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TSX Venture Exchange
Trading Symbol: ARC
VANCOUVER, Jan. 30, 2014 /CNW/ - Arian Resources Corp. ("Arian" or "Company") - ARC: TSX-V.
- Acquires fully permitted past producing mine with a high grade historic resource
- Project has had over 170,000 meters drilled
- Acquires a significant adjacent land package of 2,300 hectares
Mr. Zahir (Zip) Dhanani, CEO and Chairman of Arian, is pleased to announce the acquisition of the past producing, high-grade Perlat copper-gold-silver-cobalt mine in Albania. The 290 hectare Perlat exploitation permit contains a significant, high grade historic resource. The project is permitted for mining for 25 years, with a 10 year renewal option.
Based on the results of geophysics conducted by Arian as part of its due diligence, the Company has significantly expanded the footprint of the project by acquiring an adjacent 2,300 hectare exploration license.
Perlat Copper-Gold-Silver-Cobalt Project
The Perlat exploitation permit lies within the productive Mirditë and Pukë Districts in northern Albania and is located 80 kilometres north of the capital Tirana. The Perlat permit is easily accessed by an 18 kilometre road from the town of Rreshen. Power and water are readily available throughout the property.
Contained within the Perlat permit is the past producing Perlat copper-cobalt mine which is one of eleven volcanogenic massive sulphide (VMS) deposits mined from a linear trend within the Mirditë and Pukë Districts.
Copper mineralization at Perlat was first discovered in the 1960's. An extensive drill program commenced in 1975 by the Albanian Geological Service and the Albanian state run Rubik Geological Enterprise. Drilling of 460 holes totalling 165,213 metres was completed on a 100m by 90m grid which was tightened to 50m by 45m in mineralized zones.
Drilling was undertaken, over the 2.5km strike length of the exploitation permit. The historic exploration of the deposit was focussed on copper and cobalt and only on rare occasions were analyses undertaken for zinc and gold. Select intercepts from this drill program are presented in the following table. Gold and zinc assays are presented where available.
|From (m)||To (m)||Length (m)||%||ppm||%||ppm|
The VMS mineralization at Perlat is of the Cyprus-type and is concentrated at and conformable with an andesite and basalt agglomerate and tuff-agglomerate unit. Small massive sulphide lenses and disseminated sulphides in altered volcanic rocks comprise a number of zones which vary from 4 to 20 metres in thickness. The dominant sulphide minerals are pyrite and chalcopyrite with minor sphalerite and marcasite. The mineralization lies on a north-northeast trend extending for over 2 kilometres.
Mining commenced on the northern portion of the Perlat deposit in 1979 and continued until 1991 at the time of the collapse of communism in Albania and of 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.
To support the mine operations extensive underground development was undertaken. Though production statistics are not available, nine mineralized lenses were mined by sub-level caving. Lower grade ore from the mine was sent to mills at either Kurnesh or Rreshen whilst high grade ore was sent directly to a smelter in Rubik.
The Rubik Geological Enterprise has presented historic Mineral Resources for portions of the Perlat Deposit in 1979, 1983, 1986 and most recently in 1993. These historic Mineral Resources were classified under the Russian "reserve" classification system into Categories A, B, C1 and C2 in order of decreasing confidence where:
- Category A means reserves are known in detail (usually defined by underground workings);
- Category B includes reserves outlined by exploratory workings and/or closely spaced drilling;
- Category C1 includes reserves defined at the project by a drilling grid of 50m by 45m; and
- Category C2 refers to less well defined reserves indicated by geological and/or geophysical information confirmed by drill holes at spacing between 50m x 45m and 100m x 60m.
A qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the issuer is not treating the historical estimate as current mineral resources and the historical estimate.
In 1986 undiluted geological "reserves" of Category B+C1 (likely equivalent to Indicated to Inferred Resourced by modern definition standards) totalling 2,565,155t grading 2.202% Cu and "reserves" of Category C2 (likely equivalent to Inferred Resources by modern definition standards) totalling 1,186417t grading 1.779% Cu were estimated at a cut off of 0.7% Cu. An unknown amount of this was mined in the following 5 years to when the mine was closed in 1991.
Between 1986 and 1992 additional drilling was conducted in the southern and central portions of the Perlat Deposit. This work resulted in additional Category C1 "reserves" totalling 635,746t at a grade of 3.491% Cu and Category C2 "reserves" totalling 344,044t at a grade of 2.845% Cu were estimated (undiluted geological "reserves" at a 0.7% Cu cut-off). These resources in the southern portion of the Perlat Deposit were never mined.
In 2006 Balkan Resources Inc acquired the property. Balkan commenced a drill program in late 2007 to confirm the previous drill results. Drilling continued through to October of 2008 by which time 18 holes totalling over 5,000 metres had been drilled.
Hole P-32-2008 was designed to confirm the tenor of the mineralization in the northern portion of the Perlat Deposit. From a depth of 316.1m a 7.02m zone of mineralization was intersected which contained 7.33% copper, 6.31 g/t gold 31.46 g/t silver and 0.16% zinc. This intercept confirmed the high metal contents previously reported.
