Ariana Resources plc : ARZU SOUTH EXTENSION DRILLING RESULTS

14 September 2016
AIM: AAU

ROBUST RESULTS FROM ARZU SOUTH EXTENSION DRILLING

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company operating in Turkey, is pleased to announce initial results for its Phase One drilling programme of 2016, completed during early September at the Kiziltepe Project.  The results reported here relate to drilling at the NW end of the Arzu South vein at Kiziltepe.  Kiziltepe is part of the Red Rabbit Joint Venture with Proccea Construction Co. and will be 50% owned by Ariana once mine construction is completed in Q416. 

Highlights:

• Completion of 843 meters of Reverse Circulation ("RC") drilling at the NW end of Arzu South, targeting the extension of the vein system beneath cover towards the Arzu Central target area. 

• Best intercepts include, 7m @ 8.5g/t Gold + 26.2g/t Silver, 11m @ 3.7g/t Gold + 75.4g/t Silver and 13m @ 3.2 g/t Gold + 37.7 g/t Silver*.

• Newly discovered vein system which trends parallel to Arzu South was drill-tested for the first time; now referred to as Arzu South Parallel ("ASP").  
   
• New veins tested over 300 meters along ASP trend, with best intercepts including 4m @ 3.5 g/t Gold + 49.6g/t Silver, 6m @ 2.1g/t Gold + 27.4g/t Silver and 6m @ 1.0g/t Gold + 12.6 g/t Silver.
   
• Drilling confirms the potential to extend the Arzu South pit to the NW, enabling access to mineralisation which lies beneath the pumice ignimbrite cap rock sequence and improves the potential for future underground operations.
   
• Majority of intercepts occur within, just below or to the southern edge of the 2016 Whittle optimised pit shell, which increases the potential volume of mineralisation capable of being mined from the NW pit extension.

Dr. Kerim Sener, Managing Director, commented: 

"These results represent an encouraging advancement of our plans to extend the Arzu South open-pit by a further 200m to the NW from the original feasibility pit design (650m in length).  This follows from the confirmation of good mineralisation beneath the pumice ignimbrite cap rock sequence in this location and bodes very well for the discovery of further mineralisation beneath cover within the Arzu Central target area. 

The JV company is currently working on a three-staged pit design to optimise cashflow from the operation at Arzu South and the confirmation of mineralisation through this drilling increases the probability that we will need to consider a fourth (expanded) stage or develop an underground operation in this area."

Drilling Programme

In late July 2016, a Reverse Circulation (RC) drilling programme was initiated on the Kiziltepe mine area, within the Red Rabbit Project. The drilling work was carried out by IDC Sondaj Muhendislik ve Insaat Ltd., supervised by the Ariana exploration team, and team members from Ariana's Turkish subsidiary, Galata Madencilik San. ve Tic. Ltd. ("Galata"). A two phase approach was employed for the project, giving the team flexibility to adjust and re-plan holes as drilling advanced and as results returned.  Samples were sent to the ALS Global laboratory in Izmir in batches according to the programmes objectives.

Phase One of the 2016 drilling programme has now been completed for a total of 3,002m for 25 RC holes. The team have also completed all sample dispatch to the laboratory.  All analytical results are expected to have been returned within the next two to three weeks.  Based on the success of the Phase One programme, we will be completing revisions to our Phase Two programme (for up to an additional 2,500m), with a plan to restart drilling during October. The primary objective for Phase Two will be to drill the deeper holes on the project, which will complete testing of the Arzu Central mineralisation under the pumice ignimbrite cap. Further updates on Arzu Central will be provided as final results from Phase One are returned later this month.

Phase One of the 2016 drilling programme focused on four main objectives:

1. Six RC drill holes, for a total of 542 meters, were planned to target the newly discovered Arzu South Parallel ("ASP") vein system, which was identified during 1:1,000 scale geological and alteration mapping within the limits of pre-stripping undertaken recently by the mining team.  Quartz veins and associated stockwork zones were intercepted in every hole, testing the ASP vein over 300m of strike and to a maximum vertical depth of 120m below surface.  Reasonable grades including, 4m @ 3.5 g/t Au + 49.6g/t Ag, 6m @ 2.1g/t Au + 27.4g/t Ag and 6m @ 1.0g/t Au + 12.6 g/t Ag were returned from this drilling. The identification of this additional mineralised vein system, located within the Arzu South footwall will result in further positive revisions to the current pit design. The additional mineralisation is likely to reduce the amount of waste rock removed from the excavation in the footwall of Arzu South.      

