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1 December 2021

AIM: AAU

APLIKI PROJECT REVISED MINERAL RESOURCE ESTIMATE

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral exploration and development company with interests in gold mining operations in Europe, is pleased to announce a Mineral Resource Estimate ("MRE") for the Apliki Project for which Venus Minerals Ltd ("Venus") has entered into a Heads of Terms for a 50:50 JV agreement with Hellenic Copper Mines Ltd ("HCM").  Venus is focused on the exploration and development of copper and gold assets in Cyprus and is 50% owned by Ariana.

Highlights:

·    JORC 2012 MRE updated internally by Ariana and Venus using due-diligence and historical drilling data.

·    Total Indicated and Inferred Resource of c. 11 Mt at a grade of 0.25 to 0.69% Cu across the Apliki Project.

·    Inclusive of 800,000t @ 0.34% Cu of Probable Reserves in the Apliki Stockpiles as defined by HCM and verified by Venus. 

·    Processing plant currently undergoing due diligence and pre-installation checks.

·    Joint UK and Cypriot partnership designed to unlock the value of such copper mining opportunities in Cyprus.

Dr. Kerim Sener, Managing Director, commented:

"This MRE represents an important part of the ongoing due diligence of the Apliki Copper Project in Cyprus by Venus Minerals. 

"Following the positive results of the due diligence drilling, which was announced in early November, we have now integrated these new data with the historical drilling to produce a more robust and independently assessed resource. 

"Apliki represents a significant European opportunity for the production of high-purity cathode copper using a tried-and-tested hydrometallurgical processing route with a low environmental impact.  Beyond the resource areas identified here, there are clearly areas of potential resource upside, particularly in the Apliki Mine area and specifically its related stockpiles.  Further work by the Venus team will be undertaken in these areas in order to continue building on the Resources and Reserves. 

"In addition, Venus has engaged consultants to assess the condition and capacity of the processing plant which is on standby for re-installation at the Apliki site.  Based on an initial review it is clear that some additional processing upside exists, which will complement any growth in the resource base."

* Further information about Venus Minerals and its projects is available on the Company's website, www.venusminerals.co.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

Introduction

Between June and October 2021, Ariana worked alongside Venus to assess the Hellenic Copper Mines (HCM)-owned Apliki Project in the northern Troodos region of Cyprus.  This work included the planning and completion of three due-diligence diamond drill holes, and a full MRE of all near-term resources held within the Apliki tenements.  The positive results of the due-diligence drilling were announced on 8 November 2021.  This subsequent announcement outlines the results of the MRE and reflects the progress of the Venus team on the Joint Venture opportunity with HCM.

The Apliki Project is located in the western part of the Solea Graben, which is interpreted as a tectonic feature hosting some of the largest massive sulphide deposits in Cyprus.  Mineralisation occurring at West Apliki and the Apliki Mine is controlled by a primary north-northeast trending normal fault.  While independent structures control the mineralisation locally within the separate deposit areas, it appears that the highest grades of copper occur on the hanging wall side of this normal fault, with lower-grade mineralisation occurring on the footwall side.

Mineralisation at Apliki is characterised as a classic Volcanic Massive Sulphide (VMS) system.  However, ME-ICP multi-element analysis of the 2021 due-diligence drilling determined that Apliki does not contain associated gold, zinc or lead as with several other VMS related projects within Cyprus.  The mineralogical characteristics of the ore at West Apliki comprise secondary copper minerals (including chalcocite, covellite, delafossite, chrysocolla) at higher levels, and occurrence of chalcopyrite at depth, which is also seen in association with secondary minerals.  In the Apliki Mine area the mineralisation is dominantly chalcopyrite with some associated secondary minerals. 

The HCM database provided contains 245 drill holes, totalling 24,154.45 meters.  All holes are spread over three main areas (Apliki Mine, West Apliki and the Apliki Stockpiles).  The MRE summary presented here provides an estimate of the resources contained across the entire Apliki project area, which includes the Apliki Stockpiles (where sufficient data are provided), the Apliki Mine and its remaining in-situ resources, and the West Apliki area.

Mining of the Apliki Mine started in the 1960s by Cyprus Mines Corporation and ended prematurely following the events of 1974.  To date, some high-grade resources remain in-situ below and on the north-east periphery of the main open pit.  Low-grade material excavated during the development of the Apliki Mine open-pit was stockpiled separately and now represents an important resource for hydrometallurgical exploitation.  In recent years, 300,000 tonnes of oxide ore were excavated from the stockpiles, trucked and processed at the Skouriotissa solvent-extraction and electrowinning plant (SX-EW); the same plant will be relocated to Apliki as part of the Joint Venture.  The Apliki Stockpiles have been reviewed in detail, and are classified as reserves by HCM, based on their survey, trenching, drilling and recent processing activities.  

