Ariana Resources PLC Ariana Resources Plc : Arzu South Extension Drilling Results
September 14 2016 - 2:00AM
UK Regulatory
TIDMAAU
14 September 2016
AIM: AAU
ROBUST RESULTS FROM ARZU SOUTH EXTENSION DRILLING
Ariana Resources plc ("Ariana" or "the Company"), the gold exploration
and development company operating in Turkey, is pleased to announce
initial results for its Phase One drilling programme of 2016, completed
during early September at the Kiziltepe Project. The results reported
here relate to drilling at the NW end of the Arzu South vein at
Kiziltepe. Kiziltepe is part of the Red Rabbit Joint Venture with
Proccea Construction Co. and will be 50% owned by Ariana once mine
construction is completed in Q416.
Highlights:
-- Completion of 843 meters of Reverse Circulation ("RC") drilling at the NW
end of Arzu South, targeting the extension of the vein system beneath
cover towards the Arzu Central target area.
-- Best intercepts include, 7m @ 8.5g/t Gold + 26.2g/t Silver, 11m @ 3.7g/t
Gold + 75.4g/t Silver and 13m @ 3.2 g/t Gold + 37.7 g/t Silver*.
-- Newly discovered vein system which trends parallel to Arzu South was
drill-tested for the first time; now referred to as Arzu South Parallel
("ASP").
-- New veins tested over 300 meters along ASP trend, with best intercepts
including 4m @ 3.5 g/t Gold + 49.6g/t Silver, 6m @ 2.1g/t Gold + 27.4g/t
Silver and 6m @ 1.0g/t Gold + 12.6 g/t Silver.
-- Drilling confirms the potential to extend the Arzu South pit to the NW,
enabling access to mineralisation which lies beneath the pumice
ignimbrite cap rock sequence and improves the potential for future
underground operations.
-- Majority of intercepts occur within, just below or to the southern edge
of the 2016 Whittle optimised pit shell, which increases the potential
volume of mineralisation capable of being mined from the NW pit
extension.
Dr. Kerim Sener, Managing Director, commented:
"These results represent an encouraging advancement of our plans to
extend the Arzu South open-pit by a further 200m to the NW from the
original feasibility pit design (650m in length). This follows from the
confirmation of good mineralisation beneath the pumice ignimbrite cap
rock sequence in this location and bodes very well for the discovery of
further mineralisation beneath cover within the Arzu Central target
area.
The JV company is currently working on a three-staged pit design to
optimise cashflow from the operation at Arzu South and the confirmation
of mineralisation through this drilling increases the probability that
we will need to consider a fourth (expanded) stage or develop an
underground operation in this area."
Drilling Programme
In late July 2016, a Reverse Circulation (RC) drilling programme was
initiated on the Kiziltepe mine area, within the Red Rabbit Project. The
drilling work was carried out by IDC Sondaj Muhendislik ve Insaat Ltd.,
supervised by the Ariana exploration team, and team members from
Ariana's Turkish subsidiary, Galata Madencilik San. ve Tic. Ltd.
("Galata"). A two phase approach was employed for the project, giving
the team flexibility to adjust and re-plan holes as drilling advanced
and as results returned. Samples were sent to the ALS Global laboratory
in Izmir in batches according to the programmes objectives.
Phase One of the 2016 drilling programme has now been completed for a
total of 3,002m for 25 RC holes. The team have also completed all sample
dispatch to the laboratory. All analytical results are expected to have
been returned within the next two to three weeks. Based on the success
of the Phase One programme, we will be completing revisions to our Phase
Two programme (for up to an additional 2,500m), with a plan to restart
drilling during October. The primary objective for Phase Two will be to
drill the deeper holes on the project, which will complete testing of
the Arzu Central mineralisation under the pumice ignimbrite cap. Further
updates on Arzu Central will be provided as final results from Phase One
are returned later this month.
