Red Rabbit Gold Project Update & New Exploratio...

 

 

28 November 2013
AIM: AAU

KIZILTEPE SECTOR: NEW EXPLORATION STRATEGY

Ariana Resources plc ("Ariana" or "the Company"), is pleased to provide a positive update on the Red Rabbit Gold Project in Western Turkey ("Red Rabbit") following the comprehensive evaluation of high-grade gold silver occurrences in the Kiziltepe Sector of the project.  This work has prompted the adoption of a new exploration strategy at Kiziltepe, which is being developed in parallel with a new exploration model.  The Company believe that this exploration strategy has the potential to significantly increase the mineable resources at Kiziltepe, which is being advanced towards production currently scheduled for Q4 2014.

Highlights:

• New exploration plan adopted with the objective of doubling the potentially mineable resources in the Kiziltepe Sector over the next two years, focusing initially on existing exploration targets. 

• New exploration model explains the distribution of high-grade gold-silver veins better than any previous model for the region. 

• Potential link between gold-silver mineralisation and high-level sub-volcanic intrusions now established. 

Dr. Kerim Sener, Managing Director, commented:

"This recent work is highly significant for Ariana, and dramatically increases the overall prospectivity of the Kiziltepe Sector, which will be our initial focus for mining at the Red Rabbit Gold Project and which we are advancing towards production for Q4 2014.

"Recent efforts by the team have been focused on better understanding the distribution of high-grade gold-silver occurrences in the vicinity of Kiziltepe.  It is now apparent that the gold-silver bearing vein-swarms at Kiziltepe and Karakavak sit either side of a volcanic feature, which is centred on a large structurally-controlled clay alteration zone.  Along the margins of this feature are situated the Kepez quartz-sulphide veins, which are in places hosted by resurgent volcanic domes.  

"The coincidence of these features in an area of approximately 30km² and their possible link to a volcanic caldera increases the overall prospectivity of the Kiziltepe Sector considerably.  There is also longer-term scope to define an associated mineralised porphyry system in the vicinity of Kiziltepe.  Such porphyries are known from similar geological settings and are in places associated with peripheral gold-silver bearing vein systems."

New Exploration Model

Following the successful exploration programme of summer 2013, the Company has been developing a new geological model to better explain the distribution of high-grade gold-silver occurrences within the Kiziltepe Sector of the Red Rabbit Gold Project.  This model has been based on the latest geological mapping of veins and their associated alteration zones, along with recent rock-chip sampling and X-Ray Fluorescence (XRF) analyses.  Several alteration zones within the region have now been better characterised using infra-red spectroscopy of soil and rock samples, and in many cases the zonation seen is similar to that encountered in well-mineralised areas of Kiziltepe.

The new geological model aims to define the link between high-grade gold-silver zones, particular structural trends and clay alteration zones and a probable extinct volcanic centre known as a caldera.  A caldera is a common geological feature of volcanic provinces, which is associated with the localised collapse of a volcanic edifice after a major eruption.  The sudden expulsion of molten rock from the primary magma chamber results in the formation of a large subsurface void.  Overlying rock then collapses under its own mass into the void to form a cauldron shaped surface feature at the centre of the volcano.  Similar features are in places host to long-lived hydrothermal systems, which may give rise to extensive mineralisation associated with both low-sulphidation and/or porphyry mineral systems (e.g. Lihir/Ladolam gold deposit in the Pacific Rim of Fire).

A recent desk study to amalgamate all previous exploration data for the region identified a number of clear spatial trends for high-grade gold-silver prospects.  The trends identified a large, near complete circular structure, with a diameter of approximately 6km (Figure 1).  Within the central region of the structure sits a distinct, and previously poorly understood structurally-controlled clay alteration zone, containing disseminated pyrite and weak gold and molybdenum mineralisation.  This zone shows distributed illite-smectite alteration within dacitic units, which are in places host to thin quartz-barite stringers carrying minor gold.  The occurrence of these features within a spatially restricted region, suggest the presence of a sub-volcanic intrusion responsible for the mineralisation across the Kiziltepe Sector.  

Detailed mapping of quartz veins on the outer edges of the circular structure identified two broad generations of quartz veins.  Barren or low-grade veins have been demonstrated to run parallel with the edges of the circular feature.  In contrast, high-grade and regularly distributed veins were found to crosscut the barren veins and typically trend towards the centre of the circular structure.  These two structural trends are interpreted as ring fault structures in the case of the barren to low-grade veins, and radial fractures in the case of the high-grade veins.  

The team is now focused on defining areas within the circular feature for immediate follow-up.  This has included further work on the distribution of particular clay minerals, trace-element associations and focused geological mapping to build further confidence in the new geological model.  In turn, the new model will help to focus future exploration programmes and improve the potential success rate of those programmes.  

New Exploration Strategy

The focus of the new exploration strategy will be to map and sample the high-grade radial vein trends and their associated alteration.  Potential areas for future drill-testing will then be established.  As the Kiziltepe Sector has not yet been comprehensively covered by geophysical techniques, the Company will be obtaining quotes for a regional aeromagnetic and gravity survey.  These methods will then be followed-up by further IP/Resistivity geophysics and detailed drill planning.  The Company is also undertaking further characterisation of the known mineralisation across the region, to better understand the significance of a potential late-stage component linked to resurgent magmatism and associated fluid flow.  

Contacts:

Ariana Resources plc	Tel: [phone]
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited	Tel: [phone]
Roland Cornish / Felicity Geidt
Beaufort Securities Limited	Tel: [phone]
Chris Rourke / Guy Wheatley
Loeb Aron & Company Ltd.	Tel: [phone]
John Beresford-Peirse / Dr. Frank Lucas
St Brides Media & Finance Ltd	Tel: [phone]
Susie Geliher / Lottie Brocklehurst

Editors' note:

Dr Kerim Sener, BSc (Hons), MSc, PhD, is the Managing Director of Ariana Resources plc.  A graduate of the University of Southampton in Geology, he also holds a Master's degree from the Royal School of Mines (Imperial College, London) in Mineral Exploration and a doctorate from the University of Western Australia.  He is a Fellow of The Geological Society of London and has worked in geological research and mineral consultancy in Southern Africa and Australia.  He has read and approved the technical disclosure in this regulatory announcement.

About Ariana Resources:

Ariana is an exploration and development company focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey.  The Company is developing a portfolio of prospective licences selected on the basis of its in-house geological and remote-sensing database, on its own in western Turkey and in Joint Venture with Eldorado Gold Corporation in north-eastern Turkey.  Eldorado owns 51% of this joint venture and are fully funding all exploration work on the JV properties, while Ariana owns 49%.  The total resource inventory within this JV is 1.09 million ounces of gold.

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, are presently being assessed as to their economic merits and now form part of a Joint Venture with Proccea Construction Co.  The total resource inventory at the Red Rabbit Project stands at 475,000 ounces of gold equivalent.  

Ariana also has a strategic investment in Tigris Resources Limited (www.tigrisresources.com), a private Jersey-based exploration company, which is focused on the exploration of copper and gold deposits in southeastern Turkey.  Ariana retains 7.6% of Tigris Resources Limited.  

Beaufort Securities Limited and Loeb Aron & Company Ltd. are joint 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.

Ends

New Exploration Strategy

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ariana Resources plc via Globenewswire

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