Balkan also tested the southern portion of the exploitation license, approximately 1,000m south of Hole P-32-2008. This drilling returned not only elevated copper values but also significant gold, silver and zinc credits.
Significant intercepts from the Balkan drilling in the southern portion of the exploitation license are presented in the following table:
|From (m)||To (m)||Length (m)||%||ppm||ppm||%||%|
*Cu Eq. (copper equivalent) has been used to express the combined value of copper, gold, silver and zinc as a percentage of copper, and is provided for illustrative purposes only. No allowances have been made for recovery losses that may occur should mining eventually result. Calculations use metal prices of US $3.25/lb copper, $1250/oz gold, $20/oz silver, and $0.90/lb zinc using the formula Cu Eq.% = Cu% + (Au g/t x 0.561) + (Ag g/t x 0.0090) + (Zn% x 0.277).
These holes have revealed that the southern portion of the exploitation license also contains mineralization and that although historic exploration of the project was limited to copper and cobalt there are zones within the deposit that are enriched in gold, silver and zinc.
Zahir (Zip) Dhanani, President and CEO of Arian comments: "Arian is excited to acquire a high grade, fully permitted mine with a historic resource. The extension of this past producing mine has benefited from a massive drill program that has defined a substantial zone of mineralization. Our immediate target is to use the historic data to produce an NI 43-101 report. In addition, we have applied for a substantial exploration permit adjacent to the Perlat project, which has the potential to host additional mineralization. We have received excellent support from the government in expediting regulatory approvals, skilled manpower and equipment are readily available in the vicinity of the project and we believe that we can create substantial shareholder value going forward."
Arian will acquire 100% of Balkan Resources Sh.p.k., which owns the Perlat Exploitation permit from Balkan Resources Canada (Balkan). This agreement is subject to receipt of applicable regulatory approvals including acceptance by the TSX Venture Exchange. Arian will acquire the permit through a series of shares and cash payments to Balkan.
On February 14, 2014 Arian will grant Balkan 5,000,000 common shares.
On June 30, 2015 Arian will make a CAD $2 million dollar cash payment to Balkan. On December 30, 2016 Arian will make a further CAD $2 million dollar cash payment to Balkan.
On the date that a concentrate emanating from the Perlat exploitation license has been accepted by a smelter Arian will make a cash payment to Balkan of CAD $2 million dollars and will have the option to either pay Balkan a further CAD $3 million dollars or issue Balkan 3 million common shares.
If a concentrate from the Perlat exploitation license has not been accepted by a smelter by December 31, 2018 then Arian will make a cash payment of CAD $2 million dollars to Balkan.
Upon commercial production Balkan will receive a 2.5% Net Smelter Return for the duration of the life of the mine.
In addition Arian has the following work commitments to Balkan: By August 1, 2014 Arian is to have spent US $472,100 on the project. By August 1, 2015 Arian is to have spent US $3,448,000 on the project. By August 1, 2016 Arian is to have spent US $9,298,300 on the project. In addition Arian is to extract 20,000 tonnes of ore between August 1, 2015 and July 31, 2016.
Should Arian not fulfill the obligations above, the shares of Balkan Resources Sh.p.k. will be transferred back to Balkan.
A finder's fee, payable in Common Shares of Arian, in the maximum amount allowed by the policies of the TSX Venture Exchange, will be paid to a party who is arm's length to Arian.
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.
Arian announces the Company is arranging a non-brokered private placement of up to 16,000,000 units (the "Units") at a price of $0.15 per Unit, for gross proceeds of up to $2,400,000 (the "Offering"). Each Unit is comprised of one common share and one share purchase warrant. Each share purchase warrant (a "Warrant") entitles the holder to acquire one additional common share for a period of two years at a price of $0.25.
Each warrant is subject to accelerated expiry provisions such that if at any time after the expiry of any resale restriction governing the subscribed shares, the corporation's common shares trade on the TSX Venture Exchange at or above a volume-weighted average trading price of 40 cents per common share for 10 consecutive trading days, the company may give notice to the holders that each warrant will expire 30 days from the date of providing such notice.
In connection with the Offering, subject to regulatory approval, the Company will pay certain eligible finders finder's fee for units sold in the Offering, at the discretion of Arian.
Proceeds of the placement will be applied to the Company's Albanian properties and to general working capital.
All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities law. The Offering is subject to a number of conditions including receipt of all necessary corporate and regulatory approvals, including approval of the TSX Venture Exchange.
ON BEHALF OF THE BOARD OF DIRECTORS
Zahir ( Zip ) Dhanani, President & CEO
About Arian Resources Corp.
Arian Resources Corp. is a junior exploration company with a focus on the exploration of prospective mineral properties in Albania.
This news release may contain forward-looking statements including but not limited to comments regarding the closing the transactions contemplated by the Option Agreement, subscription of Units, resignation and appointment of directors of the Board and the timing of the Completion Date. 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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SOURCE: Arian Resources Corp.
For further information:
Zahir Dhanani at 604.248.5175 or via email at [email protected].