Further potential for other in-situ mineralisation and stockpiles (highlighted in Figure 1), will remain a significant near-future target for additional resources beyond this MRE.

http://www.rns-pdf.londonstockexchange.com/rns/1920U_1-2021-12-1.pdf 

Figure 1: Plan view of the Apliki Project, showing the due-diligence drill collar positions and historical collars.  All Apliki MRE domains are highlighted in red.  Areas with further potential, which require follow-up work are outlined in dashed purple.

West Apliki

The West Apliki area contains secondary copper mineralisation conducive to heap leaching and hydrometallurgical recovery processes.  As a primary objective of the detailed project evaluation of Apliki, Venus completed due-diligence diamond drilling in the West Apliki area.  Results for this programme were announced on the 8 November 2021, and included the following significant intersections:

·    VMD006 44.5m @ 0.77% Cu from 51.5 m,

o  including 8 m @ 1.40% Cu

·    VMD007 28.0m @ 0.86% Cu from 16.0 m

o  including 6 m @ 1.59% Cu

·    VMD008 23.0m @ 0.39% Cu from 34.0 m

West Apliki is defined by 96 historic churn, rotary wet and rotary air drill holes totalling 13,435.49 meters (1968-2011) at an average depth of 140 m (min. 25m, max 355 m), and 3 due diligence diamond holes totalling 383.8 meters (2021).  All historic holes were drilled vertically with an average collar spacing of approximately 38 m, based on 38 collar-to-collar measurements (min=2.35 m, max=69.18 m).

Apliki Mine

The Apliki Mine is defined by 100 historic holes totalling 9,902.24 meters (1968-2011) at an average depth of 96m (min. 3m, max. 457m).  The remaining resources of immediate interest occur at the base of the historical pit, where approximately 340,000 cubic meters of moderate (0.5% Cu) to high grade (>1% Cu) mineralisation still remain.  While much of this remaining mineralisation is dominated by sulphide phases and is hence unlikely to be amenable to the proposed extraction route, there is some evidence of secondary sulphides at higher levels and particularly to the north of the Apliki pit.  Additionally, there is further potential to expand the Apliki Mine resource to the north and east of the current open pit walls, however, further work is required to determine the full extent and nature of such remaining resources, which will be a significant priority for future Venus exploration.

Apliki Stockpiles

The Apliki Stockpiles contain significant amounts of low-grade ore amenable for immediate hydrometallurgical processing.  Multiple sampling programmes in various forms have been completed by HCM to define an understanding of grade continuity and variability within the stockpiles.  The most significant of these programmes includes 1,117m of churn drilling across 49 holes (average depth 22m), which led to HCM's classification of the remaining stockpiles (where tested) as reserves.  Venus's independent verification has confirmed this classification and the estimated tonnages and grades.  Significant additional potential exists in untested stockpiles to the far north east of the Apliki Mine open pit (Figure 1) representing a future development opportunity for Venus. 

MRE

The MRE is based on a detailed review by Ariana and Venus of all available drill data acquired between 1968-2011, as well as three due-diligence drillholes drilled in 2021.  These data comprise churn, rotary wet, rotary air and diamond drill holes for a total of 24,538 meters of drilling (all historic holes and the 2021 due diligence drilling), and covers all major areas of the Apliki project (West Apliki, Apliki Mine and Apliki Stockpiles).  The use of modern software with improved estimation methods and statistical analysis enables the calculation of a MRE with sufficient confidence to be classified as Indicated and Inferred.  However, the drill hole spacing density for the project is generally appropriate to support higher classification of resources in some areas, but this will require more confirmatory drilling to validate and increase confidence in the historic data.  JORC Table 1 for Apliki provides more detail on sampling techniques and data used in this estimation.

Estimation Methodology

Ariana completed the geological modelling of all mineralised zones at Apliki in Leapfrog Geo 6.0.5 (see JORC Table 1, Appendix 1).  Four mineralisation domains were modelled from sectional interpretations and associated interpolation, representing the most current geological data and understanding.  The MRE is separated into three main areas: 1) West Apliki, 2) Apliki Mine, and 3) Apliki Stockpiles (Figure 2).  

http://www.rns-pdf.londonstockexchange.com/rns/1920U_1-2021-12-1.pdf 

Figure 2: 2021 MRE block model domains of all major Apliki mineralisation areas.

