TIDMAAU
RNS Number : 1898K
Ariana Resources PLC
09 April 2018
9 April 2018
AIM: AAU
TAVSAN RESOURCE UPDATE
Ariana Resources plc ("Ariana" or "the Company"), the
exploration and development company with gold mining operations in
Turkey, is pleased to announce a Joint Ore Reserves Committee
("JORC") Resource update for the Tavsan Project ("Tavsan" or "the
Project"). Tavsan 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:
-- Resource Estimate substantially de-risks the Project,
following a material improvement in the resource classification;
71% of the resource now in Measured and Indicated.
-- Global resource of 3.98Mt at 1.32 g/t Au and 4.46 g/t Ag for
168,900 oz Au and 571,700 oz Ag (all categories), contained largely
within Scoping Study pit shapes*.
-- Additional JORC Exploration Target of up to a further 9.70Mt
at 1.30 g/t Au (for c. 400,000 oz Au)*.
-- New classification enables JV to proceed with a Feasibility
Study and Environmental Impact Assessment ("EIA") for Tavsan,
without further resource drilling.
-- Potential resource extensions are represented by a number of
drill holes including 11m @ 5.11 g/t Au + 6.83g/t Ag, 6m @ 3.37g/t
Au + 3.67g/t Ag and 9m @ 1.30g/t Au + 4.32g/t Ag within c.20m from
surface.
Dr. Kerim Sener, Managing Director, commented:
"This is an exceptionally pleasing and robust resource update
for the Tavsan Project. We are increasingly confident in the
potential for Tavsan to be developed in the medium-term and that
planned mine life can be increased beyond four years, as previously
defined in the Scoping Study of 2016. The JV is targeting the
development of Tavsan as a semi-autonomous project with the
Kiziltepe Mine, within the broader context of the Red Rabbit Joint
Venture with Proccea Construction Co. Further work will be required
on a Feasibility Study and EIA, which the JV is aiming to complete
largely in-house, along with associated permitting. The JV is
planning to commence these work programmes during 2018, which are
expected to be funded through cash flow from the Kiziltepe
Mine."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
* All Mineral Resource figures in the announcement are quoted
gross with respect to the Red Rabbit Joint Venture, of which 50% is
owned by Ariana.
Resource Estimate
Zenit Madencilik San. ve Tic. A.S. (Zenit) engaged Tetra Tech to
complete a Joint Ore Reserves Committee ("JORC") compliant Mineral
Resource estimate for the Tavsan Project. The updated Mineral
Resource estimate is based on an improved understanding of the
spatial continuity between samples collected from drill holes,
utilising a revised geological model and appropriate application of
geostatistical methods. Appendix 1 provides more detail on sampling
techniques and data used in this estimation.
In compliance with the JORC code (2012), the Mineral Resource
Estimate detailed here includes material scientific and technical
information in respect of the Project. The Mineral Resource is
based on additional spatial continuity studies completed by Tetra
Tech in May 2017, which determined that spatial continuity of
samples is sufficient to support an upgrade of the resource to at
least Indicated category. The Mineral Resource will inform an
updated infill drilling programme to target those areas that remain
in the Inferred category, thereby significantly reducing the
drilling and sampling required for further improvements in the
classification of resources.
This estimate supersedes the earlier published Mineral Resource
estimate for Tavsan completed in 2008 by SRK Consulting (UK) Ltd,
which was undertaken in accordance with the earlier JORC code
(2004) and involved a different geological model that encompassed
all drilling. The 2008 resource was also undertaken using the
conventional mathematical method of Inverse Distance Weighted
Squared ("IDW2") rather than the geostatistical approach taken
here. Some areas included in the 2008 resource are specifically
excluded in the current resource and instead have been assigned to
an Exploration Target (see below), due to lower geological
confidence. The current estimate focused primarily on areas that
are considered amenable to shallow open-pit mining (Figure 1) as
defined in the Scoping Study (announced on 10 November 2016). The
Scoping Study determined that approximately 2.7Mt at 1.6 g/t Au and
3.0 g/t Ag (then in Inferred and Indicated categories) was
contained within four Whittle pit shells at a strip ratio of 2:1
and the majority of the resource detailed here coincides
specifically with these areas (Figure 1).
Geological Summary
Gold mineralisation at Tavsan is epithermal in style, with
associated silver and antimony, broadly situated along the thrust
contact between Jurassic massively bedded limestone and an
overlying Cretaceous multi-lithic ophiolite sequence. In addition,
a karstic network within the limestone and fractures within the
ophiolitic rocks may have acted as secondary conduits for the
development of some jasperoidised-silicified ("jasperoid") rocks,
several tens of meters, below and above of the thrust fault
contact, respectively.
