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Arras Minerals Announces the Start of 30,000 Meter Drill Program on the Beskauga Deposit, Northeastern Kazakhstan

October 01, 2021 19:06 ET
Source: Arras Minerals Corp.

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:
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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.

https://www.globenewswire.com/en/news-release/2021/10/01/2307416/0/en/Arras-Announces-the-Start-of-30-000-Meter-Drill-Program-on-the-Beskauga-Deposit-Northeastern-Kazakhstan.html