TIDMAAU
RNS Number : 2404V
Ariana Resources PLC
02 December 2019
2 December 2019
AIM: AAU
COPPER-GOLD PROJECTS EARN-IN
Ariana to Acquire up to 50% of Venus Minerals Ltd
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed
exploration and development company, is pleased to announce its
acquisition, through an earn-in agreement, of up to 50% of
UK-registered Venus Minerals Ltd ("Venus"). Venus is focused on the
exploration and development of copper and gold assets in Cyprus.
The acquisition develops Ariana's strategy to create a portfolio of
interests in the Eastern European region, and across the Company's
broad target area of the Tethyan Metallogenic Belt. Ariana also
recognises the significance of copper as the most important
technology-metal required for the global green-energy
transition.
Highlights:
-- Ariana to acquire up to 50% of Venus through an earn-in
agreement, having already acquired rights to 6% on prior
expenditure of 0.6M Euro and commitment of up to a further 2.4M
Euro over the next three years.
-- The Magellan Project contains a total historical resource of
c. 9.5Mt @ 0.6% Cu (gross and not JORC 2012 compliant), where best
copper-gold intercepts from drilling include:
o 53m @ 2.05% Cu, 64m @ 0.97% Cu, 85m @ 0.68% Cu at the
Kokkinoyia site.
o 36m @ 2.58% Cu, 50m @ 1.65% Cu, 47m @ 1.63% Cu and 48m @ 1.15
g/t Au, 36m @ 0.60 g/t Au and 8m @ 1.72 g/t Au at the Klirou
site.
-- Open-pit optimisations and metallurgical data for the
Magellan Project demonstrate potential for economic extraction;
recoveries of up to 75% for copper and 79% for zinc demonstrated
from samples.
-- Resources are open in several directions and particularly
down-plunge and show significant potential for the identification
of gold-rich zones overlooked by previous exploration.
-- Highly prospective exploration ground held under licence,
containing a pipeline of prospects ranging from drill-ready targets
to exciting new copper-in-soil discoveries.
-- Venus has a long-standing in-country track record and
relationships, plus an invaluable and exclusive database covering
nearly all previous work across Cyprus.
Important Note: The resource figures quoted above and in the
text below are not reported in accordance with an AIM Standard
under the AIM Rules and should therefore not be relied upon by
investors pending the upgrade to JORC 2012 reporting which Venus is
intending to undertake and report to the Market as soon as
practicable.
Dr. Kerim Sener, Managing Director of Ariana Resources,
commented:
"We are exceptionally pleased to expand our interests within the
Tethyan Metallogenic Belt and to do so in the
operationally-friendly jurisdiction of Cyprus represents the
fulfilment of a well elucidated long-term diversification strategy
of the Company. Cyprus holds a global reputation for high-quality
copper deposits, which tend to occur in distinct clusters; many of
which remain significantly underexplored. We are also pleased to be
working alongside a first-rate in-country team, committed to the
development of the Cypriot mining industry, including Dr. Nicos
Adamides, Exploration Manager, who has over 40 years' experience
working on Cypriot copper exploration and production.
"Ariana is making full use of its regional exploration and
development expertise. After two years of careful due diligence and
relationship building in Cyprus, Ariana is committed to the
successful development of Venus Minerals. We are also taking
advantage of our geographic proximity to get maximum cost-time
benefit from our existing team and infrastructure. In Venus, we now
what we believe to be an exceptional investment opportunity which
we look forward to supporting for the benefit of all
stakeholders."
Peter van der Borgh, Managing Director of Venus Minerals Ltd,
commented:
"Venus Minerals is focused on the exploration and development of
copper and gold on the island of Cyprus and, with Ariana's input,
we will be able to scale-up our activities significantly. Cyprus
represents an environment in which exciting exploration
opportunities were effectively frozen-in-time since the early
1970s. This creates a significant opportunity; one which our
combined Cypriot and international team is fully capable of
unlocking. To our unique advantage, Venus holds a proprietary
exploration database containing records of nearly all prior
exploration across the island. We have already put this to good
effect in securing a range of stand-out projects in the most
prospective regions of the island."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
About Venus Minerals Ltd
Venus Minerals Ltd ("Venus") is a UK registered, Cyprus
domiciled company holding a significant exploration and development
portfolio in Cyprus. Two advanced copper-gold-zinc prospects at
Klirou and Kokkinoyia contain historical resources of 4.3Mt @ 0.5%
Cu, 0.8% Zn + unquantified Au (JORC 2004) and 5.2Mt @ 0.7% Cu +
unquantified Au (non-JORC) respectively, providing the company with
an exceptional foundation on which to build its resource base.
