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AAU Ariana Resources Plc

2.05
0.00 (0.00%)
19 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Ariana Resources Plc LSE:AAU London Ordinary Share GB00B085SD50 ORD 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 2.05 1.90 2.20 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Gold Ores 0 4.03M 0.0035 5.86 23.5M

Ariana Resources PLC Ariana Resources Plc : Significant Resource Development Upside At Tavsan

22/02/2017 7:00am

UK Regulatory


 
TIDMAAU 
 
   22 February 2017 
 
   AIM: AAU 
 
   SIGNIFICANT RESOURCE DEVELOPMENT UPSIDE AT TAVSAN 
 
   Ariana Resources plc ("Ariana" or "the Company"), the exploration and 
development company operating in Turkey, is pleased to announce the 
completion of resource-focused target generation for the Tavsan Project* 
("Tavsan" or "the Project").  Tavsan is part of the Red Rabbit Joint 
Venture with Proccea Construction Co. and is 50% owned by Ariana. 
 
   Highlights: 
 
 
   -- Sixteen target areas identify the potential for significant resource 
      growth at the Tavsan Project. 
 
   -- Important drill intercepts warranting follow-up include 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. 
 
   -- Several mineralised zones identified in trenching require follow-up, 
      including 170m @ 1.04g/t Au + 4.1g/t Ag, 140m @ 1.11g/t Au + 5.2g/t Ag 
      and 60m @ 1.30g/t Au + 4.34g/t Ag. 
 
   -- Trial mining at the site has produced a stockpile of c.28,000 tonnes to 
      date at an average grade of 1.41 g/t gold. 
 
   -- Company planning to conduct a high-resolution portable X-ray Fluorescent 
      (pXRF) soil sampling programme to refine target areas ahead of future 
      resource drilling. 
 
 
   Dr. Kerim Sener, Managing Director, commented: 
 
   "The Tavsan Project comprises significant scope for further resource 
growth and the development of an extremely attractive low-cost and 
high-margin mining opportunity.  Based on the existing scoping study, 
the project has already demonstrated considerable potential, though 
further resource upside could enhance this substantially.  Our 
management resource target at Tavsan is 300,000 oz gold of which at 
least 200,000 oz gold is targeted to be accessible via open pit mining 
methods.  This would result in an increase in potential mine life by a 
further c.3 years to a total life of c.7 years, producing at a rate of 
approximately 30,000 oz gold per annum. 
 
   At this stage we envisage Tavsan as a semi-autonomous satellite 
operation to the Kiziltepe Mine within the context of the broader Red 
Rabbit Joint Venture with Proccea Construction Co.  Tavsan would share 
much of the management and operational infrastructure as Kiziltepe yet 
be developed as a heap-leach operation with possibly only the carbon 
elution and regeneration, electro-winning and gold room being shared 
between the two operations.  This would require limited additional 
capital expenditure at Kiziltepe, though substantially less than 
developing such facilities independently at Tavsan. 
 
   More work is required at Tavsan before we can refine our models and 
operational plans, but it is certainly a project deserving of our 
efforts due to the significant potential uplift in company value that it 
represents to our shareholders." 
 
   * All figures relating to Mineral Resources, including the financial 
model, are quoted gross with respect to the Joint Venture; Ariana holds 
50% of the project through its JV company. 
 
   This announcement contains inside information for the purposes of 
Article 7 of EU Regulation 596/2014. 
 
   Figure 1 http://hugin.info/138153/R/2080629/783522.pdf : Map of the 
Tavsan project area showing the location of outcropping mineralised 
jasperoid (in red) and currently designed open-pits (dark blue 
outlines).  Most of the exploration targets lie along NW- and 
NE-trending axes associated with a thrust-fault and its subsidiary 
structures.  Target numbers correspond to those shown in Table 1. The 
location of the trial mining pit is also shown within the Main Zone 
resource area. 
 
   Target Generation 
 
   Following the completion of the Tavsan Scoping Study (released 10 
November 2016), the Ariana Exploration Team have finalised a 
comprehensive review of all surface geochemical, drilling and geological 
databases across the project area.  A total of sixteen significant 
targets have been generated for immediate follow-up (Table 1).  Seven of 
the targets demonstrate significant potential to expand the current 
Tavsan resource following limited infill drilling and other resource 
test work. 
 
   Table 1:  Targets generated for follow-up during 2017, in numerical 
order.  Several targets have been ranked as very high priority and 
warrant further drill testing. 
 
 
 
 
Target   Target                             Grades                           Priority 
          type 
  1       Drill    11m @ 5.11 g/t Au + 6.83g/t Ag (0m-11m)                     Very 
        Intercept                                                              High 
        (ODX99A) 
  2       Drill    6m @ 3.37g/t Au + 3.67g/t Ag (16m-22m)                      Very 
        Intercept                                                              High 
         (ODX53) 
  3       Drill    9m @ 1.30g/t Au + 4.32g/t Ag (0m-9m)                        Very 
        Intercept                                                              High 
          (OR3) 
  4     Trench 4   170m @ 1.04g/t Au + 4.1g/t Ag                               High 
  5     Trench 5   140m @ 1.11g/t Au + 5.2g/t Ag                               High 
  6     Trench 6   75m @ 1.19g/t Au + 6.5g/t Ag                                High 
  7     Trench 1   60m @ 1.30g/t Au + 4.3g/t Ag                                High 
  8     Trench 3   75m @ 0.6g/t Au + 1.5g/t Ag                               Moderate 
  9     Trench 2   65m @ 0.88g/t + 3.1g/t Ag                                 Moderate 
  10    Trench 7   60m @ 0.65g/t Au + 2.6g/t Ag                              Moderate 
  11    Rock-chip  1.13g/t Au + 21.1g/t Ag, 1.18g/t Au + 21.4g/t Ag          Moderate 
  12    Rock-chip  1.58g/t Au + 7.6g/t Ag, 0.71g/t Au + 33.4g/t Ag, 0.38g/t  Moderate 
                    Au + 11.3g/t Ag 
  13    Rock-chip  0.64g/t Au + 4.5g/t Ag, 0.58g/t Au + 11.5g/t Ag, 0.42g/t  Moderate 
                    Au + 4.1g/t Ag 
  14    Rock-chip  3.03g/t Au + 11.4g/t Ag                                   Moderate 
  15    Rock-chip  1.06g/t Au + 4.2g/t Ag                                    Moderate 
  16    Untested   14 mapped workings                                        Moderate 
        Historic 
        Workings 
 
