Arras Minerals Files NI43-101 Resource of 1.75 Million Ounces of GOLD & 333.6 Thousand Tonnes of Copper IN the “Indicated” Category, and 1.49 Million Ounces of GOLD & 222.2 T Housand Tonnes of Copper IN the “Inferred” Category ON the Beskauga
ARRAS MINERALS FILES NI43-101 RESOURCE OF 1.75 MILLION OUNCES
OF GOLD & 333.6 THOUSAND TONNES OF COPPER IN THE “INDICATED”
CATEGORY, AND 1.49 MILLION OUNCES OF GOLD & 222.2 T HOUSAND
TONNES OF COPPER IN THE “INFERRED” CATEGORY ON THE BESKAUGA
COPPER-GOLD PROJECT IN NORTH-EASTERN KAZAKHSTAN
June 20, 2022 TSX-V: ARK
Arras Minerals Corp. (TSX-V: ARK) (“Arras”, or the “Company”) is pleased to announce it has filed an
updated Mineral Resource estimate report on the Beskauga copper-gold project onto the SEDAR website.
Highlights of the updated Mineral Resource report include:
• An open pit constrained Indicated Mineral Resource of 111.2 million tonnes grading 0.49 g/t
gold, 0.30% copper and 1.34 g/t silver for 1.75 million ounces of gold, 333.6 thousand tonnes of
copper, & 4.79 million ounces of silver.
• An open pit constrained Inferred Mineral Resource of 92.6 million tonnes grading 0.50 g/t gold,
0.24% copper and 1.14 g/t silver for 1.49 million o unces of gold, 222.2 thousand tonnes of
copper, & 3.39 million ounces of silver.
• The constraining pit was optimised and calculated using a Gross Metal Value (“GMV”) cut-off of
$20/tonne based on a price of: $1,750/oz for gold, $3.50/lb for copper, $22/oz for silver, and
with an average recovery of 85% for copper and 74.5% for gold and 50% for silver.
Tim Barry, CEO and Director of Arras states, “We are very pleased with this resource update which gives
a good sense of the high-grade core of mineralization we currently see at Beskauga. It is important to note
that the mineralization starts at the old paleo-surface of the bedrock and is covered by just over 40 meters
of largely unconsolidated soils and gravels. The si ze and grade of the resource, combined with the low
strip, and excellent near-by infrastructure, shows a strong viability for the project moving forward.
Work for 2022 will now focus on step-outs from the known deposit testing the largely unexplored
immediate surrounding area.”
Beskauga Resource: The Beskauga resource was estimated from 118 histor ical diamond drill holes,
totalling 45,605.8 meters drilled between 2007 and 2017 by the private Swiss company, Copperbelt AG.
In addition to the historical holes included in thi s resource, four new drill holes totaling 3,694.2 m eters
drilled by Arras, in the known zone of mineralization have also been included in the resource calculation.
All Holes were drilled from surface using an HQ or NQ sized core diameter and vary in depth between
150m to 1163.8m. The estimated Mineral Resource is shown in the table below.
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Table 1 - Mineral Resource estimate for the Beskauga deposit with an effective date of 27 December 2021
Category Tonnage (Mt) Cu (%) Au (g/t) Ag (g/t)
Indicated 111.2 0.30 0.49 1.34
Inferred 92.6 0.24 0.50 1.14
Notes:
• A GMV $/t cut-off of $20/t was used, and the GMV formula is: GMV $/t = Au(grams)*74.5%*$56.26+
Cu(tonnes)*85%*$7.714 + Ag(grams)*50%*$0.71
• Base metal prices considered were $3.50/lb copper, $22.00/oz silver, and $1,750/oz gold.
• The Mineral Resource is stated within a pit shell using the base-case metal prices.
• Mineral Resources are estimated and reported in accordance with the CIM Definition Standards for Mineral Resources and
Mineral Reserves adopted 10 May 2014.
• Matthew Dumala (P.Eng.), is the independent Qualified Person with respect to the Mineral Resource estimate.
• 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 Mineral Resource estimate 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 most of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued
exploration.