Scoping and pit-optimisation studies for the projects have been
completed and are under review towards the preparation of a
combined Preliminary Economic Assessment ("PEA"). It is the
intention of Venus to develop these prospects as a single entity
known as the "Magellan Project" with the aim of establishing a
significant new mining operation on Cyprus. The company recognises
the potential to confirm and grow these resources through further
drilling. The company also holds a substantial exploration
portfolio outside of the main project areas, which contain several
immediate drill targets which have been established following a
rigorous data review and new surface exploration.
Further information about Venus Minerals and its projects is
available on the Company's website, www.venusminerals.co.
Venus Minerals has been established with a highly-experienced
board comprising the following individuals:
Peter van der Borgh: Managing Director
Peter is a corporate geologist who has been instrumental in the
discovery and development of greenfields and brownfields gold and
base metals deposits in Africa, Asia, Australia and Europe. As
Technical Director of ASX-listed African and South American focused
uranium and specialty metals company Globe Uranium, he was involved
in the discovery of the major Kanyika niobium deposit in Malawi. In
2006, Peter formed and listed ASX gold company Cortona Resources,
where as Managing Director he oversaw the development of the
Dargues Gold Mine in NSW, securing the first gold mining permit in
the State for more than ten years, before completing a successful
merger in 2013; the mine is currently under construction. More
recently, Peter was Managing Director of ASX-listed
European-focused base-metals company Zinc of Ireland, during which
time a maiden JORC resource was published at the Kildare Zinc
Project, and several significant discoveries were made. Peter has
overseen successful capital raisings totalling more than A$40
million, and a development financing with an international bank for
more than A$40 million. Peter is passionate about exploration and
mining, and the roles that safe practice and technological
advancement play in safeguarding the workforce and environment to
deliver the highest levels of efficiency and sustainability.
Harry Anagnostaras-Adams: Non-Executive Chairman
Harry founded Cyprus-based Semarang Enterprises Ltd, Atalaya
Mining Limited and KEFI Minerals plc between 2004 and 2006. Prior
to that he lived in Australia and had co-founded Citicorp Capital
Investors Australia Limited, Pilatus Capital Limited and the
Australian Gold Council. He has overseen a number of start-ups
principally through the roles of Chairman, Deputy Chairman or
Managing Director. He qualified as a Chartered Accountant while
working with PricewaterhouseCoopers and has a Master of Business
Administration from the Australian Graduate School of Management.
He is a Fellow of the Australian Institute of Management and the
Institute of Company Directors. He has been a resident of Cyprus
since 2004 and, during that time, has supported the introduction of
modern minerals exploration and industrial developments in
accordance with best international industry practice and standards
for environmental, social and technical performance, involving
investments exceeding 500 million Euro in Spain, Ethiopia and
Cyprus.
Dr. Kerim Sener: Non-Executive Director
After working in gold exploration and mining in Zimbabwe, Kerim
completed a PhD at the University of Western Australia in 2004 and
worked on a variety of projects in Western Australia and the
Northern Territory. He co-founded AIM-listed Ariana Resources, a
Turkish focused gold company, and has been responsible for the
discovery of over 3.8Moz of gold in eastern Europe and involved in
the development of the Kiziltepe Gold Mine in western Turkey. Kerim
is also Non-Executive Chairman of NEX-listed Panther Metals plc, a
gold exploration company focused on Canada and Australia. In
addition, he is an Adjunct Research Associate at the Centre for
Exploration Targeting, University of Western Australia.
Mark Rachovides: Non-Executive Director
Mark Rachovides is President of Euromines, the recognised
representative of the European metals and minerals mining industry.
