding that an updated mineral resource will
include gold, in addition to copper (with zinc in places). Of
particular note is the extension of moderate to high-grade
mineralisation outside of the envelope which defines the current
mineral resource. Furthermore, while old underground mine
development areas were encountered in most of the holes drilled in
the programme, such areas were typically filled with material that
carried appreciable grades of copper, gold and zinc.
"These results place Venus in a strong position to update its
Mineral Resource Estimate and to consider further resource
development work at this site. In addition, mineralised material
derived from the programme will be used for metallurgical testwork
as part of a broader study of the economic viability of the
project. Venus is committed to the development of copper and gold
deposits in Cyprus and is actively pursuing opportunities to
fast-track production."
* Further information about Venus Minerals and its projects is
available on the Company's website, www.venusminerals.co .
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").
Drilling Programme
Venus Minerals' 2021 drilling programme at the Kokkinoyia Sector
comprises the first modern exploration work completed on the
project since the late 1980s, and probably the first ever diamond
drilling programme to be completed on the deposit. Furthermore, of
the 41,316 metres of historic wireline, rotary and Schramm
percussion drilling accounted for at Kokkinoyia, less than 1% of
the drilling samples were tested for gold, despite it being
commonly documented within historic records associated with
concentrates produced from the Volcanic Massive Sulphide ("VMS")
deposits.
Following several exploration programmes, the Venus Minerals
team has identified several key brownfield sites throughout Cyprus
which contain copper resources with currently unquantified gold
potential. Initial results from the first of these sites tested
(Kokkinoyia), was announced on 7 July 2021, from which an extensive
mineralised intercept was returned from drill hole VMD001 with
128.77m @ 0.5% Cu + 0.55g/t Au. Further results for the remaining
eight drill holes of the 2021 Kokkinoyia drilling programme are
presented here.
A total of nine inclined diamond drill holes totalling 1,578.8
metres with an average depth of 169m (minimum depth: 140.60m,
maximum depth: 202.50m), were successfully drilled at Kokkinoyia
between March and June 2021. A combination of PQ and HQ diamond
drilling was used to test the eastern and western flanks of the
historic Kokkinoyia open-pit, where the holes aimed to test
mineralisation beneath and around existing workings, and generally
outside the existing mineral resource (Figure 1 & 2).
Kokkinoyia
Results for the 2021 Kokkinoyia drilling have since been
reviewed by the Venus and Ariana exploration teams. Significant
intercepts from these results include:
o VMD002 (128m to 146.9m) for 18.9m @ 0.86% Cu + 1.54g/t Au +
0.55% Zn
-- Including 138m to 141m for 3m @ 4.40% Cu + 6.24g/t Au + 0.82%
Zn
o VMD004 (90m to 132.2m) for 42.2m @ 0.55g/t Au + 0.27% Zn
o VMD002 (77m to 92m) for 15m @ 0.54% Cu + 0.16g/t Au
o VMD010 (55m to 64m) for 9m @ 0.72% Cu + 0.43g/t Au + 0.29%
Zn
-- Including 58m to 61m for 3m @ 1.44% Cu + 0.72% Au + 0.38%
Zn
Drill holes VMD001, 002, 005 and 010 all intercepted old
underground development - see Table 1 for further details.
Interestingly, at every location, assayed fill material from these
areas returned significantly anomalous gold, copper and
occasionally zinc grades. Hole VMD005 was drilled vertically and
partially intercepted an unexpected shaft, filled with mineralised
material and boulders for 50.5m of its length (89.5m-140m),
following which it was terminated early due to drilling
difficulties.
The assay data for the 2021 drilling programme is the most
detailed multi-element analysis of the Kokkinoyia project to date,
and primarily tests the shallower Kokkinoyia West resource zone. In
this area, the new copper assay data correlates very well with the
2020 Kokkinoyia Mineral Resource Estimate for the low- to
moderate-grade domains (up to c.1% Cu); at higher grades the
correlation is not as pronounced.
