Arras Minerals Corp. (TSX-V: ARK) (“Arras” or “the
Company”) is pleased to announce assay results from holes
Bg21009, Bg21010 and Bg22012 from the ongoing exploration drill
program at the Beskauga copper-gold deposit and surrounding area
(“Beskauga” or the “Project”).
Highlights:
-
Hole Bg22012 returned a significant intersection
of 365.0 metres (“m”) of mineralization grading 0.88
% copper-equivalent (“CuEq”) or 1.06 gram per
tonne (“g/t”) gold-equivalent (“AuEq”)
(0.54 g/t gold (“Au”), 0.40 % copper (“Cu”), 2.0 g/t silver (“Ag”)
and 35.3 ppm molybdenum (“Mo”)) starting at 41.0 m from surface to
406.0 m.
-
Including 29.0 m grading 1.01 % CuEq or 1.22 g/t
AuEq (0.60 g/t Au, 0.48 % Cu, 2.1 g/t Ag and 31.8 ppm Mo)
from 87.0 m depth down-hole.
-
And Including 64.0 m grading 2.62 % CuEq or 3.17 g/t
AuEq (1.82 g/t Au, 1.04 % Cu, 4.6 g/t Ag and 66.5 ppm Mo)
from 120.0 m depth down-hole.
- Including
30.0 m grading 4.00 % CuEq or 4.84 g/t AuEq (2.95
g/t Au, 1.47 % Cu, 6.2 g/t Ag and 63.8 ppm Mo) from 120.0 m depth
down-hole.
-
Holes Bg21009 and Bg21010 tested
areas outside of the Beskauga Main deposit. Strong advanced
argillic to argillic alteration and local zones of copper-gold
mineralization in hole Bg21010 demonstrates the
potential for concealed porphyry-style mineralization hosted within
the thick volcano-sedimentary package that is separated from
Beskauga Main by a prominent regional-scale NW-SE trending fault
zone.
Diamond drilling is ongoing at Beskauga (Figure
1) and Beskauga South (Figure 2) with further assay results
expected in the coming months.
Tim Barry, CEO of Arras, commenting on
these latest results, stated, “Drilling at Beskauga
continues to deliver near-surface, broad intervals of significant
copper-gold mineralization. Hole 22012 also included a high-grade
intersection of 64m @ 2.62% Cu Eq at 120m from surface which also
included a spectacular zone of 30 meters at 4.00% CuEq. These
grades are indicative of high-grade zones found throughout the
deposit which we continue to review as we explore for the core of
this very extensive system.” Mr. Barry went on to
add, “We continue with one core rig currently drilling on
the Beskauga license rotating between areas adjacent to the known
deposit and also new targets which have been proved up on the 63 sq
km license from geophysics and field programs completed in
2022.”
A summary of the results announced in this news
release is outlined in the table below.
Table 1. Summary table for holes Bg21009,
Bg21010 and Bg22012
Notes: Copper Equivalent (“CuEq”) grades reported
for the drill holes at Beskauga were calculated using the following
formula: CuEq % = Copper (%) + (Gold (g/t) x 0.8264) + (Silver
(g/t) x 0.0107) + (Molybdenum (ppm) x 3.3333). Gold Equivalent
(“AuEq”) grades reported for the drill holes at Beskauga were
calculated using the following formula: AuEq g/t = Gold (g/t) +
(Copper (%) x 1.2100) + (Silver (g/t) x 0.0129) + (Molybdenum (ppm)
x 4.0334). Assumptions used for the copper and gold equivalent
calculations were metal prices of US$3.00/lb. Copper, US$1,700/oz
Gold, US$22/oz Silver, US$10/lb. Molybdenum, and metallurgical
recoveries were assumed to be 100%.
Results of Bg21009, Bg21010 and
Bg22012:
Bg21009: (see Figure 1) was
collared outside of the area covered by the current NI-43-101
Mineral Resource Estimate for Beskauga. It was designed to test a
broad zone of demagnetization, identified in the airborne
magnetics, at the southwestern margin of the monzodiorite intrusion
(that has been drilled in Arras drill holes Bg21005 and Bg21008;
refer to our press releases dated September 14, 2022 and October
19, 2022, respectively). The monzodiorite forms an approximately
400 x 500-meter circular “bulls-eye” magnetic high surrounded by a
>500-meter-wide zone of demagnetization. The intrusion is
interpreted to dip steeply to the south.
