24 October 2024
AIM: AAU
DOKWE PROJECT EXPLORATION
UPSIDE
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 provide an update on its internal exploration data
review for the 100% held 1.8Moz Dokwe Gold Project in Zimbabwe,
focusing on the near-term potential exploration upside at Dokwe
North and Dokwe Central.
Highlights:
·
The resources at both Dokwe North and Central
remain open along strike and at depth, and there are excellent
prospects of increasing the resource with further drilling in the
following areas, specifically:
o Several moderately angled southwest plunging higher-grade
shoots at the Dokwe North deposit remain untested at depth and
demonstrate that the deposit remains open to the south.
o Northwest flank of the Dokwe North deposit shows potential for
further mineralisation to be identified at depth within an area of
repeated prospective stratigraphy.
o The
Dokwe Central deposit remains open to the west and historical
intercepts (notably 7.3m @ 6.63g/t gold
intercept from 32.2m) to the east indicate that
the prospectivity of the Dokwe Central fault zone extends for at
least 1km.
·
Step-out and infill drilling are being planned to
enable appropriate testing of the exploration potential defined to
date, with a view to increasing the resource to 2Moz of
gold.
Dr.
Kerim Sener, Managing Director, commented:
"Our review of the exploration data and geology of the Dokwe
North and Central areas has led to the identification of several
zones showing potential for significant resource upside. Based on
our current assessments, we are targeting potential enhancement of
the resource to at least 2Moz of gold.
"At Dokwe North, a detailed reassessment of the geology and
the structural controls on mineralisation is yielding a refined
understanding of the upside opportunities. In particular, several
high-grade zones are noted which display good strike continuity
through the deposit, trending northeast-southwest and plunging at a
moderate angle to the southwest. This opens up the southern end of
the deposit for further exploration. In addition, deeper holes on
the deposit in the northwest, suggest the potential for repeated
prospective stratigraphy, notably dacite and tuff, indicating that
there is an opportunity to encounter good mineralisation on the
northern flanks of the deposit.
"At Dokwe Central, we have now demonstrated an opportunity to
define further mineralisation along strike over a distance of
approximately 1km along a faulted contact between volcanic and
sedimentary units. Several historic drill hole intercepts along
this structure suggest that a well-defined mineralised zone
developed in the immediate vicinity of the fault zone and trends
broadly east-west. Notably, a historic 7.3m @ 6.63g/t gold
intercept from 32.2m identified gold mineralisation within the
Archaean units just beneath the cover sequence and has not yet been
followed up with further drilling.
"In summary, there is excellent potential at Dokwe North and
Central to continue growing the resource base in a material way and
we are designing new drilling programmes accordingly. We look
forward to updating the market on this work in due
course."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Background
The prospective Archaean rocks at
the Dokwe Project were buried, deformed, metamorphosed, and
mineralised, before being uplifted and partially eroded to form a
basin into which the post-Permian Karoo sedimentary and volcanic
rocks were deposited. The Karoo-aged rocks and the later Kalahari
sediments form a cover layer over the Archaean rocks, ranging in
thickness from a few metres at Dokwe South, gradually thickening
northwards to approximately 40 metres at Dokwe North (Figure 1).
Figure 1: Map and schematic
cross-section highlighting the distribution of Karoo and Kalahari
cover across the Dokwe Project.
In 2001, a regional soil sampling
programme commenced, and over the following few years, several
areas of gold anomalism were highlighted as targets for drilling.
In 2004, Dokwe North and Dokwe Central were discovered by drilling
beneath two of these targets (Figure 2). An intriguing aspect of the
geochemical targets is the apparent regular spacing of
approximately 2.5km between each anomaly area (Figure 2).
Ariana is currently undertaking a
review of historical exploration data across the Dokwe Project and
a range of opportunities are identified. These include potential
expansions to the Dokwe North Deposit; strike and depth
continuations to the Dokwe Central deposit, with exploration
potential over a strike length of at least 1km.
Figure 2: Gold in soil contour
(1.2ppb Au) that led to the discovery of the Dokwe North and
Central gold deposits.
Future Exploration Methodology
The deepening cover northwards
across the project area means that different exploration methods
will need to be applied to different sub-areas. In the south, where
the cover is relatively shallow, mapping, testing of sub-crop and
portable XRF soil sampling are likely to produce results, whereas
further north, testing the greenstones will require techniques
capable of testing greater depths, such as drilling and
geophysics.
