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Highlights from the PEA include:
Slivova provides a conceptual pre-tax Net Present Value (NPV 8%) of
US$27 million , and an internal rate of return (“IRR”) of 29% at a gold price ofUS$1,835 /oz.Capital expenditure is estimated at
$33.4 million and sustaining capital requirements of$9.4 million are envisaged in the study.Average production of 13,000 ounces of gold per annum projected over a seven-year mine life from a combined open-pit and underground mining operation is estimated from the study.
Gold recovery by the Carbon-in-Leach (“CIL”) method, with recovery of gold at92-94.5% Au (based on current testwork) and a processing rate of 142,000 tpa is estimated from the study.
The full PEA document, which includes the NI 43-101 Mineral Resource Estimate, may be accessed on SEDAR+ or via the
The independent Qualified Person for Mineral Resources as defined by NI 43-101 is Mr.
The independent Qualified Person for the disclosure of the Preliminary Economic Assessment, as defined by NI 43-101, is Dr.
Mentor Demi, Managing Director of Western Tethyan Resources, added, “The PEA prepared by
Dr.
Following is a summary discussion of important points from the PEA (from Western Tethyan Resources):
Introduction
Project Location
There are four main exploration targets within the Slivova licence: Peshter, Dzemail, Valjeviste, and Brus. The Peshter prospect is further subdivided into three portions: the Main Gossan, Gossan Extension, and the Sandstone Gossan. The Peshter prospect is the main subject of the PEA, for which there is material disclosure (Figure 1).
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Figure 1:The Slivova deposit (Peshter Target), and its associated license boundary.
Project Geology
Within the Slivova license, two units are identified: the calcareous unit and the non-calcareous greywacke unit. They are moderately- to steeply-dipping, northwest striking, and beyond the mineralized prospects, tend to be unaltered and weakly to moderately oxidized.
Two types of intrusive dykes and sills were identified in the mapping and drilling: hornblende-biotite porphyry dykes and stock, and a feldspar porphyry dyke. The dykes represent less than 3% of the total rock volume within the Main Gossan, with the hornblende-biotite porphyry representing 99.5% of the intrusive rocks. Within the Gossan Extension, the hornblende-biotite porphyry is represented by a greater volume of rock and may be a series of northeast-trending dykes, or a larger stock.
Economic mineralization in the Main Gossan and Gossan Extension is concentrated in the calcareous pebble conglomerate and calcareous sandstones. Mineralization at Slivova is classified as a distal, intrusive-related, stratiform, massive to disseminated gold-silver-lead-zinc deposit. The principal minerals of economic interest are gold with minor amounts of galena, sphalerite, chalcopyrite, and silver. The gangue mineral assemblage consists of ilvaite(?), trace magnetite, arsenopyrite, pyrrhotite, marcasite, pyrite, quartz, and various carbonates. Trace elements include arsenic, bismuth, chromium, manganese, nickel, and vanadium.
Mineral Resources
The Mineral Resource Estimate, as previously announced, has an effective date of
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Figure 2:Oblique view of the block model showing the estimated gold grades. WGS84 Z34N.
Category | Tonnes | Bulk Density | AuEq (g/t) | Au (g/t) | Ag (g/t) | Au (oz) | Ag (oz) |
Total Mineral Resources (Gross to the Project) | |||||||
Measured | 835,000 | 2.9 | 4.3 | 4.2 | 15 | 113,000 | 402,000 |
Indicated | 296,000 | 2.8 | 3.6 | 3.5 | 15 | 33,200 | 144,000 |
Meas + Ind | 1,130,000 | 2.9 | 4.1 | 4.0 | 15 | 146,000 | 546,000 |
Inferred | 250,000 | 2.8 | 3.7 | 3.7 | 13 | 30,000 | 100,000 |
Open Pit Resources Above 0.5g/t AuEq | |||||||
Measured | 110,000 | 2.9 | 3.2 | 3.2 | 14 | 11,200 | 48,300 |
Indicated | 39,300 | 2.6 | 2.8 | 2.7 | 13 | 3,390 | 16,500 |
Meas + Ind | 150,000 | 2.8 | 3.1 | 3.0 | 13 | 14,600 | 64,800 |
Inferred | nil | nil | nil | nil | nil | nil | nil |
Underground Resources Above 1.5g/t AuEq | |||||||
Measured | 725,000 | 2.9 | 4.4 | 4.4 | 15 | 102,000 | 354,000 |
Indicated | 257,000 | 2.9 | 3.7 | 3.6 | 15 | 29,800 | 127,000 |
Meas + Ind | 982,000 | 2.9 | 4.2 | 4.2 | 15 | 131,000 | 481,000 |
Inferred | 250,000 | 2.8 | 3.7 | 3.7 | 13 | 30,000 | 100,000 |
Table 1:Estimated Mineral Resources for Slivova. Numbers are rounded to an appropriate number of significant figures, and as such, discrepancies may exist between individual values, products, and totals.
Notes to the Mineral Resource Estimate (1-9):
The independent Qualified Person responsible for Mineral Resource disclosure, as defined by NI 43-101, is Mr.
Richard Siddle , MSc, MAIG, ofAddison Mining Services Ltd. The effective date of the Mineral Resource Estimate is22 June 2023 .Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be converted to Mineral Reserves.
