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| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.175 | -7.22% | 2.25 | 2.20 | 2.30 | 2.425 | 2.25 | 2.425 | 2,011,895 | 09:27:45 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 0 | 4.03M | 0.0035 | 6.57 | 26.37M |
From Apr 2022 to Apr 2024
TIDMAAU
RNS Number : 8542H
Ariana Resources PLC
29 November 2022
All figures and tables referred to in this announcement can be viewed via the following link: http://www.rns-pdf.londonstockexchange.com/rns/8542H_1-2022-11-29.pdf
29 November 2022
AIM: AAU
SIGNIFICANT INCREASE IN TAVSAN RESOURCE
Ariana Resources plc ("Ariana" or the "Company"), the AIM-listed mineral exploration and development company with gold mining interests in Europe, is pleased to announce an update to its JORC Resource Estimate for the Tavsan Mine. The mine is currently in construction and being operated by Zenit Madencilik San. ve Tic. A.S. ("Zenit") in partnership with Proccea Construction Co. and Ozaltin Holding A.S. and is 23.5% owned by Ariana.
Highlights:
-- Global Resource increased by 22% over the previous Mineral Resource Estimate ("MRE") to 6.6 Mt at 1.44 g/t Au and 5.26 g/t Ag for 307,000 oz Au and 1.1 million oz Ag (all categories)*.
-- High-grade domain of 1.1 Mt at 2.74 g/t Au and 4.89 g/t Ag for 96,000 oz Au and 171,000 oz Ag (all categories)* is defined for the first time.
-- Significant additional potential of 1.7Mt of below cut-off grade material occurs in the 0.5 to 0.7 g/t Au range for c.34,000 oz Au (not currently classified as Resources)*.
-- Resource is further de-risked with 83% now classified in the Measured & Indicated JORC Resource categories.
-- Exploration targets previously defined in the East and South zones are being assessed and up to 4,600m of drilling is currently underway to test resource extensions; resource is not closed-off in several areas.
*All Mineral Resource figures in the announcement are quoted gross with respect to Zenit of which Ariana owns 23.5%.
Dr. Kerim Sener, Managing Director, commented:
"This MRE represents a tremendous enhancement for Tavsan, as construction continues on site. Not only has the total resource grown to c.7 Mt but about 1 Mt of this is now attributed to a newly defined high-grade domain containing sufficient resources to potentially satisfy up to three years of gold output in its own right. This is all the more impressive considering that the 2016 Scoping Study had only considered a total mine life of four years from the entire resource. Current planning is consequently focusing on a mine life of eight years.
"When we acquired the project in 2008, we did so with the expectation that the resource could grow to this scale. Now that we have achieved this significant milestone, and after having completed additional work, we see that there is further room for growing the resource. This is already apparent when considering the potential impact of a lower cut-off grade of 0.5 g/t, which could add a further 34,000 oz of gold to the resource currently, which could aid the further extension of mine life.
"This resource estimate will be updated again in 2023 following the conclusion of a new drilling programme which commenced a couple of weeks ago and is continuing to test for further resource extensions. The current resource estimate will now be used to update our financial models and mine optimisations, which we are aiming to complete and announce as our Definitive Feasibility Study in due course.
"Tavsan represents our most significantly de-risked project after Kiziltepe, which contains resources now larger than those remaining at our operating mine. As a result, Tavsan is expected to become a more significant operation than Kiziltepe in the coming years."
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").
Introduction
Between late 2021 and early 2022, the Ariana and Zenit teams undertook a significant new drilling programme across the Tavsan Sector for 4,355m (Figure 1) comprising 112 diamond drillholes (including twelve geotechnical drill holes for 374.6m), following which a revised Mineral Resource Estimate ("MRE") was completed. This phase of estimation has involved integrating the latest drilling data (see RNS 16 June 2022), which has, in addition to increasing the global resource, enhanced confidence in resource classification within the MRE. Updates to the Tavsan MRE have been reviewed by the Ariana and Zenit geological teams in detail.
This announcement summarises the modelling and resource estimation methods. The classified resources are as detailed in the JORC Table 1.
Tavsan Resource Estimate
The new Tavsan JORC 2012 compliant MRE is prepared in accordance with JORC 2012 and based on 159 diamond drill holes (6,205m), 128 RC drill holes (4,119m) and 156 rock-saw channels (1,169m) representing a total of 11,493m of drilling. The mineralised zones represent the most current geological data and understanding.
This data was collectively reviewed and modelled to create representative three-dimensional mineralisation domains for the Tavsan deposit. Estimation of grade and tonnage were attributed to the mineralisation models based on internal and external laboratory assay data and drill core density studies (where available). A three-dimensional block model was constructed from the mineralisation model based on optimal block size parameters of 10x10x5m as defined by the Zenit mining team.
The mineralisation model and associated block model will be subjected to a new open-pit optimisation study to be completed internally by the Zenit mining team under revised economic input parameters according to the latest economic and processing factors.
Figure 1: Plan view of the Tavsan area, showing all recent drill collar positions, rock-saw channel samples, mapped jasperoid outcrops, and the surface projection of the 2022 Tavsan high-grade and low-grade MRE domains.
Geological Modelling
Gold mineralisation at Tavsan is epithermal in style, with associated silver and antimony, broadly located along the thrust contact between Jurassic-Cretaceous massively bedded limestone and an overlying Upper Cretaceous multi-lithic ophiolite sequence. In addition, a karstic network within the limestone and fractures within the ophiolitic rocks potentially acted as conduits for the development of jasperoidal and generally silicified rocks, several tens of metres, below and above the thrust fault contact, respectively.
The mineralised jasperoid developed along the thrust contact is irregular in form on a ten meter-scale but broadly follows the gentle topography on a hundred meter-scale and is largely exposed at surface (Figure 2). 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 the potential for steeply dipping conduit structures cross-cutting the limestone units in the footwall.
This mineralisation is modelled using assay data, geological logging and three-dimensional interpolation modelling methods. This was completed within Leapfrog Geo 6.0.5, using the "vein" tool to define mineralisation domains based on manually isolated economic drill composites. Economic composites with up to one metre of internal dilution were defined using a nominal 0.5 g/t Au modelling cut-off for lower grade or peripheral intercepts whilst a 1.5 g/t Au modelling cut-off was applied to define the high-grade domains. The continuity of the various structures is reflected in the Mineral Resource classification. Exploration target areas on the periphery of the system are defined by surface mapping, soil pXRF, rock-chip and rocksaw-channel sampling assay results and drilling where available.
Figure 2: New geological interpretation of the Tavsan deposit based on 1:2,000 and 1:5,000 scale mapping completed during Summer 2022.
Estimation Methodology
Tonnage and grade estimation of the defined mineralisation domains was completed using Leapfrog EDGE. A 10 g/t Au top-cut was applied to the assay data (where required). It was determined that silver did not require a top-cut.
Compositing of assay data was completed within Leapfrog EDGE, using a 1m best fit routine within the domain boundaries. Hard domain boundaries were applied to all domains, 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 intervals of 1m.
Specific density averages were applied to the mineralisation domains based on a total of 896 density measurements acquired from diamond drill core during the 2021/2022 programme. Accordingly, the Tavsan mineralisation has been determined to range from 2.60 g/cm(3) to 2.64 g/cm(3) , depending on the intensity of brecciation and/or silicification. Density values have been determined for each zone based on this data.