The mineralised jasperoid plane developed along the thrust
contact is irregular on a ten meter-scale but broadly follows the
gentle topography on a hundred meter-scale, and is largely exposed
at surface (Figure 1). In the vicinity of a NE-SW trending fault
zone, the thrust is steeper than the topographic gradient,
resulting in a more steeply dipping zone of mineralisation. The
greatest thickness of gold-bearing jasperoid is observed in the
vicinity of the NE-SW fault zone. However, gold concentration
appears to have a dominant NW-SE control within the jasperoid as a
whole, suggesting potential for steeply dipping conduit structures
cross-cutting the limestone units in the footwall.
http://www.rns-pdf.londonstockexchange.com/rns/1898K_-2018-4-8.pdf
Figure 1: Map of the Tavsan Project, showing the main resource
areas (in red) with pits designed as part of the Scoping Study
(outlined in yellow). Substantial areas exist outside of the
planned pits which have not been sufficiently drill tested, yet
show potential for resource extensions (in pale yellow). These
areas form part of the JORC Exploration Target. Selected drill hole
and trench results which support the Exploration Target are
identified in these areas.
Estimation Methodology
Wireframe models of the jasperoid were developed by linking
sectional interpretations. The models were created based upon
interval selections that referenced the gold grades, lithological
descriptions and structural interpretation. Grades greater than 0.5
g/t gold were linked together between each drill-section. Where
continuity was not established between sections, the strike
extrapolation was limited. The continuity of the various structures
is reflected in the Mineral Resource classification.
Compositing was completed in Datamine using a 1m best fit
routine, applying hard domain boundaries, which forced all samples
to be included in one of the composites by adjusting the composite
length, while keeping it as close as possible to the selected
interval of 1m. Decile analysis of the composited data indicates
that the data set did not have undue bias at higher-grades and
therefore no top cut was applied.
Specific gravity was determined based on seven analyses for the
Tavsan deposit. The average of the limestone units is 2.55 g/cm(3)
and the average of the jasperoid unit is 2.59 g/cm(3) . The density
was interpolated into the block model by the IDW2 method based on a
mean value of 2.57 g/cm(3) for all mineralised blocks that did not
receive an estimate grade, or where other lithologies appeared in
the selected sample set.
Variography was attempted for the entire data set as a single
population, but no suitable variograms could be established,
probably due to the variation in geometry of the satellite areas.
However, good variogram model fit was achieved for the Main Zone
where good directionality and range was observed. The Satellite
zones have much lower sample numbers, resulting in poorer model
fits. Consequently, the Main Zone variogram model was applied to
all zones on the basis that, although spatially separate, the zones
are all genetically linked. A good variogram model fit was achieved
for downhole, major, semi-major directions, with a nugget effect of
0.19.
A non-rotated block model was established using block sizes
determined to be optimal for the dataset and wireframe geometry of
10 x 20 x 5m. Standardised sub-cell splitting to the minimum block
size of 5 x 10 x 1m was employed to enable subsequent pit
optimisation and mine design. Sub-cells received parent cell grades
during estimation and grades were estimated using Ordinary Kriging,
adopting a multi-pass methodology.
Resource Classification
The Mineral Resource is classified according to the guidelines
presented within the 2012 JORC code (Table 1), providing Measured,
Indicated and Inferred resources. Approximately 13% of the global
resource is classified as Measured and 58% classified as Indicated.
The style of mineralisation has been identified, the controls on
mineralisation are well understood and measurements and sampling
completed to a reasonable degree of confidence for the
mineralisation present (Appendix 1). It is considered reasonable to
expect that some of the Inferred Mineral Resources could be
upgraded to Indicated Mineral Resources with continued exploration;
however, due to the uncertainty of Inferred Mineral Resources it
should not be assumed that such upgrading will always occur. It is
also reasonable to expect that portions of the Indicated Mineral
Resources could be upgraded to Measured Mineral Resources with some
additional infill data.
Confidence in the estimate of the Mineral Resources is
sufficient to allow the results of the application of technical and
economic parameters to be used for detailed planning in a
Feasibility Study. Some drilling will be planned to help support
the Feasibility Study and EIA but this will be focused on limited
infill drilling and geotechnical drilling, and is not likely to
exceed 1,000m. In addition to supporting a Feasibility Study, this
new Mineral Resource will assist the targeting of future
exploratory and resource drilling in order to expand the resource
further, particularly in areas comprising the Exploration
Target.
Table 1: Summary of JORC Mineral Resources for Tavsan, at a
cut-off grade of 0.7 g/t Au.
