Arian finds new zones outside Julietta deposit

British-based Arian Resources (ARCO.U-C) has discovered three anomalous gold zones near its Julietta gold-silver deposit in far-eastern Russia.

Prospecting 1 km northwest of Julietta, Arian geologists identified a new epithermal vein system known as the Northwest zone. Grades of 9 grams gold and 700 grams silver per tonne were reported from a metre-wide vein exposed through stripping.

Arian believes this system may be the source of nearby float samples, which returned grades of up to 28.6 grams gold and 2,070 grams silver. Trenching is exposing the structure further, and drilling will begin once surface results are analyzed.

Stripping in the Central zone, 250 metres south of the deposit, discovered vein material. Three grab samples returned: 110.2 grams gold and 737 grams silver; 19.6 grams gold and 38 grams silver; and 37.8 grams gold and 108 grams silver. Arian is currently trenching the structure.

At the Engteri prospect, 6 km north of Julietta, Arian has identified four new target zones, all of which are characterized by pervasive alteration, combined with geochemical and geophysical anomalies.

Three float samples, taken over a 3-ha area in the Engteri zone, returned values of 108 grams gold and 3,563 grams silver, 86.4 grams gold and 725 grams silver, and 62.6 grams gold and 10,762 grams silver. Arian is planning a 4,000-metre diamond drill program.

In other developments, Arian has secured three additional exploration and mining licences in the Julietta mineral district through its 50.5%-owned Russian subsidiary, Omusukchansk Mining & Geological Co.

The three licences — Atagan (6 sq.-km), Maksinskaya (76 sq.-km) and Ivaninskaya (145 sq.-km) — are similar in structural setting, rock type and alteration to the Julietta deposit. Each of the licences contains gold anomalies in soils and rocks.

At the Netchen-Khaya property, 200 km from Julietta, borehole No. 2 intersected two anomalous gold zones. A 2.2-metre zone grading 31 grams gold and 4.9 grams silver was intersected 90 metres below surface. A smaller, 1-metre zone, intersected at the 97-metre level, assayed 29 grams gold and 6 grams silver. More diamond drilling will follow.

Initial minable reserves for the Julietta deposit were calculated at about 540,000 tonnes with an average grade of 24.7 grams gold and 407.5 grams silver, or 28.6 grams gold-equivalent (496,000 oz. gold-equivalent). The deposit is estimated to have an additional resource of 492,000 tonnes grading 19.5 grams gold and 341.9 grams silver, or 23.4 grams gold-equivalent (370,000 oz. gold-equivalent).

To move the possible tonnage to the minable reserve category, Arian is planning to infill drill at 25-metre centres. This would provide for a mine life, based on initial reserves and resources, of about 9.5 years.

Production is scheduled to begin in 1998 at an initial rate of 350 tonnes per day. Annual production is projected at 105,000 oz. gold-equivalent, and operating costs are pegged at US$123 per oz.