The zone of demagnetization is also coincident
with anomalous copper-gold-bismuth values in “KGK” (top of bedrock)
drill holes. The upper portion of the hole intersected sodic
(albite-hematite) altered diorite that has been overprinted by
moderate to strong argillic (illite-smectite) alteration. The
diorite lacks any significant copper-gold mineralization. The lower
portion of the hole intersected the potassic altered monzodiorite
intrusion, with a 62.0 m zone of weak mineralization grading 0.29 %
CuEq intersected from a depth of 452 m down-hole. Although
generally low-grade, occasional high tenor veins do occur, for
example, 1 m grading 2.79 % CuEq (2.33 g/t Au, 47.2 g/t Ag, 0.35 %
Cu and 26.8 ppm Mo) occur within the monzodiorite. Compared to the
diorite that hosts the bulk of the known mineralization at
Beskauga, themonzonite intrusion hosts significantly higher Mo
grades, with up to 2,850 ppm in this hole. Alteration in the
monzodiorite comprises k-feldspar, secondary (“shreddy”) biotite,
magnetite, Mg-rich chlorite, and epidote, with variable argillic
overprint comprising illite and smectite localized near the contact
with the diorite, as well as around faults and fractures (confirmed
by Arras using TerraSpec SWIR/NIR spectroscopy).
Bg21010: (see Figures 1) was
collared in an area immediately north of the current NI-43-101
Mineral Resource Estimate for Beskauga. The hole was designed to
test a thick volcano-sedimentary package, separated from Beskauga
Main by a prominent NW-SE orientated fault. The volcano-sediments
contain the largest lobe of the Beskauga Main induced polarization
(IP) anomaly, which remained un-drill-tested despite its proximity
to the known mineralization at Beskauga. The hole was designed to
drill through this chargeability high.
The volcano-sedimentary package intersected in
this hole comprises mainly of andesite breccias and tuffs of
andesitic composition that are iron oxide (hematite) flooded and
variably advanced argillic to argillic
(kaolinite-dickite-illite-smectite) altered (confirmed by Arras
using TerraSpec SWIR/NIR spectroscopy). At depth the alteration
transitions into a propylitic assemblage
(chlorite-magnetite-epidote) with a weak advanced argillic to
argillic overprint persisting throughout. The volcano-sedimentary
package has been intruded by several 10 to 25 m wide, copper-gold
mineralized dykes of dioritic composition. However, based on their
trace element composition the diorite dykes are geochemically
distinct from the diorite that hosts the bulk of the mineralization
at Beskauga Main. Mineralization is localized within and proximal
to these dioritic dykes and comprises of quartz-chalcopyrite ±
bornite, molybdenite veins in the upper argillic altered part of
the hole, transitioning to quartz-pyrite veins deeper in the
hole.
Despite only modest zones of mineralization in
this hole, the presence of a separate generation of mineralized
diorites demonstrates the potential for concealed porphyry-style
mineralization hosted within the thick volcano-sedimentary package.
This is further supported by “KGK” (top-of-bedrock) drilling which
returned > 1 g/t Au, > 1 % copper and highly anomalous
bismuth values in this area. A prominent magnetic high immediately
to the NE of hole Bg21010 remains un-drill tested.
Bg22012: (see Figures 1, 3 and
4) was collared 90 metres southwest from Bg21001 (973.2 m of
mineralization grading 0.82 % CuEq; for further information see our
press release dated January 31, 2022) and 90 metres southeast from
hole Bg21004 (1,120.4 m of mineralization grading 0.60 % CuEq; for
further information see our press release dated June 22, 2022) and
drilled at an angle of 85 degrees towards the northeast to a final
depth of 1,091.0 m. The hole was designed to test a prominent NW-SE
orientated fault separating the diorites that host Beskauga Main
(on the southern side of the fault) from the thick
volcano-sedimentary package (on the northern side of the fault).
Previous drilling by Arras in Bg21002 has demonstrated that
copper-gold mineralization occurs at depth on the northern side of
this fault zone.
The hole started in moderately, to very strong,
argillic altered diorite. The argillic alteration consists of
intense kaolinite-dickite-illite-smectite with local
silicification, before transitioning to illite-smectite with depth
(confirmed by Arras using TerraSpec SWIR/NIR spectroscopy).
Mineralization occurs as a mixture of quartz vein,
fracture-controlled zones and hydrothermal breccias of tennantite,
chalcopyrite, pyrite, magnetite (or hematite after magnetite) with
minor molybdenite locally. From 120 metres depth, the hole entered
an exceptionally high-grade zone of 64.0 m grading 2.62 % CuEq,
including 30.0 m grading 4.00 % CuEq.