The block model used is a non-rotated conventional model with no sub-blocking applied (Figure 3). The block model was constructed using a 10m E by 10m N by 5m RL parent block size, which is deemed suitable by the Zenit mining team. Isotropic search ellipses and ranges were used. The variable orientation function (dynamic anisotropy) was used in Leapfrog EDGE to better represent the grade distribution. Estimation was carried out using Inverse Distance Weighting Squared (IDWS) at the parent block scale using a three-pass estimation using all available composites within the hard boundary. The IDWS method was selected as the most suitable method of interpolation for this deposit.
The estimates were completed separately for High-grade and Low-grade domains. Domaining the High-grade zones separately minimised cross-boundary extrapolation of grades from the High-grade zone to the Low-grade zone and vice versa. Low-grade domains have been modelled above a 0.5 g/t Au cut-off and reported above a 0.7 g/t Au cut-off grade, whilst High-grade domains have been modelled and reported above a 1.5 g/t Au cut-off grade. Cut-off grade is based on assumptions concerning mining and processing cost, metallurgical recovery and metals prices, as defined by the Zenit mining team.
The effect of a lower cut-off of 0.5 g/t Au was also assessed, and it was determined that a further 1.7 Mt at 0.61 g/t Au (for 34,000 oz Au) of below cut-off grade material exists within the 0.5-0.7 g/t Au grade range. This will be assessed further in the coming studies, as this represents a considerable tonnage of currently sub-economic but otherwise significant mineralisation.
During the review of the Tavsan MRE, a visual validation between drillhole data, composite data and block model data were carried out. No mining factors (i.e. dilution, ore loss, recoverable resources at selective mining block size) have been applied to the Resource Estimate. Likewise, no metallurgical factors have been applied. It is assumed that the ore will be mined via open-pit operations with Heap Leach used for gold and silver extraction.
Figure 3: Top left: Tavsan mineralisation domains, showing High-grade domains modelled at 1.5 g/t Au in red, and Low-grade domains modelled at 0.5 g/t Au in yellow. Top right: Tavsan 2022 block model colour coded according to defined classification in accordance with JORC 2012. Bottom: Tavsan 2022 block model coded according to mineralisation grades for both gold (left) and silver (right).
Tavsan Sector Exploration Upside
During 2021 and 2022, the Ariana team continued to develop drilling targets within the Tavsan Sector. This work is critical for generating future sources of potential ore for production. These areas include a series of underexplored outcropping or sub-cropping mineralised units at the periphery of more well-defined parts of the Tavsan mineralisation. The drilling targets are defined by surface geological mapping (1:2,000 to 1:5,000 scale), surface soil, rock-chip and channel sample assay results and any available drilling. Recent mapping and sampling have confirmed the potential of some of these areas, notably in the East and South zones.
Tavsan Resource Classification
The Mineral Resource is classified and reported in accordance with the 2012 JORC Code (JORC Table 1) as Measured, Indicated and Inferred (Table 1). The classification is determined based on search pass spacing, with confidence increasing with proximity to drill holes. Importantly, 50% of the Resource sits within the Measured category, with 33% in Indicated and 17% in Inferred categories.
Table 1: Summary of 2022 Tavsan Sector MRE classified and reported in accordance with JORC 2012 (see associated JORC Table 1 for details). Reporting is based on cut-off grades as noted in the table. All figures are quoted gross with respect to Zenit. Figures in the table may not sum precisely due to rounding.
Hot Features
Premium
TAVSAN Average Material
November 2022 Value Content
----------------
Classification Volume Density Mass Au Ag Au Ag
----------------
m(3) g/cm(3) t g/t g/t t. oz t. oz
---------------- ---------------- ---------- ------------- ---------- ----------- -------- -------- ----------
High-grade
Domain
Cut-off:
1.5g/t
Au MEASURED 241,500 2.62 632,700 3.00 4.76 60,980 96,800
---------------- ------------- ---------- ----------- -------- -------- ----------
INDICATED 135,000 2.62 353,000 2.55 4.55 28,950 51,660
------------- ---------- ----------- -------- -------- ----------
INFERRED 39,000 2.60 101,400 1.75 6.87 5,720 22,400
------------- ---------- ----------- -------- -------- ----------
Sub-total 415,500 2.62 1,087,200 2.74 4.89 95,650 170,860
--------------------------------- ------------- ---------- ----------- -------- -------- ----------
Low-grade
Domain
Cut-off:
0.7g/t
Au MEASUSRED 935,000 2.62 2,447,400 1.19 5.15 93,300 405,080
---------------- ------------- ---------- ----------- -------- -------- ----------
INDICATED 728,500 2.61 1,902,000 1.19 5.64 73,000 344,790
------------- ---------- ----------- -------- -------- ----------
INFERRED 457,500 2.61 1,196,100 1.19 5.24 45,660 201,320
------------- ---------- ----------- -------- -------- ----------
Sub-total 2,121,000 2.61 5,545,500 1.19 5.33 211,960 951,190
--------------------------------- ---------- ------------- ---------- ----------- -------- -------- ----------
TOTAL MEASURED 1,176,500 2.62 3,080,100 1.56 5.07 154,280 501,880
---------------- ------------- ---------- ----------- -------- -------- ----------
INDICATED 863,500 2.61 2,255,100 1.41 5.47 101,950 396,450
------------- ---------- ----------- -------- -------- ----------
INFERRED 496,500 2.61 1,297,500 1.23 5.36 51,380 223,710
------------- ---------- ----------- -------- -------- ----------
Total 2,536,500 2.61 6,632,700 1.44 5.26 307,610 1,122,040
--------------------------------- ---------- ------------- ---------- ----------- -------- -------- ----------
Sampling and Assaying Procedures
All diamond drill core is being processed at the Kiziltepe mine site and analysed at the Kiziltepe Mine Laboratory. Results are assessed systematically and are grouped according to individual mineralised zones at the Tavsan Sector.
HQ size drill-core samples from the drilling programme at the Tavsan deposit were cut in half by a diamond saw and sent for analysis in batches in line with the Company's quality control procedures. A total of 3,997 samples (including 631 QA/QC samples) were submitted to the Kiziltepe Mine Laboratory. A total of 2,347 samples (including 301 QA/QC samples) were submitted to ALS Global, Izmir as an external laboratory check to add confidence to the Kiziltepe Mine Laboratory results, particularly during laboratory expansion works.
QA/QC sample insertion rates vary depending on the batch size accepted by the laboratory. Ariana sampling protocol requires insertion of 4 QA/QC samples per batch to include 1 blank, 1 CRM, 1 field duplicate and 1 pulp duplicate to assess the accuracy and precision of all stages of the sampling and analysis. During the 2021-2022 drilling, Zenit QA/QC protocol required 1 blank, 1 CRM and 1 field duplicate and over 10% samples analysed at external laboratory. The Zenit QA/QC protocol is under review by both Ariana and Zenit teams following the laboratory upgrade.
Core recovery for all drilling conducted at Tavsan during the 2021/2022 campaign was 88%, for a total of 2,854 measurements. 95% of this latest phase of drilling had over 70% recovery.
