CuEq at the Beskauga Project, Kazakhstan
ARRAS MINERALS INTERCEPTS 365M @ 0.88 % CUEQ, INCLUDING 64M @ 2.62 %
CUEQ AT THE BESKAUGA PROJECT, KAZAKHSTAN
January 23, 2023 TSX-V: ARK
Vancouver, British Columbia – Arras Minerals Corp. (TSX-V: ARK) (“Arras” or “the Company”) is pleased to announce
assay results from holes Bg21009, Bg21010 and Bg220 12 from the ongoing exploration drill program at th e Beskauga
copper-gold deposit and surrounding area (“Beskauga” or the “Project”).
Highlights :
• Hole Bg22012 returned a significant intersection of 365.0 metres (“m”) of mineralization grading 0.88 % copper-
equivalent (“CuEq”) or 1.06 gram per tonne (“g/t”) gold-equivalent (“AuEq”) (0.54 g/t gold (“Au”), 0.40 % copper
(“Cu”), 2.0 g/t silver (“Ag”) and 35.3 ppm molybdenum (“Mo”)) starting at 41.0 m from surface to 406.0 m.
o Including 29.0 m grading 1.01 % CuEq or 1.22 g/t AuEq (0.60 g/t Au, 0.48 % Cu, 2.1 g/t Ag and 31.8 ppm
Mo) from 87.0 m depth down-hole.
o And Including 64.0 m grading 2.62 % CuEq or 3.17 g/t AuEq (1.82 g/t Au, 1.04 % Cu, 4.6 g/t Ag and 66.5
ppm Mo) from 120.0 m depth down-hole.
o Including 30.0 m grading 4.00 % CuEq or 4.84 g/t AuEq (2.95 g/t Au, 1.47 % Cu, 6.2 g/t Ag and 63.8 ppm
Mo) from 120.0 m depth down-hole.
• Holes Bg21009 and Bg21010 tested areas outside of the Beskauga Main deposit. Strong advanced argillic to argillic
alteration and local zones of copper-gold mineralization in hole Bg21010 demonstrates the potential for concealed
porphyry-style mineralization hosted within the thi ck volcano-sedimentary package that is separated fr om
Beskauga Main by a prominent regional-scale NW-SE trending fault zone.
Diamond drilling is ongoing at Beskauga (Figure 1) and Beskauga South (Figure 2) with further assay re sults expected in
the coming months.
Tim Barry, CEO of Arras, commenting on these latest results, stated, “Drilling at Beskauga continues to deliver near-
surface, broad intervals of significant copper-gold mineralization. Hole 22012 also included a high-gr ade intersection of
64m @ 2.62% Cu Eq at 120m from surface which also i ncluded a spectacular zone of 30 meters at 4.00% Cu Eq. These
grades are indicative of high-grade zones found throughout the deposit which we continue to review as we explore for the
core of this very extensive system.” Mr. Barry went on to add, “We continue with one core rig currently drilling on the
Beskauga license rotating between areas adjacent to the known deposit and also new targets which have been proved up
on the 63 sq km license from geophysics and field programs completed in 2022.”
A summary of the results announced in this news release is outlined in the table below.
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Table 1. Summary table for holes Bg21009, Bg21010 and Bg22012
Notes: Copper Equivalent (“CuEq”) grades reported for the drill holes at Beskauga 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 Beskauga 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$3.00/lb. Copper, US$1,700/oz Gold, US$22/oz Silver, US$10/lb. Molybdenum, and metallurgical recoveries were
assumed to be 100%.
Results of Bg21009, Bg21010 and Bg22012:
Bg21009: (see Figure 1) was collared outside of the area covered by the current NI-43-101 Mineral Resource Estimate for
Beskauga. It was designed to test a broad zone of d emagnetization, identified in the airborne magnetic s, at the
southwestern margin of the monzodiorite intrusion (that has been drilled in Arras drill holes Bg21005 and Bg21008; refer
to our press releases dated September 14, 2022 and October 19, 2022 , respectively). The monzodiorite forms an
approximately 400 x 500-meter circular “bulls-eye” magnetic high surrounded by a >500-meter-wide zone of
demagnetization. The intrusion is interpreted to dip steeply to the south.
