Arian Resources Corp. (“Arian”) (ARC:CA) - Mr. Zahir Dhanani, Chairman & CEO of Arian, is pleased to announce that Arian is awaiting the results of the feasibility study being undertaken by Sinomine Resources Exploration Co. Ltd. (“Sinomine”).
Sinomine had planned to produce a pre-feasibility report but, encouraged by their analysis of the deposit, they decided to upgrade the report to a feasibility study on their own initiative.
The agreement between Arian and Sinomine is that, if the result of the feasibility report is positive, Sinomine would take Perlat into production. Arian would not be required to contribute any cash in this process and would retain a significant minority interest in the project, as agreed in the formal Option and Investment Agreement (“Agreement”) signed between Sinomine and Arian in 2014.
Under the Agreement, Arian and Sinomine are also currently evaluating other projects and due diligence is being conducted on two other projects. The ideal projects would be ones that have a resource and which have the potential to be put into production in a relatively short time frame, or, if they are early stage, which have results that show the potential for a high grade deposit.
In these difficult markets, where fundraising is a challenge for junior mining companies, this puts Arian in an advantageous position as it would potentially generate cashflows from the project without any further investment, if it is put into production.
Arian Resources Corp. has completed an initial mineral resource estimate for the Perlat copper-gold-silver-zinc-cobalt project located in Albania (see news release dated September 2, 2014). The National Instrument 43-101 technical report has been filed on the SEDAR website.
At a cut-off of 1.1 per cent copper, the estimate provides a total inferred mineral resource of 4.66 million tonnes averaging 2.12 per cent copper.
This is consistent with the historic resource defined by Rubik Geological Enterprise, pursuant to 165,000 metres of drilling (see news release dated Jan. 30, 2014).
The Perlat property comprises a 290 hectare exploitation permit contiguous to a 2,305 hectare exploration permit within a district-scale belt which hosts numerous multi-element volcanogenic massive sulphide deposits.
Underground mining commenced on the northern portion of the Perlat deposit in 1979, and continued until 1991 when it was closed due to the combined effects of the collapse of communism in Albania and low copper prices. The mine, which includes two shafts on the northern portion of the deposit, and an exploration shaft and drive on the southern portion of the deposit, was decommissioned in 1997, after producing 582,000 tonnes at 1.8% copper.
The resource estimate was conducted using data made available from the previous operators of the property and surrounding exploration area. The data included 5,489 copper assay results from 529 drill holes. Though samples were only sporadically analyzed for gold, silver, zinc and cobalt there is good correlation between copper and elevated gold values in those samples that were analyzed for gold.
The exploitation and exploration licences cover the well-documented Mirdite ophiolite sequence of rocks that trend north to northwesterly through Albania. The trend is known to host volcanogenic massive sulphide (VMS) deposits such as Perlat, many of which were historically mined.
On the Perlat property, massive sulphide lenses and disseminated sulphides in altered volcanic rocks comprise a number of zones varying from four to 20 metres in thickness. These sulphide zones have been traced for more than two kilometres. The mineralized zones host significant concentrations of copper and gold, with subsidiary silver, cobalt and zinc.
The exploration licence includes the Shebe and Tuturiq prospects. Historic records indicated that these prospects contain significant gold in outcrops with reported values of up to 27 grams per tonne.
The Perlat property is located east-southeast of the town of Rreshen in northeastern Albania, and is accessible by highway and secondary gravel roads. Power, water and other resources are readily available in the region.
Chad Ulansky, PGeo, is the qualified person under National Instrument 43-101 who has reviewed the technical disclosure in this news release and is responsible for the technical information contained in this release.
For further information, contact Zahir Dhanani at 604.248.5175 or via email at firstname.lastname@example.org.
We seek Safe Harbor.
ON BEHALF OF THE BOARD OF DIRECTORS
"Zahir Dhanani, Chairman & CEO"
Arian Resources Corp.
About Arian Resources Corp.
Arian Resources Corp. is a junior mineral exploration company with a focus on the development of the high grade copper-gold Perlat project in Albania.
About Sinomine Resource Exploration Co., Ltd.,
Sinomine Resource Exploration Co., Ltd. is the top resource exploration company in the People’s Republic of China and is listed on the Shenzhen Stock Exchange.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs and the enhancement and expansion of operations. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements and Arian undertakes no obligation to update such statements, except as required by law.
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