Between 2020 and 2021, the Kiziltepe Mine Laboratory has undergone an extensive expansion to meet the significant demands for sample assaying, from both the mining and exploration teams. This expansion is complete with the onsite laboratory now housing seven furnaces, two ICPOES instruments, two Atomic Absorption spectrometers (AAS), three drying ovens, three crushers and three pulverisers. The laboratory upgrades now allow the Zenit team to increase their sampling throughput by 48% (70 samples per day to 135). The two major upgrades for 2021 included with the above mentioned is the addition of 1) a multi-element ICP-OES (PerkinElmer Avio 550) analyser, and 2) an Elementrac CS-i sulphur-carbon analyser. The ICP-OES provides the team with a full suite of elements on selected samples (as opposed to just gold and silver). However, new operating procedures are currently being internally reviewed and calibrations of the new instruments are being assessed. As part of this, the laboratory team are sending in excess of 10% of their crushed rejects from selected drill core samples to ALS Global in Izmir for check assays, with 59% of the Tavsan samples also analysed at ALS. Zenit's internal QA/QC data and sample duplicates have been reviewed and are considered satisfactory for Ariana's reporting purposes. In addition, since October 2022 the Kiziltepe Mine Laboratory has been accredited by the Turkish Accreditation Agency (TÜRKAK) with "TS EN ISO/IEC 17025:2017 General Requirements for the Competence of Experimental and Calibration Laboratories".
All samples were assayed for gold using a 30g fire assay. Reviews of the assay results have determined that all Quality Control and Quality Assurance samples (blanks, standards and duplicates) passed the required quality control checks established by the company, with duplicate samples showing excellent correlation. Laboratory sample preparation, assaying procedures and chain of custody are appropriately controlled. The Company maintains an archive of half core samples and a photographic record of all cores for future reference.
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 John Prior / Hugh Rich / Atholl Tweedie Yellow Jersey PR Limited Tel: +44 (0) 7951 402 336 Dom Barretto / Henry Wilkinson arianaresources@yellowjerseypr.com
Editors' Note:
The Mineral Resource estimate was prepared by Zack van Coller BSc (Hons), Special Projects Geologist, Ariana Resources plc. Mr. van Coller is a Competent Person as defined by the JORC Code, 2012 Edition. The estimate was reviewed internally by Ruth Bektas BSc (Hons) CGeol EurGeol, Projects Analyst, Ariana Resources plc. Ms Bektas is a Competent Person as defined by the JORC Code, 2012 Edition. The results are reported in accordance with the JORC Code, under the direction of Dr. Kerim Sener BSc (Hons), MSc, PhD, Managing Director of Ariana Resources plc, and a Competent Person as defined by the JORC Code. Mr. van Coller and Dr. Sener have reviewed the technical and scientific information in this press release relating to the Mineral Resource Estimates and approve the use of the information contained herein.
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 with an exceptional track-record of creating value for its shareholders through its interests in active mining projects and investments in exploration companies. Its current interests include gold production in Turkey and copper-gold exploration and development projects in Cyprus and Kosovo.
The Company holds 23.5% interest in Zenit Madencilik San. ve Tic. A.S. a joint venture with Ozaltin Holding A.S. and Proccea Construction Co. in Turkey which contains a depleted total of c. 2.1 million ounces of gold and other metals (as at February 2022). The joint venture comprises the Kiziltepe Mine and the Tavsan and Salinbas projects.
The Kiziltepe Gold-Silver Mine is located in western Turkey and contains a depleted JORC Measured, Indicated and Inferred Resource of 222,000 ounces gold and 3.8 million ounces silver (as at February 2022). The mine has been in profitable production since 2017 and is expected to produce at a rate of c.20,000 ounces of gold per annum to at least the mid-2020s. A Net Smelter Return ("NSR") royalty of 2.5% on production is being paid to Franco-Nevada Corporation.
The Tavsan Gold Mine is located in western Turkey and contains an undepleted JORC Measured, Indicated and Inferred Resource of 307,000 ounces gold and 1.1 million ounces silver (as at November 2022). Following the approval of its Environmental Impact Assessment and associated permitting, Tavsan is being developed as the second gold mining operation in Turkey. A NSR royalty of up to 2% on future production is payable to Sandstorm Gold.
The Salinbas Gold Project is located in north-eastern Turkey and contains a JORC Measured, Indicated and Inferred Resource of 1.5 million ounces of gold (as at July 2020). It is located within the multi-million-ounce Artvin Goldfield, which contains the "Hot Gold Corridor" comprising several significant gold-copper projects including the 4-million-ounce Hot Maden project, which lies 16km to the south of Salinbas. A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation.
Ariana owns 100% of Australia-registered Asgard Metals Fund ("Asgard"), as part of the Company's proprietary Project Catalyst Strategy. The Fund is focused on investments in high-value potential, discovery-stage mineral exploration companies located across the Eastern Hemisphere and within easy reach of Ariana's operational hubs in Australia, Turkey and the UK.
Ariana owns 75% of UK-registered Western Tethyan Resources Ltd ("WTR"), which operates across south-eastern Europe and is based in Pristina, Republic of Kosovo. The company is targeting its exploration on major copper-gold deposits across the porphyry-epithermal transition. WTR is being funded through a five-year Alliance Agreement with Newmont Corporation ( www.newmont.com ).
Ariana owns 50% of UK-registered Venus Minerals Ltd ("Venus") which is focused on the exploration and development of copper-gold assets in Cyprus, containing a combined JORC Indicated and Inferred Resource of 17Mt @ 0.45% to 1.10% copper (excluding additional gold, silver and zinc), in addition to pursuing an option on a 50:50 JV with Hellenic Apliki Mines, which owns an SX-EW processing plant and the 17Mt @ 0.26% to 0.69% Cu Apliki mine development project.
Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser and Broker.
For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com
Glossary of Technical Terms:
"Ag" chemical symbol for silver;
"Au" 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" or "IDWS" or "ID2" 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;
"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;
"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;
"MRE" Mineral Resource Estimate.
"Mt" million tonnes;
"oz" Troy ounces;
Ends.
JORC Code, 2012 Edition - Table 1
Tavsan, Western Turkey (data to end October 2022, MRE reported November 2022)
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 (eg cut channels, * Reverse circulation (RC) chips were collected at 1 m
random chips, or specific specialised industry intervals and in some cases over 0.5 m intervals over
standard measurement tools appropriate to the the mineralised zone. The chips were collected into
minerals under investigation, such as down hole gamma plastic sample bags from a cyclone to ensure maximum
sondes, or handheld XRF instruments, etc). These recovery. The samples were split using a standard
examples should not be taken as limiting the broad riffle-splitter to around 0.25 to 0.5 kg per sample.
meaning of sampling.
* Diamond drillcore is cut using a diamond rock saw,
* Include reference to measures taken to ensure sample and half-core samples are taken in lithologically
representivity and the appropriate calibration of any appropriate intervals, ranging from 0.5 m to 3 m in
measurement tools or systems used. length, with additional sampling extending before and
after mineralisation. Diamond core void of
mineralisation was not a priority for the company and
* Aspects of the determination of mineralisation that therefore not all core has been sampled once
are Material to the Public Report. mineralisation controls were established. Core
recovery is recorded into the database. For diamond
core duplicate sample analysis, half core samples
* In cases where 'industry standard' work has been done were cut into two quarter core samples, one as the
this would be relatively simple (eg 'reverse primary sample and the other for duplicate analysis.
circulation drilling was used to obtain 1 m samples
from which 3 kg was pulverised to produce a 30 g
charge for fire assay'). In other cases more * Samples were sent to an ISO accredited ALS Chemex in
explanation may be required, such as where there is Vancouver, British Columbia for Au and Ag analysis by
coarse gold that has inherent sampling problems. fire assay and latterly to a similar ALS laboratory
Unusual commodities or mineralisation types (eg in Izmir, which is still used as an external
submarine nodules) may warrant disclosure of detailed laboratory for QA/QC purposes.
information.
