REG - Ariana Resources PLC - Dokwe Project: Revised Mineral Resource Estimate
13/06/2024 07:00
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RNS Number : 2045S Ariana Resources PLC 13 June 2024
13 June 2024
AIM: AAU
DOKWE PROJECT: REVISED MINERAL RESOURCE ESTIMATE
1.8Moz gold defined with 40% increase in Resources
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 a revised Mineral Resource
Estimate ("MRE") of both Dokwe North and Dokwe Central, which now contain a
combined 1.83Moz of gold. Ariana has entered into a conditional agreement to
acquire 100% of Rockover Holdings Limited ("Rockover") via merger, and
currently holds circa 2.1% of Rockover. Rockover owns 100% of the Dokwe North
and Central Gold Projects in Zimbabwe ("Dokwe"). This Resource Estimate has
been prepared by the Ariana technical team under the leadership of Mr. Zack
van Coller and is based on a detailed review of all available drilling data
acquired from 2004 through to 2023 over ten phases of drilling.
Highlights:
· Global JORC 2012 Resource of 55.9Mt @ 1.02g/t Au for 1.83Moz of gold,
with opportunities identified for further resource growth.*
· 40% increase in JORC 2012 Resources, with the addition of Dokwe
Central and revisions to the geological models at both Dokwe North and
Central.
· Measured and Indicated Resuources are 1,341koz (previously 1,202koz)
and Inferred Resources 490koz (previously 23koz).
· JORC 2012 Reserves to be revised following new pit optimisations;
current Reserves of 0.8Moz of gold as defined in the 2022 pre-feasibility
study.
· Opportunities identified in regional exploration datasets to further
increase the resource potential of the wider Dokwe Project Area.
· Planning for further revisions to the pre-feasibility study underway,
with expectations that these will form part of a future feasibility study on
conclusion of the Merger with Rockover.
Important Note:
* Stated gross with respect to Rockover Holdings Limited (RHL) which is the
operator of which Ariana currently holds 2.1%. The resources quoted include
Dokwe North and Dokwe Central. Accordingly, and taking into account the
proposed acquisition of RHL by Ariana which is currently subject to Ariana
Shareholder approval, the resource figures are only presented on a gross
basis. Were this acquisition not to proceed, the resources will be represented
on the basis of Ariana's net attributable interest as aforesaid. All resources
stated herein are under JORC (2012).
To read a pdf version of the announcement, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/2045S_1-2024-6-12.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2045S_1-2024-6-12.pdf)
Dr. Kerim Sener, Managing Director, commented:
"The latest Mineral Resource Estimate for the Dokwe Gold Project demonstrates
the considerable upside potential of this substantial exploration and
development opportunity. With a Global JORC 2012 Measured, Indicated and
Inferred Resource of over 1.8Moz of gold across Dokwe North and Central, this
represents a 40% uplift in resources from the previous estimate. A significant
contribution to this uplift is due to the update of Dokwe Central in
compliance with JORC 2012. Measured and Indicated Resources currently comprise
73% of the total resource, much of which sits within the historic optimised
pits. If Inferred Resources are also included, approximately 1.1Moz of gold
sits within the previously designed or optimised pits. This suggests the
potential to significantly enhance Reserves (currently 0.8Moz of gold) in
future economic studies.
"In the coming weeks, we will be commencing a new set of pit optimisations for
the Dokwe Project to better constrain the specific part of the resource that
could be amenable to extraction via open-pit mining using current economic
parameters. The prior optimisations on which the present in-pit resources were
constrained were undertaken at a gold price of US$1,800 per ounce and are now
considered too conservative for long-term planning purposes. The new pit
optimisations will be undertaken at US$2,000 and US$2,500 per ounce,
reflective of the current price range of the commodity.
"Our assessment of the Dokwe Project has improved significantly during the
period in terms of diligence and we see opportunities for significant
exploration upside to the established resources at North and Central, in
addition to camp-scale potential in the wider area. As with many Archaean
greenstone belt terranes, major gold deposits tend to occur as clusters within
distinct multi-million ounce "camps", occurring along crustal-scale shear
zones. All of these elements are present in the Dokwe region, including
several untested gold-in-soil anomalies, and this bodes well for our
long-range strategy to develop the Dokwe Project as a modern mining hub in
Zimbabwe."