A gold equivalent (AuEq) grade was calculated for each block using the formula AuEq = (Ag g/t x 0.05) + Au g/t. It is the opinion of the Qualified Person that all elements included in the Au Equivalent calculation have a reasonable prospect of being recovered and sold, the calculation of the Au equivalent value considers the relative recovery and payability of each element (recovery by cyanide leaching of 93.4% for gold and 50% for silver and 95% and 85% payability, respectively, as informed by metallurgical test work completed to date) as well as the assumed commodity prices.
Reasonable prospects of eventual economic extraction are satisfied by the estimation of break-even cut-off grades for each anticipated mining scenario (0.5g/t AuEq for open pit and 1.5g/t AuEq for underground mining). These cut-off grades were used to report the Mineral Resource. The cut-off grades were estimated on the basis of the following assumptions: a gold price of
US$1850 /oz (selected following consideration of (1, 2 and 3 year trailing average LMBA gold price and LMBA 2023 average forecast gold price, a silver price ofUS$20 /oz, underground mining costs ofUS$43.7 /t, processing costs (including tailings disposal) ofUS$29.5 /t and GA costs ofUS$3 /ROMt.Estimates in the above table have been rounded to three significant figures for Measured and Indicated Resources and two significant figures for Inferred Mineral Resources.
CIM Definition Standards for Mineral Resources have been followed.
The independent Qualified Person for Resources is not aware of any additional known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues that could materially affect the Mineral Resource Estimate.
The Mineral Resource figures set out above are quoted gross with respect to the Project. WTR of which Ariana owns 75%, has yet to establish a net attributable interest under the Earn-in and accordingly, no separate net attributable figures are reported.
Western
Tethyan Resources is the operator of Slivova
Mine Design
A revised approach to the mining of Slivova involves a small starter pit to access the outcropping mineralized gossan area, followed by underground extraction of the gold resource below the open pit at an appropriate extraction rate to suit the size and grade of the deposit. Mine design involved a more detailed analysis of the potential mining method and a mineable stope optimization exercise to fully assess and define the underground stoping extents.
A geotechnical review was undertaken to validate extraction methods. Ore zones and host rocks are either non-calcareous or calcareous sequences of altered sedimentary rocks with ore zone strengths varying between 45 MPa and 50 Mpa. Mine design was adapted to be flexible to varying competencies of host rock, particularly in the contact areas.
The starter pit has been designed to be mined from the top bench downwards with ore being accessible and extracted immediately, i.e., there is no requirement or need for any pre-stripping. It has been assumed that this small open pit can be mined by local contractors who have quarries within the vicinity of the proposed mine at Slivova. The revised starter pit design is also situated such that there is now no requirement for stream re-alignment where the pit can be accessed for initial extraction via existing tracks on the north side of the stream. Pit extents minimize the impact on the surrounding countryside and local communities.
Due to the requirement for a 25 m crown pillar, the bottom bench was modified to a base of 865 mRL. Bench access was linked into the existing tracks and roads on the site. This allows for easy access to each bench for overburden and ore removal without the need for any ramps. Access to the bottom bench is directly in from topography. Pit operations cease after Year 1.
Underground access is envisaged as a portal developed directly into the south valley wall, supporting mining typically by sublevel open stoping, unless ore zone geometry dictates a step down to cut-and-fill methods. Main sublevels are 20 m, with stoping separated 25 m from the open pit bottom by a crown pillar which will be mined by sublevel caving methods at the end of mine life.
Mining is suggested to be via small teams of approximately 16 people per shift, using small diesel fleet appropriate for production at between 300 t/day and 400 t/day. Mined material to be trammed directly from underground operations through the portal to the primary crusher tip located at the plant site on the saddle of the southern ridge 500 m to the east.
Recovery Methods
Results of extensive characterisation and testing of the Slivova ore by a range of methods suggest that treatment would be via carbon-in-leach (“CIL”) methods, delivering gold recovery of 92-94.5% and silver recovery of 19.8-22.5%. Some gold may be extracted via gravity recovery methods. Nominal plant throughput will be 142,000 tpa, with primary, secondary, and tertiary crushing of the ore, followed by ballmilling to 106m and leaching of the ore by CIL methods. Loaded carbon is stripped, with electrowinning and final EAF smelting of the doré to bullion on site.
Environmental
The environmental and social work completed to date is in line with that required for the PEA based on the revised mining plan. No environmental or social fatal flaws have been identified, and Bara is not aware of any environmental or social issue that would prevent the project from proceeding to the PFS phase, during which time various potential environmental risks would need to be evaluated further.
Economic Analysis
The economic analysis presented here is preliminary in nature and is based in part on Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorised as Mineral Reserves. There is therefore no certainty that the PEA presented here will be realised.
PEA level economic analysis is based on the production schedule presented with capital and operating cost estimates for the
Depreciation has been calculated on the assumption that 100% of capital expenditure may be deducted from profits in the year that they are incurred (Deductibility Rate). It is assumed that all capital expenditure is eligible for deduction. A discount rate of 8% has been used for the evaluation, and no tax treatment has been applied.
The conceptual DCF analysis shows the Project is economic with a pre-tax net present value (“NPV”), at 8% discount rate, of
Western Tethyan Minerals (WTR)is a
Ariana Resourcesis 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
For additional information, contact
On behalf of the Board,
“Paul W. Kuhn”
This news release was prepared by Company management, who take full responsibility for its content. Paul
Neither
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