From 408 metres the hole entered a series of
post-mineral basaltic dykes that have filled the NW-SE orientated
fault zone, before re-entering into diorite characterized by
variably argillic (illite-smectite) overprinted sodic
(albite-hematite) alteration. From a depth of 576.3 m the hole
entered the volcano-sediments that comprise primarily of
fine-grained, propylitic (chlorite-magnetite-hematite-epidote)
altered andesitic tuffs. Generally, the volcano-sediments are
poorly mineralized, but several narrow zones of mineralization were
intersected. Here mineralization consists of quartz-tourmaline ±
pyrite-chalcopyrite veins with k-feldspar alteration halos and
quartz-pyrite-chalcopyrite-molybdenite veins.
Figure 1. Location of the holes completed
to date as part of Arras’ planned 30,000-metre drill program on the
Beskauga Main deposit and wider area. The surface projection of the
block model from the current NI-43-101 Mineral Resource Estimate is
shown for copper. The inset map in Figure 2 below shows the
location of Beskauga Main relative to Beskauga South.
Figure 2. Location of the holes completed
to date at the Beskauga South area, located approximately 3.2
kilometres SSW from the Beskauga Main deposit, and outside of the
current NI-43-101 Mineral Resource Estimate. The inset map shows
the location of Beskauga South relative to Beskauga
Main.
Figure 3. Cross-section showing hole
Bg22012 in relation to several historical holes drilled by
Copperbelt. Also shown are grade contours based on the
Beskauga block model for copper (only) developed for the purposes
of the current Mineral Resource Estimate for Beskauga (for further
details, please see Arras’ press release on June 20, 2022). CuEq
grades of key intercepts in Bg22012 and historical holes are shown.
The cross-section demonstrates the steep, southwest dipping
high-grade copper-gold-silver trend observed through Arras’
exploration to date. This trend is observed beginning at the
paleo-bedrock surface (41 m in depth), to average between 200-300 m
wide and to be consistently mineralized down to at least 1000
metres.
Figure 4. Cross-section showing hole
Bg22012 in relation to several historical holes drilled by
Copperbelt. Also shown are grade contours based on the
Beskauga block model for gold (only) developed for the purposes of
the current Mineral Resource Estimate for Beskauga (for further
details, please see Arras’ press release on June 20,
2022). AuEq grades of key intercepts in Bg22012 and
historical holes are shown. The cross-section demonstrates the
steep, southwest dipping high-grade copper-gold-silver trend
observed through Arras’ exploration to date. This trend is observed
beginning at the paleo-bedrock surface (41 m in depth), to average
between 200-300 m wide and to be consistently mineralized down to
at least 1000 metres.
Drill Program: In October 2021,
Arras announced the start of the initial phase of a permitted
30,000-metre diamond drill program targeting the extensions of the
Beskauga deposit both laterally and at depth (Figures 1 and 2). The
drill program is being conducted under the Option to Purchase
Agreement (“Option Agreement”) executed on January 26, 2021, with
Copperbelt AG (“Copperbelt”), a private mineral exploration company
registered in Zug, Switzerland.
In addition to testing the extents of the
Beskauga deposit, the drill program is also targeting a series of
previously undrilled targets in the wider area. These wider targets
are supported by both ground and airborne geophysics, as well as
in-situ geochemistry, derived using “KGK” drilling (a drilling
method akin to 'wet' reverse circulation drilling, that recovers a
1 to 3 m core sample from the top of the underlying bedrock which
is used by Arras to efficiently map lithology, alteration, and
geochemistry across the property beneath overburden).
For both the diamond and KGK drilling, Arras has
been using the local company “Tsentrgeolsemka LLP”. Arras later
changed drilling contractors to “GRK Iskander Ltd” and mobilized a
diamond drill rig with the capacity to drill deeper holes, if
required, as well as improved core orientation through triple tube
core barrel drilling. GRK Iskander Ltd is one of the leading
drilling companies in Kazakhstan, with clients including Rio Tinto,
Kazzinc (Glencore), ESAN, and Kazakhmys. Both Tsentrgeolsemka LLP
and GRK Iskander Ltd are both independent of Arras.
About the Beskauga Deposit: The
Beskauga deposit is a gold-copper-silver deposit with an
“Indicated” Mineral Resource of 111.2 million tonnes grading 0.49
g/t gold, 0.30% copper, and 1.3 g/t silver for 1.75 million ounces
of contained gold, 333.6 thousand tonnes of contained copper, and
4.79 million ounces of contained silver and an “Inferred” Mineral
Resource of 92.6 million tonnes grading 0.50 g/t gold, 0.24% copper
and 1.1 g/t silver for 1.49 million ounces of contained gold, 222.2
thousand tonnes of contained copper, and 3.39 million ounces of
contained silver. The constraining open pit was optimized and
calculated using a Gross Metal Value (“GMV”) cut-off of $20/tonne
based on a price of $1,750/oz for gold, $3.50/lb for copper, $22/oz
for silver, and with an average recovery of 85% for copper and
74.5% for gold and 50.0% for silver.