Phase One of the 2016 drilling programme focused on four main
objectives:
1. Six RC drill holes, for a total of 542 meters, were planned to target the
newly discovered Arzu South Parallel ("ASP") vein system, which was
identified during 1:1,000 scale geological and alteration mapping within
the limits of pre-stripping undertaken recently by the mining team.
Quartz veins and associated stockwork zones were intercepted in every
hole, testing the ASP vein over 300m of strike and to a maximum vertical
depth of 120m below surface. Reasonable grades including, 4m @ 3.5 g/t
Au + 49.6g/t Ag, 6m @ 2.1g/t Au + 27.4g/t Ag and 6m @ 1.0g/t Au + 12.6
g/t Ag were returned from this drilling. The identification of this
additional mineralised vein system, located within the Arzu South
footwall will result in further positive revisions to the current pit
design. The additional mineralisation is likely to reduce the amount of
waste rock removed from the excavation in the footwall of Arzu
South.
Three of the holes targeting ASP at depth, were also positioned to
intercept the Arzu South vein within 15 vertical meters below surface.
These intercepts returned with 7m @ 8.5g/t Au + 26.2g/t Ag, 6m @ 2.1 g/t
Au + 27.4g/t Ag and 4m @ 2.3 g/t Au + 21.2 g/t Ag. These intercepts
reinforce the likelihood for high-grade ore to be accessed within the
early stages of mining in this area.
A further three holes in the far northwest of Arzu South where designed
to confirm the presence of mineralisation first intercepted during the
2015 drilling programme in an area covered by a pumice ignimbrite cap
rock. Results from the 2016 drilling returned with 11m @ 3.7g/t Au +
75.4 Ag, 13m @ 3.2 g/t Au + 37.7 g/t Ag* and 10m @ 0.9 g/t Au + 11g/t
Ag. Further resource infill drilling will be completed in this area as
part of Phase Two for 2016.
The above results are shown in more detail in Table 1 and Figure 1.
1. Objective two for Phase One of the 2016 programme was to drill six
initial holes within the Arzu Central Zone. Drilling was required within
this area to generate additional data on the geometry of the pumice
ignimbrite cap rock, in addition to determining the potential orientation
of mineralisation within the Arzu Central target, in order to refine the
target for future drilling. These holes have been completed and a further
announcement will be made once these results have been returned from the
laboratory.
2. Objective three for the Phase One of the 2016 programme was to drill at
the southern end of Arzu South, where seven holes targeted the
southern-most extents of the ASP vein. Several new stock-work zones and
quartz veins up to 2m wide were intercepted. A total of 390 samples from
this area were sent to the laboratory and results are currently being
received.
3. The final objective for Phase One, was to drill three holes at the
northern edge of the Kiziltepe mine waste rock dump. This was to target a
new vein system discovered during the clearing and preparation of the
waste rock dump. These holes have now been completed and samples have
been dispatched to the laboratory for analysis.
Table 1: Significant RC drilling results from the 2016 programme,
arranged in order of the gram x metre intercepts (down-hole gold
equivalent grade multiplied by intercept thickness). The intercepts
reported in this table are the down-hole lengths. Intercept grades have
been calculated using a 0.5 g/t Au minimum cut-off with up to 2m
internal waste allowed. The location of intercepts relative to the
Whittle optimised pit shell is also identified, demonstrating that
considerable additional mineralisation has been discovered within or
just to the margins of the Whittle pit. Where ASP was intercepted,
these are identified, otherwise the intercepts relate to the main Arzu
South vein trend. Gold equivalent is calculated on the basis of a 60:1
price ratio between silver and gold.