The zone of demagnetization is also coincident with anomalous copper-gold-bismuth values in “KGK” (top of bedrock) drill
holes. The upper portion of the hole intersected so dic (albite-hematite) altered diorite that has been overprinted by
moderate to strong argillic (illite-smectite) alter ation. The diorite lacks any significant copper-gol d mineralization. The
lower portion of the hole intersected the potassic altered monzodiorite intrusion, with a 62.0 m zone of weak
mineralization grading 0.29 % CuEq intersected from a depth of 452 m down-hole. Although generally low -grade,
occasional high tenor veins do occur, for example, 1 m grading 2.79 % CuEq (2.33 g/t Au, 47.2 g/t Ag, 0.35 % Cu and 26.8
ppm Mo) occur within the monzodiorite. Compared to the diorite that hosts the bulk of the known minera lization at
Beskauga, the
monzonite intrusion hosts significantly higher Mo grades, with up to 2,850 ppm in this hole. Alteration in the monzodiorite
comprises k-feldspar, secondary (“shreddy”) biotite , magnetite, Mg-rich chlorite, and epidote, with va riable argillic
overprint comprising illite and smectite localized near the contact with the diorite, as well as around faults and fractures
(confirmed by Arras using TerraSpec SWIR/NIR spectroscopy).
Bg21010: (see Figures 1) was collared in an area immediately north of the current NI-43-101 Mineral Resource Estimate
for Beskauga. The hole was designed to test a thick volcano-sedimentary package, separated from Beskauga Main by a
prominent NW-SE orientated fault. The volcano-sedim ents contain the largest lobe of the Beskauga Main induced
Interval Au Cu Ag Mo Cu Eq Au Eq
Easting Northing RL From (m) To (m) (m) (g/t) (%) (g/t) (ppm) (%) (g/t)
587325 5739225 124 45 -70 591.0 35.3 591.0 555.7 0.04 0.07 0.5 691.4 0.12 0.14
452.0 514.0 62.0 0.09 0.17 1.5 88.3 0.29 0.35
588335 5740206 124 180 -70 721.6 45.6 721.6 676.0 0.08 0.05 0. 4 57.9 0.13 0.16
165.0 173.0 8.0 0.14 0.31 1.6 232.4 0.52 0.62
188.0 280.0 92.0 0.18 0.12 0.8 69.0 0.30 0.36
529.0 591.2 62.2 0.24 0.09 0.9 322.6 0.40 0.48
588091 5739586 124 335 -85 1091.0 41.0 1091.0 1050.0 0.21 0.1 7 0.9 28.9 0.37 0.45
41.0 406.0 365.0 0.54 0.40 2.0 35.3 0.88 1.06
87.0 116.0 29.0 0.60 0.48 2.1 31.8 1.01 1.22
120.0 184.0 64.0 1.82 1.04 4.6 66.5 2.62 3.17
120.0 150.0 30.0 2.95 1.47 6.2 63.7 4.00 4.84
802.0 810.0 8.0 0.24 0.35 1.6 107.2 0.60 0.73
975.0 988.0 13.0 0.24 0.21 3.4 36.0 0.46 0.55 And Including
Bg22012
And Including
including
Including
Including
And Including
Bg21009
Including
Bg21010
Including
And Including
And Including
Intersection
Hole_ID
Coordinates (UTM)
Azi Dip Hole
depth (m)
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polarization (IP) anomaly, which remained un-drill-tested despite its proximity to the known mineralization at Beskauga.
The hole was designed to drill through this chargeability high.
The volcano-sedimentary package intersected in this hole comprises mainly of andesite breccias and tuf fs of andesitic
composition that are iron oxide (hematite) flooded and variably advanced argillic to argillic (kaolini te-dickite-illite-
smectite) altered (confirmed by Arras using TerraSpec SWIR/NIR spectroscopy). At depth the alteration transitions into a
propylitic assemblage (chlorite-magnetite-epidote) with a weak advanced argillic to argillic overprint persisting
throughout. The volcano-sedimentary package has bee n intruded by several 10 to 25 m wide, copper-gold mineralized
dykes of dioritic composition. However, based on th eir trace element composition the diorite dykes are geochemically
distinct from the diorite that hosts the bulk of the mineralization at Beskauga Main. Mineralization is localized within and
proximal to these dioritic dykes and comprises of q uartz-chalcopyrite ± bornite, molybdenite veins in the upper argillic
altered part of the hole, transitioning to quartz-pyrite veins deeper in the hole.
