18 August 2022

AIM: AAU

MAJOR INCREASE IN APLIKI MINERAL RESOURCE

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

Highlights:

·    MRE updated to a global Measured, Indicated, and Inferred Resource of c. 17 Mt at a grade of 0.26% to 0.69% Cu (0.34% Cu average)* across Apliki, after further detailed assessment and modelling of historic data.

·    Increase recorded by the addition of the Apliki Mine Pit Wall Resources for an additional 6.47Mt @ 0.32% Cu, compared to the 2021 MRE.

·    Apliki represents an already developed open-pit with significant unmined resources available for modern extraction.

* MRE stated gross with respect to HAM.  Venus is to acquire 50% of HAM and Ariana holds 50% of Venus.

Dr. Kerim Sener, Managing Director, commented:

"Within two years, through Venus, Ariana has achieved its objective of establishing a substantial copper resource base in Cyprus, which now comprises 34Mt with a grade range of circa 0.3 to 1.10% copper.  Even at the lower end of this grade range, and excluding the potential of by-product metals, such as gold, this represents substantial in-ground (risked) value.

"This updated MRE follows the original MRE on Apliki completed last December in which we had noted that there were areas of potential resource upside, particularly in the Apliki Mine area and its related stockpiles, and that further work by the Venus team would be undertaken in these areas in order to continue building the resource base.

"This updated MRE for Apliki comes at an opportune time, ahead of the proposed IPO of Venus on AIM.  Venus will also soon implement further project optimisation work to advance the Apliki Mine development programme with Hellenic Apliki Mines.

"Although market conditions remain less favourable than we would like, and while we cannot influence the markets, we are nevertheless eager to continue developing the assets within the Venus portfolio to enhance the value of the company ahead of a listing. In the meantime, we are pleased to note that Venus has extended its option over Apliki to 31 December 2022. 

"Venus is a British and Cypriot-owned company which represents one of the most exciting near-term European copper mining opportunities in play today, in a jurisdiction that has been prized for its high-quality copper for time immemorial."

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

Introduction

Following the release of the Apliki MRE on 1 December 2021, the Venus and Ariana teams have continued to evaluate historic drilling data across Apliki.  In particular, an area outlined previously as a zone of "significant interest" within the north-east wall of the historic Apliki Mine (Figure 1) has demonstrated sufficient drilling density and assay data to define a c. 55% overall increase in the MRE. The management team considered the data reviewed of sufficient quality to support resource classification up to Indicated. However, since this area is yet to be verified with new drilling, the resources outlined within this release have been reported as Inferred only across most zones, with Indicated and Inferred Resources defined for West Apliki.

http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf

Figure 1: Plan view of the Apliki Project, showing the 2021 due-diligence drill collar positions and historical collars. All Apliki MRE domains are highlighted in red apart from the Apliki Mine Pit Wall are shown in yellow.  Areas with further potential, which require follow-up work are outlined in dashed purple.

Resource Estimation

The MRE is based on a detailed review 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 24,538m of drilling (all historic holes and the 2021 due-diligence drilling) and covers all major areas of Apliki (West Apliki, Apliki Mine, Apliki Mine Pit Wall and Apliki Stockpiles).  The use of modern software with improved estimation methods and statistical analysis enables the calculation of a Resource Estimate with sufficient confidence to be classified as Indicated and Inferred.  However, the drill hole spacing density for the project is generally appropriate to support a higher classification of resources in some areas, but this will require more confirmatory drilling to validate and further 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).  Five mineralisation domains were modelled from sectional interpretations and associated interpolation, representing the most current geological data and understanding.  The MRE is separated into four main areas: 1) West Apliki, 2) Apliki Mine, 3) Apliki Mine Pit Wall and 4) Apliki Stockpiles (Figure 2).  

http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf

Figure 2: 2021 MRE block model domains of all major Apliki mineralisation areas including the 2022 Apliki Mine - Pit Wall.

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 Mineral Resource classification.