Following an assessment of the cover
rocks and uppermost greenstones, it is apparent that the area is
ideal for Rotary Air Blast drilling ("RAB"), a rapid, relatively
inexpensive and widely employed drilling technique that has been
successful in discovering numerous gold deposits in similar
terranes across Western Australia, which has not been used at Dokwe
previously. It is expected that the degree of weathering of the
greenstones beneath the cover will enable at least 20m of
greenstones to be tested in each hole before blade refusal. As part
of a comprehensive new exploration programme, the Company is
designing an RAB drilling grid to test the project area in more
detail, intending to penetrate the underlying Archaean units
throughout a large part of the project.
Dokwe North Extensions
The collection and interrogation of
new geological information acquired by the Ariana team over the
past year has improved the understanding of the geology, geometry,
and exploration upside of Dokwe North. The current interpretation
is that gold mineralisation is primarily hosted within a folded
sequence of felsic-to-intermediate volcaniclastic rocks. Almost all
mineralisation discovered at Dokwe North occurs within the eastern
limb of this fold, which is partly intruded by a quartz-feldspar
porphyry and later dolerite sills (potentially masking any
geochemical response at surface). The primary host rocks are a
felsic tuff and dacite, with some peripheral mineralisation within
the overlying quartz-feldspar porphyry, and underlying agglomerate
and andesitic rocks. The geometry of all these units, based on
litho-geochemical modelling of over 28,000 pXRF samples, is now
well understood and provides excellent insight for down dip and
plunge exploration.
Almost all drilling within Dokwe
North is constrained to the eastern limb of the Dokwe North fold
structure, with only two holes drilled into the western limb. One
of these, DPD7, ended in a moderately mineralised western tuff unit
(26m @ 0.73g/t Au, including 2m @ 4.62g/t Au), which has not been
followed up.
The apex of the Dokwe North fold was
exposed and eroded from at least the Permian Period, before the
deposition of the Karoo-aged rocks. Furthermore, the eastern and
western limbs are separated by a major NE-SW fault intruded by
later dolerite dykes. The mineralisation in the western limb is
interpreted to have been down-faulted, making it a significant
exploration target for the next phase of work (Figure 3).
In addition, Dokwe North has at
least three south plunging higher-grade zones, which form part of
the Indicated and Inferred components of the Resource (Figure 3) and remain open down plunge.
A better understanding of the geology has provided significant
confidence to the understanding of the distribution of higher-grade
mineralisation and how it should be extrapolated within the model.
To date and based on the June 2024 Mineral Resource Estimate
(AIM:
13 June 2024), there is
potential for 390,000 ounces of gold, currently classified as
Inferred, to be reclassified following further drilling. This will
be a primary target for future resource development, and eventual
addition to future Reserves, subject to the appropriate studies and
modifying factors.
Figure 3: NNE-SSW long section
through the Dokwe North block model, colour-coded according to the
MRE classification. A new understanding of the geology and geometry
of mineralisation has identified three potential plunging shoots
for high-priority targeting.
Dokwe Central Extensions
Gold mineralisation along the Dokwe
Central fault zone has already been demonstrated with the
definition of the 165,000oz Au Dokwe Central deposit. The deepest
intercept to date is in DPD73 with 17m @ 5.91g/t Au from 411.7m,
such that the mineralisation remains open at depth.
Western Extension:
After reviewing the historical
drilling data at Dokwe Central, the Company understands that the
deposit is not adequately tested to close off mineralisation to the
west (Figure 4). The two
most westerly mineralised drill holes define a broad mineralised
envelope containing two high-grade mineralised zones. DPD67
intercepted 8m @ 18.34g/t Au from 83.3m and 17m @ 3.21g/t Au from
106.4m, whilst DPD72 intercepted 2m @ 16.01g/t Au from 141.1m and
6m @ 9.74 g/t Au from 153.1m. Only two holes, DPD65 and DPD66 have
been drilled further west to close off this broad zone of
mineralisation.
Both holes, DPD65 and DPD66,
intercepted the footwall sedimentary rocks approximately 90m south
of where they would be predicted to be, implying a faulted
displacement. If that is the correct interpretation, then the
mineralisation is likely to have been faulted southwards too, and
remains untested, presenting a highly significant exploration
target adjacent to the Dokwe Central resource.
