Mariana Resources Ltd (AIM:MARL) has given DirectorsTalk the results of the maiden Mineral Resource estimate for the high grade gold copper (‘Au-Cu’) Hot Maden Project, eastern Turkey (Figure 1). The Mineral Resource estimate was prepared by independent mining consultants RungePincockMinarco Limited (“RPM”), and was based on assay results received for drill holes up to, and including, HTD-17 completed on 25th June and is reported in accordance with the JORC Code 2012 edition and estimated by a Competent Person as defined by the JORC Code. Drilling to date has been completed by our JV partner Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya”) earning up to a 70% interest in the Hot Maden Project. The total maiden Mineral Resource estimate comprises:
Indicated Category:
4.71 million tonnes (“Mt”) at 10 grammes per tonne (“g/t”) gold and 2.2% copper, for a gold equivalent grade* of 13.4 g/t and a total 2.033 Million Oz Gold Equivalent** (“AuEq”) (100% basis)
Inferred Category:
3.65 Mt at 5.5 g/t gold and 1.8% copper, for a gold equivalent grade* of 8.2 g/t and a total 0.968 Million Oz AuEq** (100% basis)
Total Mineral Resource Estimate :
3 Million Oz Gold Equivalent ** at a gold equivalent grade* of 11.2g/t (100% basis)
Mariana’s Current Attributable Interest in Hot Maden (30%):
900,000 Oz Gold Equivalent** at a gold equivalent grade* of 11.2g/t
This maiden Mineral Resource Estimate above has been compiled by Stewart Coates from RPM who also falls under the definition of Qualified Person (“QP”) as defined in the National Instrument “NI 43-101”.
This resource estimate has been estimated in compliance with the CIM Definition Standards on Mineral Resources and Mineral Reserves and will be included in a NI 43-101 Technical Report on Hot Maden, within appropriate reporting requirements, which is in the process of being compiled. This report when complete will be filed on AIM as well as on SEDAR.
A detailed breakdown of the Total Mineral Resource estimate is given below:
| Hot Maden Deposit (100% basis) | |||||||
| August 2015 Mineral Resource Estimate (2g/t AuEq* Cut-off) | |||||||
| Indicated Mineral Resource | |||||||
| Domain | Tonnes | Au | Cu | AuEq | Au | Cu | AuEq |
| t | g/t | % | g/t* | Ounces | Tonnes | Ounces** | |
| Main Zone LG | 481,000 | 0.9 | 1.0 | 2.4 | 14,000 | 5,000 | 37,000 |
| Main Zone HG | 3,199,000 | 5.2 | 1.8 | 8.0 | 537,000 | 56,000 | 822,000 |
| Main Zone UHG | 1,031,000 | 29.2 | 4.0 | 35.4 | 967,000 | 41,000 | 1,174,000 |
| Total | 4,710,000 | 10.0 | 2.2 | 13.4 | 1,518,000 | 102,000 | 2,033,000 |
| Inferred Mineral Resource | |||||||
| Domain | Tonnes | Au | Cu | AuEq | Au | Cu | AuEq |
| t | g/t | % | g/t* | Ounces | Tonnes | Ounces** | |
| Main Zone LG | 819,000 | 0.8 | 1.0 | 2.4 | 21,000 | 8,000 | 62,000 |
| Main Zone HG | 2,291,000 | 3.1 | 2.0 | 6.2 | 228,000 | 45,000 | 455,000 |
| Main Zone UHG | 326,000 | 36.2 | 3.3 | 41.4 | 379,000 | 11,000 | 434,000 |
| Peripheral Lodes | 218,000 | 1.8 | 0.4 | 2.4 | 13,000 | 1,000 | 17,000 |
| Total | 3,654,000 | 5.5 | 1.8 | 8.2 | 640,000 | 65,000 | 968,000 |
| Total Mineral Resource | |||||||
| Domain | Tonnes | Au | Cu | AuEq | Au | Cu | AuEq |
| t | g/t | % | g/t* | Ounces | Tonnes | Ounces** | |
| Main Zone LG | 1,299,000 | 0.8 | 1.0 | 2.4 | 35,000 | 13,000 | 100,000 |
| Main Zone HG | 5,490,000 | 4.3 | 1.9 | 7.2 | 765,000 | 101,000 | 1,277,000 |
| Main Zone UHG | 1,357,000 | 30.9 | 3.8 | 36.9 | 1,346,000 | 52,000 | 1,608,000 |
| Peripheral Lodes | 218,000 | 1.8 | 0.4 | 2.4 | 13,000 | 1,000 | 17,000 |
| Total | 8,364,000 | 8.0 | 2.0 | 11.2 | 2,159,000 | 167,000 | 3,001,000 |
Note from RPM:
1. The Statement of Estimates of Mineral Resources has been compiled under the supervision of Mr. Stewart Coates who is a full-time employee of RPM and a Member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia. Mr. Coates has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Qualified Person as defined in the CIM Standards of Disclosure and as a Competent Person as defined in the JORC Code (2012).
