|By PR Newswire||
|April 1, 2014 02:09 PM EDT||
-- /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
-- TSX Venture Exchange
Trading Symbol: ARC
VANCOUVER, April 1, 2014 /PRNewswire/ -- Arian Resources Corp. ("Arian" or "Company") - ARC: TSX-V.
Mr. Zahir (Zip) Dhanani, CEO and Chairman of Arian, is pleased to announce the completion of the acquisition of the past producing, high-grade Perlat copper-gold-silver-cobalt mine in Albania, through the acquisition of all of the shares of Balkan Resources Inc., which owns the mine.
The TSX Venture Exchange has accepted for filing a share purchase agreement dated March 25, 2014, between Balkan Resources Inc. (BRC), Balkan Resources Sh.p.k. (BRS) and the Company, whereby the Company has acquired the issued and outstanding shares of BRS that owns the Perlat exploitation permit that is located in Albania.
Consideration is $4-million, of which $2-million is payable on June 30, 2015 and another $2-million payable on December 30, 2016.
In addition, five million common shares have been issued to Balkan as part of the closing. The company must expend a total of $13,218,400 in exploration expenses over a three-year period.
On the date that a concentrate emanating from the Perlat exploitation license has been accepted by a smelter, the Company will make a cash payment of $2-million to BRC and will have the option to either pay BRC a further $3-million or issue three million common shares, subject to further exchange review and acceptance. If a concentrate from the license has not been accepted by a smelter by Dec. 31, 2018, then the Company will make a cash payment of $2-million.
Upon commercial production Balkan will receive a 2.5% Net Smelter Return for the duration of the life of the mine.
Zahir Dhanani, Chief Executive Officer of Arian, comments: "Having acquired a high grade copper-gold project with a substantial historic resource and, having raised an initial round of capital to begin the work required to put the project back into production, Arian has begun the process that we believe will create substantial shareholder value going forward."
A detailed description of the exploration results and mining history of the Perlat deposit is contained in the Company's January 30, 2014 news release. In summary, the 200 hectare Perlat exploitation permit contains a significant, high grade historic resource. The project is permitted for mining for 21 years, with a 25 year renewal option.
Contained within the easily accessed and well serviced 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.
Extensive drilling on the project totalling 165,213 meters commenced in 1975 by the Albanian Geological Service and the Albanian state run Rubik Geological Enterprise. At the time the exploration focus was copper and cobalt but more recent work has identified significant gold and zinc credits.
The VMS mineralization at Perlat is of the Cyprus-type and consists of 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, the issuer is not treating the historical estimate as current mineral resources
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.
After acquiring the property in 2006 Balkan Resources Inc. drilled 18 holes totalling over 5,000 metres. Hole P-32-2008 confirmed the previous results 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.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
Zahir Dhanani, President
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 Acquisition. 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.
For further information, contact Zahir Dhanani at 604.248.5175 or via email at [email protected].