Au
Au Ag (troy Ag
Classification Zone Tonnes (g/t) (g/t) oz) (troy oz)
============================== =================== ========== ======= ======= ======== ===========
Measured Main 537,000 1.80 3.98 30,900 68,600
------------------------------ ------------------- ---------- ------- ------- -------- -----------
Indicated Main 1,758,000 1.23 3.61 69,400 203,600
------------------------------ ------------------- ---------- ------- ------- -------- -----------
North 181,000 1.01 15.08 5,900 87,600
-------------------------------------------------- ---------- ------- ------- -------- -----------
West 361,000 1.19 4.93 13,800 57,100
-------------------------------------------------- ---------- ------- ------- -------- -----------
Measured and Indicated Total 2,837,000 1.32 4.58 120,100 416,900
--------------------------------------------------- ---------- ------- ------- -------- -----------
Inferred Main & Satellites 1,142,000 1.33 4.22 48,800 154,800
------------------------------ ------------------- ---------- ------- ------- -------- -----------
Global Total 3,979,000 1.32 4.46 168,900 571,700
=================================================== ========== ======= ======= ======== ===========
Notes: Mineral Resources that are not Mineral Reserves do not
have demonstrated economic viability. Environmental, permitting,
legal, title, taxation, socio-political, marketing, or other
relevant issues may materially affect the estimate of Mineral
Resources. Ariana and Tetra Tech are not aware of any material
barrier to eventual economic extraction. Numbers may not correctly
sum due to rounding. An inconsequential part of the Satellite zones
is located outside of the current operating licences.
Exploration Target
The mineralised jasperoid units at Tavsan are extensive and have
been mapped in detail. There are large areas of prospective
mineralisation that have been mapped, and in some cases sampled
either by drilling or surface methods, which have not been included
in the Resource statement, as the data supporting these areas is
not considered sufficient. However, these mineralised areas do
represent exploration potential for the project.
Assuming a mean thickness of 5m, derived from the thoroughly
interpreted mineralised areas, an additional tonnage in the range
of approximately 8 to 10Mt at a density of 2.57 g/cm(3) is possible
for the Exploration Target. It is expected that the grade would
range between 1.0 and 1.3 g/t Au. The Exploration Target areas
(Figure 1) have been labelled A - E and the ranges for each area,
based on their volume and neighbouring Resource grades (Table
2).
Table 2: JORC Exploration Target defined by exploration area,
showing a range of possible tonnages and gold grades. Silver has
not been included in these calculations as it is not as
economically significant as gold and, hence, would not help inform
exploration decision-making.
Exploration Tonnage Grade
Area (Mt) (g/t
Au)
------------ ---------- -------
A 0.7 - 0.8 1.0
- 1.3
------------ ---------- -------
B 3.0 - 3.6 1.2
- 1.4
------------ ---------- -------
C 2.8 - 3.5 1.2
- 1.4
------------ ---------- -------
D 1.0 - 1.3 1.2
- 1.5
------------ ---------- -------
E 0.4 - 0.5 1.0
- 1.1
------------ ---------- -------
Total 7.9 - 9.7 1.0
- 1.3
------------ ---------- -------
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 / Tom Salvesen
Yellow Jersey PR Limited Tel: +44 (0) 7544
275 882
Tim Thompson / Harriet Jackson arianaresources@yellowjerseypr.com
/ Henry Wilkinson
Editors' Note
The updated Mineral Resource estimate update was prepared by
Tetra Tech, under the direction of Mr. Joe Hirst B.Sc., M.Sc.
EurGeol (European Geologist) CGeol (Chartered Geologist). Mr. Hirst
is a Resource Geologist at Tetra Tech, and an independent Competent
Person as defined by the JORC Code, 2012 Edition. The results are
reported in accordance with the JORC code.
Mr. Hirst has reviewed the technical and scientific information
in this press release relating to the Mineral Resource estimates
and has approved the use of the information contained herein.
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. 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. 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" the chemical symbol for silver;
"Au" the chemical symbol for gold;
"cut-off grade" The lowest grade, or quality, of mineralised
material that qualifies as economically mineable and available in a
given deposit. May be defined on the basis of economic evaluation,
or on physical or chemical attributes that define an acceptable
product specification;
"g/t" grams per tonne;
"Indicated resource" a part of a mineral resource for which
tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a reasonable level of
confidence. It is based on exploration, sampling and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. The
locations are too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced closely enough
for continuity to be assumed;
"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;
"Inverse Distance Weighted Squared" a conventional mathematical
method used to calculate the attributes of mineral resources. Near
sample points provide a greater weighting than samples further away
for any given resource block;
"m" Metres;
"Mt" million tonnes;
"JORC" the Joint Ore Reserves Committee;
"JORC 2004" is the previous edition of the JORC Code, which was
published in 2004. It has been superseded by JORC 2012;
"JORC 2012" is the current edition of the JORC Code, which was
published in 2012. After a transition period, the 2012 Edition came
into mandatory operation in Australasia from 1 December 2013;
"m" Metres;
"Measured resource" a part of a Mineral Resource for which
tonnage, densities, shape, physical characteristics, grade and
mineral content can be estimated with a high level of confidence.
