+25% increase over previous resource estimate and +72% increase over the Feasibility Study Resource
Ariana Resources plc (“Ariana” or “the Company”), the AIM-listed exploration and development company operating in Europe, is pleased to announce an update of its JORC compliant Mineral Resource Estimate for the Kiziltepe Mine (“Kiziltepe” or “the Project”). Kiziltepe is part of the Red Rabbit Joint Venture (“JV”) with Proccea Construction Co. and is 50% owned by Ariana through its shareholding in Zenit Madencilik San. ve Tic. A.S. (“Zenit”).
Highlights:
· Increase in global (undepleted) Mineral Resource Estimate to c. 321,000 oz gold (Au) and 5.03 Moz silver (Ag) contained metal on six main veins, including Kepez North and West*.
· Resource update represents a c. 25% increase over the previous resource estimate (announced in May 2017) and a c. 72% increase over the Feasibility Study resource, on an undepleted gold only basis.
· In-situ (depleted) Measured and Indicated Mineral Resource is 2.01Mt @ 2.51 g/t Au and 43.49 g/t Ag for 154,000 oz Au and 2.73 Moz Ag.
· In-situ (depleted) Inferred Mineral Resource of a further 1.01Mt @ 2.23 g/t Au and 29.58 g/t Ag for 73,000 oz Au and 0.96 Moz Ag.
· Depletion to date includes 70,684 oz Au and 738,320 oz Ag produced from the Kiziltepe Mine to the end of Q1 2020, in addition to stockpiled ore (c. 130,000 t) awaiting processing.
· Resource increase continues to support the potential for significantly extended mine life at Kiziltepe based on current throughput rates, should Resources be converted to Reserves.
· Several subsidiary veins comprise a substantial JORC Exploration Target which will be drill-tested in the future with the aim of converting to resources.
* All Mineral Resource figures in the announcement are quoted gross with respect to the Red Rabbit Joint Venture. Ariana owns 50% of the JV.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Dr. Kerim Sener, Managing Director, commented:
“Following the drilling in 2019, the Company commenced a thorough review of its geological models and undertook revisions to its Mineral Resource Estimate for the Kiziltepe Mine. On completion of the internal review, independent consultants, Coffey, completed an undepleted and depleted Mineral Resource Estimate, so that comparisons can be drawn to previous estimates.
“We are very pleased to note that the revised estimate supports an increase in expected mine-life to at least 2026 using a historical Resource to Reserve conversion ratio of 60% and at a throughput rate maintained at 200,000 tonnes per annum. This also excludes possible conversion of any Inferred Resources and Exploration Targets to future Measured and Indicated Resources or Reserves. We will continue to work on increasing the life of mine through additional open pit and potential underground extensions.
“We are also pleased to report that we are just commencing a new diamond drilling programme, which has been designed to follow-up on the results of our recent exploration programme at Arzu South and which had targeted the potential for underground extensions to the current resource. As this programme is being conducted in the midst of a pandemic, safety of our personnel and that of our contractors comes first, and early termination of the programme is consequently possible. We will keep the market appraised of our progress, as appropriate.”
Full update www.share-talk.co.uk/announcements/rns/
