VANCOUVER, British Columbia, Oct. 01, 2021 (GLOBE NEWSWIRE) -- Arras Minerals Corp. (“Arras”) is pleased announce it has commenced an initial 30,000 metre surface drill program targeting the extensions of the Beskauga deposit both laterally and at depth, as well as a series of never before tested targets within the wider area.
For the drilling, Arras is using the local company “Tsentrgeolsemka LLP”. The drill program is conducted under the Option to Purchase agreement (“Option Agreement”) executed on January 26, 2021, with Copperbelt AG (“Copperbelt”), a mineral exploration company registered in Zug, Switzerland. Pursuant to the Option Agreement, Arras has the right to acquire Copper Belt’s right, title and 100% interest in the Beskauga property located in Kazakhstan by incurring US$15,000,000 in cumulative exploration expenditures on the Beskauga Project by January 26, 2025.
About the Beskauga Deposit: The Beskauga deposit is a gold-copper-silver deposit with a NI 43-101 compliant “Indicated” Mineral Resource of 207 million tonnes grading 0.35 g/t gold, 0.23% copper and 1.09 g/t silver for 2.33 million ounces of contained gold, 476.1 thousand tonnes of contained copper, and 7.25 million ounces of contained silver and an “Inferred” Mineral Resource of 147 million tonnes grading 0.33 g/t gold, 0.15% copper and 1.02 g/t silver for 1.56 million ounces of contained gold, 220.5 thousand tonnes of contained copper, and 4.82 million ounces of contained silver.
The constraining pit was optimised and calculated using a NSR cut-off based on a price of: $1,500/oz for gold, $2.80/lb for copper, $17.25/oz for silver, and with an average recovery of 81.7% for copper and 51.8% for both gold and silver.
Table 1. Pit-constrained Mineral Resource estimate for the Beskauga copper-gold project
| CATEGORY | TONNAGE (MT) | CU % | AU G/T | AG G/T | AU (MOZ) | CU (KT) | AG (MOZ) |
| Indicated | 207 | 0.23 | 0.35 | 1.09 | 2.33 | 476.1 | 7.25 |
| Inferred | 147 | 0.15 | 0.33 | 1.02 | 1.56 | 220.5 | 4.82 |
Notes:
- An NSR $/t cut-off of $5.70/t was used, and the NSR formula is: NSR $/t = (38.137+11.612 x Cu%) x Cu% + (19.18 + 12.322 x Au g/t) x Au g/t + (0.07 + 0.0517 x Ag g/t) x Ag g/t
- The NSR formula incorporates variable recovery formulae. Average copper recovery was 81.7% copper and 51.8% for both gold and silver.
- Metal prices considered were $2.80/lb copper, $1,500/oz gold and $17.25/oz silver.
- The Resource is stated within a pit shell that considers a 1.25 factor above the metal prices.
- Mineral Resources are estimated and reported in accordance with the Canadian Institute of Mining and Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted May 10, 2014, as required under NI 43-101.
- The Mineral Resource is not believed to be materially affected by any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors
- These Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability.
- The quantity and grade of reported Inferred Resources in this MRE are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as Indicated or Measured; however, it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
- The report was issued by CSA Global Consultants Canada Limited, the coordinating author is Serikjan Urbisinov, B.Sc., MAIG, an Independent Qualified Person in accordance with NI 43-101.
- Effective date of the report was January 28, 2021.
For a full summary of the Beskauga resource please visit the following link:
https://silverbullresources.com/site/assets/files/5975/csa-beskauga-ni-43-101-final.pdf
About Kazakhstan
Size: Kazakhstan is the ninth largest country in the world, covering 2,717,300 square kilometres, and has a population of 18.2 million people.
Capital City: The capital city is Nur-Sultan which is located 300 kilometers from the project. Nur-Sultan has a major international airport allowing for easy access and administration of the Beskauga project.
Mining Law: Kazakhstan adopted a new mining code titled “Code on Surface and Subsoil Use” (the "SSU Code") on December 27, 2017, that became effective on June 29, 2018. The SSU Code is based on the Western Australian model where Kazakhstan moved from a contractual regime to a licensing regime for solid minerals (except for uranium). Coincident with the updated SSU law, the Kazakhstan government also reduced a considerable amount of the administrative burdens for subsoil users.
Tax: A summary of pertinent taxes related to exploration in Kazakhstan is as follows:
- 20% corporate tax
- 12% value-added tax (VAT) is refundable for exploration companies
- 4.7% royalty for copper
- 5% royalty for gold and silver
Geological Prospectivity: Kazakhstan is one of the most prospective countries in the world for a number of metals. According to the United States Geological Survey (www.usgs.gov), Kazakhstan is:
- 1st in the world for uranium production (41% of world output)
- 2nd in the world for chromite production (18% of world output)
- 4th in the world for titanium production (6% of world output)
- 10th in the world for copper production
The Fraser Institute Annual Survey of Mining Companies in 2020, ranked Kazakhstan the 23rd best mining jurisdiction in the world. Additionally, the World Bank’s “2020 Doing Business Ranking” ranked Kazakhstan in a tie for 23rd, alongside Canada and Ireland, out of a total of 190 countries measured on “Ease of Doing Business”.
The technical information of this news release has been reviewed and approved by Tim Barry, a Chartered Professional Geologist (CPAusIMM), and a qualified person for the purposes of National Instrument 43-101.
On behalf of the Board of Directors
"Tim Barry"
Tim Barry, CPAusIMM
Chief Executive Officer and Director
INVESTOR RELATIONS:
+1 604 687 5800
info@arrasminerals.com
About Arras Minerals Corp.
Arras is British Columbia incorporated private company advancing a portfolio of copper and gold assets in northeastern Kazakhstan, including the Option Agreement on the Beskauga copper and gold project.
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 expected timing, mechanics, income tax consequences, benefits 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 such factors as whether the results of exploration activities and whether the results continue to 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 Form 20-F filed with the SEC on September 1, 2021 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.