* Samples are now prepared and analysed at Zenit's
laboratory at Kiziltepe Mine, for Au (fire assay), Ag
(AAS), and 4-acid digest for several other elements.
* Under normal Company operational procedures, sampling
undertaken during early-stage exploration or
reconnaissance is submitted to the laboratory for 30g
fire assay analysis. However, sampling undertaken on
more advanced or resource stage projects are
submitted for 50 g fire assay analysis, where it is
expected that the larger sample mass will provide
marginally more representative results.
* Through 2021, the Kiziltepe Mine Laboratory, while
undergoing various enhancements, was able to analyse
samples at a 30 g fire assay sample shot capacity.
Therefore, check samples sent to ALS in Izmir for
external review have been, and will continue to be
sent as a mixture of both 30 g and 50 g assay shot
capacities, so that the various teams involved can
appropriately reconcile the minor variation in the
compared datasets.
* As of January 2022, the Kiziltepe Mine Laboratory
houses two ICP-OES (PerkinElmer Avio 550 and
PerkinElmer Optima 8000) instruments, two Atomic
Absorption Spectrometers (PerkinElmer's PinAAcle
900F), three drying ovens, three crushers, three
pulverisers and seven furnaces. In addition, since
October 2022 the Kiziltepe Mine Laboratory has been
accredited by the Turkish Accreditation Agency
(TÜRKAK) with "TS EN ISO/IEC 17025:2017 General
Requirements for the Competence of Experimental and
Calibration Laboratories".
* Portable X-ray Fluorescence (pXRF) analysis is
typically used on 1m intervals on all drill core not
sampled for assaying. This is primarily for
geological modelling purposes.
* Pulp rejects from all assayed samples are also
analysed using pXRF analysis. This data is not used
for mineral resource estimation purposes, but rather
for internal evaluations conducted by the exploration
team. pXRF certified reference standards are used on
a regular basis in line with company procedures.
* Rock-saw channel sampling was completed in early 2020
over 60 outcrops of mapped mineralised jasperoid to
support the resource. A petrol powered dual bladed
diamond saw was used to cut 35 millimetre (mm) thick
channels to represent halved HQ core.
* Historic drilling and sampling procedures (pre-2000)
were not available, but work undertaken was completed
by reputable exploration companies. This data amounts
to 25% of the drilling database to date. In 2008
Ariana Resources successfully completed check
assaying of 42 coarse reject material samples to test
historical drilling to provide additional confidence
to historical Quality Assurance and Quality Control
(QA/QC) procedures.
============================================================ ===================================================================
Drilling
techniques * Drill type (eg core, reverse circulation, open-hole * In total 10,324.3 m of drilling across 287 drill
hammer, rotary air blast, auger, Bangka, sonic, etc) holes has been completed across the Tavsan deposit.
and details (eg core diameter, triple or standard Additionally 1,169 m has been completed across 156
tube, depth of diamond tails, face-sampling bit or rocksaw channels.
other type, whether core is oriented and if so, by
what method, etc).
* Diamond drillholes comprise a combination of PQ and
HQ diameter (standard tube). Drilling on the project
can be summarised as follows:
o 2022 - 41 DD holes for 2,181.1 m
o 2021 - 71 DD holes for 2,173.7 m
o 2019 - 4 DD holes for 90.5 m (Tavsan Far North)
o 2006 - 87 RC (13.3 centimetre) holes for 1,611 m
o 2004 - 35 PQ DD holes for 1,419 m
o 1997 - 8 DD holes for 341m, 7 RC holes for 543 m
o 1988 - 34 RC holes for 1,965 m
* All historic holes were drilled by Ranger (1988),
Teck Cominco (1997) and, Pusula Madencilik (Odyssey's
100% Turkish subsidiary) and their various
contractors prior to the acquisition of the project
by Ariana Resources plc and latterly Zenit Madencilik
San. ve. Tic. A. .
============================================================ ===================================================================
Drill
sample * Method of recording and assessing core and chip * Diamond drillcore recoveries were monitored and
recovery sample recoveries and results assessed. recorded into the sampling database. No recovery was
calculated for RC drilling conducted at Tavsan.
* Measures taken to maximise sample recovery and ensure
representative nature of the samples.
* Select historic drill holes were examined for core
recovery at the site, which was deemed to be
* Whether a relationship exists between sample recovery satisfactory.
and grade and whether sample bias may have occurred
due to preferential loss/gain of fine/coarse
material.
* Overall core recovery for 2021/2022 diamond drilling
is 88% for 2,854 measurements, with 95% of drilling
showing over 70% recovery.
* There is no bias between sample recovery and grade.
============================================================ ===================================================================
Logging
* Whether core and chip samples have been geologically * Core was logged geologically by company geologists
and geotechnically logged to a level of detail to using a company standard logging protocol. Logging
support appropriate Mineral Resource estimation, intervals are based on lithologies. All logging used
mining studies and metallurgical studies. a coded logging system for rock type, grain size,
colour, alteration and any other relevant
observations. All drilled metres were logged
* Whether logging is qualitative or quantitative in regardless of presence of mineralisation.
nature. Core (or costean, channel, etc) photography.
* The core was photographed before logging to provide a
* The total length and percentage of the relevant permanent record of all DD core.
intersections logged.
* Mineralised zones were identified from the
observation of mineralogy and lithological
characteristics. Portable XRF (pXRF) analysis was
conducted post-drilling, to provide supporting
geochemical data for non-sampled regions. Areas
identified as geochemically anomalous by pXRF were
further sampled. The pXRF was checked by use of
certified referenced standards to ensure good quality
data was produced.
* Logging of RC samples was carried out on washed
samples with geological characteristics recorded into
a database.
============================================================ ===================================================================
Sub-sampling
techniques * If core, whether cut or sawn and whether quarter, * Core samples were cut using an electric circular
and sample half or all core taken. diamond saw with water supply for dust suppression.
preparation Half core remains in the core tray for reference.
* If non-core, whether riffled, tube sampled, rotary
split, etc and whether sampled wet or dry.
* RC sampling: Samples were collected at 1 m intervals
and split using a two-stage riffle splitter, running
* For all sample types, the nature, quality and each sample through the splitter twice. Wet intervals
appropriateness of the sample preparation technique. were sub-sampled with scoop or spear. Samples were
oven-dried at the laboratory if necessary. Although
every metre was sampled from top to bottom of each
* Quality control procedures adopted for all hole, metres which were clearly unmineralised were
sub-sampling stages to maximise representivity of not assayed.
samples.
* Sample preparation technique is appropriate to the
* Measures taken to ensure that the sampling is mineralisation style.
representative of the in situ material collected,
including for instance results for field
duplicate/second-half sampling. * Splitting and sample preparation conducted on samples
at the Kiziltepe Mine Laboratory:
* Whether sample sizes are appropriate to the grain
size of the material being sampled. o Drying at 105(O) C
o Crushing whole sample to <=2 mm
o Splitting of crushed sample to analyse
o Pulverising sub-sample to 80% passing <=75 <MU>m
* Splitting and sample preparation conducted on samples
at the ALS laboratory:
============================================================ ===================================================================
Quality
of assay * The nature, quality and appropriateness of the * During Odyssey's drilling campaigns, a quality
data and assaying and laboratory procedures used and whether control (QC) programme was instituted at the
laboratory the technique is considered partial or total. beginning of the drill programmes, which consisted of
tests inserting a field duplicate and uncertified/certified
reference material samples into the sample stream. No
* For geophysical tools, spectrometers, handheld XRF field blanks were inserted. Uncertified standards
instruments, etc, the parameters used in determining were typically inserted (1:16 to 1:20 samples). These
the analysis including instrument make and model, were determined to not be reliable enough to measure
reading times, calibrations factors applied and their accuracy at the laboratory. Odyssey's own QA/QC
derivation, etc. programme has significant shortcomings, but the lab
performance is adequate to support a mineral resource
estimation. Standard and duplicate samples for QA/QC
* Nature of quality control procedures adopted (eg were taken by ALS Izmir and performance was noted as
standards, blanks, duplicates, external laboratory good. Reporting of ALS's internal QA/QC samples have
checks) and whether acceptable levels of accuracy (ie found the results to fall within the 95% confidence
lack of bias) and precision have been established. interval assigned to them, as per the lab's internal
monitoring standards.