2. All Mineral Resources figures reported in the table above represent estimates based on drilling completed up to 25 June, 2015. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause some computational discrepancies.
3. Au Equivalence (AuEq) calculated using a 100 day moving average of $US1,178/ounce for Au and $US2.70/pound for Cu as of July 29, 2015. No adjustment has been made for metallurgical recovery or net smelter return as these remain uncertain at this time. Based on grades and contained metal for Au and Cu, it is assumed that both commodities have reasonable potential to be economically extractable.
*- The formula used for Au equivalent grade is: AuEq g/t = Au + [(Cu% x 22.0462 x 2.7)/(1178/31.1035)] and assumes 100% metallurgical recovery.
**- Au equivalent ounces are calculated by mulitplying Mineral Resource tonnage by Au equivalence grade and converting for ounces. The formula used for Au equivalent ounces is: AuEq Oz = [Tonnage x AuEq grade (g/t)]/31.1035.
4. Mineral Resource grades are estimated in accordance with the CIM Standards and reported in accordance with JORC 2012.
5. Mineral Resources reported on a dry in-situ basis.
6. LG = low grade, HG = high grade and UHG = ultra-high grade.
7. Reported at a 2g/t AuEq cut-off.
Chief Executive Officer Glen Parsons today commented: “This significant three Million oz Gold Equivalent** resource is truly a defining moment and milestone for Mariana, with just six months passing between the discovery of the Hot Maden mineralisation and the reporting of this maiden Mineral Resource. The combined efforts of our JV partner Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya”)(earning up to 70% of Hot Maden) and Mariana (30% interest) have paved the way for this independent Mineral Resource estimate. The close spaced drilling and continuity in the mineralised system allows for approximately two thirds of the resource to be categorised as Indicated which is a significant upgrade. The in-ground discovery cost for these ounces, by the time Lidya has completed its earn-in, will be around US$0.83/AuEq ounce. The Hot Maden project is certainly remarkable and unprecedented as it continues to deliver and excite the market.”
“Further potential exists to extend the known resource to both the north and south, as well as at depth (Figures 2 & 3). In adddtion, the potential for new discoveries being made along the highly prospective Hot Maden fault/alteration zone remains high. Drilling is continuing at Hot Maden which will unquestionably increase the current resource whilst the next stages and studies are planned for the advancement and development of this world class asset in a sustainable manner.”
“The Hot Maden discovery and resource milestone is testament to what can be achieved by Mariana’s strategy of focussed and disciplined exploration across its strategic portfolio. We as a board are very excited about the future and I look forward to updating the market accordingly.”
Drilling continues at Hot Maden with two rigs, with Lidya maintaining its consistent high operating standards with the drill program as it continues to earn into 70% of the project.
A technical report on Hot Maden is in the process of being prepared in accordance to NI 43-101. The company intend to use this maiden Mineral Resource Estimate as the basis for the technical report and release it once complete.
Resource Estimate Authorship and Methodology
The Mineral Resource Estimate for the Hot Maden Project was compiled under the supervision of Mr Stewart Coates, a full time employee of RPM and a Member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia. The Mineral Resource Estimate was completed using the following parameters:
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A site visit was conducted by Stewart Coates (RPM) to review the project and deposit geology, drilling, sampling and QAQC procedures. The data, drilling and geological records were found to be well maintained by Lidya and comprehensive field procedures had been developed. The site visit review concluded no significant issues were identified with regards to current geological understanding and data information.