"Ultimately, we see an opportunity to define a multi-million-ounce resource
development project at Dokwe. On conclusion of the merger with Rockover, we
are excited to commence work on the Feasibility Study, which will investigate
the potential to develop both Dokwe North and Central over an open-pit mine
life of up to 15 years to produce at least 1Moz of gold. We are engaging with
various project consultants concerning this work and are considering various
finance approaches, including the planned ASX listing, to accelerate our work
programmes at Dokwe and across our wider portfolio."
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.
About the Dokwe Project
The Dokwe North and Dokwe Central gold deposits are located 2km apart ("Dokwe
Project") and are situated in the Tsholotsho District 110km WNW of Bulawayo,
Zimbabwe (Figure 1). Bulawayo is the second largest city in Zimbabwe
(population of c. 660,000) with excellent road, rail and air links to the rest
of the country and internationally, and represents a significant mining
services and educational centre, hosting both the Zimbabwe School of Mines and
the National University of Science and Technology.
The Dokwe Project was discovered by Rockover in 2002, utilising innovative
soil geochemical exploration methods capable of detecting mineralisation
beneath cover, and subsequently drill-tested for the first time in 2004. It
represents the largest undeveloped gold project in Zimbabwe and is currently
owned by Rockover Holdings Limited ("Rockover"). Ariana is in the process of
acquiring the Dokwe Project via an all-share merger with Rockover, which is
due to close at the end of June, subject to an Ariana shareholder meeting and
shareholder approval.
Between November 2023 and April 2024, the Ariana team conducted a detailed Due
Diligence ("DD") review of the Dokwe North and Dokwe Central gold deposits to
confirm historic results, and better understand their setting, style, and key
ore characteristics (AIM: 6 June 2024). Ariana drilled four holes totalling
1,222 metres of orientated diamond drill core, which enabled confirmation of
historic grades, density analysis and a study of the structural features
within each deposit. This work was enhanced by 21,662 metres of new X-ray
Fluorescence (pXRF) multi-element analysis on drill core at one-metre spacings
across 37 historic holes. The new data has comprehensively advanced our
understanding of the deposit geology and controls on mineralisation.
Background
In May 2022, An Independent Competent Person's Report, in accordance with the
JORC Code, 2012 Edition, was completed as part of a pre-feasibility study on
Dokwe North by Johannesburg-based company Minxcon Consulting (Pty) Ltd. This
was contracted by Rockover Holdings Limited to validate Dokwe North's Mineral
Resources and Ore Reserves. The study included a mine plan and financial
analyses.
The Mineral Resources for Dokwe Central were last estimated by Digital Mining
Services, and reported by Canister Resources Limited (a 100% owned subsidiary
of Rockover Holdings Limited), in January 2011 in accordance with the JORC
Code, 2004 Edition. The revised resource announced within this release expands
on the work completed in 2011 and reports the new Mineral Resources in
accordance with the JORC Code, 2012 Edition. The work presented here has
validated and expanded on the prior work at Dokwe North and Central, and the
Mineral Resource estimates have incorporated new data and revised modelling
methods accordingly.
Figure 1: Summary map of Dokwe North and Central showing the outline of the
designed pre-feasibility pit for Dokwe North and the optimised pit (not
included in the pre-feasibility) for Dokwe Central. The 2024 MRE domain
outlines are shaded in pink. Ariana's 2023-2024 due diligence drilling collars
are also shown in magenta.
Resource Estimation
This Resource Estimate has been prepared by the Ariana technical team under
the leadership of Mr. Zack van Coller and is based on a detailed review of all
available drilling data acquired from 2004 through to 2023 over ten phases of
drilling. This data comprises 141 diamond drill holes and 57 percussion drill
holes across both resource areas. For Dokwe North, the total metres drilled is
32,663m (116 holes), and for Dokwe Central 5,271m (25 holes), for a combined
total of 37,934m of drilling. The average collar spacing in Dokwe North is
approximately 50m and 30m at Dokwe Central.