Furthermore, three significant extensions of new and highly
anomalous copper and gold mineralisation have been identified in
drill holes VMD001, 002, 005, 010 and 011, where historic drilling
appears to have not been sampled (likely due to the low content of
visible sulphides), or where there was a lack of gold assay values,
and/or where low copper grades (0.1-0.2% Cu) may not have been
appropriately defined by historic laboratory equipment (Figure 3).
Portable XRF analysis was systematically undertaken on all the 2021
drilling at 1m intervals, resulting in the identification of all
possible mineralisation zones before the core was cut for
geochemical analysis. These newly identified zones will add
significant value to the next iteration of the Kokkinoyia Mineral
Resource Estimate.
All nine drill holes completed for this drilling programme
returned anomalous gold values ranging from 0.1g/t to 6.24g/t Au.
This highlights the significant association of gold with copper
within the Kokkinoyia VMS system and will contribute substantially
to an improved resource model in the coming months.
Finally, notable zinc values, ranging from 0.1% to 4.06%, have
also been identified within several key mineralisation intercepts.
Like gold, zinc assays within the historic data are also largely
absent, and these initial drilling results provide insight into the
potential distribution of the metal within the deposit. However,
the largely erratic nature of the zinc assays with respect to
copper and gold may preclude its inclusion in an updated mineral
resource estimate, until further diamond or Reverse Circulation
drilling can be completed on the deposit.
The next phase of work to be completed at Kokkinoyia will
include metallurgical analysis of representative mineralisation
defined by grade, type of mineralisation (oxide/sulphide) and
lithology. A full review of the Mineral Resource Estimate will be
completed to assess the expansion of mineralisation, an upgrade in
resource category in accordance with the JORC Code (2012), and the
addition of gold to the overall resource. A follow-up drilling
programme will also be designed to further test the Kokkinoyia West
area, as well as to potentially test the deeper parts of the
deposit across Kokkinoyia East.
http://www.rns-pdf.londonstockexchange.com/rns/1255O_1-2021-10-5.pdf
Figure 1: Plan view of the Kokkinoyia area, showing all recent
drill collar positions and the projection of the orebody to
surface.
http://www.rns-pdf.londonstockexchange.com/rns/1255O_1-2021-10-5.pdf
Figure 2: Cross-section of VMD001 and VMD010 showing the extents
of mineralised core, underground development and the outline of the
existing block model.
http://www.rns-pdf.londonstockexchange.com/rns/1255O_1-2021-10-5.pdf
Figure 3: Cross-section through the Kokkinoyia three-dimensional
block model, highlighting in magenta, zones of newly defined
mineralisation extending outside of the 2020 Mineral Resource
Estimation domains.
Table 1: Significant intercepts calculated for all Kokkinoyia
drill holes completed during the summer of 2021, using a 0.2% Cu
minimum cut-off and allowing for up to 2m internal dilution, except
where noted. Underground development where intercepted by drilling
are noted in light grey. Hole VMD005 was drilled vertically and
intercepted a backfilled shaft for a large part of its length,
where it was then terminated due to drilling difficulties. Results
for VMD001 were announced in more detail in the announcement of 7
July 2021.