The reported Mineral Resource falls within an optimized Lerch-Grossman pit shell that uses the following
parameters:
Table 2 - Parameters used in the resource update
Parameter Unit
Metal prices
Copper 3.50 $/lb
Gold 1,750 $/oz
Silver 22.00 $/oz
Mining and transport
Mining cost 1.50 $/t
Incremental mining cost 0.02 $/t per level
Recoveries
Copper 85.0 %
Gold 74.5 %
Silver 50.0 %
Processing cost
Processing cost (including G&A) 15.00 $/t
Discount rate 8.0 %
Pit slopes
Pit slope for overburden 35 °
Pit slope 55 °
Density for model and waste 2.73 t/m 3
Density for overburden 1.50 t/m 3
3 Arras Minerals Corp.
A Gross metal value (“GMV”) cut-off of $20/tonne wa s used to determine economic viability and was
calculated using the following formula: “GMV $/t = Au(grams)*74.5%*$56.26+ Cu(tonnes)*85%*$7.714 +
Ag(grams)*50%*$0.71”
Mineral resources were estimated by Ordinary Kriging (OK) and Inverse Distance Weighting (IDW) using
Geovia GEMS software (version 6.7.2) modeling software in multiple passes using 20 meter X 20 meter X
20 meter blocks as the SMU size. Blocks have been classified as Indicated or Inferred Mineral Resources.
The mineral resource has been estimated by Matthew Dumala, P.Eng., of Archer, Cathro & Associates
(1981) Limited, and David Underwood, a registered Professional Natural Scientist with the South African
Council for Natural Scientific Professions (Pr. Sci . Nat. No.400323/11). Both Mr. Dumala and Mr.
Underwood are Qualified Persons as defined by National Instrument 43-101 and are responsible for the
Technical Report filed onto the SEDAR website located at www.sedar.com .
Figure 1 - Surface projection of the Beskauga deposit showing the gold and the copper cut-offs. Also shown is the outline of
the Lerch-Grossman conceptual pit.
Infrastructure: The Beskauga deposit has excellent infrastructure. All operations are based out of the
nearby mining town of Ekibastuz, which services the largest coal mine in Kazakhstan and provides a highly
trained workforce for Arras to draw upon. Paved road access, 1100 KVA power lines and heavy rail all lie
within a 25 kilometer radius of the project. The ca pital city of Nur-Sultan, located approximately 300
4 Arras Minerals Corp.
kilometers along a double lane highway to the west of the project, has a major international airport
allowing for easy access and administration of the Beskauga project.
Figure 2 - Map showing the location of infrastructure near the Beskauga deposit. The project is based out of the nearby
mining town of Ekibastuz.
Changes in the resource: The NI43-101 resource update completed by Arras su persedes a NI43-101
resource filed by Silver Bull Resources in February 2021. With significant movement in the metal prices of
gold, copper, and silver, since February 2021, the new resource calculation represents a recalibration of
Beskauga in the current price environment.
Compared to the resource report of February 2021, a new grade shell was created to incorporate a better
understanding of the geology of the Beskauga deposi t. The new resource calculation also included an
increase from US$2.80/lb to $US3.50/lb for copper, US$1,500/oz to $US1,750/oz for gold and
US$17.25/oz to $US22 for silver. An increase in metal recovery of 81.7% to 85% for copper, 51.8% to 75%
for gold and a decrease from 51.8% to 50% for silve r was also included in the calculation. The Februar y
2021 resource used an NSR cutoff calculation of $5.70/t with a pit shell factor of 1.25 above metal prices,
whereas this resource update used a “Gross Metal Value” cutoff of $20/t.
These changes described above have resulted in a ne w resource on Beskauga deposit having lower
tonnage, but significantly a higher grade for both gold and copper.
5 Arras Minerals Corp.
Table 3 - Comparison between the Beskauga resource filed by Silver Bull Resources in February 2021 and Arras’s resource
update filed in February 2022
16 FEBRUARY 2021 MINERAL RESOURCE ESTIMATE (Silver Bull Resources)
Estimate Mt Au g/t Cu % Ag g/t Au Moz Cu t
(000’s)