The estimation method used for the current iteration of the Dokwe North and
Central Resources is an Inverse Distance Weighting Squared ("IDW2")
estimation. For Dokwe North, the estimation was validated using a separate
Ordinary Kriging ("OK") estimation study. A supporting Quantitative Kriging
Neighbourhood Analysis ("QKNA") was completed to validate the 2022 estimation
block size and number of sample inputs. A study of discretisation and drill
hole limiting was not re-evaluated; inputs from previous work were deemed
satisfactory. Additionally, a grade interpolation model, using a 0.15g/t Au
cut-off, was used to further "test" the resource and validate statistics. The
Mineral Resource Estimate was categorised based on the input data quality,
validation of standards, the review of quality assurance and quality control
protocols, range of the respective semi-variograms, number of drillholes,
minimum and maximum number of samples and the performance of multiple search
passes within the estimate.
In late 2023, the Ariana team completed a drone survey over the Dokwe North
area which captured 2,600 detailed aerial images to produce a high-resolution
(4cm/pixel) photogrammetry map. This was used to validate and locate all
historic collars within the immediate Dokwe North area to within 1m accuracy.
Drill collars at Dokwe Central were visited and confirmed by handheld GPS to
within 5m accuracy.
Estimation Methodology
The latest MRE is based primarily on the input of new geological understanding
derived from over 21,000 pXRF readings taken on drill core throughout the main
resource areas. Detailed studies of the multi-element data have identified key
pathfinder elements attributed to various mineral-hosting lithologies;
resulting in accurate three-dimensional lithostratigraphic models produced in
Leapfrog Geo. The new lithostratigraphic models are used in the latest MRE as
domains within which gold is estimated. This type of model differs from more
commonly used estimation methods where a commodity grade shell is created
either by multiple sections or through mathematical interpolation.
Both deposit areas use lithological composites manually created in Leapfrog
Edge using a combination of geological logging and pXRF results of specific
pathfinder elements including; Ca, Ce, Co, Cu, Mn, Ni, Rb, Zn and Zr. These
were used to determine the lithological boundaries and volumes of a domain.
Estimation composites of gold grade within each lithology domain were
completed using a 1m best-fit routine. The application of a "semi-soft"
boundary with a 1m range was used in the estimation to allow data points with
value located outside (to a maximum distance of 1m) of the domain boundaries
to influence the internal boundary estimation grade.
At Dokwe North, analysis of gold grade composite values within each
lithological domain identified bias of higher gold values exceeding 20g/t Au
and up to 1,885g/t Au in some of the major lithologies (quartz-feldspar
porphyry, felsic tuff, dacite and the lower agglomerate). A closer evaluation
of the data showed no significant clustering of higher grade to warrant
high-grade sub-domaining. To preserve some of the documented high grade within
the deposit, it was determined that an Outlier Restriction should be applied
instead of a top-cut. This reduces the bias by constraining the effect of high
values at a distance (approximately 17 metres in this case). To prevent excess
influence of extreme grades (over 100g/t Au), values beyond the restricted
distance were clamped to 50g/t Au. This was further constrained in the "Pass
3" (Inferred) component of the resources to a 10g/t Au clamp.
Composite domain values at Dokwe Central displayed similar bias of higher
grades. However, concerning average grades overall, the deposit is sensitive
to the application of an upper cut due to a high variability in grade between
the 95(th) and 99(th) percentile spread. Further work is required to
sub-domain higher grades within the deposit, particularly at depth, where
fewer drill holes are available for the current modelling. An appropriate
top-cut application for Dokwe Central would be 10g/t Au. However, to preserve
high-grade (multiple composites above 20g/t Au) locally within the estimation
domain, an Outlier Restriction was applied with a grade clamp of 20g/t Au. The
Outlier Restriction within the Indicated portion of the Resource allows
high-grade samples to influence surrounding blocks to 40% of the sample search
distance (approximately 16 metres).
A Specific Gravity ("SG") estimation model was established for Dokwe North.
475 SG readings from 22 drillholes were coded into the final block model. This
data includes 158 verification samples taken by Ariana during the company's DD
review. Average SG measurements across Dokwe North range from 2.71g/cm(3) in
the oxide zone, 2.76g/cm(3) in the transitional zone to 2.81g/cm(3) in the
sulphide zone. No historic SG data exists for Dokwe Central. However, Ariana
acquired 92 measurements through the deposit profile from two drill holes
completed during its 2023 DD programme. The average SG for these 92
measurements is 2.69g/cm(3). This was applied to the Dokwe Central model as a
constant value.