Grade Grade Au
From To Interval Au Ag Equivalent Inside/Outside
Hole ID (m) (m) (m) (g/t) (g/t) (g/t) Pit
KTP-RC16-02 14 21 7 8.5 26.2 8.9 Inside
KTP-RC16-08 97 108 11 3.7 75.4 5.0 Just below
KTP-RC16-20* 79 92 13 3.2 37.7 3.8 Inside
KTP-RC16-04 19 23 4 3.5 49.6 4.3 Inside (ASP)
KTP-RC16-03 14 20 6 2.1 27.4 2.6 Inside
KTP-RC16-06 48 52 4 2.3 21.2 2.7 Inside
KTP-RC16-07 47 57 10 0.9 11 1.1 Inside
KTP-RC16-06 149 156 7 0.8 33.6 1.4 Outside (ASP)
South edge
KTP-RC16-05 27 33 6 1.0 12.6 1.2 (ASP)
South edge
KTP-RC16-01 18 20 2 1.3 34.6 1.9 (ASP)
KTP-RC16-03 66 67 1 1.9 42.2 2.6 Outside (ASP)
KTP-RC16-05 81 84 3 0.6 11.4 0.8 Outside (ASP)
* One repeat assay result for KTP-RC16-20 is still pending. The repeat
is being performed due to the grade exceeding 10 g/t Au in one metre
interval. Assuming the grade of that sample is limited to 10 g/t Au,
then the intercept may be recorded for the purposes of this release as
13m @ 3.2 g/t Au + 37.7 g/t Ag.
Figure 1, which can be accessed by clicking on or pasting the following
link into a web browser: http://hugin.info/138153/R/2041932/762039.pdf,
is a map of the NW end of the Arzu South pit, showing the limits of the
feasibility designed pit, the potential dimensions of the pit extension
to the NW as determined from the 2016 Whittle optimisation and the
position of the pumice ignimbrite cap rock sequence. The positions of
all new and historic drill collars are shown, with drill traces and
intercept locations identified for all recent holes, apart from two old
holes on the ASP trend, which have been included to demonstrate the
probably continuation of this structure to the NW. Several new holes
were located to intercept the mineralisation beneath the pumice
ignimbrite cap rock sequence and hence represent part of the Arzu
Central target area.
Sampling and Assaying Procedures
293 samples were selected based on geological logging of RC chips during
drilling and sent for assay. All samples from the drilling programme
undertaken by Ariana Resources plc, were prepared and assayed by 30g
fire assay, and ICP-MS multi-element analysis, at the ALS Global
laboratory in Izmir. Routine re-assaying of all samples assaying
greater than 10 g/t of gold and 100 g/t of silver has also been
completed by ALS Global. Standard, blank and duplicate samples are
being used in the sample batches, which is in line with the Company's
quality control procedures. Laboratory sample preparation, assaying
procedures and chain of custody are appropriately controlled. The
Company maintains an archive of reference RC chip samples, in addition
to all sample pulps and splits.
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
Beaufort Securities Limited Tel: +44 (0) 20 7382 8300
Jon Belliss
Panmure Gordon (UK) Limited Tel: +44 (0) 20 7886 2500
Adam James / Tom Salvesen
Editor's Notes:
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 focused on epithermal
gold-silver and porphyry copper-gold deposits in Turkey. The Company is
developing a portfolio of prospective licences selected on the basis of
its in-house geological and remote-sensing database, on its own in
western Turkey and in Joint Venture with Eldorado Gold Corporation in
north-eastern Turkey. Eldorado owns 51% of this joint venture and are
fully funding all exploration work on the JV properties, while Ariana
owns 49%. The total resource inventory within this JV is 1.09 million
ounces of gold.
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, are
presently being assessed as to their economic merits and now form part
of a Joint Venture with Proccea Construction Co. The total resource
inventory at the Red Rabbit Project stands at c. 525,000 ounces of gold
equivalent.
Beaufort Securities Limited and Panmure Gordon (UK) Limited are joint
brokers 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" Silver
"Au" Gold
"g/t" grams per tonne
"m" Metres
"oz" Ounces
Ends
Figure 1: http://hugin.info/138153/R/2041932/762039.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Ariana Resources plc via Globenewswire
http://www.arianaresources.com/s/Home.asp
(END) Dow Jones Newswires
September 14, 2016 02:00 ET (06:00 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Ariana Resources (LSE:AAU)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ariana Resources (LSE:AAU)
Historical Stock Chart
From Apr 2023 to Apr 2024
