Arras Minerals Corp. (TSX-V:ARK)(OTCQB:ARRKF) ("Arras" or "Arras Minerals" or "the Company") is pleased to announce the results from the final five holes from its initial "Phase 1" drill program targeting the 8.8 kilometre long Berezski target located on its Elemes project in Northeast Kazakhstan. The first 11 holes of the Phase 1 drill program encountered thick intercepts of widespread copper-gold and gold porphyry and/or epithermal-style mineralization.
The Elemes project is in the Bozshakol-Chingiz Magmatic arc and is 61 kilometres ("km") southeast of Kaz Mineral's Bozshakol Copper Mine, that commenced operations in 2016 and in 2023 produced 105,000 tonnes "t" of copper "Cu" & 115,000 oz gold "Au" at US$0.95/lb Cu (net) cash costs. Reported reserves are 1.003 billion tonnes @ 0.33% Cu & 0.13 g/t Au.
Highlights
EL24005: 547m of mineralization grading 0.70 % copper-equivalent ("CuEq") (0.23% Cu & 0.48 g/t Au), starting from 14m depth; including:
44m grading 1.15% CuEq (0.48% Cu & 0.64 g/t Au) starting from 14m depth
206m grading 0.83 % CuEq (0.27% Cu & 0.54 g/t Au) starting from 24m depth
58m grading 1.02% CuEq (0.32 % Cu & 0.69 g/t Au) starting from 172m depth
The hole ended in strong mineralization grading 64.8m at 0.68 % CuEq (0.16% Cu & 0.55 g/t Au)
EL24006: returned 56m grading 0.68% CuEq (0.36% Cu & 0.33 g/t Au) starting from 4m depth, including:
20m grading 1.02%CuEq (0.72% Cu & 0.32 g/t Au) starting from 40m depth
EL24010: returned 152m grading 0.13 % CuEq (0.07% Cu & 0.06 g/t Au) starting from 262m depth
EL24011: returned 76m grading 0.20 % CuEq (0.06% Cu & 0.14 g/t Au) starting from 247m depth
Tim Barry, CEO of Arras Minerals, commented, "We are extremely encouraged by the results of the Phase 1 drill program at Elemes. Holes EL24005 and EL24006 strongly suggest the presence of another porphyry center developing at the Berezski target. Notably, the porphyry-style mineralization identified in quartz-chalcopyrite veining in the deeper sections of EL24005 provides a solid vector for us to pursue in the Phase 2 program. Furthermore, EL24006 intersected porphyry-style mineralization approximately 1 km to the west, on the western edge of the copper soil anomaly, giving us follow-up targets between the two holes, as well as to the west, north, and south-even beyond the current anomaly boundaries."
He went on to add, "Over the last three field seasons, we've significantly advanced the Elemes-Aimandai licenses from an initial 530 sq km land package to identifying two major copper targets spanning nearly 9 km at Berezski, and 14 km at Aimandai. Our drilling this past year has confirmed at least two porphyry centers on the Berezski target, approximately 5 kms apart, with associated epithermal mineralization along the eastern boundary. With roughly 90% of the Berezski target still open and untested, the early success of Phase 1 gives us a strong foundation to hone in on two key areas, while continuing to develop additional high-priority targets across this large, highly prospective region."
Figure 1. Arras Minerals Elemes Project & additional project portfolio located in Pavlodar, Kazakhstan
The Elemes Phase 1 Drill Program: The Phase 1 drill program targeted geophysical and geochemical anomalies identified by the Company's extensive airborne magnetic, ground pole-dipole induced polarization ("IP") surveys, and greater than 35,000 soil samples collected in 2022, 2023 and 2024, that identified several distinct porphyry-epithermal exploration targets. Additionally, historical drilling at the Berezski East and Berezski North were reviewed when possible.