The Dokwe North database has over 17,000 structural measurements which have
dominantly been acquired digitally from historic core photos from 25
orientated diamond drill holes. Most of this data was accumulated between 2020
and 2021 with the use of specialist software; SteroCore PhotoLog. Ariana has
applied this data in its geological modelling studies to identify key
structural inputs, which may provide further insight into specific controls on
mineralisation. Furthermore, during Ariana's logging of the DD diamond holes,
198 structural measurements were manually taken using a Rocket Launcher tool.
These measurements are being used as a means for validating all other
structural data held in historic archives. To date, at least three dominant
structural features have been identified within Dokwe North. These features
have been modelled into the latest MRE work and used to supplement the
variography supporting the MRE. Dokwe Central has very limited structural
measurements. However, Ariana acquired 148 new measurements using a Rocket
Launcher tool. These readings are being used to support the 3D geological
modelling completed as a foundation for the Dokwe Central Mineral Resource
estimate.
Variogram modelling for Dokwe North was completed to support estimation search
ellipse orientations, and also for cross-checking the IDW2 estimation with an
OK model. Good variography was generally achieved for the majority of
mineralised lithological domains. However, coefficient of variation ("CV")
values within the supporting statistics suggests that further sub-domaining of
lithological volumes is required to achieve better variograms. This is likely
because the Dokwe North deposit displays at least two episodes of folding.
Sub-domaining of fold limbs in future work will provide more robust
statistical analysis. Further work will also look to create additional
sub-domains of key mineralising controls, such as fault zones.
Validation of the variogram was attempted for Dokwe Central. However, no
reasonable variogram could be obtained without cutting the data to the 95(th)
percentile, which in the case of Dokwe Central is 10g/t Au. With this cut
applied, a nugget effect of 2.74g/t Au is recorded; but without the top-cut,
the nugget effect is considered to be approximately 18g/t Au, which is
unreasonable. On this basis, an OK estimation was not completed. Variography
was used in creating a search ellipse to support an IDW2 estimation.
Weathering is deemed to be logged consistently through the Dokwe North
deposit. A total of 14,220 metres of core was logged as "Primary" or Sulphide;
3,016 metres as "Moderate" or Transitional, and 5,671 metres as "Weathered" or
Oxide across 103 diamond drill holes (Table 4).
For both deposit areas, an orthogonal non-rotated block model was established
using block sizes determined to be optimal for the dataset and wireframe
geometry. For Dokwe North this was 20m x 20m x 5m (X, Y, Z), and for Dokwe
Central 10m x 10m x 5m (X, Y, Z). Oblique views of the block models, drilling
and open pits for Dokwe North and Dokwe Central can be seen in Figures 2 and
3, respectively.
Figure 2: Summary section of Dokwe North showing the outline of the 2022
designed pre-feasibility pit for Dokwe North.
Figure 3: Summary sections of Dokwe Central showing the outline of the
historic optimised pit (not included in the 2022 pre-feasibility) for Dokwe
Central.
Resource Classification
The Dokwe Project MRE is classified in accordance with the JORC Code (2012) as
Measured, Indicated and Inferred Resources (Tables 1- 4). The style of
mineralisation has been identified, the controls on mineralisation are well
understood and measurements and sampling completed to a reasonable degree of
confidence for the mineralisation present (Appendix 1). Approximately 33% of
the global resource is classified as Measured and 40% is classified as
Indicated. It is considered reasonable to expect that some of the Inferred
Mineral Resources could be re-classified as Indicated Mineral Resources with
continued exploration; however, due to the uncertainty of Inferred Mineral
Resources it should not be assumed that such upgrading will always occur. It
is also reasonable to expect that portions of the Indicated Mineral Resources
could be upgraded to Measured Mineral Resources with some additional infill
data. Reporting of tonnages and metal content is based on the application of a
0.3g/t Au reporting cut-off for both Dokwe North and Dokwe Central (Table 1, 2
and 3). Indicated resources for Dokwe Central are presented here by only what
is captured by optimisation work completed previously. Confidence in the
estimate of the Mineral Resources is sufficient to allow the results of the
application of technical and economic parameters to be used for further
planning in a Feasibility Study. However, additional drilling may be required
to help support an Environmental Impact Assessment as well as other technical
studies. In addition to supporting a Feasibility Study, this new Mineral
Resource Estimate will assist in the targeting of future exploratory and
resource drilling to expand the resource further, particularly in areas
surrounding the northern extents of Dokwe North and the deeper extents of
Dokwe Central.
