Arras Minerals Corp. (TSXV:ARK)(OTCQB:ARRKF) ("Arras" or "Arras Minerals" or "the Company") is pleased to provide initial results for the first 3 drillholes from the initial drill program on its Elemes project in Northeast Kazakhstan. All three holes were drilled at the Bereszki Central target and all holes intersected porphyry-style copper-gold mineralization starting from the surface. The Berezski Central target is located on the south part of the >8km long soil copper, molybdenum, arsenic anomaly centered on a zone of extensive intermediate argillic alteration hosted in altered diorites and andesites.
The Elemes project is located in the Bozshakol-Chingiz Magmatic arc and is 61 kilometres Southeast of Kaz Mineral's Bozshakol Copper Mine ("Bozshakol"). The Bozshakol mine commenced operations in 2016 and in FY2023 produced 105,000t Cu & 115,000 oz Au per annum at US$0.95/lb Cu (net) cash costs. Reported reserves are 1.003Bt @ 0.33% Cu & 0.13 g/t Au.
Highlights
EL24001: 261 m of mineralization grading 0.64% copper-equivalent ("CuEq") (0.39 g/t gold ("Au"), 0.24 % copper ("Cu") starting from the 22 m.
Including: 69 m grading 0.85% CuEq (0.39g/t Au, 0.42% Cu) starting at 22 m & 48 m grading 1.00 % CuEq (0.77g/t Au, 0.25% Cu) starting at 157 m
Drill-hole ended in mineralization
EL24002: returned 102 m of mineralization grading 0.45g/t gold-equivalent ("AuEq") (0.31 g/t gold("Au"), 0.11 % copper ("Cu")) starting at 2 m.
Including: 34 m grading 0.60 g/t AuEq (0.32g/t Au, 0.13% Cu) starting at 2 m.
EL24003: 264 m of mineralization grading 0.30g/t gold-equivalent ("AuEq") (0.17 g/t gold("Au"), 0.09 % copper ("Cu")) starting from 41 m.
Including: 30 m grading 0.46g/t AuEq (0.25g/t Au, 0.16% Cu) starting at 263 m.
Tim Barry, CEO of Arras Minerals noted,"We're excited by these initial holes at the Berezski Central target at Elemes. The drill holes are mineralized over their entire lengths, and logging indicates mineralization is predominantly hosted in argillic and phyllic altered diorites, suggesting that these holes have drilled the large pyrite halo peripheral to the core of a large porphyry system. Starting at approximately 50-100m depth, we are also starting to intersect A-, B- and D-type veins, which are generally found to increase towards the center of porphyry copper deposit."
Figure 1. Arras Minerals Elemes Project & additional project portfolio located in Pavlodar, Kazakhstan
Darren Klinck, President of Arras Minerals commented," Results from the first 3 holes at Berezski Central are a great indication for the potential that exists at the Elemes Project. Kazakhstan is one of the lowest cost jurisdictions globally for mining. Head-grades of approximately 0.5% CuEq at nearby large-scale operations underpin strong profitability and some of the lowest operating cash costs in the world. This is the first of seven separate target areas being tested up to a depth of approximately 550 m across the 8.8 km Berezski soil anomaly. We will be expecting to release additional results from this program throughout Q1 2025 as they become available."
Table 1. Summary table for drill-holes EL24001, EL24002 and EL24003
Notes: Copper Equivalent ("CuEq") grades reported for the drill holes at Elemes 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 Elemes 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$3.50/lb. Copper, US$2,200/oz Gold, US$24/oz Silver, US$15/lb. Molybdenum, and metallurgical recoveries were assumed to be 100%.
Table 2. Location of the drill holes
Drill-Hole Summaries
EL24001 was designed to test the core of the soil Mo-Cu-As anomalies, with a coincident moderate magnetic and chargeability lows. It was completed at 476.5m depth. The hole started in strong argillic altered andesite tuffs before passing into strongly silicified and faulted diorites at 90.0m depth. Mineralization is represented by quartz - pyrite ± chalcopyrite veins and disseminated pyrite. Molybdenite and supergene enrichment (chalcocite) is observed occasionally in the first 35 m of the drill-hole. The drill-hole ended in mineralization.