It is based on detailed and reliable exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and
drillholes. The locations are spaced closely enough to confirm
geological and grade continuity.
"oz" Troy Ounces. One Troy Ounce is equal to 31.1035 grams;
"Whittle" computer software that uses the Lerch-Grossman
algorithm, which is a 3-D algorithm that can be applied to the
optimisation of open-pit mine designs. The purpose of optimisation
is to produce the most cost effective and most profitable open-pit
design from a resource block model.
Ends.
Appendix 1: JORC Code, 2012 Edition - Table 1
Section 1: Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling
techniques * Nature and quality of sampling (e.g. cut channels, * Geological mapping in conjunction with trenching and
random chips, or specific specialised industry drilling was used to delineate areas of
standard measurement tools appropriate to the mineralisation. Mineralisation is identified in the
minerals under investigation, such as down hole gamma jasperoid unit.
sondes, or handheld XRF instruments, etc.). These
examples should not be taken as limiting the broad
meaning of sampling. * All drilling was undertaken by Diamond Core Drilling
(DD) and Reverse Circulation (RC) with all sampling
in accordance with industry standard techniques.
* Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used. * Diamond core is cut in half to provide half core
samples in lithologically appropriate intervals, with
sampling extending before and after mineralisation.
* Aspects of the determination of mineralisation that
are Material to the Public Report.
* For duplicate sample analysis the half core sample
was cut into two quarter core samples, one as the
* In cases where 'industry standard' work has been done primary sample and the other for duplicate analysis.
this would be relatively simple (e.g. 'reverse
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g * DD core void of mineralisation was not a priority for
charge for fire assay'). In other cases more the company and therefore not all core has been
explanation may be required, such as where there is sampled once mineralisation controls were
coarse gold that has inherent sampling problems. established.
Unusual commodities or mineralisation types (e.g.
submarine nodules) may warrant disclosure of detailed
information. * RC samples were split using a riffle splitter with a
representative 1kg split sent for sample analysis,
with remaining material stored for follow-up
analysis.
============= ============================================================ ============================================================
Drilling
techniques * Drill type (e.g. core, reverse circulation, open-hole * In total, 4,989 m of drilling across 156 drill holes
hammer, rotary air blast, auger, Bangka, sonic, etc.) has been completed across the Tavsan deposit.
and details (e.g. core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or
other type, whether core is oriented and if so, by * Diamond drillholes comprise a combination of HQ and
what method, etc.). NQ diameter (standard tube).
* RC drillholes comprised drilling with a 5.5 inch
diameter hammer.
* All holes were drilled by Odyssey or earlier owners
and their contractors prior to Ariana's acquisition.
Drill
sample * Method of recording and assessing core and chip * All drilling was supervised by a company geologist.
recovery sample recoveries and results assessed. The length of core recovered was measured by an
assistant after removal from the core barrel. All
core was put into core boxes and transported to the
* Measures taken to maximise sample recovery and ensure core shed where the core length was checked by a
representative nature of the samples. geologist.
* Whether a relationship exists between sample recovery * The length of core was recorded on paper logs, as
and grade and whether sample bias may have occurred well as the length of the core run. These recordings
due to preferential loss/gain of fine/coarse were later transferred into a database. The recovery
material. is calculated by dividing the core length by the
drill run length, which provides the percentage of
core recovered per drill run.
============= ============================================================ ============================================================
Logging
* Whether core and chip samples have been geologically * Core was logged geotechnically and geologically by
and geotechnically logged to a level of detail to company geologists using a company standard logging
support appropriate Mineral Resource estimation, protocol.
mining studies and metallurgical studies.
* Logging intervals are based on lithologies.
* Whether logging is qualitative or quantitative in
nature. Core (or costean, channel, etc.) photography.
* The core is photographed before logging to provide a
record of all DD core.
* The total length and percentage of the relevant
intersections logged.
* RC drill chips were logged from sample chip trays.
* Logging is to a standard suitable for the support of
a Mineral Resource Estimate.
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Core samples were cut using a circular saw with water
and sample half or all core taken. supply for dust suppression.
preparation
* If non-core, whether riffled, tube sampled, rotary * Sampling was taken across all mineralised zones and
split, etc. and whether sampled wet or dry. extended into un-mineralised rock.
* For all sample types, the nature, quality and * Some core and RC samples with no mineralisation were
appropriateness of the sample preparation technique. not sampled once mineralisation controls were
established.