Table 1: Summary of Global Resources for the Dokwe Project at various
reporting cut-off grades. The pre-feasibility study completed in 2022 used a
0.3g/t Au cut-off grade and the variation around this grade is shown in the
table below, based on the new geological model. The extended modelling of
peripheral low-grade within the Dokwe North deposit in this latest study has
allowed a significant increase to overall Inferred Resources. It is deemed
that 0.3g/t Au reporting cut-off (in bold) presently best represents the
economic cut-off based on prior optimisation studies. Figures in the table may
not sum precisely due to rounding.
Reporting cut-off (g/t Au) Measured Indicated Inferred Total
Tonnes Au (g/t) Au(oz) Tonnes Au (g/t) Au(oz) Tonnes Au (g/t) Au(oz) Tonnes Au (g/t) Au(oz)
0.2 16,923,000 1.15 624,000 28,930,000 0.87 811,000 33,418,000 0.54 579,000 79,271,000 0.79 2,014,000
0.3 13,757,000 1.35 599,000 20,137,000 1.15 742,000 21,994,000 0.69 490,000 55,888,000 1.02 1,831,000
0.4 11,335,000 1.57 572,000 15,441,000 1.39 690,000 14,951,000 0.86 412,000 41,727,000 1.25 1,674,000
0.5 9,285,000 1.82 542,000 12,202,000 1.64 644,000 12,098,000 0.95 371,000 33,585,000 1.44 1,557,000
Table 2: Summary of 2024 Dokwe Project JORC 2012 compliant Mineral Resource
Estimate, based on 141 drill holes (dated 13 June 2024). Reporting is based on
a 0.3g/t Au cut-off grade for both Dokwe North and Dokwe Central. Figures in
the table may not sum precisely due to rounding.
Classification Tonnage Grade Metal Content
(t)
Au Au
(g/t) (oz)
Measured 13,757,000 1.35 599,000
Indicated 20,137,000 1.15 742,000
Inferred 21,994,000 0.69 490,000
Global Total 55,888,000 1.02 1,831,000
Table 3: Summary of the 2024 Dokwe Project JORC 2012 compliant Mineral
Resource Estimate outlining the weathering state by classification for each
deposit area at a reporting cut-off of 0.3g/t Au. Figures in the table may not
sum precisely due to rounding.
Deposit Area Weathering Classification Tonnage Grade Metal Content
(t)
Au Au
(g/t) (oz)
DOKWE NORTH Oxide Measured 2,895,000 1.27 118,000
Indicated 2,971,000 1.00 96,000
Inferred 3,137,000 0.82 83,000
Sub Total 9,003,000 1.03 297,000
Transitional Measured 3,380,000 1.15 125,000
Indicated 2,827,000 0.80 73,000
Inferred 1,535,000 0.66 32,000
Sub Total 7,741,000 0.92 230,000
Sulphide Measured 7,482,000 1.48 356,000
Indicated 13,089,000 1.22 512,000
Inferred 14,998,000 0.57 275,000
Sub Total 35,570,000 1.00 1,142,000
DOKWE CENTRAL Sulphide Indicated 1,250,000 1.54 62,000
Inferred 2,324,000 1.34 100,000
Sub Total 3,574,000 1.41 162,000
Global Total 55,888,000 1.02 1,831,000
Table 4: A summary of the 2024 Dokwe Project JORC 2012 compliant Mineral
Resources captured by the 2022 PFS designed (Dokwe North), and optimisation
(Dokwe Central) pits defined from the previous iteration of the Dokwe North
2022 and Dokwe Central 2011 Mineral Resources. New optimisation work will be
completed to accommodate the latest 2024 estimation as part of the declaration
of revised Reserves. Figures in the table may not sum precisely due to
rounding. Resources are stated at a 0.3g/t Au reporting cut-off.