* All suitable measures were taken to ensure that
samples were suitably representative.
* QC procedures employed in all drill programmes prior
to 2019 included the insertion of certified reference
standards (1:22), blank samples (1:22), pulp and
crush duplicates (2:22) to monitor the accuracy and
precision of laboratory data when samples were
submitted to ALS Global, Izmir. Insertion rate of
18%.
* In drill programmes since 2019, samples have been
submitted in batches of 35 to ALS Global, Izmir, to
include 1 blank, 1 CRM, 1 field duplicate and 1 pulp
duplicate. Insertion rate of 11%.
* In the 2021/2022 drilling programme, samples
submitted to Kiziltepe Mine Laboratory are in batches
of 20 to include 1 field blank, 1 CRM, 1 field
duplicate. The Kiziltepe Mine Laboratory adds an
additional duplicate sample which is a split of the
19(th) sample of each batch. Further to this the
laboratory adds 4 internal standards for their own
instrumental QA/QC checks.
* In addition to routine QA/QC procedures, 59% of all
Tavsan drill samples from the 2021/2022 programme
were duplicated to submit to ALS Global, Izmir, as
check samples at an external laboratory to confirm
internal Kiziltepe Mine Laboratory results, whilst
the laboratory expansion was taking place and while
laboratory procedures and instrumentation was being
checked internally.
* The overall quality of QA/QC procedures is considered
adequate to ensure the validity of the data used for
resource estimation purposes.
* The handheld XRF is an Olympus Vanta. A series of 10
blank and certified reference material samples are
used to check the quality of the pXRF data. These are
scanned at a rate of 1 blank and 1 CRM for every 100
samples. The device does not require further
calibration.
============================================================ ===================================================================
Verification
of sampling * The verification of significant intersections by * Significant intercepts were inspected by Mr. Joe
and assaying either independent or alternative company personnel. Hirst (Tetra Tech Competent Person) during the site
inspection in 2018. Data input has been completed in
accordance with company procedures, which have been
* The use of twinned holes. reviewed by Tetra Tech during their MRE in 2018 and
2020.
* Documentation of primary data, data entry procedures,
data verification, data storage (physical and
electronic) protocols. * Data verification was also independently completed in
2006 by Mr. Antoine Yassa of P & E Mining Consultants
Inc. during an earlier phase of exploration. 12 check
* Discuss any adjustment to assay data. samples were taken. Results were deemed satisfactory
and demonstrated that the grade of gold is very
similar in most instances, to what was originally
reported by Odyssey.
* Prior to resource estimation, below detection limit
assay results have been replaced with values of zero.
* Primary data, data entry procedures, data
verification and data storage protocols are in line
with industry best-practice.
* All samples (30 g or 50 g) are analysed using fire
assay with AAS (Au-AA23) and aqua regia with ICP-AES
(ME-ICP41).
* All samples before 2019 were submitted to the
internationally accredited laboratory of ALS Global
in Izmir, Turkey (ISO 9001:2008 accredited).
* Samples taken in 2019, 2020 and 2021 have been
submitted to Kiziltepe Mine Laboratory (TS EN ISO/IEC
17025:2017 accredited since October 2022), with at
least 10% also selected for check assays at ALS
Global in Izmir throughout the sampling programme.
Samples are chosen from areas suspected to be
mineralised. During the Kiziltepe Mine Laboratory
expansion, 59% of Tavsan samples from the 2021/2022
programme were checked at ALS.
* Since early 2021 the Kiziltepe Mine Laboratory has
been undergoing expansion to deal with substantially
increased sample analysis requirements. Initial
verification of assay results from newly installed
laboratory instruments is still undergoing internal
review. To date, 1,663 samples were assayed at both
Kiziltepe Mine Laboratory and the external laboratory
(ALS Izmir). Results have been received and reviewed.
Initial checks have demonstrated that received assay
data and associated QA/QC samples fall within
expected levels. Evaluations of incoming check data
for the Zenit and ALS laboratories will continue to
be assessed through 2022 until results conclusively
prove that all new instruments are appropriately
calibrated and operating as intended.
============================================================ ===================================================================
Location
of data * Accuracy and quality of surveys used to locate drill * All collar positions were located initially by
points holes (collar and down-hole surveys), trenches, mine hand-held GPS (Garmin Etrex 10 and 30) and later
workings and other locations used in Mineral Resource surveyed by a professional surveyor using DGPS
estimation. equipment. All coordinates are recorded in UTM ED50
35N.
* Specification of the grid system used.
* Down hole surveys were not completed at Tavsan as
holes were typically drilled vertically. However,
* Quality and adequacy of topographic control. drill holes were surveyed, where possible, by open
hole methods at 20 m intervals from surface, during a
project review in 2015; using a Flexit down hole
multi-shot survey device.
* All holes were surveyed in the 2021/2022 drilling
programme using a standard Electronic Multi-shot
Magnetic survey deviation tool (Devico PeeWee).
* Topographic data is collected by DGPS. Additionally,
5 m and 25 m contours were generated from
ortho-rectified WorldView satellite imagery.
============================================================ ===================================================================
Data spacing
and * Data spacing for reporting of Exploration Results. * The Resource area has been drilled as access allows,
distribution resulting in an irregular data spacing, typically
between 25 m and 100 m between collars (average
* Whether the data spacing and distribution is collar spacing between all zones is 45 m).
sufficient to establish the degree of geological and
grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and * Samples were composited to 1 m prior to estimation.
classifications applied.
* 159 diamond drill holes (6,205.3 m), 128 RC drill
* Whether sample compositing has been applied. holes (4,119 m) and 156 rock-saw channels (1,169 m)
were used to model the mineralisation.
* Sample compositing has not been applied at the
sampling stage.
* Sample spacing and distribution is sufficient to
establish the geological and grade continuity
required for modelling and resource estimation.
============================================================ ===================================================================
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.
* No biases are expected from the drilling direction.
============================================================ ===================================================================
Sample
security * The measures taken to ensure sample security. * Samples are stored in a secure location (Balikoy
Depot) in a clean area free of any contamination.
Full chain of custody documentation is used when
transferring the samples to the laboratory and has
been overseen by the responsible company geologist.
* In drilling programmes pre-2019 the measures taken to
ensure sample security for samples used for analysis
and QA/QC include the following:
o Chain of Custody is demonstrated by both Company and ALS Global
or Kiziltepe Mine Laboratory in the delivery and receipt of
sample
materials.
o Upon receipt of samples, ALS Global delivers by email to the
Company's designated QC Manager, confirmation that each batch of
samples has arrived, with its tamper-proof seal intact, at the
allocated sample preparation facility.
o Any damage to or loss of samples within each batch (e.g., total
loss, spillage or obvious contamination), must also be reported
to the Company in the form of a list of samples affected and
detailing
the nature of the problem(s).