The association's main objective is to promote the industry and its
relations with European institutions at all levels. He is also a
Consultant to Dundee Precious Metals and a board member of three
other natural resource companies. He has held numerous board
positions in natural resources companies active in Europe and
elsewhere over the last twenty years. He was formerly an Executive
Director of European Goldfields which was acquired by Eldorado in
early 2012. Previously he was Vice President, Europe at Dundee
Resources Limited after spending 11 years at the European Bank for
Reconstruction and Development (EBRD) He has been involved in a
wide variety of projects in the Former Soviet Union, Southern and
Eastern Europe and holds an MA from Oxford University.
Magellan Project
Venus holds 10.8km(2) under licence for the component parts of
the Magellan Project comprising Klirou and Kokkinoyia. Venus
intends to define an economic open-pittable or underground resource
of >10Mt. The project is being developed with a hub and spoke
approach, with its operational base located within the Mitsero
Processing Centre ("MPC"). Venus is in discussions to lease other
parts of the MPC with the aim of establishing a new processing
plant, which may involve use of some of the existing processing
plant infrastructure available on the site. The MPC was established
in 1955 and operated successfully for thirty years. An evaluation
of the remaining infrastructure is underway to determine what parts
of the old plant site can be repurposed for future use. Of
particular significance are the areas designated as tailings
dams.
Klirou Deposit
Klirou is a virgin discovery and represents a completely intact
resource with substantial upside. The deposit was previously
assessed, like most deposits in Cyprus, as a copper-zinc orebody.
However, drilling undertaken by EMED Mining in the mid-2000s
demonstrated that the orebody contained substantial gold, and this
is expected to add significantly to the economics of the
project.
Furthermore, the recent application of modern geoscientific
techniques has resulted in a better understanding of the nature and
controls on mineralisation at Klirou. These have highlighted
considerable exploration upside including continuations to the
existing mineralised zones, and exciting new targets adjacent to
the resource and further afield within the licence area.
Mineralisation identified to date extends from surface to c. 150m
below surface, while the location and terrane are ideal for the
establishment of a mining operation in the future.
The following intercepts demonstrate the copper potential of the
Klirou orebody:
EMR20: 36m @ 2.58% Cu
HKL54: 50m @ 1.65% Cu
HKL80: 47m @ 1.63% Cu
The following intercepts demonstrate the gold potential of the
Klirou orebody:
EMR19: 48m @ 1.15 g/t Au
EMR20: 36m @ 0.60 g/t Au
EMR34: 8m @ 1.72 g/t Au
Kokkinoyia Mine
Discreet high-grade pods of massive sulphide were mined at
Kokkinoyia in the 1970s. Subsequent drilling highlighted broader
zones of mineralisation and a small pit was started. However, these
activities were curtailed soon afterwards due to supressed copper
prices, and much of the mineralisation remains intact.
Historical production records demonstrate average recovery of
gold to copper concentrates of 5.0 g/t Au despite no record of gold
having been assayed from the drill core. Check sampling by Venus
demonstrates significant gold in composite waste dump samples with
an average grade of 0.8 g/t Au in the waste material. In the
absence of drilling assay data for gold, this suggests that this
grade may be considered as the minimum gold grade of the remaining
resource, with the potential to boost the project economics.
Furthermore, examination of historical drill logs indicates that
many holes were terminated in mineralisation, often due to caving
of the hole walls, a common problem with the open-hole drilling
techniques used at the time. It is the company's understanding that
there remains significant potential to extend the known
mineralisation at depth and down plunge.
The following intercepts demonstrate the copper potential for
the remaining Kokkinoyia orebody:
M203: 53m @ 2.05% Cu
M200: 64m @ 0.97% Cu
M35: 85m @ 0.68% Cu
Exploration Portfolio
As first mover in the re-emergence of Cyprus' long and esteemed
mining history, Venus has, over a number of years, positioned
itself to deliver growth on many fronts. Venus holds 28.0km(2)
under granted licences and a further 36.4km(2) as licence
applications.
The Mariner Project is located in one of the few lowland areas
away from the Troodos mountains, where the limestone cover units
have been eroded to reveal the ancient oceanic basalts beneath.
Venus has recently acquired two licences near Avdellero and Troulli
which make up the Mariner Project. During the 2019 field season
Venus analysed more than 2,000 soil samples and mapped more than
10km(2) , identifying several encouraging copper-zinc anomalies in
the process. One prospect contains multiple soil anomalies >0.1%
Cu associated with a broad zone of alteration and represents a
highly significant discovery. To the southwest, mapping and
geochemistry have confirmed mineralised structures and associated
copper-zinc soil anomalies extending along several kilometres of
strike. These indications are very encouraging and follow-up work
is planned to better define the geological setting and nature of
copper-zinc mineralisation.
