Ariana Resources PLC Ariana Resources Plc: Extensive Vein System Identified At Arzu Central

 
TIDMAAU 
 
   24 January 2017 
 
   AIM: AAU 
 
   EXTENSIVE VEIN SYSTEM IDENTIFIED AT ARZU CENTRAL 
 
   Ariana Resources plc ("Ariana" or "the Company"), the gold exploration 
and development company operating in Turkey, is pleased to announce 
results for its Phase Two drilling programme of 2016, completed in 
December at the Kiziltepe Project.   Kiziltepe is part of the Red Rabbit 
Joint Venture with Proccea Construction Co. and will be 50% owned by 
Ariana once the mine is operational in Q1 2017. 
 
   Highlights: 
 
 
   -- Vein mineralisation intercepted in every drill hole with robust infill 
      drilling results from the south-western end of Arzu Central providing 7m 
      @ 4.00 g/t Au + 27.51 g/t Ag, 12m @ 1.96 g/t Au + 34.45 g/t Ag and 11m @ 
      1.83 g/t + 45.07 g/t Ag. 
 
   -- Newly identified vein system within Arzu Central provides results 
      including 11m @ 0.95 g/t Au + 35.91 g/t Ag and 2m @ 1.64 g/t Au + 35.70 
      g/t Ag. 
 
   -- Arsenopyrite-rich style of mineralisation encountered c.70m from a 
      previous bonanza-grade hole (12.1m @ 13.1 g/t Au+ 188 g/t Ag) provides an 
      intercept of 11m @ 2.24 g/t Au + 11.06 g/t Ag. 
 
   -- South-eastern extension of Arzu North provides results including 8m @ 
      1.14 g/t Au + 15.64 g/t Ag, 2m @ 1.01 g/t Au + 17.50 g/t Ag and 1m @ 1.86 
      g/t Au + 46.30 g/t Ag. 
 
   -- Substantial scope to identify further mineralised veins in the Arzu 
      Central area; system represents a structural splay which widens towards 
      Arzu North and Derya. 
 
 
   Dr. Kerim Sener, Managing Director, commented: 
 
   "We are very excited to have confirmed the continuity of mineralisation 
beneath the cap rocks at Arzu Central.  These initial results 
demonstrate for the first time that an extensive and still only 
partially tested vein system is developed over 650m of strike connecting 
Arzu South with Arzu North.  Significantly the system appears to be more 
structurally complex than first thought and it appears to represent a 
structural splay which widens from Arzu South towards Arzu North and 
Derya. 
 
   Future work will be directed towards the further expansion of the 
planned open pits at Arzu South, Arzu North and Derya in order to 
capture as much economic mineralisation as possible in this area. 
Alternatively, the Company may consider the development of a potential 
underground operation at Arzu Central in the event that further targeted 
drilling is successful in identifying higher-grade zones that could be 
accessed by underground development." 
 
   Drilling Programme 
 
   In 2016, Ariana Resources successfully completed a two phase exploration 
and resource drilling programme with the objective to define the extent 
of potential mineralisation between the Arzu North, South and Derya vein 
systems at Kiziltepe.  At surface, the extensions of these mineralised 
vein systems are largely obscured by a unit of pumice ignimbrite cap 
rocks; a geological unit of different age and composition to the crystal 
dacite rocks hosting the majority of the veins at Kiziltepe.  In early 
2012, Ariana's exploration team successfully completed two conceptual 
exploration holes to test for the possible existence of a mineralised 
vein extension beneath the pumice ignimbrite from the southeastern 
limits of Arzu North. These holes returned with excellent intercepts 
including; 34.1m @ 0.89 g/t Au + 8.47 g/t Ag and 7.6m @ 5.24 g/t Au + 
129.72 g/t Ag (KTP-D19A-11). 
 
   In 2015, further conceptual drilling was completed to test for the 
possibility of mineralisation to exist within Arzu Central between the 
Arzu North, South and Derya vein systems. On this occasion, extensions 
to mineralisation were tested from the northwestern limits of Arzu 
South. Again exceptional mineralisation was intercepted including; 22m @ 
2.93 g/t Au + 29.76 g/t Ag (KTP-RC07-15). Both the 2012 and 2015 
drilling results generated sufficient additional confidence in a 
conceptual 650m long exploration target through the Arzu "Gap Zone", 
hereafter referred to as Arzu Central.  Once this level of confidence 
was secured, further drilling was warranted. 
 