* In all drilling programmes since 2020, the majority
of samples have been analysed by the Kiziltepe Mine
Laboratory. Samples are delivered securely from the
drill site to the laboratory by the exploration team
and are securely held at the laboratory in the fenced
off and guarded mine site, with no unauthorised
access.
============================================================ ===================================================================
Audits
or reviews * The results of any audits or reviews of sampling * In 2020 Tetra Tech reviewed the protocols and
techniques and data. procedures adopted and found the various aspects
sufficient to support mineral resource estimation.
Tetra Tech completed an independent analysis of the
QA/QC data completed by Odyssey, and whilst there are
shortcomings, the ALS lab QA/QC programme was robust.
The data is deemed appropriate for resource
estimation.
* Ariana has implemented QA/QC programmes covering all
aspects of sample location and collection that meets
or exceeds the currently accepted industry standards.
* Ariana implemented a QA/QC programme based on
international best practice during the initial
exploration work and subsequent drilling programmes.
The company has continued to review and refine the
QA/QC programme as these exploration campaigns have
progressed.
============================================================ ===================================================================
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 * The Tavsan Property consists of four operating
and land including agreements or material issues with third licenses owned by Zenit Madencilik San. ve Tic. A.S.
tenure status parties such as joint ventures, partnerships, ("Zenit") Joint Venture ("JV") with Proccea
overriding royalties, native title interests, Construction Co. and Ozaltin Holding A.S. (23.5%
historical sites, wilderness or national park and owned by Ariana). Licence numbers:
environmental settings.
o Örencik license no: 12743, due date of 11.06.2029.
* The security of the tenure held at the time of o Kavaklı license no: 59770, due date of 11.06.2029.
reporting along with any known impediments to o Da ardı license no: 70484, due date of 10.01.2030.
obtaining a licence to operate in the area. o Evciler license no: 72400, due date of 26.01.2025.
* In 2008, Ariana acquired the Project for US $500,000
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
production payable to Teck Resources Limited. This
royalty has since been transferred to Sandstorm Gold
Ltd.
* There are no known impediments to current operations.
=============================================================== ===================================================================
Exploration A summary of exploration activities at Tavsan:
done by other * Acknowledgment and appraisal of exploration by other * 1980s - Initially discovered by Australian company
parties parties. Ranger.
* 1988 - Ranger drilled 34 RC holes totalling 1960.5 m
in the primary mineralisation zone. Ranger completed
no further work.
* 1995 - The MTA (Turkish government exploration
agency) sampled the primary ore zone.
* 1996 - Cominco acquired the property and conducted
several systematic surface sampling programmes
yielding an average grade 2.3 g/t Au at surface.
* 1997 - Cominco initiated a 341 m DD programme for 8
holes. 265 samples were sent for Inductively Coupled
Plasma (ICP) and fire assay using a 30-gram aliquot.
A RC programme totalling 543 m for 7 holes was run
concurrently with the DD programme. 362 RC chip
samples were analysed for gold using fire assay on a
30-gram aliquot.
* 2003 - Pusula Madencilik, Odyssey's 100% owned
subsidiary company in Turkey acquired the Tavsan
property from Cominco.
* 2004 - Odyssey completed the first of a 3-phase
drilling programme. Phase 1 totalled 1,067.7 m and
consisted of 20 DD holes (OD1 - OD20). Phase 2
consisted of 15 DD holes (OD21 - OD35), totalling 350
m.
* 2005 - Odyssey undertook a surface sampling programme
on 11 surface-exposed gold mineralised jasperoid
zones.
* 2006 - Odyssey completed Phase 3 of drilling with the
addition of 87 RC holes (ODX36-ODX131) totalling
1,611 m.
* 2008 - Ariana Resources acquired the Tavsan project.
=============================================================== ===================================================================
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-Cretaceous
Budagan Formation massive, a massive micritic
limestone.
* Through the summer of 2022, the Ariana team completed
remapping of the Tavsan license area to 1:2,000 and
1:5,000 scale.
=============================================================== ===================================================================
Drill hole
Information * A summary of all information material to the * No new exploration data is included in this report.
understanding of the exploration results including a All relevant data has been reported in press
tabulation of the following information for all releases.
Material drill holes:
* The purpose of the 2019 to 2020 rock-saw channel
o easting and northing sampling programme was to provide a further increase
of the drill hole collar in the confidence of the resource classification, and
o elevation or RL (Reduced to reduce planned infill drilling meters for future
Level - elevation above resource development work. The sampling included
sea level in metres) areas that are were classified as part of the JORC
of the drill hole collar Exploration Target and Inferred Resource, with a view
o dip and azimuth of to improving confidence in the resource estimate and
the hole an improvement in the resource classification. A
o down hole length and total of 751 samples (including 118 QA/QC samples),
interception depth averaging a length of 1.8 m were extracted during the
o hole length. sampling activities. Of these samples, 676 were sent
* If the exclusion of this information is justified on to the Kiziltepe Mine Laboratory for gold and silver
the basis that the information is not Material and fire assay only. A further 76 samples were sent to
this exclusion does not detract from the ALS in Izmir for gold and silver fire assay and
understanding of the report, the Competent Person multi-element ICP analysis. The channel sampling
should clearly explain why this is the case. makes up only 10% of the drilling database.
* Infill resource drilling and exploration drilling was
completed in 2021/2022. Details of this latest
drilling programme are given below.
=============================================================== ===================================================================
Data
aggregation * In reporting Exploration Results, weighting averaging * Metal equivalents have not been used in this
methods techniques, maximum and/or minimum grade truncations estimate.
(eg cutting of high grades) and cut-off grades are
usually Material and should be stated.
* No aggregation has been applied beyond the standard 1
m sampling interval honouring lithological changes
* Where aggregate intercepts incorporate short lengths down to 30 cm.
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 * Significant down-hole intercepts calculated for the
aggregations should be shown in detail. Tavsan 2021/2022 drilling programme, using a 1.0 g/t
Au minimum cut-off and allowing for 0.5 m internal
dilution:
* 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 and -40 degrees from horizontal to intersect dipping
intercept structures, or to delineate at depth. The mineralised
lengths * If the geometry of the mineralisation with respect to horizons are commonly flat-lying to gently dipping.
the drill hole angle is known, its nature should be As such, the true width is generally represented by
reported. the intersection length. However, recorded intercept
widths are down hole length and 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
effect (eg 'down hole length, true width not known'). * Three-dimensional wireframe models have been
generated for sample selection to constrain the
resource estimate. This process eliminates any bias
imparted by oblique intercepts.
=============================================================== ===================================================================
Diagrams Tavsan Overview
* Appropriate maps and sections (with scales) and
tabulations of intercepts should be included for any
significant discovery being reported These should
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 and press releases.
practiced to avoid misleading reporting of
Exploration Results.
* Intercepts depths stated in the drill hole
information but not stated in the data aggregation
methods section are lower grade intersections. Widths
of intercepts are stated.
=============================================================== ===================================================================
Other
substantive * Other exploration data, if meaningful and material, * In 2022 Ariana completed a 41km(2) geological mapping
exploration should be reported including (but not limited to): project across the Tavsan licenses. This work
data geological observations; geophysical survey results; included pXRF analysis of lithological units,
geochemical survey results; bulk samples - size and petrography analysis, thin section and magnetic
method of treatment; metallurgical test results; bulk susceptibility studies.