Historic shallow drilling at Berezski North identified an area of mineralized structurally controlled hydrothermal breccia that has been overprinted by later low temperature epithermal quartz veins and mineralization. The Company believed that these breccias represent the lower temperature top to a porphyry copper system, and hole EL24005 was the first deep drill-hole in this target to test this hypothesis. The Company was pleased that the hole appears to have tapped into the mineralized root of these breccias, and the mineralization intersected by the hole appears to transition from low temperate epithermal dominant mineralization at surface to higher-temperature porphyry-style mineralization at depth.
Drill hole EL24006 was drilled approximately 1km to the west of hole EL24005. This hole appears to have identified another target with porphyry style mineralization and alteration. The hole intersected propylitic altered diorites that have been partially overprinted by argillic alteration. Mineralization is present as quartz-pyrite-chalcopyrite porphyry-style veins, with disseminated pyrite and chalcopyrite.
Figure 2. Molybdenum("Mo") soil anomaly map highlighting the locations of the Phase 1 drill collars drilled by Arras in late 2024. The map also shows the location of the K-Ozek surface trenches, which target a high-grade gold low sulphidation epithermal system, with results previously announced by Arras in July 2023.
Figure 3. Arsenic and Copper soil anomaly map highlighting the locations of the Phase 1 drill collars drilled by Arras in late 2024. The map also shows the location of the K-Ozek surface trenches, which target a high-grade gold low sulphidation epithermal system, with results previously announced by Arras in July 2023.
Table 1. Summary results from holes EL24005, EL24006, EL24010, EL24011
Notes: Copper Equivalent ("CuEq") grades reported for the drill holes at Elemes were calculated using the following formula: CuEq % = Copper (%) + (Gold (g/t) x 0.9167) + (Silver (g/t) x 0.0100) + (Molybdenum (ppm) x 4.2857).AuEq grades reported for the drill holes at Elemes were calculated using the following formula: AuEq g/t = Gold (g/t) + (Copper (%) x 1.090858) + (Silver (g/t) x 0.0109) + (Molybdenum (ppm) x 4.6751). 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. Drill-hole locations
DRILL-HOLE SUMMARIES
Drill-hole EL24005 was designed to test a Cu-Mo soil anomaly at Berezski North that had a coincident annular magnetic low and high chargeability Induced Polarization ("IP") anomaly. The drill-hole collared in hydrothermal breccias with visible copper-oxides and intersected diorites with moderate argillic alteration in first 200m, where it passes into moderate potassic/sodic altered diorites. Within the diorites are intervals of hydrothermal breccias cemented by tourmaline and pyrite.
Near surface mineralization is characterized by massive pyrite patches with minor copper oxides on fractures, zones of quartz-pyrite veins containing minor chalcopyrite. With depth, chalcopyrite content increases up to 3%, with areas of sheeted chalcopyrite veins are narrow zones of massive chalcopyrite in patches and fractures with rare sphalerite and galena. The drill hole ended in mineralization.
Drill-hole EL24006 was designed to test an area significant magnetic low, a coincident chargeability high anomaly adjacent to the Berezski North target. The hole was collared in diorite with moderate inner propylitic and occasional local weak potassic alteration. From 218.0m to 285.2m the hole continued through brecciated and altered limestones with minor disseminated pyrite and chalcopyrite. From 285.2 to the end of the hole, it intersected weak to moderate propylitic altered diorites and occasional layers of limestone.
Drill-hole EL24007 was drilled to test a coincident magnetic high and resistivity high to the north of the Berezski North target. The hole intersected basaltic andesites with weak to moderate propylitic alteration and local structurally controlled zones of argillic alteration.
Drill hole EL24010 was designed to test an adjacent copper-molybdenum soil geochem anomaly located to the northwest of drill hole EL24005. The hole intersected weak potassic altered diorites over its entire length. Mineralization mainly consists of minor quartz-pyrite+/-chalcopyrite veins, with occasional quartz-magnetite-chalcopyrite veins. The mineralization, alteration and veining style suggests that the hole was drilled peripheral to a porphyry-epithermal target and has provided important information to help guide future drilling at the Berezski North target.