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The Hot Maden Mineral Resource area extends over a north-south strike length of 280m (from 4,542,055mN – 4,542,335mN), has a maximum width of 105m (740,590mE – 740,695mE) and includes the 440m vertical interval from 885mRL to 445mRL.
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Drill holes used in the Mineral Resource estimate included 15 diamond holes for a total of 1,509m within the wireframes. The database contained records for 20 drill holes (17 unique holes, 3 partial re-drills) for 5,205m of drilling.
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Drill hole spacing is approximately 50m by 50m at the Project. Approximately 60% of current drilling is angled -60 degrees to the west, with the remaining holes angled -60 degrees to the east. Mineralisation is generally sub-vertical.
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Since the commencement of drilling Lidya has implemented a consistent QAQC system utilising standards, blanks and duplicate samples. The program included the submission of one standard every 20th sample, the submission of two blanks in every assay batch and field duplicates taken every 40th sample. All standards and blanks were obtained and certified by Geostats. Duplicates were split to quarter core with a core saw.
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Monitoring of standards, blanks and duplicates was undertaken by Lidya and Mariana geologists. Raw QAQC data was reviewed by RPM and results considered acceptable and suitable for use in Mineral Resource estimation.
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The mineralisation was constrained by resource outlines based on mineralisation envelopes prepared using a nominal 0.5g/t Au Equivalent cut-off grade for lower grade material, 3g/t Au Equivalent for higher grade material and approximately 15g/t Au Equivalent for ultra-high grade material. All mineralisation intersections were defined with a minimum down hole width of 2m.
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Samples within the wireframes were composited to even 1m intervals based on analysis of the sample lengths in the database. Top-cuts were applied to the data based on statistical analysis of individual lodes. A top cut of 25g/t Au was applied within the higher grade domain, and a top cut of 150g/t Au was applied to the ultra-high grade domain. Top cuts were determined by statistical analysis and applied to the 1m composite data, resulting in 12 samples being cut. No top cuts were necessary for other elements.
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A Surpac block model was used for the estimate with a block size of 25m NS by 25m EW by 10m vertical with sub-cells of 3.125m by 3.125m by 1.25m. This was selected as the optimal block size as a result of kriging neighbourhood analysis (KNA).
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Variography was conducted on the lower grade domain (Surpac Object 1) and the higher grade domain (Surpac Object 101) using a normal scores transformation. Variography parameters were back-transformed and exported for use in ordinary kriging (OK) grade interpolation. Search neighbourhood parameters were derived from KNA. Grades were estimated into the block model using OK, with the wireframes being used as hard boundaries. Three passes were used to estimate the blocks in the block model.
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Bulk densities within the wireframes were calculated based on a linear regression equation between Fe grade and density measurements obtained from drill core. A bulk density of 2.85t/m3 was assigned to waste material as a result of average core densities outside the wireframes. A bulk density of 2.20t/m3 was assigned to overburden.
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The Mineral Resource was classified as Indicated and Inferred Mineral Resource based on data quality, sample spacing, and lode continuity. The Indicated Mineral Resource was defined within areas of close spaced diamond drilling of less than 50m by 50m, and where the continuity and predictability of the lode positions was good. The Inferred Mineral Resource was assigned to areas of the deposit where drill hole spacing was greater than 50m by 50m, where small isolated pods of mineralisation occur outside the main mineralised zones, and to geologically complex zones.
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The high grade nature of the mineralisation and the substantial thickness and size of the deposit suggest that the project has potential for eventual economic extraction using open pit and underground mining techniques.
Hot Maden Definitive Agreement
Aegean Metals Group Inc. signed a Definitive Agreement with Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya”) on 24 June 2014, through which Lidya retains the exclusive right to earn-in to a 70% interest in the Hot Maden Project by incurring a total of USD 2.5 million of combined exploration expenditures and USD 0.5 million cash payments within a 48 month period. Prior to the commencement of the Phase II drill program, Lidya had invested approximately USD 700,000 on exploration at Hot Maden.