Based on exploration undertaken to date, the
Beskauga deposit is interpreted by Arras to represent a gold-rich
porphyry copper-gold deposit that has been overprinted by
high-sulfidation epithermal mineralization, either through
telescoping or due to clustering of multiple porphyry centers
within the Beskauga license that have superimposed alteration and
mineralization upon earlier phases. Beskauga is located within the
highly under-explored Bozshakol-Chingiz Volcanic Arc, which hosts
KAZ Minerals’ Bozshakol porphyry Cu-Au mine only 130 km west of
Beskauga. Bozshakol is one of the largest copper resources in
Kazakhstan with 1.123 billion tonnes at 0.35% Cu, 0.14 g/t Au and
1.0 g/t Ag in Measured and Indicated Resources. The mine has 30
Mtpa ore processing capacity and a remaining mine life of >40
years.
Contrary to many porphyry copper deposits being
developed in other jurisdictions globally, the Beskauga project,
located only 350 metres above sea-level, benefits from excellent
modern infrastructure and accessibility. The region is
mining-friendly and hosts several large-scale mining operations.
Arras’ operations are based out of the nearby mining town of
Ekibastuz, which services the largest coal mine in Kazakhstan and
provides a highly trained workforce for the Company to draw upon.
Paved road access, 1100 KVA power lines, heavy rail, and the
Irtysh–Karaganda irrigation canal all lie within a 25-kilometre
radius of the project. The capital city of Nur-Sultan, located
approximately 300 kilometres along a double lane highway to the
west of the project, has a major international airport allowing for
easy access and administration of the Beskauga project.
Assay and QAQC Procedures: On
receipt from the drill site, the diamond drill core was
systematically logged for geological attributes, photographed and
sampled at Arras’ operational base in the town of Ekibastuz,
Kazakhstan by Company personnel. A default 1 m downhole sample
length was used in mineralized zones, except were shortened by
geological contacts. A default of 2 m downhole sample length was
used in zones that were clearly unmineralized. Core diameter is a
mix of HQ (63.5 mm) and NQ (47.6 mm) dependent upon the depth of
the drill hole. Bg21009 was drilled with HQ to end of hole. Bg21010
was drilled with HQ to a depth of 688.2 m before reducing to NQ to
the end of hole. Bg220012 was drilled with HQ to a depth of 835.0 m
before reducing to NQ to the end of hole. Core was cut in half
lengthwise along a pre-determined line offset from the orientation
line by approximately 25 degrees, with one half (same half,
consistently) collected for analysis and one half (preserving the
orientation line) stored as a record. Bagged samples were sealed to
ensure integrity during transport. All sample preparation and
geochemical analysis of the diamond drill core were undertaken by
ALS Global at its laboratories in Karaganda (Kazakhstan) and
Loughrea (Republic of Ireland), respectively. ALS preparation and
analytical labs are accredited to ISO 17025:2005 UKAS ref 4028 and
have internal QA/QC programs for monitoring accuracy and precision.
ALS Global is entirely independent of the Company.
After drying samples were crushed by ALS to
>70% passing below 2 mm and split using a riffle splitter. 250 g
splits were pulverized to 85 % passing below -75-microns. A 30 g
split of the pulp was analyzed for gold content by fire assay with
an Atomic Absorption Spectroscopy (AAS) finish (ALS method:
Au-AA25™) at ALS Karaganda. A second pulp split was then air
freighted to ALS Loughrea and analyzed for 48 elements by
Inductively Coupled Plasma Mass Spectrometry (ICP-MS) after
four-acid digestion on a 0.25 g aliquot (ALS method: ME-MS61™). Any
samples exceeding 1% copper were re-analyzed using a 4-acid digest
ICP-MS ore grade method (ALS method: Cu-OG62™).
Arras Minerals operates according to its
rigorous internal Quality Assurance and Quality Control (QA/QC)
protocols, which are consistent with industry best practices. This
includes the insertion of certified standards, blanks, and field
duplicates comprising of quarter drill core into the sample stream
at an insertion rate of 2.5%, 2.5%, and 5% respectively, which is
deemed appropriate for this stage of exploration. The blanks and
standards are Certified Reference Materials (CRM’s) supplied by Ore
Research and Exploration, Australia. Internal QA/QC samples were
also inserted by the analytical laboratories and reviewed by the
Company prior to release. No material QA/QC issues have been
identified with respect to sample collection, security, and
assaying.