A density of 2.4g/cm³ was applied to in-situ mineralisation across the Project as a whole, however, a density of 2.0g/cm³ was used for the stockpile material.  Further work is required to more appropriately define density variations throughout the deposit.  Previous studies completed by Ariana for other deposits in the area utilised sulphur assays as a proxy for sulphide distribution from which a density model could be created, although the historic data for Apliki only contain copper values, and mostly represent oxide mineralisation.  Based on HCM's own internal work, they have defined 2.4g/cm³ to be the average density of the 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 all Apliki Mine Resources (Pit Floor and Pit Wall). 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 the 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 the extrapolation of high-grades within the block model as a result of historic holes (900 series drilling) overstating copper grades (which recorded up to 5.76% Cu), that 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, Apliki Mine Pit Wall and the Apliki Stockpile 1 (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 used by the HCM team in their internal estimations.  Grades for the block models were estimated using Inverse Distance Weighted Squared ("IDWS"), adopting a multi-pass methodology. 

http://www.rns-pdf.londonstockexchange.com/rns/4043W_1-2022-8-17.pdf

Figure 3: Cross section with a wide (500m) swath 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 Measured, Indicated and Inferred Resources (Table 1 & 2).  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, Apliki Mine Pit Wall and West Apliki, and demonstrates that there are reasonable prospects for eventual economic extraction (Table 1). A reporting cut-off of 0.15% Cu is used for Apliki Stockpiles. Confidence in the Resource Estimate 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. 

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 Stockpile 1. Based on HCM's own optimisation evaluations and partial mining results of Stockpile 1, the captured/optimised component was classified as Probable Reserves. These numbers have been confirmed by Ariana's internal estimates.  As a result of Ariana's ongoing data evaluations, the Stockpile 1 resources captured by HCM's optimisation studies have been re-classified by Ariana as Measured, as it is now deemed that HCM's optimisation input parameters are out-dated based on the current economic setting. The Stockpile 1 resources are reported at a lower cut-off grade than the in-situ resources due to their associated lower mining cost.

Table 1: Summary of 2022 Apliki Mineral Resource Estimate, in accordance with JORC 2012, based on 248 drill holes (24,538m) across the Apliki Sector (15 August 2022).  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 re-classified Measured Resource (previously Probable Reserves) for Stockpile 1 is provided at a reporting cut-off of 0.15% Cu.

Table 2: Summary of 2022 Apliki Mineral Resource Estimate, in accordance with JORC 2012, reported on a net attributable basis to Ariana.  See caption for Table 1 for other details concerning the reporting parameters.

Exploration Target

An Exploration Target has been defined for stockpiled low-grade mineralised material not included in the resources outlined above and is referred to here as Stockpile 2. This stockpile requires further sampling to confirm and model accurately. This is reported gross with respect to HAM and Venus. 

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").

Contacts:

Editors' Note:

Qualified Person:

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 MRE's 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 February 2022). 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 222,000 ounces gold and 3.8 million ounces silver (as at February 2022). 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 Mine 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). Following the approval of its Environmental Impact Assessment and associated permitting, Tavsan is being developed as the second gold mining operation in Turkey. 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 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, Turkey and the UK.

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 Corporation (www.newmont.com).

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 Indicated and Inferred Resource of 17Mt @ 0.45% to 1.10% copper (excluding additional gold, silver and zinc), in addition to pursuing a separate 50:50 JV on Hellenic Apliki Mines, which owns the Hellenic SX-EW processing plant and the 17Mt @ 0.26% to 0.69% Cu Apliki mine development project. 

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;

"cut-off grade" the lowest grade, or quality, of mineralised material that qualifies as economically mineable and available in a given deposit. May be defined on the basis of economic evaluation, or on physical or chemical attributes that define an acceptable product specification;

"Indicated Resource" a part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed;

"Inferred resource" a part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and has assumed, but not verified, geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited or of uncertain quality and reliability;

"Inverse Distance Weighted Squared" or "IDWS" a conventional mathematical method used to calculate the attributes of mineral resources.  Near sample points provide a greater weighting than samples further away for any given resource block;

"JORC" the Joint Ore Reserves Committee;

"JORC 2012" is the current edition of the JORC Code, which was published in 2012.  After a transition period, the 2012 Edition came into mandatory operation in Australasia from 1 December 2013;

"Kriging" is a geostatistical approach to modelling which relies on the spatial correlation of the data to determine weighting values, rather than weighting nearby data points by some power of their inverted distance (e.g. IDWS).  This is a more rigorous approach to modelling, as the spatial correlation between data points determines the estimated value at an unsampled point;

"m" Metres;

"Measured Resource" a part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drillholes. The locations are spaced closely enough to confirm geological and grade continuity;

"MRE" Mineral Resource Estimate.

"Mt" million tonnes;

"Probable Ore Reserve" is the economically mineable part of an Indicated, and in some cases, Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Ore Reserve is lower than that applying to a Proven Ore Reserve;

Ends.