Hole ID Comments From To (m) Length Au Cu Zn S (%)
(m) (m) (g/t) (%) (%)
Intercept - Includes
total of 5.75m
VMD001 dilution 48.23 177.00 128.77 0.55 0.50 0.15 10.00
---------
Including 48.23 54.10 5.87 4.55 0.53 1.60 9.35
----------------------------------- ------- ------- ------- ------- ----- ----- ------
Incl. UG development 48.23 49.60 1.37 12.75 0.41 4.06 10.00
----------------------------------- ------- ------- ------- ------- ----- ----- ------
58.00 62.00 4.00 0.29 0.24 0.06 7.02
----------------------------------- ------- ------- ------- ------- ----- ----- ------
65.30 78.00 12.70 0.29 0.30 0.05 7.59
------- ------- ------- ------- ----- ----- ------
81.60 100.00 18.40 0.85 0.94 0.21 9.97
----------------------------------- ------- ------- ------- ------- ----- ----- ------
Incl. UG development 85.00 87.00 2.00 2.05 0.40 0.48 10.00
----------------------------------- ------- ------- ------- ------- ----- ----- ------
103.00 128.00 25.00 0.18 0.48 0.02 7.59
----------------------------------- ------- ------- ------- ------- ----- ----- ------
144.00 156.00 12.00 0.29 0.93 0.03 9.94
------- ------- ------- ------- ----- ----- ------
162.00 180.00 18.00 0.13 0.36 0.01 7.88
----------------------------------- ------- ------- ------- ------- ----- ----- ------
VMD002 53.00 71.00 18.00 0.36 0.08 0.18 6.76
------------------------------------ ------- ------- ------- ------- ----- ----- ------
77.00 92.00 15.00 0.16 0.54 0.07 9.20
------- ------- ------- ------- ----- ----- ------
98.00 110.00 12.00 0.17 0.02 0.19 1.82
------- ------- ------- ------- ----- ----- ------
128.00 146.90 18.90 1.54 0.86 0.55 4.34
----------------------------------- ------- ------- ------- ------- ----- ----- ------
Incl. high-grade
zone 138.00 141.00 3.00 6.24 4.40 0.82 10.00
----------------------------------- ------- ------- ------- ------- ----- ----- ------
Possible UG development 139.00 140.00 1.00 14.20 4.80 0.00 10.00
----------------------------------- ------- ------- ------- ------- ----- ----- ------
VMD003 80.00 83.00 3.00 0.53 0.04 0.22 1.22
------------------------------------ ------- ------- ------- ------- ----- ----- ------
92.00 98.00 6.00 0.42 0.02 0.18 1.64
------- ------- ------- ------- ----- ----- ------
107.00 110.00 3.00 0.34 0.03 0.13 1.49
------- ------- ------- ------- ----- ----- ------
122.00 153.00 31.00 0.31 0.21 0.19 8.48
----------------------------------- ------- ------- ------- ------- ----- ----- ------
VMD004 90.00 132.20 42.20 0.55 0.09 0.27 5.14
------------------------------------ ------- ------- ------- ------- ----- ----- ------
153.00 161.00 8.00 0.10 0.00 0.00 10.00
------- ------- ------- ------- ----- ----- ------
189.00 192.00 3.00 0.11 0.05 0.01 10.00
----------------------------------- ------- ------- ------- ------- ----- ----- ------
VMD005 74.00 77.00 3.00 0.17 0.04 0.14 1.31
------------------------------------ ------- ------- ------- ------- ----- ----- ------
Mostly UG backfill 83.00 107.00 24.00 0.58 0.14 0.39 4.59
----------------------------------- ------- ------- ------- ------- ----- ----- ------
Incl. UG development 127.00 128.00 1.00 2.87 0.01 0.01 10.00
----------------------------------- ------- ------- ------- ------- ----- ----- ------
Mostly UG backfill 110.50 136.10 25.60 0.32 0.25 0.22 5.14
----------------------------------- ------- ------- ------- ------- ----- ----- ------
140.00 144.80 4.80 0.16 0.21 0.04 7.95
----------------------------------- ------- ------- ------- ------- ----- ----- ------
Terminated early / / / / / / /
in UG development
--------- ------------------------- ------- ------- ------- ------- ----- ----- ------
VMD006 Not drilled at the Kokkinoyia Deposit
-----------------------------------------------------------------------------------
VMD007
------- ------- ------- ------- ----- ----- ------
VMD008
------- ------- ------- ------- ----- ----- ------
VMD009 5 14 9 0.19 0.14 0.05 1.32
------------------------------------ ------- ------- ------- ------- ----- ----- ------
41 59 18 0.19 0.02 0.12 6.54
------- ------- ------- ------- ----- ----- ------
65 68 3 0.13 0.01 0.02 10.00
------- ------- ------- ------- ----- ----- ------
80 83 3 0.12 0.10 0.02 10.00
------- ------- ------- ------- ----- ----- ------
89 92 3 0.21 0.03 0.02 10.00