Qualified Person: The
scientific and technical disclosure for the Quartzite Gorka Project
included in this news release has been prepared under supervision
of and approved Tim Barry, Chief Executive Officer, and Director of
Arras Minerals Corp., who is also a Member and Chartered
Professional Geologist (MAusIMM CP(Geo)) of the Australasian
Institute of Mining and Metallurgy. Mr. Barry has sufficient
experience, relevant to the styles of mineralization and type of
deposits under consideration and to the activity that he is
undertaking, to qualify as a Qualified Person (“QP”) for the
purposes of National Instrument 43-101 Standards of Disclosure of
Mineral Projects (“NI 43-101”).
On behalf of the Board of Directors "Tim Barry"
Tim Barry, MAusIMM CP(Geo)Chief Executive
Officer and Director
INVESTOR RELATIONS: +1 604 687 5800
info@arrasminerals.com
Further information can be found on the Company’s website
https://www.arrasminerals.com or follow us on LinkedIn:
https://www.linkedin.com/company/arrasminerals or on Twitter:
https://twitter.com/arrasminerals
About Arras Minerals Corp.
Arras is a Canadian exploration and development
company advancing a portfolio of copper and gold assets in
northeastern Kazakhstan, including the Option Agreement on the
Beskauga copper and gold project. The company’s shares are listed
on the TSX-V under the trading symbol “ARK”.
Cautionary Note to U.S. Investors
concerning estimates of Measured, Indicated, and Inferred
Resources: This press release uses the terms “measured
resources”, “indicated resources”, and “inferred resources” which
are defined in, and required to be disclosed by, NI 43-101. The
Company advises U.S. investors that these terms are not recognized
by the SEC. The estimation of measured, indicated and inferred
resources involves greater uncertainty as to their existence and
economic feasibility than the estimation of proven and probable
reserves. U.S. investors are cautioned not to assume that measured
and indicated mineral resources will be converted into reserves.
The estimation of inferred resources involves far greater
uncertainty as to their existence and economic viability than the
estimation of other categories of resources. U.S. investors are
cautioned not to assume that estimates of inferred mineral
resources exist, are economically minable, or will be upgraded into
measured or indicated mineral resources. Under Canadian securities
laws, estimates of inferred mineral resources may not form the
basis of feasibility or other economic studies.
Disclosure of “contained ounces” in a resource
is permitted disclosure under Canadian regulations, however the SEC
normally only permits issuers to report mineralization that does
not constitute “reserves” by SEC standards as in place tonnage and
grade without reference to unit measures. Accordingly, the
information contained in this press release may not be comparable
to similar information made public by U.S. companies that are not
subject NI 43-101.
Cautionary note regarding
forward-looking statements: This news release contains
forward-looking statements regarding future events and Arras’
future results that are subject to the safe harbors created under
the U.S. Private Securities Litigation Reform Act of 1995, the
Securities Act of 1933, as amended, and the Exchange Act, and
applicable Canadian securities laws. Forward-looking statements
include, among others, statements regarding the use of net proceeds
from the recent private placement, plans and expectations of the
drill program Arras is in the process of undertaking, including the
expansion of the Mineral Resource, and other aspects of the Mineral
Resource estimates for the Beskauga project. These statements are
based on current expectations, estimates, forecasts, and
projections about Arras’ exploration projects, the industry in
which Arras operates and the beliefs and assumptions of Arras’
management. Words such as “expects,” “anticipates,” “targets,”
“goals,” “projects,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” “continues,” “may,” variations of such words, and
similar expressions and references to future periods, are intended
to identify such forward-looking statements. Forward-looking
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond management’s control,
including undertaking further exploration activities, the results
of such exploration activities and that such results support
continued exploration activities, unexpected variations in ore
grade, types and metallurgy, volatility and level of commodity
prices, the availability of sufficient future financing, and other
matters discussed under the caption “Risk Factors” in the
Non-Offering Prospectus filed on the Company’s profile on SEDAR on
May 31, 2022 and in the Company’s Annual Report on Form 20-F for
the fiscal year ended October 31, 2021 filed with the U.S.
Securities and Exchange Commission filed on February 17, 2022
available on www.sec.gov. Readers are cautioned that
forward-looking statements are not guarantees of future performance
and that actual results or developments may differ materially from
those expressed or implied in the forward-looking statements. Any
forward-looking statement made by the Company in this release is
based only on information currently available and speaks only as of
the date on which it is made. The Company undertakes no obligation
to publicly update any forward-looking statement, whether written
or oral, that may be made from time to time, whether as a result of
new information, future developments, or otherwise.
Graphics accompanying this announcement are available
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