Project Area Pit Status Classification Tonnage (t) Grade Metal Content
Au (g/t) Au (oz)
DOKWE NORTH In Pit 2022 Designed Measured 13,296,000 1.37 587,000
Indicated 10,141,000 1.36 443,000
Inferred 1,693,000 0.86 47,000
Sub Total 25,130,000 1.33 1,077,000
Out of Pit Measured 461,000 0.81 12,000
Indicated 8,746,000 0.84 237,000
Inferred 17,890,000 0.59 342,000
Sub Total 27,097,000 0.68 591,000
DOKWE CENTRAL In Pit Indicated 1,250,000 1.54 62,000
Optimisation
Out of Pit Inferred 2,324,000 1.34 100,000
Sub Total 3,574,000 1.41 162,000
In Pit Total 26,380,000 1.34 1,139,000
Total 55,801,000 1.02 1,830,000
Important Note:
All resources in the tables above are under JORC (2012) and are stated gross
with respect to Rockover Holdings Limited (RHL), which is the operator, taking
into account the proposed acquisition of RHL by Ariana which is currently
subject to Ariana Shareholder approval. Were this acquisition not to proceed,
the resources will be represented on the basis of Ariana's net attributable
interest of 2.1%.
Mineral Resource Comparison (Dokwe North)
Mineral resources for Dokwe North were previously reported in May 2022 by
Johannesburg-based company Minxcon Consulting (Pty) Ltd ("Minxcon"). The
estimation methodology used by Minxcon was a cross-validation Ordinary Kriging
with secondary Inverse Distance Weighting Squared estimation.
The resource domains used within Minxcon's estimation were based on a 0.2g/t
Au grade-shell interpolation with a "soft" boundary higher-grade 0.7g/t Au
internal core. In the absence of good geological data, and to identify grade
continuity, this method of mineralisation modelling is widely accepted. The
three-dimensional modelling and estimation method by Minxcon was completed to
an excellent standard. However, the grade-shell interpolations created have
two complications: 1) Other than grade continuity correlations, no geological
factors are built into the model i.e., lithological units, folding, faulting
and/or other potential geological controls; and 2) Numerical interpolation
models tend to be very conservative with regards to Inferred Resources as
iso-surfaces only form volumes in proximity to known data points.
Key comparisons between the 2022 Minxcon MRE and the 2024 Ariana MRE includes
(Dokwe North):
· The latest iteration of the Dokwe North modelling is based on
accurately identifying logged geological units with the support of over 21,000
multi-element pXRF readings.
· It is now understood from the geologically driven model that 40% of
identified mineralisation is hosted within a weakly metamorphosed dacite unit,
with a further 35% within a felsic tuff (Table 5). Interestingly, the felsic
tuff unit has been identified with mineralisation in several holes away from
the main deposit core, outlining significant direction for future exploration
work.
· The new lithologically driven volumes created in Ariana's estimation
have resulted in each lithology being considered as its domain with its
estimation inputs, giving a more robust estimation result, and allowing for
suitable extrapolation of Inferred Resources to aid future exploration.
· The Minxcon estimation utilised a 39.62 g/t Au top-cut on its
high-grade domain and 21.31g/t Au top-cut on its low-grade domain. Ariana's
evaluation identified the application of a grade outlier-restriction method to
be more suitable for the preservation of high-grades (grades exceeding 50g/t
Au). This has partly affected the average grade in the Measured and Indicated
categories of the deposit by 30% and 9%, respectively.
· Both Minxcon and Ariana utilise a three-pass search volume method in
which to classify resources. Both companies further utilise Kriging Slope of
Regression ("SoR") outputs to aid classification. However, to improve
uniformity of the classification categories within Ariana's estimation a Pass
1 and Pass 2 interpolation volume was built.
· The 2022 MRE is dominated by Indicated Resources (22.92Mt), versus
Ariana's (20.14Mt) (Figure 4). Additional drilling completed by Ariana and a
better understanding of the data has led to some of the Indicated Resources
being converted to Measured Resources. Other differences are likely the result
of peripheral inputs attributed to the classification methods being used.
· Ariana's 2024 MRE demonstrates significant resource upside in terms
of Inferred Resources. This is a direct result of a better understanding of
the geology to allow appropriate extrapolation of mineralisation to occur
within the model.