The West Skouriotissa project is of considerable interest as the
site of a promising aeromagnetic anomaly in the vicinity of several
of Cyprus' largest mines, including the operational Skouriotissa
Mine (6Mt @ 2.2% Cu) and historical Mavrovouni (16Mt @ 4.5% Cu) and
Apliki (1.8Mt @ 2.2% Cu) mines. A well-defined corridor of low
magnetic intensity suggests an axial structure which is oriented in
a northwesterly direction, terminating at the site of the
Mavrovouni deposit. Geological mapping within the licence area
identified copper staining along a structure interpreted as a
growth fault. Drilling in the downthrown side of this structure
intersected intervals of sericitic alteration and clear
hydrothermal calcite and entered disseminated sulphide
mineralisation at 210m which continued with increasing intensity to
the final depth of 250m. The licence for West Skouriotissa was
granted in September 2019 and this stand out target has yet to be
followed up.
At North Alestos, field validation of magnetic anomalies
identified disseminated cupriferous mineralisation associated with
chloritic alteration in the Upper Pillow Lavas. The mineralisation
is spatially associated with an extensive region of low magnetic
intensity which continues north of the area of identified
alteration. A number of drill-holes in this area intersected
copper- and zinc-rich mineralisation. Best independent
intersections were 50m @ 0.5% Cu, with the hole terminated in
mineralisation assaying 0.75% Cu, and 50m @ 0.5% Zn. A 3D Induced
Polarisation survey indicated that the mineralisation is associated
with zones of increased chargeability, which are open in a
south-easterly direction. The northern extensions of the
aeromagnetic anomaly are located at the intersection between
north-westerly and northerly lineaments, an area which has been
identified by Venus as a significant structurally controlled target
beneath the cover of sedimentary units and lavas.
The Ayia Marina Project hosts a sizeable ancient slag heap, the
source of which has not been identified. There are widespread signs
of mineralisation which are associated with an array of structures
that disrupt the geology and commonly form the contact between
Upper and Lower pillow lavas. Of interest are intersections between
northwest trending structures and a major northeast trending
regional fault that could potentially create a locus for ore
deposition. Copper mineralisation was identified in historical
drilling at the Vasilis prospect in the southern part of the
project. Geochemical sampling has been carried out in order to
identify the extents of the anomalous ground and the results are
under evaluation.
The West Nikitari prospect is located at the contact between the
pillow lavas and sedimentary rocks. The latter comprise basal umber
overlain by calcareous sediments, including reef limestone and
gypsum. In the vicinity of the prospect, the pillow lavas are
locally hydrothermally altered with pyrite cubes in a chloritic
matrix. All of the aforementioned features are known to be
associated with VMS deposits. Detailed helicopter magnetic data
display a well-defined magnetic low located at the intersection
between interpreted aeromagnetic structures. North of the prospect,
at East Koutrafa, historical exploration by the Geological Survey
Department has identified the presence of copper- and zinc-rich
sulphide mineralisation, whose extents have not yet been
outlined.
Background to Acquisition
Ariana has conducted over two-years of due diligence on the
projects held by Venus Minerals (Cyprus) Ltd ("Venus Cyprus")
during an option period, which commenced in October 2017. Venus
Cyprus is 100% held by Semarang Enterprises Limited ("Semarang"),
though Semarang commits to transferring 100% of its rights to
Venus, such that the latter will initially become a 100% owner of
Venus Cyprus. Ariana and Semarang have resolved to enable Ariana's
formal earn-in on Venus as a new entity established to house their
shareholding in Venus Cyprus. Ariana provided to Semarang notice of
exercise the of the option and has formally triggered the earn-in
process for the acquisition of shares in Venus on the 29 November
2019 ("the earn-in commencement date"). As at the earn-in
commencement date, Ariana has earned an entitlement to 6% of Venus,
with a commitment to acquire a further 5% through the provision of
0.5M Euro in funding during the first year of operations between
December 2019 and December 2020. On realisation of its full
financial
commitment to the first year of operations, Ariana will have
acquired approximately 11% of Venus.
