GOLD CONFIRMED AT KOKKINOYIA SECTOR, CYPRUS

7 July 2021

AIM: AAU

GOLD CONFIRMED AT KOKKINOYIA SECTOR, CYPRUS

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce recent drilling results obtained from the Kokkinoyia Sector of the Magellan Project ("the Project") which is 100% owned by Venus Minerals Ltd ("Venus")*. Venus is focused on the exploration and development of copper and gold assets in Cyprus. Ariana is continuing its earn-in to 50% of Venus and is currently entitled to 26%.

Highlights:

·    Gold confirmed to be a significant component of the Kokkinoyia deposit, with an average grade of the mineralised zone returning 128.77m @ 0.5% Cu + 0.55g/t Au.

·    Significant drilling intercepts from the first hole (VMD001) at Kokkinoyia include:

o  11m @ 1.11% Cu + 1.05g/t Au, including underground development back-fill with 2m @ 2.05% Cu + 2.50g/t Au.

o  5.87m @ 0.53% Cu + 4.55g/t Au, including underground development back-fill with 1.37m @ 0.41% Cu + 12.75g/t Au.

o  12m @ 0.99% Cu + 0.29g/t Au.

·    Eight remaining holes are pending assay results, which will be released within the coming weeks.

Dr. Kerim Sener, Managing Director, commented:

"These excellent results confirm our expectations that the Kokkinoyia deposit represents a copper-gold volcanogenic massive sulphide system. The average grade across the whole length of the mineralised zone in this first hole demonstrates economically significant levels of copper and gold accumulation. Furthermore, where underground development was intercepted, substantial grades of both copper and gold were identified, suggesting that much of the back-fill used was also significantly mineralised. This is also reflected in the grades encountered in the mine waste dumps at surface. Further drilling results from Kokkinoyia are expected to be received in the coming weeks and will be integrated into a revised JORC Resource Estimate when appropriate.

"The progress being made by the Venus team in Cyprus has been substantial over the past year and these results vindicate our strategy to diversify our regional interests in Europe. We are looking forward to accelerating our earn-in on Venus accordingly."

* 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").

Drilling Programme

Following the end of a three-month drilling programme at Kokkinoyia in early June (comprising over 1,500 metres of drilling), the team and equipment were mobilised to Klirou where the team are now actively drilling. The primary aim of the drilling programme was to add confidence to key historic intercepts on the western side of Kokkinoyia (Kokkinoyia West) and to identify potential for gold mineralisation below surface, as indicated by the results of grab sampling from mine waste dumps. The drilling has also generated material for future metallurgical test work.

Kokkinoyia

Drilling at Kokkinoyia consisted of nine inclined diamond drill holes totalling 1,578.8 metres with an average depth of 169m (minimum depth: 140.60m, maximum depth: 202.50m). A combination of PQ and HQ diamond drilling was used to test the eastern and western flanks of the historic Kokkinoyia open pit, where the holes aimed to test residual mineralisation beneath and around existing workings (Figure 1). The drilling results for the first diamond drill hole at Kokkinoyia (VMD001) are provided in Table 1.

Key intercepts from VMD001 include (in order of depth):

·    48.23m-54.10m: 5.87m @ 0.53% Cu + 4.55g/t Au

o  with 48.23m-49.60m: 1.37m @ 0.41% Cu + 12.75g/t Au in underground development back-fill

·    85m-96m: 11m @ 1.11% Cu + 1.05g/t Au

o  with 85m-87m: 2m @ 2.05% Cu + 2.50g/t Au in underground development back-fill

·    144m-156m: 12m @ 0.99% Cu + 0.29g/t Au

·    165m-176m: 11m @ 0.61% Cu + 0.14g/t Au

The results of this first hole will assist with the confirmation of the Kokkinoyia JORC Resource Estimate (c.5Mt @ 0.7% Cu for 36,000t Cu (JORC Inferred), see announcement dated 15 October 2020). A further eight Kokkinoyia drill holes are still pending for assaying at ALS Laboratory Services in Ireland ("ALS Ireland").

