REG - Ariana Resources PLC - Dokwe Project: Results of detectORE™ Trial

Ariana ResourcesAnnouncement

24/06/2024 07:30

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RNS Number : 4872T  Ariana Resources PLC  24 June 2024

24 June 2024

AIM: AAU

DOKWE PROJECT: RESULTS OF detectORE™ TRIAL

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral
exploration and development company with gold project interests in Africa and
Europe, is pleased to announce the completion of field trials of a
ground-breaking new analytical technique at the Dokwe Project site in
Zimbabwe.

Highlights:

·    Reliable gold analytical results obtained from drill core in as
little as 15 hours (with dry sample), using detectORE™.

·    Over 1,000 samples were successfully tested and cross-checked by an
ISO-accredited laboratory.

·    Gold correlations from detectORE™ versus laboratory results ranged
from good to excellent (0.72 to 0.99 R(2)).

·    A fully operational low-cost and relatively mobile detectORE™
laboratory has now been setup in Zimbabwe, with a second coming online in
Türkiye in the coming weeks.

·    Ariana is implementing this new time-efficient and cost-saving
technology across all its exploration programmes; further experimental work is
already underway in Türkiye.

 

To read a pdf version of the announcement, please click here: Insert PDF link
here

Dr. Kerim Sener, Managing Director, commented:

"We are incredibly impressed with the results of this trial of the
detectORE™ system developed by Portable PPB in Perth, Australia. The system
has demonstrated itself to be considerably cheaper and faster than
conventional analytical methods, which involve shipping to commercial
laboratories, more extensive sample preparation and more complex steps in
analysis. Crucially, the results of the detectORE™ analyses correlated
extremely well with conventional fire-assay results.

"We are now looking forward to implementing the same system based out of our
Ankara office so that we can utilise this methodology for all of our routine
gold exploration analysis requirements in our South-East European area of
operations. Our geoscientific team were present on site in Zimbabwe during the
initial set-up and trial of the system and is now in the process of
implementing a parallel system in Türkiye.

"Ariana is the first company in Zimbabwe and Türkiye to have implemented this
game-changing technology. We have again shown that the Company remains a
pioneer of the very latest technologies in our exploration programmes. This
has had the effect of ensuring our gold discovery cost remains at the
internationally low level of around US$11 per ounce. We look forward to
continuing to work with Portable PPB to provide field-based feedback to aid
the future development of this breakthrough technology."

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

 

Summary

Under normal circumstances, gold cannot be measured in geological samples
using field portable X-ray Fluorescence ("pXRF") due to its low concentration
and the presence of interfering metals (caused by peak overlap). The patented
detectORE™ technology was invented by Australia's National Science Agency,
CSIRO, and has been exclusively licenced for commercialisation to Portable PPB
Pty. Ltd. ("Portable PPB") who were awarded Western Australia Innovator of the
Year in 2023 for their work on detectORE™.

The detectORE™ process overcomes the limitations of pXRF by leaching the
gold from the sample using a lixiviant ("GLIX-20™") and a Collector Device
("CD"). GLIX-20™ is a powerful lixiviant with good selectivity for gold and
allows for a simple and safe process, practical for in-field use. The CD
selectively concentrates dissolved gold, enabling measurement by pXRF.
Fundamentally, detectORE™ is a sample analysis technique that enables
anyone, anywhere, to measure trace concentrations of gold in geological
samples using a pXRF.

A feature of the Dokwe deposit is the amount and extent of pyrite
mineralisation in the metavolcanic rocks, irrespective of gold content. This
makes the discrimination of gold-rich samples visually difficult, and this has
historically resulted in excessive sampling for fire assay, which is expensive
and time-consuming. Finding a technique that can point towards gold
mineralisation could significantly reduce the number of samples sent for fire
assay, and therefore reduce the cost.

Ariana set up a detectORE™ laboratory at the Dokwe Project, and identified
samples of a range of gold grades from historic core, on which to test the
detectORE™ system and gain an understanding of the relationship between the
representative units obtained through the detectORE(TM) process and laboratory
fire assay results. Following this, the due diligence drill-core was analysed
using detectORE™.

A representative selection of the due diligence/detectORE™ samples was sent
to Antech Laboratory (ISO Accredited) in KweKwe, Zimbabwe to be analysed for
gold by fire assay.

detectORE™ Method

Intervals to be sampled were selected, and cut in half using a diamond core
saw. The swarf (sediment normally disposed of and not assayed) obtained during
this cutting was collected and left to settle out from the water used during
the cutting process. After each sample, all equipment was carefully cleaned.
Once settled, the samples were hung to dry in close-weave calico sample bags
to prevent any loss of fines.

