IVRINDI LICENCE AND METALLUGICAL UPDATE

RNS Number : 8790P

Ariana Resources PLC

15 June 2020

 

15 June 2020

AIM: AAU

IVRINDI LICENCE AND METALLUGICAL UPDATE

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in Europe , is pleased to announce the renewal of its operating licence on the Ivrindi Gold Project ("Ivrindi" or "the Project"). Ivrindi is 100% held by the Company outside of the Red Rabbit Joint Venture in Western Turkey, via its wholly-owned subsidiary, Galata Madencilik San. ve Tic. Ltd.

Highlights:

· Operational licence extended for 10 years for the Ivrindi Project, expiring on 03 June 2030, with the possibility for extension.

· 45 hectare mining permit for gold secured on the same terms.

· Land access and initial forestry permits in place for development, with new permit applications in process.

· Metallurgical testwork yields an average gold recovery of 88.5%.

· Approximately 16,000 tonnes of gold mineralised material are stockpiled, with future potential to truck to the Kiziltepe plant.

Dr. Kerim Sener, Managing Director, commented:

"Exploration and development activities at our Ivrindi Project were slowed down last year while we went through the process of renewing of our operating licence, which we have now secured successfully for a further 10 years. Prior to this, the Company had demonstrated significant upside and had indicated our objective to mine and truck material from Ivrindi to the Kiziltepe processing plant. Accordingly, metallurgical testwork for Ivrindi was completed last year, along with additional trial mining. We currently maintain a stockpile of ore at Ivrindi which is expected to be trucked to Kiziltepe for trial processing in the future. Meanwhile a 1,500m Reverse Circulation drilling programme is planned to test the full strike-length of the mineralised structure at Ivrindi once new forestry permits are secured and we look forward to updating the market on this in due course. "

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Metallurgical Testwork

Three samples of clay altered andesite from Ivrindi were used for metallurgical testwork, at grades of 4.30, 3.50 and 0.47 g/t Au.  These samples were pulverised to -75 micron and then subjected to similar leach conditions as utilised within the Kiziltepe processing plant.  An NaCN concentration of 1,000 mg/lt was used for this testwork rather than a 2,200 mg/lt concentration currently used in the Kiziltepe processing plant.  Gold recoveries were high and varied between 85.1% and 91.4%, with the lower recoveries associated with lower grade ore.  Maximum recovery of gold was achieved for the samples after 72 hours. 

Trial Mining

Trial mining was conducted on the project area in recent years as specified in statutory submissions to the Turkish Government and in accordance with project reporting requirements.  To date, approximately 16,000 tonnes of mineralised material was extracted from the trial mining area at an average grade of 1.2 g/t Au.  Consideration is being given to trucking some of this material for processing at the Kiziltepe mine site in the future. 

Details of the Ivrindi Project

The Ivrindi Project consists of one operational licence located in Balikesir Province in Western Turkey (coordinates: 545830 mE; 4380450 mN). The property lies 70km to the northwest (straight line) and 100km by road from the Kiziltepe sector of the Company's Red Rabbit Project. 

At Ivrindi, mineralisation occurs at the Kinik prospect, which occurs within a 450m long zone of mineralised alteration within Miocene age andesitic volcanic rocks.  Mineralisation extends from surface to 70m vertical depth and is developed in part along the normal faulted contact with Permo-Triassic age limestones.  The gold mineralisation is most well developed in several intensely clay altered zones associated with haematite and limonite, in which quartz vein formation is virtually absent. 

A JORC 2012 compliant Mineral Resource estimate for the Ivrindi Project stands at 207,000 tonnes at 1.65 g/t gold (for 11,000 oz gold) in the Inferred category and demonstrates potential for further growth with additional drilling.  The Mineral Resource is defined by 14 holes on 9 cross-sections, with section spacing ranging from 35-90m.  The resource comprises five discrete zones, which are east-west oriented and steeply north-dipping.  The management resource target for future exploration at Ivrindi is currently 500,000 tonnes at c. 2 g/t gold.

Trial mining commenced within the central part of the resource area during 2018.  Further trial mining will be conducted in the 2020/21 period.  The project is expected to be within economic trucking distance from the Kiziltepe operation and is accessible via asphalt road, which includes lengthy sections of dual carriageway.  Consequently, any potentially open-pittable resources identified at Ivrindi are expected to be trucked efficiently to the plant site at Kiziltepe.

Contacts:

Ariana Resources plc	Tel: [phone]
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited	Tel: [phone]
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited	Tel: [phone]
James Stearns / Atholl Tweedie
Yellow Jersey PR Limited	Tel: [phone]
Dom Barretto / Joe Burgess / Henry Wilkinson	[e-mail]

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 operating in Europe.  It has interests in gold production in Turkey and copper-gold assets in Cyprus.  The Company is developing a portfolio of prospective licences in Turkey, which contain a depleted total of 1.5 million ounces of gold and other metals (as at April 2020). 

The Red Rabbit Project is comprised of the Company's flagship assets, the Kiziltepe and Tavsan gold projects, and is part of a 50:50 Joint Venture with Proccea Construction Co.  Both assets are located in western Turkey, which hosts some of the largest operating gold mines in the country and remains highly prospective for new porphyry and epithermal deposits.  The Kiziltepe Sector of the Red Rabbit Project is fully permitted and is currently in production.  The total gross depleted resource inventory at the Project and its wider area is c. 500,000 ounces of gold equivalent (as at April 2020).  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.

The 100% owned Salinbas Gold Project is located in north-eastern Turkey and has a total resource inventory of c. 1 million ounces of gold equivalent.  The project comprises three notable licence areas: Salinbas, Ardala and Hizarliyayla, all of which are located within a multi-million ounce Artvin Goldfield.  The "Hot Gold Corridor" contains several significant gold-copper projects including the 4Moz Hot Maden project, which lies 16km to the south of Salinbas and 7km south of Hizarliyayla.  A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation on the Salinbas Gold Project.

Ariana is also earning-in to 50% of UK-registered Venus Minerals Ltd ("Venus").  Venus is focused on the exploration and development of copper-gold assets in Cyprus.

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:

"Au" the chemical symbol for gold;

"g/t" grams per tonne;

"Inferred resource" a part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and has assumed, but not verified, geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited or of uncertain quality and reliability;

"JORC" the Joint Ore Reserves Committee;

"JORC 2012" 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;

"oz" Ounces;

"t" Tonnes;

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