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances. * In 2017 Ariana completed an extensive high-resolution
(25 m by 25 m) portable X-ray Fluorescence (pXRF)
soil survey. This work was completed in order to
better define and characterise targets for a second
phase of resource-development and to improve
confidence in targeting for further resource
drilling.
* Sixteen target areas were highlighted by the 8,265
soil samples collected, covering an area of
approximately 5 square kilometres (km(2) ).
=============================================================== ===================================================================
Further Zenit have planned the following drilling for the Tavsan
work * The nature and scale of planned further work (eg Main,
tests for lateral extensions or depth extensions or North, South and West Zones, scheduled for 2023-2024:
large-scale step-out drilling). * 3,610 metres for resource infill
* Diagrams clearly highlighting the areas of possible * 5,915 meters for resource step-out
extensions, including the main geological
interpretations and future drilling areas, provided
this information is not commercially sensitive. * 5,200 metres for exploration
* Further surface sampling and drilling work will also
be scheduled for Tavsan East Zone.
=============================================================== ===================================================================
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 * The Tavsan resource data was stored in a MS Access
corrupted by, for example, transcription or keying database and managed using MS Access and Excel
errors, between its initial collection and its use software. Data has now been transferred to MX Deposit,
for Mineral Resource estimation purposes. the database management system used by the company,
which started in Q3 2021.
* Data validation procedures used.
* Data was logged onto field sheets which were then
entered into the data system by data capture
technicians.
* Data was validated on entry into the database, or on
upload from the earlier MS Access databases, by a
variety of means including the enforcement of coding
standards, constraints and triggers. These are
features built into the data model that ensure data
meets essential standards of validity and
consistency.
* Laboratory data has been received in digital format
and uploaded directly to the database.
* Original data sheets and files have been retained and
are used to validate the contents of the database
against the original logging.
* Zenit Madencilik and independent consultants such as
Tetra Tech and Odessa Resources Pty Ltd performed a
visual validation by reviewing drill holes on section
and by subjecting drill hole data to data auditing
processes in specialised mining software (e.g. checks
for sample overlaps etc.).
* Independent consultants Tetra Tech performed a visual
validation by reviewing drill holes on section in
Datamine Studio RM mining software.
* Archived reports have been used to evaluate potential
errors and liability of historical data.
* Ariana Resources performed validation checks in
Leapfrog GEO and EDGE v. 6.0.5.
============================================================ ======================================================================
Site visits
* Comment on any site visits undertaken by the * Ariana staff have visited the site on numerous
Competent Person and the outcome of those visits. occasions, and supervised all drilling, sampling and
other operations at all times in order to introduce
appropriate logging, sampling and drilling protocols.
* If no site visits have been undertaken indicate why
this is the case.
* Zack van Coller (BSc) of Ariana Resources has been
involved in all work on the project since 2010. Mr
van Coller last visited the project in July 2022.
* Ruth Bektas (BSc, CGeol, EurGeol) of Ariana Resources
is acting as the Competent Person for this study, and
has been on site during exploration programmes. Ms
Bektas is a Resource Geologist and Competent Person
as defined by the JORC code. Ms Bektas last visited
the project in June 2018 and has verified aspects of
the data collection and handling for the project.
* Ariana Resources (Galata Madencilik) and Zenit
Madencilik field staff are permanently on site.
============================================================ ======================================================================
Geological
interpretation * Confidence in (or conversely, the uncertainty of ) * Geological interpretation used a combination of
the geological interpretation of the mineral deposit. surface mapping data, geophysics and geological and
geochemical boundaries from the drill holes across
the Tavsan deposit. Interpretations of geological
* Nature of the data used and of any assumptions made. surfaces are derived from 3D modelling of drill hole
data in Leapfrog GEO and EDGE v. 6.0.5.
* The effect, if any, of alternative interpretations on
Mineral Resource estimation. * Geological Domains were interpreted for the deposit
according to geology, grade and geotechnical
structures. Five main mineralised lodes have been
* The use of geology in guiding and controlling Mineral identified, two of which have been subdivided into
Resource estimation. higher grade and lower grade domains.
* The factors affecting continuity both of grade and * The mineralisation is well understood, typically
geology. defined as a single identifiable unit, and
geologically constrained.
* Grade continuity analysis within the interpreted
mineralised zones is robust.
* The confidence in geological interpretation is
appropriately reflected in the classification of the
Resources.
* Interpolation and wireframe modelling of the
mineralised zones in Leapfrog EDGE was completed
using a 0.5 g/t and 1.5 g/t Au modelling cut-off
grade (CoG) for low grade and high grade domains,
respectively. Where continuity was not established
between sections, the strike extrapolation was
limited both manually (wireframes) and statistically
(interpolations).
============================================================ ======================================================================
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 4.5 km long across
the SW-NE trend, and covers an area of approximately
2 km(2) .
* The mineralisation has an approximate true thickness
of 4.5 m, ranging between 1 m and 30 m thick.
============================================================ ======================================================================
Estimation
and modelling * The nature and appropriateness of the estimation * Drill hole sample data was constrained within:
techniques technique(s) applied and key assumptions, including
treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of o 3D mineralisation models based on manually isolated economic
extrapolation from data points. If a computer drill intercepts, where all the Tavsan mineralisation was modelled
assisted estimation method was chosen include a using Seequent's "vein" model tool to define grade driven domains.
description of computer software and parameters used. Economic intercepts were defined by nominal 0.5 g/t Au and 1.5
g/t Au modelling cut offs.
* Compositing was completed in Leapfrog EDGE using a 1
* The availability of check estimates, previous m best fit routine. Hard domain boundaries were
estimates and/or mine production records and whether applied to both deposit models, which forced all
the Mineral Resource estimate takes appropriate samples to be included in one of the composites by
account of such data. adjusting the composite length, while keeping it as
close as possible to the selected intervals of 1m.
* The assumptions made regarding recovery of
by-products. * Top cuts were applied to the assay results at 10 g/t
Au. Silver did not require a top cut.
* Estimation of deleterious elements or other non-grade
variables of economic significance (eg sulphur for * Isotropic search ellipses and ranges were used. The
acid mine drainage characterisation). variable orientation function (Dynamic anisotropy)
was used in Leapfrog to better represent the grade
distribution.
* In the case of block model interpolation, the block
size in relation to the average sample spacing and
the search employed. * The block models were constructed using a 10 mE by 10
mN by 5 mRL parent block size.
* Any assumptions behind modelling of selective mining
units. * The block model is a non-rotated conventional block
model with no sub-blocking used.
* Any assumptions about correlation between variables.
* Estimation was carried out using inverse distance
* Description of how the geological interpretation was weighted squared (IDWS) at the parent block scale
used to control the resource estimates. using a three-pass estimation using all available
composites within the hard boundary. The Inverse
Distance Weighted Squared (IDWS) method was selected
* Discussion of basis for using or not using grade as the most suitable method of interpolation in this
cutting or capping. deposit, as there is not sufficient nugget affect to
warrant an IDWC method. Ordinary Kriging was not used
as satisfactory variograms were not obtainable.
* The process of validation, the checking process used,
the comparison of model data to drill hole data, and
use of reconciliation data if available.
* Check estimates were carried out and the final
estimate was compared to previous estimates.
* Gold and silver have been estimated as mining
products. No by-products or deleterious elements have
been modelled. In general, gold and silver show a
positive correlation with each other.
* Density was assigned to each zone based on the values
in the density database.