Once dry, a pXRF reading was taken from the swarf to obtain multi-element
geochemistry. Next, a 250g sub-sample was weighed and placed into a plastic
pouch with 500ml of reagent added and a collector device (CD) attached to the
inside of the cap of the pouch. The pouches were placed in a barrel and
tumbled for 12 hours. After this, the pouches were removed from the drum and
CDs were removed from the pouches, rinsed gently in water and dried in a
dehydrator oven for three hours (Figure 1).

 

 

 

Figure 1: Photos of the detectORE™ method, from top left to bottom right:
Barcode scanning, sample weighing, CD attachment, reagent preparation, adding
reagent to sample, loading mixer, mixer running for 12 hours, gently washing
CD's, drying CD's, XRF of CD's.

Each batch of 90 samples contained two reference materials supplied by
Portable PPB which were processed and analysed in the same way as the core
pulp samples. The reference materials are not certified but have known
concentrations of gold. They are used to check that the leach and collection
process has worked as intended for that batch. In addition, two blanks and two
field duplicates were included in every 90 samples.

All samples and sample information are tracked using the bar codes on the
pouches and the CD's. The sample numbers are entered into proprietary
pLIMS(TM) software, Portable PPB's software interface for sample management
and results. The barcodes prevent manual errors in data entry.

The pXRF detectORE(TM) mode is firmware installed on portable XRF devices to
allow detection of gold values from the CD's, controlled via API coupled to
pLIMS™ software that also manages the QA/QC. The pXRF detectORE(TM) mode is
calibrated using five Calibrated Collector Devices of varying concentrations
of gold from 0 to 1,000ppb equivalent. Once dried, the CDs were analysed for
gold using Evident's detectORE(TM) mode on a Vanta M Series (VMR) pXRF.

The gold concentration is calculated based on the weight of the original
sample and moisture content, and the amount of gold on the CD (i.e., gold
leached into solution). The gold concentration is given as dU (detectORE(TM)
units), where a dU represents the leached and collected gold in micrograms of
gold. This is a partial extraction, not a total gold result. The laboratory
results from the trial batches are compared to the detectORE(TM) results, and
a correlation coefficient is established. This equation is used to predict the
ppm (g/t) values the dU correlates with, and thus help define samples to be
analysed at a laboratory using conventional assay. The detectORE™ results
when compared to fire assays also provide detailed geometallurgical insights
and leach characteristics, further adding value to this process.

As a check for the detectORE™ process, one batch of samples was analysed
twice, showing strong repeatability of results.

Initial Results

In total, 1,067 samples (including 106 QA/QC samples) were processed through
the detectORE™ system from April to June 2024, of which 79 samples were from
historic drill-holes, and 988 samples were from the Due Diligence drilling.

The detectORE™ results showed a strong correlation with fire assay results
across a range of grades, from barren to 35.0g/t Au, as seen in Figure 2. It
is clear that the detectORE™ results are strongly representative of the fire
assay results, despite results being given in detectORE™ units (dU), with
mineralised intervals indicated at the same depths and with similar
concentrations for both analytical methods.

 

Figure 2: Section view of due diligence drill holes at Dokwe North (DPD129 and
DPD131) and Dokwe Central (DPD130). A good correlation can be seen between
fire assay results displayed in yellow bars on the left side of the drill
strings, and detectORE results in red bars on the right.

Because of the trial, Ariana has concluded that the detectORE™ results can
be confidently used to select samples to be sent for fire assay, or to
determine the next phase of sampling. By correlating the detectORE™ results
with known assay results, the detectORE™ results can be easily converted to
ppm (or g/t) values, which are a close prediction of the potential grade to be
obtained via fire assay. For the Dokwe project, a grade of 500 dU was noted to
be equivalent to approximately 1.00g/t Au.

The correlation between detectORE™ results and fire assays ranged from 0.72
to 0.99 R(2), with an average R(2) value of 0.81 (Figure 3). The average
difference between the predicted grade and the fire assay grade was ±0.3g/t
Au, with differences of greater than ±1g/t Au only seen in 2% of the samples
to date (19 samples), 63% of which were greater than 2.5g/t Au in fire assay.

Figure 3: Scatter Plot showing a good correlation between the fire assay
results (X-axis) and results predicted by the detectORE method (Y-axis). The
graph focuses on the due diligence drilling at Dokwe North (DPD129) and Dokwe
Central (DPD131).