· In terms of domain volumes, Ariana's model shows a 33% increase in
mineralisation volume (Figure 5). However, this additional volume is generated
entirely from the geological extrapolation of the Inferred Resources. Due to
the lack of accurate lithological data and type of modelling method used by
Minxcon, it was not possible to identify potential zones for Inferred
Resources. The Measured and Indicated components of the both resources have
very similar volumes.
Figure 4: A summary comparison of the 2022 Minxcon MRE estimation tonnages and
ounces versus the Ariana 2024 MRE. The Ariana estimate shows some conversion
of Indicated Resources outlined in 2022 to Measured Resources. The Minxcon
modelling lacks the identification of potential resource growth in the
Inferred category.
Figure 5: A summary comparison of the 2022 Minxcon MRE estimation volumes, and
Ariana's 2024 MRE volumes. With respect to Measured and Indicated Resources,
both models have produced similar volumes, this is because both companies have
utilised similar methods to categorise these resources. However, with Ariana's
increase in geological confidence, additional volumes have been created for
Inferred Resources.
Table 5: A summary of the 2024 Dokwe Project JORC 2012 compliant Mineral
Resources compartmentalised by the modeled lithological units within each
deposit area. Resources are stated at a 0.3g/t Au reporting cut-off. For Dokwe
North, the primary mineralised lithologies are the Felsic Tuffs, and the
underlying dacite which make up 75.1% of the DN resource. Significant
exploration potential exists within the "Northern Limb" Felsic Tuff, and the
"Faulted Deep" Felsic Tuff. Figures in the table may not sum precisely due to
rounding.
Project Area Lithology Density (g/cm(3)) Tonnage Grade Metal Content % %
(t) of Local Resource of Global Resource
Au (g/t) Au (oz)
Dokwe North Upper Agglomerate 2.67 1,670,000 0.61 32,900 2.0 1.8
Quartz Feldspar Porphyry 2.72 4,773,000 0.91 140,000 8.4 7.7
Felsic Tuff 2.81 17,353,000 1.05 583,600 35.0 31.9
Dacite 2.83 16,730,000 1.25 669,800 40.1 36.6
Lower Agglomerate 2.85 2,697,000 0.95 82,500 4.9 4.5
Andesite 2.86 5,766,000 0.53 97,700 5.9 5.3
"Northern Limb" Felsic Tuff 2.83 1,479,000 0.50 23,900 1.4 1.3
"Faulted Deep" Felsic Tuff 2.79 1,846,000 0.65 38,500 2.3 2.1
Dokwe North 2.81 52,314,000 0.99 1,668,900 100.0 91.2
Sub Total
Dokwe Central Biotite Schist 2.69 3,574,000 1.41 161,700 100.0 8.8
Dokwe Central Sub Total 2.69 3,574,000 1.41 161,700
GLOBAL TOTAL - 55,801,000 1.02 1,830,000
Mineral Resource Comparison (Dokwe Central)
The Mineral Resources for Dokwe Central were last estimated by Digital Mining
Services, and reported in January 2011 in accordance with the JORC Code, 2004
Edition. The work completed by Ariana aimed to validate input parameters and
supporting statistics.
The 2011 estimation domains were manually constructed wireframes base on three
vertically oriented mineralised bodies (Figure 6A). The 2024 Ariana estimation
domains are based on a lithological model between two primary geological
packages; hanging wall biotite schists (mineralised) and footwall sedimentary
gritstones/conglomerates (barren). Separating the two geological packages is a
significant east-west trending fault (very similar to the 2011
interpretations). Mineralisation was restricted from extrapolating across to
the "barren" sedimentary units. Within the biotite mineralisation package
search ellipse inputs were used from the 2011 MRE to re-establish and validate
mineralisation continuity in the new model (Figure 6B).
The 2011 MRE was evaluated to be very conservative with wireframe boundaries
being very restrictive in joining clusters of mineralised composites.
Interpolation modelling with support from pXRF data from eight diamond drill
holes, as well as additional new drill holes drilled at the deposit since 2011
(mainly two new holes drilled by Ariana in 2023), has made more representative
iso-surface volumes as an update to mineralisation interpretations (Table 6).