West Apliki contains a large part of the mineralisation within the MRE and is exposed locally at surface, extending to a vertical depth of approximately 150m.  The grade through West Apliki is fairly homogeneous (0.2%-1.0% Cu) with occasional narrow high-grade zones containing 1-3% Cu.  Overall, it was not considered necessary to sub-domain the higher-grade copper zones at this stage.  On the eastern flank of West Apliki lies a smaller resource area comprising lower grades (0.1-0.7% Cu).  Mineralisation is more widely exposed at surface and extending to a vertical depth of approximately 120m.

Apliki Mine contains significant grades of copper (>0.5%) however, historical mining has depleted much of the resource.  Only the material below the historical pit floor remains, which includes a significant intercept of 33.1m @ 1.38% Cu, representing some residual high-grade sulphide ore.  The Apliki Stockpiles were defined by DGPS topography data of the stockpile area compared to the previous topographic surface, which provided an accurate volume of stockpiled material.  The final domain used in this MRE was further restricted to only the areas tested by HCM's trenching and drill hole sampling.  No volumes were included in the resource estimate for areas not sampled.  Grades within the remaining stockpiles range from 0.10-0.76% Cu, with an average grade of 0.2% Cu.  HCM have defined approximately 800,000t @ 0.34% Cu in Probable Reserves and Venus estimates a further 1.7Mt of Inferred resources in stockpiles.

Interpolation and wireframe modelling of the mineralised zones in Leapfrog EDGE was completed using a 0.1% Cu modelling cut-off grade (CoG), for all domains.  Higher-grade mineralisation was not sub-domained, as it was not deemed necessary to do so.  All models created were based upon interval selections that referenced the copper grades, lithological descriptions and structural interpretation, where appropriate.  Where continuity was not established between sections, the strike extrapolation was limited both manually (wireframes) and statistically (interpolations).  The continuity of the various structures is reflected in the MRE classification.

A specific gravity of 2.4g/cm³ was applied to the deposit as a whole.  Further work is required to more appropriately define density variations through the deposit.  Previous studies completed by Ariana for other deposits in the area utilised sulphur assays to simulate pyrite intensity and create a density model.  However, the historic data for Apliki only contains copper values, and mostly represents oxide mineralisation.  Based on HCM's own internal work, they have defined 2.4g/cm³ to be the average density of most remaining mineralisation encountered at Apliki. 

Compositing was completed in Leapfrog EDGE using a 1m best-fit routine with a hard domain boundary. This composite length was increased to 3m for the estimation of Apliki Mine resources. General mineralisation trends and continuity were identified within Leapfrog Geo by use of trend planes and their associated attributes.  Variography analysis was not completed but is recommended in future work to: 1) verify the current mineralisation orientations and trends, and 2) to identify potentially more accurate mineralisation trends. 

A top-cut was not deemed necessary for Apliki Mine as the high grades have been confirmed by historical production.  Based on the reporting of twin hole studies completed by HCM and peak grades associated with the due diligence drilling, a top-cut of 3% Cu was applied to all search passes within the West Apliki domains.  This was primarily to minimise high-grade smearing into the block model as a result of historic holes (900 series drilling) overstating copper grades (up to 5.76% Cu), which could not be verified by either HCM or the due-diligence drilling.  Such areas generally returned check results of 2-3% Cu for these higher-grade zones.

A non-rotated regular block model was established for West Apliki, Apliki Mine and the Apliki Stockpiles (Figure 3).  Block sizes were determined by drill spacing within the dataset and wireframe geometry.  The optimal block sizes used within the block-model were 10m x 10m x 3m (X, Y, Z). This is the same block size as used by the HCM team in their internal estimations.  Grades for the block models were estimated using Inverse Distance Weighted Squared (ID2), adopting a multi-pass methodology. 

http://www.rns-pdf.londonstockexchange.com/rns/1920U_1-2021-12-1.pdf 

Figure 3: Cross section with a wide (500m) swathe to highlight all the 2021 MRE Apliki block models as illustrated.

Geochemical data for Apliki, with the exception of the three 2021 drill holes at West Apliki, only contain copper values.  Therefore, only copper was estimated for the defined extents of the deposit.  Multi-element data that does exist, suggests that other trace metals within the West Apliki area would not be economic.   

Resource Classification

The MRE is classified in accordance with the JORC Code (2012) as Indicated and Inferred resources only (Table 1).  The Apliki Mine and West Apliki deposits have sufficient subsurface geological and geochemical data for the resource to be classified with higher confidence as Measured or Indicated.  However, such a classification is currently limited by the historic nature of the majority of the drilling database and these data cannot be audited, as no reference samples have been archived.  Further validation will be required for an upgrade in classification, using twin-holes where necessary.