EL24002 was aimed to follow-up hole EL24001 and test the extensive soil Mo anomaly. Unfortunately, the hole was lost at 221.7m due to drill failure. The hole was collared in strongly argillic altered andesite tuff up to 60.0m depth, before passing into medium grained diorites to the end of the drill-hole. Mineralization consists of quartz - pyrite ± chalcopyrite veins and pyrite dissemination. Supergene enrichment chalcocite is observed in the first 40 meters of the drill-hole, and the hole intersected several narrow hydrothermal breccias containing clasts of quartz - pyrite - chalcopyrite veins, suggesting the drill-hole was drilled peripheral to the core of a porphyry system.
EL24003 was drilled on the southern edge of the large Mo-Cu soil anomaly. The hole also targeted a large IP Chargeability high and was drilled to 350m depth. The hole was collared in strongly argillic altered andesite tuffs, before passing into diorites at 15m depth. The diorite is strongly argillic altered to 114.0m where it transitions into phyllic dominant alteration. The Diorites hosts D-type quartz-pyrite veins with rare quartz-pyrite-chalcopyrite veins. Disseminated pyrite is found throughout the drill-hole (up to 2% pyrite in areas). In addition, the hole intersected several small intervals of clast supported polymictic hydrothermal breccias.
Figure 2. Cross-section looking NW showing key intercepts in drill-holes EL24001, EL24002 and EL24003. The cross-section demonstrates a strong porphyry-epithermal style of alteration hosting widely spread, consistent mineralization.
Figure 3. Berezski Target showing 8.8 km long soil copper anomalies and location of drill-holes EL24001, EL24002 and EL24003
Figure 4. Photos of core from EL24001, EL24002 and EL24003 showing intercepted style of mineralization and alteration.
Elemes Project
Drilling commenced in September and the Phase 1 program was completed in late December. This program of approximately 4000 metres of diamond drilling has generally focused on priority targets at Berezski Central, Berezski East, Q-Gorka and K-Ozek targets. These targets were identified following two field seasons of comprehensive exploration work at the Elemes Project, including airborne magnetic and Pole-Dipole Induced Polarization geophysical surveys, as well as extensive soil sampling and mapping. In addition, some historical drill holes from the Berezski East and Q-Gorka targets were re-assayed with those results reported in January 2024 (see Arras new releases January 8 & 22, 2024).
Webinar - Thursday January 16th @ 11:00am (EST)
The Company will host a webinar to discuss the initial drill results from the Berezski Target - Elemes Project on Thursday January 16th @11:00am (EST).
Please contact the company at info@arrasminerals.com for further information. A replay of the webinar will be made available on the Company website.
QUALITY ASSURANCE, QUALITY CONTROL AND QUALIFIED PERSON
Lengths are drill intersections and not necessarily true widths. True widths cannot be calculated at this time due to the unknown geometry of the mineralization. Drill intersections have been independently selected by Arras Minerals. Drill composites have been independently calculated by Arras Minerals. The geological interpretations in this news release are solely those of the Company. The locations and distances highlighted on all maps in this news release are approximate.
The scientific and technical disclosure for this news release has been prepared under supervision of and approved by Matthew Booth, Vice President of Exploration, of Arras Minerals Corp., a Qualified Person for the purposes of NI 43-101. Mr. Booth has over 19 years of mineral exploration experience and is a Qualified Person member of the American Institute of Professional Geologists (CPG 12044).
On behalf of the Board of Directors
"Tim Barry"
Tim Barry, MAusIMM CP(Geo) Chief Executive Officer and Director
Arras Minerals Corp. 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 has established the third-largest license package in the country prospective for copper and gold (behind Rio Tinto and Fortescue). In December 2023, the Company entered into a strategic alliance with Teck Resources Limited ("Teck") in which Teck may sole fund a US$5 million generative exploration program over a portion of the Arras Minerals license package in 2024-2025. The Company's shares are listed on the TSX-V under the trading symbol "ARK" and on the OTCQB under the trading symbol "ARRKF".
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 Minerals' 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 plans and expectations of the exploration program Arras Minerals 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 Minerals' exploration projects, the industry in which Arras Minerals operates and the beliefs and assumptions of Arras Minerals' 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 Management Discussion and Analysis filed on the Company's profile on SEDAR on February 28, 2024 and in the Company's Annual Report on Form 20-F for the fiscal year ended October 31, 2023 filed with the U.S. Securities and Exchange Commission filed on February 28, 2024 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.