Historically, all drill holes at Kokkinoyia were drilled vertically. VMD001 is the first inclined hole in to the deposit and was designed to test and link mineralisation between several historic holes. The other pending Venus holes were also mostly inclined, sufficiently testing all of the Kokkinoyia West area of the existing resource. VMD001 intercepted two areas of underground development, which were back-filled with material showing significantly elevated copper and gold grades of up to 2.05% Cu and separately 12.75g/t Au. The average grade of 'mineralised' core from start (48.23m) to end (177m) with some minor internal dilution (5.75m total) returned 128.77m @ 0.5% Cu + 0.55g/t Au. This is a robust result which has more than adequately tested the current block model. Furthermore, from approximately 120m to 177m, a new extended zone of mineralisation is noted (Figure 2). Historic drilling in the surrounding area appears to have never been sampled to these depths. Any additional results which support this observation may lead to further growth of the Kokkinoyia resource at depth.

Gold assay results at Kokkinoyia were historically non-existent to minimal (<1% of the database), and therefore, the occurrence of gold has never been an economic focus for the mining of the deposit. However, the Kokkinoyia deposit is continuing to demonstrate the potential for significant gold, as initially identified from grab sampling of waste rock dumps by the Venus team in 2018. Overall, the results for this first drill hole have increased confidence in the historic drilling, and if the remaining holes prove to yield similar results, there will likely be an overall increase in confidence in the future Kokkinoyia JORC Mineral Resource Estimate, with the inclusion of a significant gold component.

http://www.rns-pdf.londonstockexchange.com/rns/3402E_1-2021-7-6.pdf

Figure 1: Plan view of the Kokkinoyia area, showing all recent drill collar positions and the projection of the orebody to surface.

http://www.rns-pdf.londonstockexchange.com/rns/3402E_1-2021-7-6.pdf

Figure 2: Cross section of VMD001 showing the extents of mineralised core, underground development and the outline of the existing block model.

Table 1: Significant intercepts calculated for VMD001 (Hole 1 of 2021 drilling) at Kokkinoyia, using a 0.2% Cu minimum cut-off and allowing for up to 2m internal dilution.

Sampling and Assaying Procedures

All diamond drill core is currently being analysed at ALS Ireland. Results are being assessed systematically.

HQ and PQ size drill-core samples from the drilling programme at Kokkinoyia were cut by a diamond saw into quarter core. Quarter core is sent for analysis in batches in line with the Company's quality control procedures, whilst one quarter is held back for future metallurgical analysis and the remaining half core is archived. For drill hole VMD001 at Kokkinoyia, a total of 100 samples (including 15 QA/QC samples) were submitted to ALS Ireland. 

Drill core recoveries for VMD001 ranged between 50% and 100%, with an overall average for mineralised intercepts and host rocks of 98%. Underground development nearer the surface showed lower recoveries of 85% whilst deeper underground development intercepts had average recoveries of 95%.

All samples were assayed for gold using a 50g fire assay (Au-AA23) and ME-ICP41 for copper and other elements. Reviews of the assay results have determined that all Quality Control and Quality Assurance samples (blanks, standards and duplicates) passed the quality control checks established by the company, with crush and pulp duplicate samples showing excellent correlation. Laboratory sample preparation, assaying procedures and chain of custody are appropriately controlled. The Company maintains an archive of half core samples and a photographic record of all cores for future reference.

Contacts:

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 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 0.7 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 3.7 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 is currently earning-in to 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 is also earning-in to 50% of UK-registered Venus Minerals Ltd ("Venus") and has to date earned into an entitlement to 26%. Venus 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).

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:

"Au" chemical symbol for gold;

"Cu" chemical symbol for copper;

"g/t" grams per tonne;

"JORC" the Joint Ore Reserves Committee;

"m" Metres;

Ends.