* Quality control procedures adopted for all
sub-sampling stages to maximise representivity of * All samples were submitted to ALS Chemex (Izmir) for
samples. sample preparation and analysis, where crushing,
milling, homogenization and sample splitting was
completed in accordance with company standards.
* Measures taken to ensure that the sampling is
representative of the in situ material collected,
including for instance results for field duplicate/ * All suitable measures were taken to ensure sample
second-half sampling. representivity.
* Whether sample sizes are appropriate to the grain
size of the material being sampled.
============= ============================================================ ============================================================
Quality
of assay * The nature, quality and appropriateness of the * Standard and duplicate samples for QA/QC were taken
data and assaying and laboratory procedures used and whether by ALS and performance was noted as good.
laboratory the technique is considered partial or total.
tests
* Odyssey's own QA/QC programme has significant
* For geophysical tools, spectrometers, handheld XRF shortcomings, but the lab performance is adequate to
instruments, etc., the parameters used in determining support a mineral Resource estimation.
the analysis including instrument make and model,
reading times, calibrations factors applied and their
derivation, etc.
* Nature of quality control procedures adopted (e.g.
standards, blanks, duplicates, external laboratory
checks) and whether acceptable levels of accuracy
(i.e. lack of bias) and precision have been
established.
Verification
of sampling * The verification of significant intersections by * Significant intercepts were inspected by various
and assaying either independent or alternative company personnel. Ariana competent persons and SRK Consulting during
site inspections.
* The use of twinned holes.
* Logging and sampling procedures are to recognised
international standards.
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and
electronic) protocols. * 10% of the data has been independently verified.
* Discuss any adjustment to assay data. * Data input has been completed in accordance with
company procedures, which have been reviewed by Tetra
Tech.
* Prior to resource estimation, below detection limit
assay results have been replaced with values of half
detection limit.
============= ============================================================ ============================================================
Location
of data * Accuracy and quality of surveys used to locate drill * All collar locations are reported in UTM (WGS84) with
points holes (collar and down-hole surveys), trenches, mine their locations recorded using a handheld GPS. UTM
workings and other locations used in Mineral Resource Grid 35 N.
estimation.
* Down-hole surveys were recorded with Gyro Shot-type
* Specification of the grid system used. equipment. Drill holes were re-surveyed, in some
cases, by open hole methods at 20m intervals from
surface, during a project review in 2015, using the
* Quality and adequacy of topographic control. Ariana-owned Flexit down hole multi-shot survey
device.
* A topographic survey was completed for the Resource
area using a DGPS system in certain areas. 5m and 25m
contours were also generated from ortho-rectified
WorldView satellite imagery for the project area as a
whole.
Data spacing
and * Data spacing for reporting of Exploration Results. * The Resource area has been drilled as access allows,
distribution resulting in irregular data spacing, typically
between 25m and 100m between collars.
* Whether the data spacing and distribution is
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral Resource * Samples were composite to 1m prior to estimation.
and Ore Reserve estimation procedure(s) and
classifications applied.
* The current data spacing is sufficient to establish
geological continuity and grade continuity has been
* Whether sample compositing has been applied. established and tested by semi-variograms and
post-estimation assessment, as such the Resource has
been classified accordingly in the Measured,
Indicated and Inferred categories depending on the
local confidence of estimate.
============= ============================================================ ============================================================
Orientation
of data * Whether the orientation of sampling achieves unbiased * The mineralisation is primarily outcropping at
in relation sampling of possible structures and the extent to surface and has been drilled primarily vertically,
to which this is known, considering the deposit type. with full intersections. Some inclined holes have
geological been drilled between -80 and -40 degrees of dip,
structure primarily stepped off from the mineralisation to
* If the relationship between the drilling orientation delineate the edges of the mineralisation at depth.
and the orientation of key mineralised structures is
considered to have introduced a sampling bias, this
should be assessed and reported if material. * No sampling bias is observed from the orientation of
drilling with regards to the mineralised structures.
* True thickness with respect to apparent thickness is
well understood as most intersections are normal to
the mineralisation.
Sample
security * The measures taken to ensure sample security. * Samples are stored in a secure location. Full chain
of custody documentation is used when transferring
the samples to the laboratory and has been overseen
by the responsible company geologist.
============= ============================================================ ============================================================
Audits
or reviews * The results of any audits or reviews of sampling * Tetra Tech's Competent Person has reviewed the
techniques and data. protocols and procedures adopted and finds the
various aspects sufficient to support mineral
Resource estimation.
* Tetra Tech has completed an independent analysis of
the QA/QC data completed by Odyssey, and whilst there
are shortcomings the ALS lab QAQC programme was
robust. The data is deemed appropriate or Resource
estimation.