The MRE for the Project uses a reporting cut-off of 0.2% Cu for Apliki Mine and West Apliki and demonstrates that there are reasonable prospects for eventual economic extraction (Table 1). Confidence in the MRE is sufficient to allow the results to be used in further technical and economic studies.  Additional confidence in the data obtained from historic drilling is required in order to advance further understanding of the Project.

Due-diligence drilling provides greater confidence across parts of the West Apliki deposit, and in such areas the resources have been classified as Indicated.  However, all remaining resources have been classified as Inferred until further drilling work is completed.  As well as significant classification upgrades, there is potential for an increase in resource tonnage with further drilling.

The styles of mineralisation have been identified, the controls on mineralisation are sufficiently understood and measurements and sampling completed to a reasonable degree of confidence for the mineralisation present. 

Table 1: Summary of 2021 Apliki MRE, in accordance with JORC 2012, based on 248 drill holes (24,538m) across the Apliki Sector (29 October 2021).  Reporting is based on 0.2% Cu cut-off grade for in-situ domains, and 0.15% Cu for stockpile resources.  Figures in the table may not sum precisely due to rounding.

The Apliki stockpiles have been surveyed by DGPS to calculate the potential tonnages available for processing. Trenching and drilling have been completed to use in grade estimations for the stockpiles. HCM have classified these stockpiles as reserves and the numbers have been confirmed by Venus's internal estimates (Table 2). These reserves are reported at a lower cut-off grade than the in-situ resources due to their lower associated mining costs.

Table 2: Probable Reserves for stockpiles at Apliki Mine with reporting cut-off of 0.15% Cu.  These Reserves are not included in the Resources stated in Table 1. Figures in the table may not sum precisely due to rounding.

Contacts:

Editors' Note:

The MRE was prepared by Zack van Coller BSc (Hons), Special Projects Geologist, Ariana Resources plc. Mr. van Coller is a Competent Person as defined by the JORC Code, 2012 Edition. The estimate was reviewed internally by Ruth Bektas BSc (Hons) CGeol EurGeol, Projects Analyst, Ariana Resources plc. Miss Bektas is a Competent Person as defined by the JORC Code, 2012 Edition. The results are reported in accordance with the JORC Code, under the direction of Dr. Kerim Sener BSc (Hons), MSc, PhD, Managing Director of Ariana Resources plc, and a Competent Person as defined by the JORC Code. Mr. van Coller and Dr. Sener have reviewed the technical and scientific information in this press release relating to the Mineral Resource estimates and approve the use of the information contained herein.

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 Turkey 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 Turkey which contains a depleted total of c. 2.1 million ounces of gold and other metals (as at July 2020). The joint venture comprises the Kiziltepe Mine and the Tavsan and Salinbas projects. 

The Kiziltepe Gold-Silver Mine is located in western Turkey and contains a depleted JORC Measured, Indicated and Inferred Resource of 227,000 ounces gold and 3.7 million ounces silver (as at April 2020). The mine has been in profitable production since 2017 and is expected to produce at a rate of c.20,000 ounces of gold per annum to at least the mid-2020s. A Net Smelter Return ("NSR") royalty of 2.5% on production is being paid to Franco-Nevada Corporation.

The Tavsan Gold Project is located in western Turkey and contains a JORC Measured, Indicated and Inferred Resource of 253,000 ounces gold and 0.7 million ounces silver (as at June 2020). The project is being progressed through permitting and an Environmental Impact Assessment, with the intention of developing the site to become the second joint venture gold mining operation. A NSR royalty of up to 2% on future production is payable to Sandstorm Gold. 

The Salinbas Gold Project is located in north-eastern Turkey 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 75% of Western Tethyan Resources Ltd ("WTR"), which operates across 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.

Ariana owns 50% of UK-registered Venus Minerals Ltd ("Venus") which is focused on the exploration and development of copper-gold assets in Cyprus which contain a combined JORC Inferred Resource of 9.5Mt @ 0.65% copper (excluding additional gold, silver and zinc).

Ariana operates its wholly-owned Asgard Metals Fund ("Asgard"), as part of the Company's proprietary Project Catalyst Strategy. The Fund will be 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, Turkey and the UK.

Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser and Broker.

For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com.

Glossary of Technical Terms:

"Cu" chemical symbol for copper;

"JORC" the Joint Ore Reserves Committee;

"m" Metres;

"MRE" Mineral Resource Estimate

Ends.