------- ------- ------- ------- ----- ----- ------
98 101 3 0.17 0.20 0.01 9.10
------- ------- ------- ------- ----- ----- ------
113 133 20 0.19 0.02 0.22 9.60
----------------------------------- ------- ------- ------- ------- ----- ----- ------
VMD010 55 64 9 0.43 0.72 0.29 0.65
------------------------------------ ------- ------- ------- ------- ----- ----- ------
Incl. UG development 58 61 3 0.72 1.44 0.38 0.35
----------------------------------- ------- ------- ------- ------- ----- ----- ------
71 110 39 0.23 0.14 0.35 4.89
----------------------------------- ------- ------- ------- ------- ----- ----- ------
122 127 5 0.10 0.02 0.01 10.00
------- ------- ------- ------- ----- ----- ------
143 152 9 0.20 0.06 0.00 10.00
----------------------------------- ------- ------- ------- ------- ----- ----- ------
VMD011 74 113 39 0.30 0.21 0.11 5.13
------------------------------------ ------- ------- ------- ------- ----- ----- ------
121 138 17 0.14 0.26 0.02 8.28
----------------------------------- ------- ------- ------- ------- ----- ----- ------
VMD012 55 61 6 0.11 0.01 0.06 1.95
------------------------------------ ------- ------- ------- ------- ----- ----- ------
67 70 3 0.35 0.03 0.29 1.78
------- ------- ------- ------- ----- ----- ------
118 121 3 0.16 0.01 0.01 3.51
----------------------------------- ------- ------- ------- ------- ----- ----- ------
Sampling and Assaying Procedures
HQ and PQ size drill-core samples from the drilling programme at
Kokkinoyia were cut by a diamond saw into quarter core. Quarter
core is sent for analysis in batches in line with the Company's
quality control procedures, whilst one quarter is held back for
future metallurgical analysis and the remaining half core is
archived. For all 2021 drill holes drilled at Kokkinoyia, a total
of 614 samples (including 127 QA/QC samples) were submitted to ALS
Laboratory Services in Ireland ("ALS Ireland").
Drill core recoveries for all Kokkinoyia samples sent to the
laboratory averaged 93%, with the average core recovery for the
whole 2021 drilling programme averaging 95.3%. Recoveries within
intercepted underground developments ranged from 17.6-100% for a
total of 35 samples (average UG development backfill recovery is
74.8%).
All samples were assayed for gold using a 50g fire assay
(Au-AA23) and ME-ICP41 for copper and other elements. Reviews of
the assay results have determined that all Quality Control and
Quality Assurance samples (blanks, standards and duplicates) passed
the quality control checks established by the company, with crush
and pulp duplicate samples showing excellent correlation.
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 3476 2080
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 and Kosovo.
The Company holds 23.5% interest in Zenit Madencilik San. ve
Tic. A.S. 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). Operations comprise 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 3.7 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 0.7 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 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 currently earning-in to 75% of Western Tethyan
Resources Ltd ("WTR"), which operates across Eastern Europe and is
based in Pristina, Republic of Kosovo. The company is targeting its
exploration on major copper-gold deposits across the
porphyry-epithermal transition.
Ariana is also earning-in to 50% of UK-registered Venus Minerals
Ltd ("Venus") and has to date earned into an entitlement to 37.5%.
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).
Ariana operates its wholly-owned Asgard Metals Fund ("Asgard"),
as part of the Company's proprietary Project Catalyst Strategy. The
Fund will be focused on investments in high-value potential,
discovery-stage mineral exploration companies located across the
Eastern Hemisphere and within easy reach of Ariana's operational
hubs in Australia, Turkey and the UK.
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 .
Ends.
Glossary of Technical Terms:
"Au" chemical symbol for gold;
" Cu " chemical symbol for copper ;
"g/t" grams per tonne;
"JORC" the Joint Ore Reserves Committee;
"m" Metres;
"MRE" Mineral Resource Estimate
Ends.
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