   In 2016, 2,342m of Reverse Circulation (RC) drilling was successfully 
completed at Arzu Central. The first phase of the two phased programme 
aimed to define the subsurface limits of the overlying pumice 
ignimbrites and to target an area that contained the highest probability 
of vein mineralisation. This work was crucial in order to generate 
refined targets for drill testing along strike from last known vein 
intercepts.  By November 2016, the exploration team had a robust 
understanding of the Arzu Central geology, in particular the geometry of 
the pumice ignimbrite unit.  As part of the Phase Two programme, 
drilling continued through Arzu Central, starting from the Arzu South 
side and progressing to Arzu North and Derya. The drilling programme 
consisted of typically 50m spaced drill fences, with a total of 15 drill 
holes, to cover approximately 400 meters of strike within the Arzu 
Central region. Mineralisation was intercepted in every hole with best 
intercepts including 11m @ 0.95 g/t Au + 35.91 g/t Ag and 2m @ 1.64 g/t 
Au + 35.70 g/t Ag.  Towards the Derya end of Arzu Central, where bonanza 
grades (KTP-D18-11: 12.1m @ 13.1 g/t Au + 188 g/t Ag) were intercepted 
in previous drilling, unusual disseminated arsenopyrite-rich stockwork 
zones were identified in drill hole KTP-RC44-15 providing 11m @ 2.24 g/t 
Au + 11.06 g/t Ag.  This area requires priority follow-up, given that 
the bonanza grade intercept occurs only c.70m away from the new 
intercept. 
 
   Vein trends identified from mineralised intercepts at Arzu Central 
suggest that non-outcropping mineralisation trending from Arzu South is 
orientated at 295 degrees in strike, towards Derya Vein. In isolation 
this suggests that the strike connection from Arzu South to Arzu North 
may not be the dominant trend.  However, two test holes (KTP-RC45-16 and 
KTP-RC46-16), drilled southeast of the last know intercepts at Arzu 
North have both returned with significant intercepts including 8m @ 1.14 
g/t Au + 15.64 g/t Ag, 2m @ 1.01 g/t Au + 17.5 g/t Ag and 1m @ 1.86 g/t 
Au + 46.3 g/t Ag.  This suggests that mineralisation between Arzu North 
and Arzu South probably does exist but is not trending at the 315 degree 
strike orientation as originally modelled.  Consequently, the Arzu 
Central area is significantly more complex than first considered. 
Further drilling is required to fully define what could be a significant 
subsurface extension of Arzu North and the continuation of 
mineralisation within a corridor connecting Arzu South to Derya. 
 
   In addition to the drilling undertaken as part of the Phase Two 
assessment of Arzu Central, the Ariana exploration team also completed 
five infill resource drill holes on the north western end of Arzu South. 
Significant intercepts from this drilling include 7m @ 4.00 g/t Au + 
27.51 g/t Ag, 12m @ 1.96 g/t Au + 34.45 g/t Ag and 11m @ 1.83 g/t Au + 
45.07 g/t Ag. 
 
   Table 1:  Significant RC drilling results from the 2016 programme at 
Arzu Central, 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. 
 
 
 
 
  Hole ID     From (m)  To (m)  Interval (m)  Grade Au (g/t)  Grade Ag (g/t) 
KTP-RC49-16         51      58             7            4.00           27.51 
KTP-RC44-16        124     135            11            2.24           11.06 
KTP-RC52-16        136     148            12            1.96           34.45 
KTP-RC50-16         99     110            11            1.83           45.07 
KTP-RC38-16        162     173            11            0.95           35.91 
KTP-RC45-16        111     119             8            1.14           15.64 
KTP-RC52-16        107     111             4            1.73           13.93 
KTP-RC43-16         61      66             5            0.87           15.74 
KTP-RC40-16         59      61             2            1.64           35.70 
KTP-RC45-16        128     130             2            1.01           17.50 
KTP-RC46-16        146     147             1            1.86           46.30 
 
 
 
   Figure 1: Map of the Arzu Central area showing the Phase Two drilling 
and selected previous drilling (shown with *).  The map shows the 
outline of the feasibility designed pits and the potential expanded pits 
based on Whittle optimisation completed in 2016.  The vein system as 
identified in Phase Two drilling is shown in yellow, while previous 
resource panels are shown in red. 
 
   Link: http://hugin.info/138153/R/2072974/779138.pdf 
 
   Sampling and Assaying Procedures 
 
   434 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. 
 
   This announcement contains inside information for the purposes of 
Article 7 of EU Regulation 596/2014. 
 
   Contacts: 
 
 
 
 
Ariana Resources plc             Tel: [phone] 
Michael de Villiers, Chairman 
Kerim Sener, Managing Director 
 
Beaumont Cornish Limited         Tel: [phone] 
Roland Cornish / Felicity Geidt 
 
Beaufort Securities Limited      Tel: [phone] 
Jon Belliss 
 

Panmure Gordon (UK) Limited      Tel: [phone] 
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 originally selected on 
the basis of its in-house geological and remote-sensing database. 
 
   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 construction.  The total resource inventory at the Red 
Rabbit Project and wider project area stands at c. 525,000 ounces of 
gold equivalent.  At Kiziltepe a Net Smelter Return ("NSR") royalty of 
up to 2.5% on future 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. 
 
   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: https://hugin.info/138153/R/2072974/779138.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

January 24, 2017 02:00 ET (07:00 GMT)

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