============= ============================================================ ============================================================
Section 2: Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Criteria JORC Code explanation Commentary
Mineral
tenement * Type, reference name/ number, location and ownership * Zenit holds the mineral rights to the Tavsan property
and land including agreements or material issues with third in Joint Venture with Ariana Resources plc.
tenure parties such as joint ventures, partnerships,
status overriding royalties, native title interests,
historical sites, wilderness or national park and * In 2008, Ariana acquired the Project for US$500,000
environmental settings. in cash and 3 million shares in the Company at 5
pence per share from Odyssey Resources Limited and a
retained royalty of up to 2% on future gold
* The security of the tenure held at the time of production payable to Teck Resources Limited. This
reporting along with any known impediments to royalty has since been transferred to Sandstorm Gold
obtaining a licence to operate in the area. Ltd
=============== =============================================================== ==============================================================
Exploration
done by * Acknowledgment and appraisal of exploration by other * No other companies have completed exploration on the
other parties. licence since Ariana's acquisition of the property
parties from Odyssey.
Geology
* Deposit type, geological setting and style of * The property is located in the Izmir-Ankara suture
mineralisation. zone in north-western Anatolia. The formations
present span from Jurassic to Tertiary and typically
comprise metamorphosed sedimentary sequences,
displaying intense compressional tectonic features.
* The Property includes an upper thrust plate of Late
Cretaceous ophiolitic rocks (Dagardi Melange),
jasperoid gold-bearing silicification along the
thrust surface and a footwall of Jurassic Budagan
Formation massive, a massive micritic limestone.
* Mineralisation of the contact zone was observed to
consist of jasperoidisation of limestone and intense
silicification of the ophiolite sequence.
=============== =============================================================== ==============================================================
Drill Drill hole collar, survey lithology
hole * A summary of all information material to the assay and significant intercept tables
Information understanding of the exploration results including a have been prepared are disclosed within
tabulation of the following information for all section 10.0 of the technical report.
Material drill holes:
o easting and northing of the
drill hole collar
o elevation or RL (Reduced Level
- elevation above sea level
in metres) of the drill hole
collar
o dip and azimuth of the hole
o down hole length and interception
depth
o hole length.
* If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent Person
should clearly explain why this is the case.
Data
aggregation * In reporting Exploration Results, weighting averaging * No upper or lower cut-offs have been applied when
methods techniques, maximum and/ or minimum grade truncations disclosing the exploration data.
(e.g. cutting of high grades) and cut-off grades are
usually Material and should be stated.
* No aggregation has been applied beyond the standard
1m sampling interval honouring lithological changes
* Where aggregate intercepts incorporate short lengths down to 20cm.
of high grade results and longer lengths of low grade
results, the procedure used for such aggregation
should be stated and some typical examples of such * No metal equivalent has been applied. Metals are
aggregations should be shown in detail. reported per metal.
* The assumptions used for any reporting of metal
equivalent values should be clearly stated.
=============== =============================================================== ==============================================================
Relationship
between * These relationships are particularly important in the * The majority of the drillholes were advanced
mineralisation reporting of Exploration Results. vertically. Some holes were advanced at between -80
widths and -40 degrees from horizontal to intersect dipping
and intercept structures, or to delineate at depth. The mineralised
lengths * If the geometry of the mineralisation with respect to formations are commonly flat lying. As such, the true
the drill hole angle is known, its nature should be width is generally represented by the intersection
reported. length. However, recorded intercept widths should not
be regarded as true widths.
* If it is not known and only the down hole lengths are
reported, there should be a clear statement to this * Three dimensional wireframe models have been
effect (e.g. 'down hole length, true width not generated for sample selection to constrain the
known'). resource estimate. This process eliminates any bias
imparted by oblique intercepts.
Diagrams
* Appropriate maps and sections (with scales) and * A set of maps, sections and tabulations have been
tabulations of intercepts should be included for any prepared and will be disclosed within the Technical
significant discovery being reported. These should Report.
include, but not be limited to a plan view of drill
hole collar locations and appropriate sectional
views.
=============== =============================================================== ==============================================================
Balanced
reporting * Where comprehensive reporting of all Exploration * Full balanced reporting of exploration results has
Results is not practicable, representative reporting been undertaken and is disclosed within the Technical
of both low and high grades and/ or widths should be Report.
practiced to avoid misleading reporting of
Exploration Results.
Other
substantive * Other exploration data, if meaningful and material, * Other substantive exploration data such as
exploration should be reported including (but not limited to): geochemical sampling and geophysical exploration was
data geological observations; geophysical survey results; previously undertaken to identify the drill targets.
geochemical survey results; bulk samples - size and This Resource estimation considers samples contained
method of treatment; metallurgical test results; bulk within a 3d interpretation to inform the estimate. No
density, groundwater, geotechnical and rock other exploration data informs the estimate.
characteristics; potential deleterious or
contaminating substances.
