TIDMAAU
RNS Number : 5489N
Ariana Resources PLC
01 February 2016
1 February 2016
AIM: AAU
Ariana Resources plc
KIZILTEPE VEIN SYSTEM EXTENDED
Ariana Resources plc ("Ariana" or "the Company"), is pleased to
announce the results from its final phase of drilling at Kiziltepe
in 2015. 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 H2 2016.
Highlights:
-- Three new exploration holes into Arzu Central, between the Arzu North and Arzu South production areas, confirms
the potential of a 600m extension to the known mineralised strike length of the Arzu vein system.
-- Best intercepts from this area include, 22m @ 2.93g/t gold + 29.76 silver, 10m @ 2.32 g/t gold + 46.79g/t silver
and 5m @ 0.99g/t gold + 13.62 g/t silver.
-- Near surface pre-production drilling over Arzu South provides for advanced scheduling before open-pit mining
commences.
-- Best pre-production drilling results include, 5m @ 3.23 g/t gold + 68.60g/t silver, 3m @ 4.98g/t gold + 74.57
silver and 4m @ 3.38 g/t gold + 76.40 g/t silver.
Dr. Kerim Sener, Managing Director, commented:
"This is an extremely exciting development in the exploration of
the Kiziltepe Mine area. We have now confirmed the potential for
Arzu Central to contain mineralisation of the same calibre as the
rest of the Arzu vein system. The results are fully in line with
our expectations following the establishment an Exploration Target
in this area, which has the potential to double the current
resources at Kiziltepe and will become a key focus for further
exploration efforts. In time, such additions to the resource base
may further increase the mine life of Kiziltepe well beyond the
eight years currently planned. In addition, we are pleased to note
that we will be submitting new forestry permit applications to
enable drilling through this area as part of a broader
programme.
"We are very encouraged by these results, following in such
quick succession after the excellent drilling results from our
Kizilcukur site, as announced on 18 January 2016. We look forward
to announcing further exploration drilling results during early
2016. Such results are contributing significantly to our view that
there will be extensions to the projected mine life at the
Kiziltepe Mine."
Drilling Programme
In early October 2015, Ariana Resources successfully completed a
series of deep (up to 150m) exploration holes at Arzu South (as
announced 1 December 2015). Following the results of this initial
phase of drilling, a second phase of exploration drilling was
planned for Kiziltepe. This final phase of drilling, completed in
early December 2015, was undertaken to achieve two objectives:
1) Drill three deep (up to 150m) exploration holes; two on the
northernmost accessible limits of the Arzu South vein, and one hole
drilling the southern-most limits of the Arzu North vein.
2) Drill eleven shallow (10 to 30m) pre-production holes,
testing the Arzu South vein near surface, where the Company expects
to start open-pit mining operations.
In this phase of work, a total of 614m of Reverse Circulation
("RC") drilling was completed at Kiziltepe (Table 1). Of this, 357m
was used to test part of the Arzu Central Target between the
planned Arzu South and Arzu North production pits; an area which
demonstrates potential to host significant mineralisation over a
further 600m of strike length (Figure 1 and 2). Arzu Central first
demonstrated significant potential for mineralisation during an
exploration drilling campaign in 2011/2, where drilling on an
extension of the Derya vein intercepted "bonanza" grade
mineralisation; 12.1m @ 13.1 g/t gold + 187.6 g/t silver (16.5 g/t
gold equiv.), including 1m @ 65.9g/t gold + 760 g/t silver (79.7g/t
gold equiv.), as announced 20 May 2012 (Figure 1). The 2015
drilling, aimed to test the northern-most extension of Arzu South,
and the southern-most extension of Arzu North, in order to increase
the Company's confidence that a non-outcropping mineralised
corridor exists between these two areas.
Two fenced holes were drilled on the Arzu South side of the Arzu
Central Target. This was necessary to better understand the
geometry of the mineralisation beneath a cover unit of pumice
rhyodacite ignimbrite. Hole KTP-RC07-15, from 69m to 78m,
intercepted an eight metre mineralised quartz vein, with no outcrop
seen in the cap-rock at surface. 600m further along strike to the
northwest, a single hole was drilled from the Arzu North end of the
Arzu Central Target. This hole was drilled due south into a region
where the Arzu North quartz vein is obscured beneath the rhyodacite
cap-rock unit. Hole KTP-RC19-15, from 105m to 110m, intercepted a
five metre mineralised quartz vein.
Significant vein intercepts as identified in this drilling
programme add confidence to the potential of the Arzu Central
Target to host an additional 92,000 oz gold and 1,100,000 silver
(as announced 23 May 2013). This area will need to be drill-tested
further to improve confidence in this area to significantly add to
the current resource base and to determine whether the vein system
in this area will be amenable to underground mining in the future
(Figure 3).
The Arzu South pre-production drilling totalled 255m for 11
holes, testing quartz vein mineralisation to an average depth of
23m. All holes intercepted their targets as expected and provide
infill results to confirm near surface grade distribution. With
open-pit mining currently planned to commence ahead of the summer,
the completed pre-production holes will help inform advanced
scheduling before mining operations are initiated.
In 2015, Ariana successfully completed a total of 1,208 metres
of RC drilling within the Kiziltepe Mine area. The results for
phase one (594m) were announced on the 1 December 2015, with phase
two (614m) released here. Both phases of drilling demonstrate the
potential to significantly grow the Kiziltepe resource; current
JORC reserves - 1.1M tonnes @ 3.1 g/t gold and 39.8 g/t silver for
115,000 oz gold and 1,470,00 oz silver.
Sampling and Assaying Procedures
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 preparation facility 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.
Click on, or paste the following link into your web browser, to
view the associated PDF document:
http://www.rns-pdf.londonstockexchange.com/rns/5489N_1-2016-1-31.pdf
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
Loeb Aron & Company Ltd. Tel: +44 (0) 20
7628 1128
John Beresford-Peirse
IFC Advisory Limited Tel: +44 (0) 20
3053 8671
Tim Metcalfe
Graham Herring
Heather Armstrong
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 475,000 ounces of gold equivalent.
Beaufort Securities Limited and Loeb Aron & Company Ltd. 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:
"g/t" grams per tonne
"JORC" the Joint Ore Reserves Committee
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