Figure 4: Structural
interpretation of the Dokwe Central fault zone, showing the deposit
and significant intercepts in the vicinity.
Eastern Extension:
In 2003, two 'scissor' holes were
drilled approximately 750m west of the Dokwe Central deposit. One,
DPD4, was drilled from south to north, intercepting 7.3m @ 6.63g/t
gold from 32.2m, just beneath the cover sequence. Ariana has
confirmed that the rock type hosting the mineralisation is similar
to the veined felsic schist hosting the main zone of mineralisation
at Dokwe Central. The second hole, DPD5, was drilled from north to
south but did not go far enough south to intercept the depth
projection of the intercept in DPD4.
These holes were two of the earliest
drilled at the Dokwe Project, and at about the same time they were
drilled, Dokwe North was discovered (DPD7). Soon after, Dokwe
Central and the intercept in DPD4 became a lesser exploration
priority. Many years later a hole was drilled northwards stepping
back from the intercept in DPD4 (DPD106), although the northwest
orientation of the hole indicates it was not an adequate test of
the DPD4 mineralisation. Ariana is of the view that the target
remains open and follow-up drilling is required.
Furthermore, DPD102 intercepted a
metre at 13.65g/t Au from 189.61m, approximately 80m east of the
mineralisation at Dokwe Central, along with two further metre-wide
intercepts greater than 2.0g/t Au, further confirming the
significance and potential of this fault zone. Confirmation that
the Dokwe Central deposit remains open to the west, in conjunction
with intercepts 80m and 750m to the east of the deposit, highlights
a highly significant exploration target along the Dokwe fault zone,
which extends more than 1km in strike and has seen only very sparse
drill testing.
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
|
|
Ord
Minnett Limited (Lead Manager - Australia)
|
Tel: +61 2 8916 0124
|
Damien Gullone / Robbie Dowling /
Joe Hansen
|
|
Panmure Liberum (Joint Broker)
|
Tel: +44 (0) 20 7886 2500
|
Kieron Hodgson / Atholl Tweedie /
Rauf Munir
|
|
Zeus Capital Limited (Joint Broker)
Harry Ansell / Katy Mitchell /
George Krokos
Yellow Jersey PR Limited (Financial PR)
|
Tel: +44 (0) 203 829 5000
Tel: +44 (0) 7983 521 488
|
Dom Barretto / Shivantha Thambirajah
/
Bessie Elliot
|
arianaresources@yellowjerseypr.com
|
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 with the
proposed arrangements described in this announcement or any matter
referred to in it.
Editors' Note:
The information that relates to
Mineral Resources 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 a major gold development project in
Zimbabwe, gold production in Türkiye, and copper-gold exploration
and development projects in Cyprus and Kosovo.
Ariana owns 100% of the Dokwe Gold Project ("Dokwe") in
Zimbabwe. Dokwe is made up of the Dokwe North and Dokwe Central
gold deposits which are located in the Tsholotsho District near the
city of Bulawayo. The deposits have a combined JORC Measured,
Indicated, and Inferred Resource of over 1.83 million ounces of
gold (as at June 2024) and the project represents the largest
undeveloped gold project in Zimbabwe.
The Company holds a 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 of silver (as of 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 of gold and 1.1
million ounces of silver (as of 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. An NSR
royalty of up to 2% on future production is payable to Sandstorm
Gold.
The Salinbas Gold
Project is
located in northeastern 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. An NSR
royalty of up to 2% on future production is payable to Eldorado
Gold Corporation.
Ariana owns 76% 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.
Ariana owns several investments in
listed and private companies via its Australian subsidiary
Asgard Metals Pty. Ltd. ("Asgard"), which also provides technical input into the
various investee company exploration programmes. Investments have
been made 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, the UK, and Zimbabwe. Its most advanced interest is
through a 5.5% holding of Panther Metals Limited (ASX:
PNT).
Panmure Liberum Limited and Zeus
Capital 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;
"Inferred Mineral Resource" is that
part of a Mineral Resource for which quantity and grade (or
quality) are estimated based on limited geological evidence and
sampling. Geological evidence is sufficient to imply but
does 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;
"JORC" Joint Ore Reserves
Committee;
"k" thousand
"km" Kilometres;
"m" Metres;
"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;
"MRE" Mineral Resource
Estimate;
"M" million
"oz" Troy ounces;
"t" tonnes;
Ends.