Despite only modest zones of mineralization in this hole, the presence of a separate generation of min eralized diorites
demonstrates the potential for concealed porphyry-s tyle mineralization hosted within the thick volcano -sedimentary
package. This is further supported by “KGK” (top-of-bedrock) drilling which returned > 1 g/t Au, > 1 % copper and highly
anomalous bismuth values in this area. A prominent magnetic high immediately to the NE of hole Bg21010 remains un-
drill tested.
Bg22012: (see Figures 1, 3 and 4) was collared 90 metres southwest from Bg21001 (973.2 m of mineralization grading 0.82
% CuEq; for further information see our press release dated January 31, 2022 ) and 90 metres southeast from hole Bg21004
(1,120.4 m of mineralization grading 0.60 % CuEq; for further information see our press release dated June 22, 2022 ) and
drilled at an angle of 85 degrees towards the north east to a final depth of 1,091.0 m. The hole was de signed to test a
prominent NW-SE orientated fault separating the diorites that host Beskauga Main (on the southern side of the fault) from
the thick volcano-sedimentary package (on the north ern side of the fault). Previous drilling by Arras in Bg21002 has
demonstrated that copper-gold mineralization occurs at depth on the northern side of this fault zone.
The hole started in moderately, to very strong, argillic altered diorite. The argillic alteration consists of intense kaolinite-
dickite-illite-smectite with local silicification, before transitioning to illite-smectite with depth (confirmed by Arras using
TerraSpec SWIR/NIR spectroscopy). Mineralization oc curs as a mixture of quartz vein, fracture-controll ed zones and
hydrothermal breccias of tennantite, chalcopyrite, pyrite, magnetite (or hematite after magnetite) wit h minor
molybdenite locally. From 120 metres depth, the hole entered an exceptionally high-grade zone of 64.0 m grading 2.62 %
CuEq, including 30.0 m grading 4.00 % CuEq.
From 408 metres the hole entered a series of post-mineral basaltic dykes that have filled the NW-SE orientated fault zone,
before re-entering into diorite characterized by va riably argillic (illite-smectite) overprinted sodic (albite-hematite)
alteration. From a depth of 576.3 m the hole enter ed the volcano-sediments that comprise primarily of fine-grained,
propylitic (chlorite-magnetite-hematite-epidote) al tered andesitic tuffs. Generally, the volcano-sedim ents are poorly
mineralized, but several narrow zones of mineraliza tion were intersected. Here mineralization consists of quartz-
tourmaline ± pyrite-chalcopyrite veins with k-feldspar alteration halos and quartz-pyrite-chalcopyrite-molybdenite veins.
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Figure 1. Location of the holes completed to date as part of Arras’ planned 30,000-metre drill program on the Beskauga Main deposit and wider
area. The surface projection of the block model from the current NI-43-101 Mineral Resource Estimate is shown for copper. The inset map in
Figure 2 below shows the location of Beskauga Main relative to Beskauga South.
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Figure 2. Location of the holes completed to date at the Beskauga South area, located approximately 3.2 kilometres SSW from the Beskauga
Main deposit, and outside of the current NI-43-101 Mineral Resource Estimate. The inset map shows the location of Beskauga South relative to
Beskauga Main.
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Figure 3. Cross-section showing hole Bg22012 in relation to several historical holes drilled by Copperbelt . Also shown are grade contours based
on the Beskauga block model for copper (only) developed for the purposes of the current Mineral Resource Estimate for Beskauga (for further
details, please see Arras’ press release on June 20, 2022 ). CuEq grades of key intercepts in Bg22012 and historical holes are shown. The cross-
section demonstrates the steep, southwest dipping high-grade copper-gold-silver trend observed through Arras’ exploration to date. This trend is
observed beginning at the paleo-bedrock surface (41 m in depth), to average between 200-300 m wide and to be consistently mineralized down to
at least 1000 metres.
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Figure 4. Cross-section showing hole Bg22012 in relation to several historical holes drilled by Copperbelt. Also shown are grade contours based
on the Beskauga block model for gold (only) developed for the purposes of the current Mineral Resource Estimate for Beskauga (for further details,
please see Arras’ press release on June 20, 2022 ). AuEq grades of key intercepts in Bg22012 and historical holes are shown. The cross-section
demonstrates the steep, southwest dipping high-grade copper-gold-silver trend observed through Arras’ exploration to date. This trend is observed
beginning at the paleo-bedrock surface (41 m in depth), to average between 200-300 m wide and to be consistently mineralized down to at least
1000 metres.