In the event that Ariana funds an additional 1.9M Euro between
October 2020 and October 2022, it will have acquired 50% of Venus
as an equal partner with Semarang, assuming no additional
third-party funding is introduced to Venus within this timeframe.
For clarity, Ariana must provide 3M Euro in total funding
(inclusive of 0.6M Euro committed up to the earn-in commencement
date) to Venus in order for its shareholding to become equal to
that of Semarang. Funding of Venus in the interim is expected to be
satisfied entirely from the internal funding capability of Ariana,
with a minimum annual funding commitment during this time of 0.5M
Euro.
About Cyprus
The island of Cyprus has been known since ancient times as being
a major source of copper and has been an important trade hub from
the Bronze Age onwards. Even our name for copper derives from
Classical Latin aes Cyprium (metal of Cyprus), which was later
shortened to Cuprum. Bronze Age Mycenaean shipwrecks discovered off
the southern coast of Turkey were weighed down by large
consignments of Cypriot copper. Due to its strategic importance
through the ages, the island has become a melting-pot of different
cultures but is today dominated by Greek, Turkish and English
cultural influences. As languages, Greek, Turkish and English are
understood widely throughout the island.
The Republic of Cyprus is a member of the EU despite being de
facto partitioned into two main parts: the area under the effective
control of the Republic, located in the south and west, and
comprising about 59% of the island's area; and the north,
administered by the self-declared Turkish Republic of Northern
Cyprus, covering about 36% of the island's area. Another 5% of the
island's area is covered by the UN buffer zone and the British
Sovereign Base areas of Akrotiri and Dhekelia.
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
Atholl Tweedie / James Stearns
Yellow Jersey PR Limited Tel: +44 (0) 20 3004
9512
Dominic Barretto / Harriet Jackson arianaresources@yellowjerseypr.com
/ Henry Wilkinson
Editors' Note:
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 a UK-based exploration and development company with
mining operations focused on epithermal gold-silver and porphyry
copper-gold deposits in Turkey, the largest gold producing country
in Europe. The Company is developing a portfolio of prospective
licences originally selected on the basis of its in-house
geological and remote-sensing database, which now contain a total
of 1.6 million ounces of gold and other metals (as at end-2017).
Ariana's objective is to cost-effectively add value to its projects
through focused exploration and to develop its operations,
primarily through well-financed joint ventures.
The Company's flagship assets are its Kiziltepe and Tavsan gold
projects which form the Red Rabbit Gold Project. Both contain a
series of prospects, within two prolific mineralised districts in
the Western Anatolian Volcanic and Extensional (WAVE) Province in
western Turkey. This Province hosts the largest operating gold
mines in Turkey and remains highly prospective for new porphyry and
epithermal deposits. These core projects, which are separated by a
distance of 75km, form part of a 50:50 Joint Venture with Proccea
Construction Co. The Kiziltepe Sector of the Red Rabbit Project is
fully-permitted and is currently in production. The total resource
inventory at the Red Rabbit Project and wider project area stands
at c. 605,000 ounces of gold equivalent (as at end-2017). At
Kiziltepe a Net Smelter Return ("NSR") royalty of up to 2.5% on
production is payable to Franco-Nevada Corporation. At Tavsan an
NSR royalty of up to 2% on future production is payable to
Sandstorm Gold.
In north-eastern Turkey, Ariana owns 100% of the Salinbas Gold
Project, comprising the Salinbas gold-silver deposit and the Ardala
copper-gold-molybdenum porphyry among other prospects. The total
resource inventory of the Salinbas project area is c. 1 million
ounces of gold equivalent. A NSR royalty of up to 2% on future
production is payable to Eldorado Gold Corporation.
Panmure Gordon (UK) Limited are broker to the Company and
Beaumont Cornish Limited is the Company's Nominated Adviser.
For further information on Ariana you are invited to visit the
Company's website at www.arianaresources.com.
Glossary of Technical Terms:
"Ag" chemical symbol for silver;
"Au" chemical symbol for gold;
"Cu" chemical symbol for copper;
"g/t" grams per tonne;
"JORC" the Joint Ore Reserves Committee;
"m" Metres;
"oz" Troy ounces;
"VMS" Volcanogenic Massive Sulphide;
"Zn" chemical symbol for zinc.
Ends.
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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