Drill-hole EL24011 was designed to explore a molybdenum soil anomaly located approximately 300m to the east-northeast of hole EL24002. The hole was collared in propylitic altered andesite breccias that have been overprinted by moderate argillic alteration. At 169.5m depth, the hole intersected phyllic altered diorites to the end of the hole. Mineralization is dominated by disseminated pyrite with rare quartz-pyrite veins indicating that it was drilled in the periphery of a porphyry system. Unfortunately, the hole was lost at 350.2m depth when it intersected a strong fault zone.
Figure 4. Plan map, showing 2024 drill-hole locations, overlain on copper soil anomaly, Elemes Project.
Figure 5. Cross-section looking N showing key intercepts in drill-holes EL24005 and EL24006. The cross-section demonstrates a strong porphyry style mineralization in EL24005 represented by sheeted Qtz-Py-Cpy veining that is extending well beyond Tourmaline Na/K-Feldspar hydrothermal breccia by depth.
Figure 6. Drill core photos from holes EL24005 and EL24006 showing alteration, vein styles and mineralization.
Phase 2 Elemes Program Plan
Final review and planning is underway for a Phase 2 drilling program at Elemes. The success of Phase 1 identifying and confirming at least two porphyry centers for follow up along with approximately 90% of the Berezski target remaining open and untested provides for significant opportunities to follow up in 2025.
Subject to the necessary financing in place, the Company believes that a Phase 2 program will comprise of:
Ground magnetic survey focusing on the Berezski and Aimandai Targets to help with structural interpretation and target generation
Full analysis of select soil samples collected in 2023 and 2024 over high priority targets to provide data on porphyry pathfinder elements to allow for vectoring towards the porphyry center and allow for lithogeochemistry and alteration mapping.
Approximately 20,000m of core drilling targeting key priority areas at the Berezski target
Initial Vector IP geophysical survey at the Aimandai target with intention to identify priority drill targets
An approximate 5,000m initial drill program at the Aimandai target
Darren Klinck, President of Arras Minerals commented, "We are excited about the initial outcomes from the Phase 1 program at the Berezski target on our Elemes project. There are two high priority areas to focus on at Berezski Central and Berezski North where we plan to undertake systematic grid drilling following a ground magnetic survey this spring. In addition, with approximately 90% of the Berezski target still untested, we also expect to be testing new target areas as well. Furthermore, while we paused additional follow up work at the Aimandai target in 2024, with the positive results we have generated from Berezski in the Phase 1 program, we plan to undertake geophysical surveys to help identify priority drill targets for an initial drill program at that 14km copper-in-soil anomaly later this year."
Mr. Klinck went on to add, "It is very pleasing to see the systematic exploration work from the team over the past 2-3 years paying dividends. With the opportunities emerging at Elemes combined with the multiple targets we expect to be drill testing on the Arras-Teck Exploration Alliance licenses this year, we plan to have at least two core drills operating across the license package starting in Q2. Arras is in a unique position to have 6 to 9 target areas that we expect to be drill testing across the entire license package this year with all of these being prospective for copper-gold porphyries."
Figure 7. Plan map showing copper soil anomalies at Berezski and Aimandai Targets (Elemes Project).
Webinar - Wednesday February 12th @ 8:00am PST/11:00am EST
The Company will host a webinar to discuss the latest results from the Phase 1 drill program at the Berezski Target - Elemes Project and the 2025 Phase 2 Program Plan on Wednesday February 12th @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.
Elemes Project: Drilling commenced in September 2024 and the Phase 1 program was completed in late December 2024. This program of approximately 4,000 meters of diamond drilling has generally focused on priority targets at Berezski Central, Berezski East, Berezski North 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 IP geophysical surveys, as well as extensive soil sampling and mapping. In addition, some historical drill holes from the Berezski East and Quartzite-Gorka (Berezski North) targets were re-assayed with those results reported in January 2024 (see Arras new releases January 8 & 22, 2024).
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. 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.
Historical hole Q11 shown in Figure 5 was re-assayed and reported in the Company's news release January 8, 2024.
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).
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.