Next Phase

In the initial phase, over half of the samples were analysed at the laboratory
in addition to all samples being analysed through the detectORE™ process.
This is to ensure a better understanding between laboratory results in ppm and
detectORE™ results in dU. In future sampling programmes, approximately only
10% of samples would likely be shipped from the project to undergo standard
fire-assay or equivalent analysis in a commercial laboratory.

The detectORE™ collectors also capture silver (Ag) and copper (Cu). However,
further work is progressing to optimise and understand how Ag and Cu leach and
are collected during the detectORE™ process. Silver is both a commodity and
gold pathfinder element so having the ability to gain data on silver, in the
field, at low concentrations is expected to help find gold and to know when
laboratory silver assays are warranted so the value of this metal can be
factored into project NPV and mine scheduling. All CD's are being archived
safely for future silver and copper measurements after the process has been
fully calibrated by Portable PPB.

 

This trial focused on the use of detectORE™ to analyse drill-core samples.
Future work will include analysing soil and stream sediment samples, where the
economic and efficiency benefits from near-daily turnaround of analytical
results will come into play. Exploration depends on assays to move the process
forward to the next stage with confidence. Having near daily gold assays
anywhere, using a simple highly mobile process will undoubtedly enable us to
explore faster and more confidently and should see further declines in what
are already industry-leading low discovery costs, whilst also fast-tracking
mine development through better insights into ore leach characteristics.

 

Contacts:

 

 Ariana Resources plc                           Tel: +44 (0) 20 7407 3616
 Michael de Villiers, Chairman
 Kerim Sener, Managing Director
 Beaumont Cornish Limited (Nominated Adviser)   Tel: +44 (0) 20 7628 3396
 Roland Cornish / Felicity Geidt
 Panmure Gordon (UK) Limited (Joint Broker)     Tel: +44 (0) 20 7886 2500
 Hugh Rich / Atholl Tweedie / Rauf Munir
 WHIreland Limited (Joint Broker)               Tel: +44 (0) 207 2201666

 Harry Ansell / Katy Mitchell / George Krokos

 Yellow Jersey PR Limited (Financial PR)        Tel: +44 (0) 7983 521 488
 Dom Barretto / Shivantha Thambirajah /         arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)

Bessie Elliot

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

Editors' Note:

 

The information that relates to Exploration Results is based upon information
compiled by Ruth Bektas, Exploration Group Leader, Ariana Resources plc. Ruth
Bektas is a member of Recognised Professional Organisations as defined by JORC
2012: a Chartered Geologist (CGeol, Geological Society of London) and European
Geologist (EurGeol, European Federation of Geologists) and has sufficient
experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity upon which she is reporting as
a Competent Person as defined in the 2012 Edition of "The Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves." Ms.
Bektas consents to the inclusion in this report of the matters based on the
information compiled by her, in the form and context in which it appears.

 

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 Türkiye 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 Türkiye
which contains a depleted total of c. 2.2 million ounces gold equivalent (as
at March 2024, using a price ratio of 90 Ag to 1 Au). The joint venture
comprises the Kiziltepe Mine and the Tavsan and Salinbas projects.

 

The Kiziltepe Gold-Silver Mine is located in western Türkiye and contains a
depleted JORC Measured, Indicated and Inferred Resource of 171,700 ounces gold
and 3.3 million ounces silver (as at March 2024). The mine has been in
profitable production since 2017 and has been producing at an average rate of
c.22,000 ounces of gold per annum. 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 Türkiye and contains a JORC
Measured, Indicated and Inferred Resource of 311,000 ounces gold and 1.1
million ounces silver (as at March 2024). Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan is being
developed as the second gold mining operation in Türkiye and is currently in
construction. A NSR royalty of up to 2% on future production is payable to
Sandstorm Gold.

 

The Salinbas Gold Project is located in north-eastern Türkiye 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, Türkiye, UK and Zimbabwe.

 

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 Mining Corporation
(www.newmont.com) and is separately earning-in to up to 85% of the Slivova
Gold Project.

 

Ariana owns 61% of UK-registered Venus Minerals PLC ("Venus") which is focused
on the exploration and development of copper-gold assets in Cyprus which
contain a combined JORC Indicated and Inferred Resource of 16.6Mt @ 0.45% to
0.80% copper (excluding additional gold, silver and zinc.

 

Panmure Gordon (UK) Limited and WH Ireland Limited are 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:

 

"Au" chemical symbol for gold;

 

"DD" Due Diligence;

 

"g/t" grams per tonne;

 

"pLIMS" Portable Lab Information Management System;

 

"PPPB" portable PPB;

 

"pXRF" portable XRF;

 

Ends.

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