The work completed by Ariana at Dokwe Central has validated historic resources
and expanded on the mineralisation interpretations. The supporting data and
resulting estimations have been updated and are now reported in accordance
with the JORC Code, 2012 edition.
Figure 6: A) the 2011 geological interpretation of the Dokwe Central deposit.
B) The 2024 interpretation. Both models have identified the same trends and
constraints on mineralisation. However, the 2024 estimation is backed by
additional drilling, pXRF geochemistry and updated modelling methods;
resulting in an overall larger volume of mineralisation being established.
Table 6: A comparison table of the 2011 estimation results for Dokwe Central
against the revised 2024 estimation results at 0.2, 0.4 and 1g/t Au reporting
cut-offs. The revised Ariana estimation utilised new drilling data, modelling
methods and the input of pXRF geochemistry to define the extent of
mineralisation (also showing the 0.3 g/t Au case).
Reporting cut-off (g/t Au) Indicated Inferred Total
Tonnes Grade (g/t) Au(oz) Tonnes Grade (g/t) Au(oz) Tonnes Grade (g/t) Au(oz)
2011 MRE 0.2 661,000 2.09 44,000 528,000 2.09 36,000 1,189,000 2.09 80,000
0.4 645,000 2.13 44,000 495,000 2.21 35,000 1,139,000 2.17 79,000
1 527,000 2.46 42,000 373,000 2.73 33,000 900,000 2.57 74,000
Reporting cut-off (g/t Au) Indicated Inferred Total
Tonnes Grade Au(oz) Tonnes Grade Au(oz) Tonnes Grade Au(oz)
2024 MRE 0.2 2,081,000 1.22 82,000 2,627,000 1.05 89,000 4,708,000 1.13 171,000
0.3 1,250,000 1.54 62,000 2,324,000 1.34 100,000 3,574,000 1.41 162,000
0.4 1,357,000 1.72 75,000 1,486,000 1.64 78,000 2,843,000 1.68 154,000
1.0 799,000 2.48 64,000 998,000 2.11 68,000 1,797,000 2.28 131,000
Both of the final JORC Tables for the revised MRE for the Dokwe Project will
be made available on the corporate website (https://www.arianaresources.com/)
.
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 Mr. Zack van Coller BSc (Hons), Targeting Group Leader, Ariana
Resources plc. Mr. van Coller is a Fellow of The Geological Society of London,
and has sufficient experience which is relevant to the style of mineralisation
and type of deposits under consideration and to the activity which he is
undertaking 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). Mr. van Coller has over 10 years of
relevant experience in the Technical Assessments of Mineral Properties. Mr.
van Coller consents to the inclusion in the report of the matters based on his
information 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;
"JORC" Joint Ore Reserves Committee;
"k" thousand
"km" Kilometres;
"m" Metres;
"MRE" Mineral Resource Estimate;
"M" million
"oz" Troy ounces;
"pXRF" portable XRF;
"t" tonnes;
"Inferred Mineral Resource" is that part of a Mineral Resource for which
quantity and grade (or quality) are estimated on the basis of limited
geological evidence and sampling. Geological evidence is sufficient to imply
but not verify geological and grade (or quality) continuity. It is based on
exploration, sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill
holes. An Inferred Mineral Resource has a lower level of confidence than that
applying to an Indicated Mineral Resource and must not be converted to an Ore
Reserve. It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with continued
exploration.
"Indicated Mineral Resource" is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape and physical characteristics
are estimated with sufficient confidence to allow the application of Modifying
Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is derived from
adequately detailed and reliable exploration, sampling and testing gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes, and is sufficient to assume geological and
grade (or quality) continuity between points of observation where data and
samples are gathered. An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral Resource and may only be
converted to a Probable Ore Reserve.
"Measured Mineral Resource" is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape, and physical characteristics
are estimated with confidence sufficient to allow the application of Modifying
Factors to support detailed mine planning and final evaluation of the economic
viability of the deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill
holes, and is sufficient to confirm geological and grade (or quality)
continuity between points of observation where data and samples are gathered.
A Measured Mineral Resource has a higher level of confidence than that
applying to either an Indicated Mineral Resource or an Inferred Mineral
Resource. It may be converted to a Proved Ore Reserve or under certain
circumstances to a Probable Ore Reserve.
Ends.
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