* A visual validation between drillhole data, composite
data and block model data is carried out.
============================================================ ======================================================================
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 * Low grade domains have been modelled above a 0.5 g/t
parameters applied. Au cut-off grade and reported above a 0.7 g/t Au
cut-off grade. High grade domains were modelled and
reported above a 1.5 g/t Au cut-off grade.
* Cut-off grade calculated from assumptions on mining
and processing cost, metallurgical recovery and
metals prices.
============================================================ ======================================================================
Mining
factors * Assumptions made regarding possible mining methods, * No mining factors (i.e., dilution, ore loss,
or assumptions minimum mining dimensions and internal (or, if recoverable resources at selective mining block size)
applicable, external) mining dilution. It is always have been applied to the original resource.
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 * The deposit is expected to be mined as an open pit
parameters when estimating Mineral Resources may not heap-leach operation.
always be rigorous. Where this is the case, this
should be reported with an explanation of the basis
of the mining assumptions made.
* Bench face angle 65deg
* Largest operating bench width 40 meters (Main Zone)
* Bench width changes due to mineralization shape in
general
o Bench width = 8 meters if bench height = 10 meters
o Bench width = 5 meters if bench height = 5 meters
============================================================ ======================================================================
Metallurgical
factors * The basis for assumptions or predictions regarding * No metallurgical assumptions have been built into the
or assumptions metallurgical amenability. It is always necessary as resources.
part of the process of determining reasonable
prospects for eventual economic extraction to
consider potential metallurgical methods, but the * Basic metallurgical assumptions were made with
assumptions regarding metallurgical treatment regards to expected processing methods, recoveries
processes and parameters made when reporting Mineral from test work and expected throughputs.
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. * In April 2005, 42 samples of coarse reject material
from drill core and 47 pulp samples (mostly from the
same drill core samples as the coarse rejects) were
sent to ALS Chemex in Vancouver, Canada for cyanide
soluble testing. The purpose of this test was to
substantiate Cominco's 1997 cyanide soluble tests
attesting to the fact that cyanide leach is an
appropriate beneficiation method for extraction of
gold.
* Results of the tests indicated that the average gold
recovery after one hour for the coarse reject
material was 55.6%, and for the pulp samples was
91.6%, which indicate that cyanide remains a
potentially viable method for the recovery of gold at
Tavsan.
* In 2019, a series of metallurgical test works were
conducted at Zenit's Kiziltepe Mine Laboratory to
obtain and optimise the basic parameters for leaching
such as sodium cyanide (NaCN) consumption, particle
size, flux (application) rate, agglomeration, and
lime consumption rates. Bottle roll and mixing in two
litres flask tests showed higher recoveries hence
increasing the exposed surface area of the ore with
the solution.
* The optimum recovery conditions, which resulted 76%
Au recovery in column tests were:
o Particle size: P100:12.5 mm.
o Flux rate: 10-12 litres per hour per square metre
(L/hr/m2).
o Sodium Cyanide: 1.3 - 1.5 kg/ton dry ore.
o Lime: 2 kg/ton dry ore.
o Leach cycle: 45 - 60 days.
============================================================ ======================================================================
Environmental
factors * Assumptions made regarding possible waste and process * The Competent Person (CP or QP) is not aware of any
or assumptions residue disposal options. It is always necessary as known environmental or permitting issues on the
part of the process of determining reasonable projects.
prospects for eventual economic extraction to
consider the potential environmental impacts of the
mining and processing operation. While at this stage * Statutory forestry permits have been approved by the
the determination of potential environmental impacts, Prime Ministry and issued by the Department of
particularly for a greenfields project, may not Forestry for the Tavsan Sector.
always be well advanced, the status of early
consideration of these potential environmental
impacts should be reported. Where these aspects have * Zenit has carried out a comprehensive Environmental
not been considered this should be reported with an Impact Assessment. Under this; a Flora and Fauna
explanation of the environmental assumptions made. study has been completed and reported by
Balıkesir University.
* Acid Rock Drainage and Hydrogeological studies have
also been completed.
============================================================ ======================================================================
Bulk density
* Whether assumed or determined. If assumed, the basis * Density modelling at Tavsan was evaluated from 896
for the assumptions. If determined, the method used, drill core measurements taken from diamond drilling
whether wet or dry, the frequency of the measurements in 2021/2022. The data was domained according to the
, various model volumes. Statistical averages within
the nature, size and representativeness of the each domain were used as a representative value of
samples. density. Further work is needed to code the density
to each model to better show density variations to
depth and along strike, rather than applying
* The bulk density for bulk material must have been statistical averages.
measured by methods that adequately account for void
spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within * For modelling purposes, average specific gravity
the deposit. values ranging from 2.60 to 2.64 g/cm(3) were used
based on specific gravity measurements on core
samples.
* 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 Mineral Resource is classified and reported in
Resources into varying confidence categories. accordance with the 2012 JORC code as Measured,
Indicated and Inferred. The classification is
determined based on search pass spacing, with
* Whether appropriate account has been taken of all increasing confidence with proximity to drill holes.
relevant factors (ie relative confidence in These are given in more detail under section
tonnage/grade estimations, reliability of input data, "Estimation and modelling techniques".
confidence in continuity of geology and metal values,
quality, quantity and distribution of the data).
* Measured Mineral Resources have been defined by Pass
1 (up to 45 m x 30 m x 10 m) depending on the
* Whether the result appropriately reflects the mineralisation characteristics and drill hole
Competent Person's view of the deposit. spacing.
* Indicated Mineral Resources have been defined by Pass
2 (up to 90 m x 60 m x 20 m) depending on the
mineralisation characteristics and drill hole
spacing.
* Inferred Mineral Resources have been defined in areas
beyond the Indicated search radius to the limits of
the resource wireframes in Pass 3 (up to 180 m x 120
m x 40 m).
============================================================ ======================================================================
Audits
or reviews * The results of any audits or reviews of Mineral * The Inverse Distance Weighting Squared (IDWS) model
Resource estimates. was validated against the input drill hole composites
for each vein model by visual comparisons carried out
against the composited drill hole samples and against
the modelled block grade.
* The Zenit Mining team conducted their own internal
MRE estimation of Tavsan, using both their own and
Ariana's input parameters and domain models, but
using different software (Datamine Studio RM).
Results between the Ariana and Zenit estimations were
peer-reviewed and discussed until a level of
agreement was met between both parties in terms of
correct data interpretations.
============================================================ ======================================================================
Discussion
of relative * Where appropriate a statement of the relative * The Mineral Resource estimate at the global level for
accuracy/ accuracy and confidence level in the Mineral Resource the Measured and Indicated Resources based on the
confidence estimate using an approach or procedure deemed estimation technique and data quality and
appropriate by the Competent Person. For example, the distribution is considered to be adequate for the
application of statistical or geostatistical classification. Inferred Resources have a lower level
procedures to quantify the relative accuracy of the of confidence outside of this range, and the
resource within stated confidence limits, or, if such Exploration Target is categorised separately from
an approach is not deemed appropriate, a qualitative Mineral Resources.
discussion of the factors that could affect the
relative accuracy and confidence of the estimate.
* The composition of the mineralisation, and the grade
of the block model accurately reflects bulk samples
* The statement should specify whether it relates to taken at the property for test work.
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.
============================================================ ======================================================================
NOTE: Sections 4 and 5 are not relevant to this work as Reserves aren't being reported and there is no estimation or reporting of diamonds or other gemstones in this project.
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