 
   Mineralisation at Tavsan largely occurs on two dominant structural 
trends, with the majority of mineralisation located along the gently 
dipping and undulating plane of a NE-SE trending thrust-fault. The 
second, subsidiary trend for mineralisation is controlled dominantly by 
a unit of neritic limestone and a series of NW-SE linkage faults, 
trending at about 90 degrees to the primary fault plane. The Tavsan 
resource currently stands at approximately 215,000oz gold equivalent 
(Table 2) across four main areas.  Trial mining at the Main Zone has 
produced a stockpile of c.28,000 tonnes to date (Figure 2) at an average 
grade of 1.41 g/t gold, which is consistent with the estimated grade of 
the resource (Table 2). 
 
   Table 2: JORC 2004 classified resource estimate for Tavsan, completed in 
2008 by SRK Consulting (UK) Ltd. 
 
 
 
 
                                 Tonnage 
Classification        Zone         (Mt)         Grade              Metal 
                                          Au (g/t)  Ag (g/t)   Oz Au    Oz Ag 
   Indicated          Main           1.7       1.6       4.2   87,000  229,000 
                     Main + 
   Inferred        Satellites        3.2       1.1       3.7  117,000  380,000 
 
 
   Database evaluations and target generation was initiated in January 2017 
following a thorough review of all drilling completed at Tavsan. 
Isolated anomalous intercepts on the southwest flank of the Main Zone 
indicates significant potential to expand the current resource. Drill 
holes ODX53 (6m @ 3.37g/t Au + 3.67g/t Ag) and OR3 (9m @ 1.30g/t Au + 
4.32g/t Ag) display potential for a fifth mineralised area to occur 
between Main Zone and Western Zone, with mineralisation proven from 
surface (OR3) to a depth of 22 metres (ODX53), where drilling ended in 
mineralisation (1m @ 0.32g/t Au). 
 
   Figure 2 http://hugin.info/138153/R/2080629/783523.pdf : Photograph of 
the trial mining area at the Tavsan Project, with stockpile area in the 
foreground.  In aggregate, c.28,000 tonnes of material grading 1.41 g/t 
Au is stockpiled at Tavsan. 
 
   One kilometre north of Main Zone, another significant drill intercept 
(ODX99A) 11m @ 5.11 g/t Au + 6.83g/t Ag, outlines additional potential 
for immediate near surface resource growth. As a result, Whittle pits 
generated for the purposes of the 2016 scoping study, located NE and SW 
of ODX99A, may have the potential to expand along an 800 metre gap 
between the planned pits.  Highly anomalous trench results and rock-chip 
samples have also been defined in this area indicating that such an 
expansion of the pits, especially near surface, is a distinct 
possibility. 
 
   Historic trenching, based on composite rock-chip sampling at systematic 
but non-uniform intervals, has outlined excellent potential for near 
surface resource expansion.  Trenches (T4) 170m @ 1.04g/t Au + 4.1g/t Ag, 
(T5) 140m @ 1.11g/t Au + 5.2g/t Ag and (T1) 60m @ 1.30g/t Au + 4.34g/t 
Ag, suggest that several outcropping jasperoid and associated subcrop 
areas, demonstrate potential to become additional near surface 
resources.  Historic trenching, notably T4 and T6, also highlight 
significant potential for immediate growth of the planned open-pits at 
the Main Zone. 
 
   In order to cost-effectively follow-up all sixteen target areas, the 
Ariana team have scheduled a 5,000 sample portable X-ray Fluorescence 
(pXRF) soil sampling programme to commence in March.  The 25m x 25m 
gridded programme will generate a high-resolution surface geochemical 
dataset, covering five square kilometres over the entire project area 
and will significantly help to define the potential of near-surface 
resource target areas.  This will assist in refining targets for a 
second phase of trenching work, which will improve confidence and 
continuity of the historic work and ultimately assist in targeting for 
further resource drilling. 
 
   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 
 
 
 
   Editors' Note: 
 
   Competent Person 
 
   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" the chemical symbol for silver; 
 
   "Au" the chemical symbol for gold; 
 
   "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; 
 
   "JORC" the Joint Ore Reserves Committee; 
 
   "m" Metres; 
 
   "oz" Ounces; 
 
   "t" Tonnes; 
 
   "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 
 
   Figure 2: http://hugin.info/138153/R/2080629/783523.pdf 
   Figure 1: http://hugin.info/138153/R/2080629/783522.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

February 22, 2017 02:00 ET (07:00 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.

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