Three of the holes targeting ASP at depth, were also positioned to intercept the Arzu South vein within 15 vertical meters below surface. These intercepts returned with 7m @ 8.5g/t Au + 26.2g/t Ag, 6m @ 2.1 g/t Au + 27.4g/t Ag and 4m @ 2.3 g/t Au + 21.2 g/t Ag.  These intercepts reinforce the likelihood for high-grade ore to be accessed within the early stages of mining in this area. 

A further three holes in the far northwest of Arzu South where designed to confirm the presence of mineralisation first intercepted during the 2015 drilling programme in an area covered by a pumice ignimbrite cap rock.  Results from the 2016 drilling returned with 11m @ 3.7g/t Au + 75.4 Ag, 13m @ 3.2 g/t Au + 37.7 g/t Ag* and 10m @ 0.9 g/t Au + 11g/t Ag. Further resource infill drilling will be completed in this area as part of Phase Two for 2016.  

The above results are shown in more detail in Table 1 and Figure 1. 

2. Objective two for Phase One of the 2016 programme was to drill six initial holes within the Arzu Central Zone. Drilling was required within this area to generate additional data on the geometry of the pumice ignimbrite cap rock, in addition to determining the potential orientation of mineralisation within the Arzu Central target, in order to refine the target for future drilling. These holes have been completed and a further announcement will be made once these results have been returned from the laboratory.   
    
3. Objective three for the Phase One of the 2016 programme was to drill at the southern end of Arzu South, where seven holes targeted the southern-most extents of the ASP vein. Several new stock-work zones and quartz veins up to 2m wide were intercepted. A total of 390 samples from this area were sent to the laboratory and results are currently being received.
    
4. The final objective for Phase One, was to drill three holes at the northern edge of the Kiziltepe mine waste rock dump. This was to target a new vein system discovered during the clearing and preparation of the waste rock dump. These holes have now been completed and samples have been dispatched to the laboratory for analysis.  

Table 1:  Significant RC drilling results from the 2016 programme, arranged in order of the gram x metre intercepts (down-hole gold equivalent grade multiplied by intercept thickness).  The intercepts reported in this table are the down-hole lengths.  Intercept grades have been calculated using a 0.5 g/t Au minimum cut-off with up to 2m internal waste allowed.  The location of intercepts relative to the Whittle optimised pit shell is also identified, demonstrating that considerable additional mineralisation has been discovered within or just to the margins of the Whittle pit.  Where ASP was intercepted, these are identified, otherwise the intercepts relate to the main Arzu South vein trend.  Gold equivalent is calculated on the basis of a 60:1 price ratio between silver and gold. 

* One repeat assay result for KTP-RC16-20 is still pending.  The repeat is being performed due to the grade exceeding 10 g/t Au in one metre interval.  Assuming the grade of that sample is limited to 10 g/t Au, then the intercept may be recorded for the purposes of this release as 13m @ 3.2 g/t Au + 37.7 g/t Ag.

Figure 1, which can be accessed by clicking on or pasting the following link into a web browser: http://hugin.info/138153/R/2041932/762039.pdf, is a map of the NW end of the Arzu South pit, showing the limits of the feasibility designed pit, the potential dimensions of the pit extension to the NW as determined from the 2016 Whittle optimisation and the position of the pumice ignimbrite cap rock sequence.  The positions of all new and historic drill collars are shown, with drill traces and intercept locations identified for all recent holes, apart from two old holes on the ASP trend, which have been included to demonstrate the probably continuation of this structure to the NW.  Several new holes were located to intercept the mineralisation beneath the pumice ignimbrite cap rock sequence and hence represent part of the Arzu Central target area. 

Sampling and Assaying Procedures

293 samples were selected based on geological logging of RC chips during drilling and sent for assay. All samples from the drilling programme undertaken by Ariana Resources plc, were prepared and assayed by 30g fire assay, and ICP-MS multi-element analysis, at the ALS Global laboratory in Izmir.  Routine re-assaying of all samples assaying greater than 10 g/t of gold and 100 g/t of silver has also been completed by ALS Global.  Standard, blank and duplicate samples are being used in the sample batches, which is in line with the Company's quality control procedures.  Laboratory sample preparation, assaying procedures and chain of custody are appropriately controlled.  The Company maintains an archive of reference RC chip samples, in addition to all sample pulps and splits.

Contacts:

Editor's Notes:

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 Africa, Australia and Europe.  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 c. 525,000 ounces of gold equivalent. 

Beaufort Securities Limited and Panmure Gordon (UK) Limited 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.

Glossary of Technical Terms:

"Ag" Silver

"Au" Gold

"g/t" grams per tonne

"m" Metres

"oz" Ounces

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