=============== =============================================================== ==============================================================
Further
work * The nature and scale of planned further work (e.g. * A programme of additional drilling will be planned
tests for lateral extensions or depth extensions or subsequent to this phase of work to infill areas of
large-scale step-out drilling). known mineralisation, and to further explore
potential for mineralisation along strike and down
dip of the known mineralisation.
* Diagrams clearly highlighting the areas of possible
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive.
=============== =============================================================== ==============================================================
Section 3: Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2,
also apply to this section.)
Criteria JORC Code explanation Commentary
Database
integrity * Measures taken to ensure that data has not been * All data used in the Resource was provided by Zenit
corrupted by, for example, transcription or keying as separate Excel drill hole files. The separate
errors, between its initial collection and its use files have been transposed into a desurveyed
for Mineral Resource estimation purposes. drillhole file for verification prior to Mineral
Resource estimation.
* Data validation procedures used.
* Reports were generated to highlight potential
transcription errors.
=============== ============================================================ ==================================================================
Site visits
* Comment on any site visits undertaken by the * The Competent Person for this project is Mr. Joe
Competent Person and the outcome of those visits. Hirst B.Sc., M.Sc., European Geologist (EurGeol) and
Chartered Geologist (CGeol). Mr. Hirst is a Senior
Resource Geologist and Competent Person as defined by
* If no site visits have been undertaken indicate why the JORC code. Mr. Hirst will make a single visit to
this is the case. the project in April 2018 and to verify aspects of
the data collection and handling for the project.
Geological
interpretation * Confidence in (or conversely, the uncertainty of) the * Geological interpretation used a combination of
geological interpretation of the mineral deposit. surface mapping data, geophysics and geological and
geochemical boundaries from the drill holes across
the Tavsan deposit.
* Nature of the data used and of any assumptions made.
* Interpretation was completed by Ariana geologists and
* The effect, if any, of alternative interpretations on consultants, creating 3D wireframe models according
Mineral Resource estimation. to geology and mineralisation above a 0.5 g/t Au
cut-off.
* The use of geology in guiding and controlling Mineral
Resource estimation. * Geological Domains were interpreted for the deposit
according to geology, grade and geotechnical
structures. Six main mineralised lodes have been
* The factors affecting continuity both of grade and identified.
geology.
* The mineralisation is well understood, typically to a
single identifiable unit, and geologically
constrained.
* Grade continuity analysis within the interpreted
mineralised zones has been robust.
* The confidence in geological interpretation is
appropriately reflected in the classification of the
Resources.
=============== ============================================================ ==================================================================
Dimensions
* The extent and variability of the Mineral Resource * The mineralisation follows a SW-NE trend where
expressed as length (along strike or otherwise), plan outcrop occurs along the jasperoid unit contact. The
width, and depth below surface to the upper and lower mineralisation is generally present at surface. The
limits of the Mineral Resource. mineralised zone is approximately 3.6km wide across
the SW-NE trend, and covers an area of approximately
7.70km(2) .
* The mineralisation has an approximate true thickness
of 6.7m, ranging between 1 and 30m thick.
Estimation
and modelling * The nature and appropriateness of the estimation * The Mineral Resources have been estimated into a
techniques technique(s) applied and key assumptions, including block model prepared in Datamine Studio 3. The block
treatment of extreme grade values, domaining, model comprises the following parameters:
interpolation parameters and maximum distance of
extrapolation from data points. If a computer
assisted estimation method was chosen include a o Parent cell dimension of 10 m x
description of computer software and parameters used. 20 m x 5 m (x, y, z)
* A set of geological and Au grade based wireframe
models were provided and prepared in Datamine to
* The availability of check estimates, previous select the samples used in the estimation and to
estimates and/ or mine production records and whether constrain the interpolation.
the Mineral Resource estimate takes appropriate
account of such data.
* The Mineral Resources were compared to a previous
estimate completed by SRK Consulting (UK) Ltd in
* The assumptions made regarding recovery of 2008. Differences in the geological model, with
by-products. emphasis placed on modelling within areas of the
resource identified as having potential to be mined
via open pit (as per 2016 Scoping Study), result in
* Estimation of deleterious elements or other non-grade differences in the estimation.
variables of economic significance (e.g. sulphur for
acid mine drainage characterisation).
* Grade estimates were based 1 m composited assay data.
* In the case of block model interpolation, the block
size in relation to the average sample spacing and * The interpolation of the element concentration was
the search employed. undertaken using Ordinary Kriging.
* Any assumptions behind modelling of selective mining * The resource estimation techniques are appropriate
units. for the style of mineralisation.
* Any assumptions about correlation between variables. * Only Au and Ag were estimated, no potentially
deleterious elements or compounds were estimated.