Drill Program: In October 2021, Arras announced the start of the initial phase of a permitted 30,000-metre diamond drill
program targeting the extensions of the Beskauga deposit both laterally and at depth (Figures 1 and 2). The drill program
is being conducted under the Option to Purchase Agreement (“Option Agreement”) executed on January 26, 2021, with
Copperbelt AG (“Copperbelt”), a private mineral exploration company registered in Zug, Switzerland.
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In addition to testing the extents of the Beskauga deposit, the drill program is also targeting a series of previously undrilled
targets in the wider area. These wider targets are supported by both ground and airborne geophysics, a s well as in-situ
geochemistry, derived using “KGK” drilling (a drilling method akin to 'wet' reverse circulation drilling, that recovers a 1 to
3 m core sample from the top of the underlying bedrock which is used by Arras to efficiently map lithology, alteration, and
geochemistry across the property beneath overburden).
For both the diamond and KGK drilling, Arras has been using the local company “Tsentrgeolsemka LLP”. Arras later changed
drilling contractors to “GRK Iskander Ltd” and mobi lized a diamond drill rig with the capacity to dril l deeper holes, if
required, as well as improved core orientation thro ugh triple tube core barrel drilling. GRK Iskander Ltd is one of the
leading drilling companies in Kazakhstan, with clients including Rio Tinto, Kazzinc (Glencore), ESAN, and Kazakhmys. Both
Tsentrgeolsemka LLP and GRK Iskander Ltd are both independent of Arras.
About the Beskauga Deposit: The Beskauga deposit is a gold-copper-silver deposit with an “Indicated” Mineral Resource
of 111.2 million tonnes grading 0.49 g/t gold, 0.30% copper, and 1.3 g/t silver for 1.75 million ounce s of contained gold,
333.6 thousand tonnes of contained copper, and 4.79 million ounces of contained silver and an “Inferre d” Mineral
Resource of 92.6 million tonnes grading 0.50 g/t gold, 0.24% copper and 1.1 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. The constraining open pit
was optimized 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 50.0%
for silver.
Based on exploration undertaken to date, the Beskauga deposit is interpreted by Arras to represent a gold-rich porphyry
copper-gold deposit that has been overprinted by high-sulfidation epithermal mineralization, either through telescoping
or due to clustering of multiple porphyry centers w ithin the Beskauga license that have superimposed a lteration and
mineralization upon earlier phases. Beskauga is located within the highly under-explored Bozshakol-Chingiz Volcanic Arc,
which hosts KAZ Minerals’ Bozshakol porphyry Cu-Au mine only 130 km west of Beskauga. Bozshakol is one of the largest
copper resources in Kazakhstan with 1.123 billion tonnes at 0.35% Cu, 0.14 g/t Au and 1.0 g/t Ag in Measured and Indicated
Resources. The mine has 30 Mtpa ore processing capacity and a remaining mine life of >40 years.
Contrary to many porphyry copper deposits being developed in other jurisdictions globally, the Beskauga project, located
only 350 metres above sea-level, benefits from exce llent modern infrastructure and accessibility. The region is mining-
friendly and hosts several large-scale mining opera tions. Arras’ operations are based out of the nearb y mining town of
Ekibastuz, which services the largest coal mine in Kazakhstan and provides a highly trained workforce for the Company to
draw upon. Paved road access, 1100 KVA power lines, heavy rail, and the Irtysh–Karaganda irrigation canal all lie within a
25-kilometre radius of the project. The capital cit y of Nur-Sultan, located approximately 300 kilometr es 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.
Assay and QAQC Procedures: On receipt from the drill site, the diamond drill core was systematically logged for geological
attributes, photographed and sampled at Arras’ oper ational base in the town of Ekibastuz, Kazakhstan b y Company
personnel. A default 1 m downhole sample length was used in mineralized zones, except were shortened b y geological
contacts. A default of 2 m downhole sample length was used in zones that were clearly unmineralized. Core diameter is a
mix of HQ (63.5 mm) and NQ (47.6 mm) dependent upon the depth of the drill hole. Bg21009 was drilled with HQ to end
of hole. Bg21010 was drilled with HQ to a depth of 688.2 m before reducing to NQ to the end of hole. B g220012 was