Ag Moz
Indicated 207 0.35 0.23 1.09 2.33 476.1 7.25
Inferred 147 0.33 0.15 1.04 1.56 220.5 4.82
31 MAY 2022 MINERAL RESOURCE ESTIMATE (Arras Minerals Co rp.)
Estimate Mt Au g/t Cu % Ag g/t Au Moz Cu t
(000’s)
Ag Moz
Indicated 111.2 0.49 0.30 1.34 1.75 333.6 4.79
Inferred 92.6 0.50 0.24 1.14 1.49 222.2 3.39
About the Beskauga Deposit: The Beskauga deposit is a gold-copper-silver depos it with a NI 43-101
compliant “Indicated” Mineral Resource of 111.2 million tonnes grading 0.49 g/t gold, 0.30% copper and
1.34 g/t silver for 1.75 million ounces of contained gold, 333.6 thousand tonnes of contained copper, and
4.79 million ounces of contained silver and an “Inferred” Mineral Resource of 92.6 million tonnes grading
0.50 g/t gold, 0.24% copper and 1.14 g/t silver for 1.49 million ounces of contained gold, 222.2 thousand
tonnes of contained copper, and 3.39 million ounces of contained silver. This resource is based on 122
drill holes completed between 2007 and 2021. For f urther details regarding the Mineral Resource
estimate at the Beskauga project, please see the technical report entitled “Beskauga Copper-Gold Project,
Pavlodar Province, Republic of Kazakhstan, dated February 20, 2022 and filed on the Company’s website
and on the Company’s SEDAR profile at www.sedar.com.
The constraining pit was optimised and calculated using a NSR cut-off based on a price of: $1,750/oz for
gold, $3.50/lb for copper, $22.00/oz for silver, and with an average recovery of 85% for copper and 74.5%
for gold and 50% for silver.
Assay and QAQC Procedures: All sample preparation and geochemical analysis of the diamond drill core
referenced in the drill assay results described above was undertaken by ALS Global at its laboratories in
Karaganda (Kazakhstan) and Loughrea (Republic of Ireland), respectively.
After drying and fine crushing, a 250 g split was p ulverised to 85 % passing a -75-micron screen. A 30 g
split of the pulp was analysed for gold using fire assay and Atomic Absorption Spectroscopy (AAS) finish
(ALS method Au-AA25™) at ALS Karaganda. A second pulp split was then air freighted to ALS Loughrea and
analysed for 48 elements by Inductively Coupled Pla sma Mass Spectrometry (ICP-MS) after 4-acid
digestion on a 0.25 g aliquot (ALS method ME-MS61™). Where samples exceeded 1% copper, they were
re-analysed using a 4-acid digest ICP-MS ore grade method (ALS method Cu-OG62™). ALS Global and its
laboratories are entirely independent of Arras Minerals Corp.
Arras operates according to its rigorous Quality Assurance and Quality Control (QA/QC) protocol, which is
consistent with industry best practices. This inclu des insertion of certified standards, blanks, and f ield
duplicates comprising of quarter drill core at an insertion rate of 2.5%, 2.5% and 5% respectively, which is
6 Arras Minerals Corp.
deemed appropriate for this stage of exploration. T he blanks and standards are Certified Reference
Materials (CRM’s) supplied by Ore Research and Exploration, Australia, who are entirely independent of
Arras Minerals Corp. Internal QA/QC samples were al so inserted by the analytical laboratories and
reviewed by the Company prior to release. No material QA/QC issues have been identified with respect
to sample collection, security and assaying.
Qualified Person
The technical disclosure presented in this news rel ease has been reviewed and approved by Tim Barry,
CEO and Director of Arras Minerals Corp., a Chartered Professional Geologist (MAusIMM CP Geo) with the
Australasian Institute of Mining and Metallurgy 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
About Arras Minerals Corp.
Arras Minerals Corp. is British Columbia incorporat ed public company trading on the TSX-V exchange
under the symbol “ARK.” The Company is 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 t hat 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 mine ral 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 pl ace 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 regard ing the use of net proceeds from the recent private placement, plans and
expectations of the drill program Arras is in the p rocess of undertaking, including the expansion of t he Mineral Resource, and
7 Arras Minerals Corp.
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 o perates and the beliefs and
assumptions of Arras’ management. Words such as “ex pects,” “anticipates,” “targets,” “goals,” “project s,” “intends,” “plans,”
“believes,” “seeks,” “estimates,” “continues,” “may,” variations of such words, and similar expression s and references to future
periods, are intended to identify such forward-look ing statements. Forward-looking statements are subj ect 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 activit ies and that such results support continued explora tion 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 Non-Offering Prospectus filed on t he Company’s profile on
SEDAR on May 31, 2022 and in the Company’s Annual Re port on Form 20-F for the fiscal year ended October 31, 2021 filed with
the U.S. Securities and Exchange Commission filed o n February 17, 2022 available on www.sec.gov. Reade rs are cautioned that
forward-looking statements are not guarantees of fu ture performance and that actual results or develop ments may differ
materially from those expressed or implied in the f orward-looking statements. Any forward-looking stat ement 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.