* Description of how the geological interpretation was
used to control the resource estimates. * Density was estimated using Inverse Distance
Weighting (IDW) to second power.
* Discussion of basis for using or not using grade
cutting or capping. * Top cut requirements were assessed, but deemed
unnecessary.
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and * Block model validation was completed using a full set
use of reconciliation data if available. of statistical measures and plots, along with visual
inspection on plan and section.
=============== ============================================================ ==================================================================
Moisture
* Whether the tonnages are estimated on a dry basis or * Tonnage is estimated on a dry basis in accordance
with natural moisture, and the method of with the specific gravity determination.
determination of the moisture content.
Cut-off
parameters * The basis of the adopted cut-off grade(s) or quality * Au cut-off grades were applied based upon costs and
parameters applied. recoveries established from the company's other
operations.
=============== ============================================================ ==================================================================
Mining
factors * Assumptions made regarding possible mining methods, * No assumptions were made regarding possible mining
or assumptions minimum mining dimensions and internal (or, if methods as the mineralisation is at or near surface,
applicable, external) mining dilution. It is always there should be no constraint on open-pit potential.
necessary as part of the process of determining
reasonable prospects for eventual economic extraction
to consider potential mining methods, but the
assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
Metallurgical
factors * The basis for assumptions or predictions regarding * Basic metallurgical assumptions were made with
or assumptions metallurgical amenability. It is always necessary as regards to expected processing methods, recoveries
part of the process of determining reasonable from test work completed by SGS and expected
prospects for eventual economic extraction to throughputs.
consider potential metallurgical methods, but the
assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral
Resources may not always be rigorous. Where this is
the case, this should be reported with an explanation
of the basis of the metallurgical assumptions made.
=============== ============================================================ ==================================================================
Environmental
factors * Assumptions made regarding possible waste and process * No environmental studies have been completed as part
or assumptions residue disposal options. It is always necessary as of this assignment. It is understood that there will
part of the process of determining reasonable be no environmental impediments to production.
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage
the determination of potential environmental impacts,
particularly for a greenfields project, may not
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have
not been considered this should be reported with an
explanation of the environmental assumptions made.
Bulk density
* Whether assumed or determined. If assumed, the basis * Bulk density values have been estimated into the
for the assumptions. If determined, the method used, block model using an inverse distance weighting
whether wet or dry, the frequency of the measurements interpolation. The density estimate was based upon 7
, dry density determinations.
the nature, size and representativeness of the
samples.
* The bulk density for bulk material must have been
measured by methods that adequately account for void
spaces (vugs, porosity, etc.), moisture and
differences between rock and alteration zones within
the deposit.
* Discuss assumptions for bulk density estimates used
in the evaluation process of the different materials.
=============== ============================================================ ==================================================================
Classification
* The basis for the classification of the Mineral * The resource classification at the project considers
Resources into varying confidence categories. the following criteria:
* Whether appropriate account has been taken of all o Confidence in the sampling data
relevant factors (i.e. relative confidence in and geological interpretation.
tonnage/ grade estimations, reliability of input data o The data distribution (based upon
, graphical analysis and average distance
confidence in continuity of geology and metal values, to informing composites).
quality, quantity and distribution of the data). o Grade continuity analysis.
* The model was classified according to Joint Ore
Reserves Committee of the Australasian Institute of
* Whether the result appropriately reflects the Mining and Metallurgy (JORC) guidelines (JORC, 2012
Competent Person's view of the deposit. Edition).
* The classification appropriately reflects the status
of the resource development.
Audits
or reviews * The results of any audits or reviews of Mineral * An internal peer review was conducted for this study.
Resource estimates. No external reviews or audits have been completed.
=============== ============================================================ ==================================================================
Discussion
of relative * Where appropriate a statement of the relative * The resource estimate is deemed appropriately
accuracy/ accuracy and confidence level in the Mineral Resource accurate globally, based upon the informing data. The
confidence estimate using an approach or procedure deemed accuracy and global/ local basis of the resource
appropriate by the Competent Person. For example, the estimate is suitably accounted for in the resource
application of statistical or geostatistical classification.
procedures to quantify the relative accuracy of the
resource within stated confidence limits, or, if such
an approach is not deemed appropriate, a qualitative * The composition of the mineralisation, and the grade
discussion of the factors that could affect the of the block model accurately reflects bulk samples
relative accuracy and confidence of the estimate. taken at the property for testwork.
* The statement should specify whether it relates to
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to
technical and economic evaluation. Documentation
should include assumptions made and the procedures
used.
* These statements of relative accuracy and confidence
of the estimate should be compared with production
data, where available.
=============== ============================================================ ==================================================================
This information is provided by RNS
The company news service from the London Stock Exchange
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