The Beskauga Project IN Northeastern Kazakhstan
ARRAS MINERALS INTERCEPTS 1120.4M @ 0.59 % CuEq, INCLUDING
465.1 M @ 0.81 % CuEq STARTING FROM 43.9M BELOW SURFACE ON
THE BESKAUGA PROJECT IN NORTHEASTERN KAZAKHSTAN
June 22, 2022 TSX-V: ARK
Vancouver, British Columbia – Arras Minerals Corp. (TSX-V: ARK) (“Arras” or “the Company”) is pleased
to announce assay results from holes Bg21003 and Bg 21004 from the ongoing drill program at the
Beskauga copper-gold deposit and surrounding area (“Beskauga” or the “Project”).
Highlights :
• Hole Bg21004 returned a significant intersection of 1120.4 meters of mineralization grading 0.59
% copper-equivalent (“CuEq”) or 0.73 g/t gold-equivalent (“AuEq”) (0.39 g/t gold (“Au”), 0.25 %
copper (“Cu”), 1.31 g/t silver (“Ag”) and 22.3 ppm molybdenum (“Mo”)) starting at 43.9 meters
from surface to end of hole.
o Including 465.1 meters grading 0.81 % CuEq or 1.00 g/t AuEq (0.52 g/t Au, 0.36 % Cu,
1.70 g/t Ag and 25.6 ppm Mo) from 43.9 meters depth down-hole.
o And including 35 meters grading 0.76 % CuEq or 0.94 g/t AuEq (0.46 g/t Au, 0.37 % Cu,
2.0 g/t Ag and 26.2 ppm Mo) from 741 meters depth down-hole.
o And including 207 meters grading 0.73 % CuEq or 0.90 g/t AuEq (0.55 g/t Au, 0.26 % Cu,
1.68 g/t Ag and 23.7 ppm Mo) from 863 meters depth down-hole.
• The hole demonstrates the continuity of high-grade mineralization to depth, u p to 460 m
beneath the base of the block model of Arras’ recen tly announced Mineral Resource Estimate
for Beskauga (see Arras’ news release dated June 20, 2022). The hole was terminated at a depth
of 1164.3 m due to the capacity of the drill rig an d ended in porphyry-style mineralization with
mineralization remaining open at depth.
• The top of Hole Bg21003 returned 83.1 meters of mineralization grading 0.51% CuEq (0.33 g/t
Au, 0.23 % Cu, 1.19 g/t Ag, and 13 ppm Mo) starting at 49.5 meters from surface before the hole
entered an unmineralized post-mineral porphyritic diorite.
• Drilling is ongoing at Beskauga with further assay results expected in the coming weeks.
Commenting on the results, Tim Barry, CEO of Arras stated, “When considering the copper-equivalent
grade multiplied by the length of the intercept, hole Bg21004 represents one of the best holes ever drilled
on the Beskauga property, second only to hole Bg21001 that returned an impressive 973.2 meters @ 0.82
% CuEq [for further details, see Arras’ press release date d January 31, 2022]. Perhaps more significantly,
hole Bg21004 drilled 460 m below the base of our current resource block model, substantially expanding
the potential volume of high-grade mineralization to depth in the southwest part of the main deposit. Our
Beskauga project continues to deliver, demonstratin g the large-scale characteristics of the deposit. W e
2 Arras Minerals Corp.
expect further drill assays to be finalized over th e coming weeks which we will report as they become
available.”
A summary of the results announced in this news release is outlined in the table below.
Table 1. Summary table for holes Bg21003 and Bg21004.
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%.
Drill Program: In October 2021, Arras announced the start of a pla nned 30,000-meter diamond drill
program targeting the extensions of the Beskauga deposit both laterally and at depth (see Figure 1). The
drill program is being conducted under the Option t o Purchase agreement (“Option Agreement”)
executed on January 26, 2021, with Copperbelt AG (“Copperbelt”), a private mineral exploration company
registered in Zug, Switzerland.
In addition to testing the extents of the Beskauga deposit, the drilling program is also targeting a series of
previously undrilled targets in the wider area. The se wider targets are supported by both ground and
recently flown airborne geophysics, as well as in-situ geochemistry, derived using “KGK” drilling (a drilling
method akin to 'wet' reverse circulation drilling, that recovers a 1-3 m core sample from the top of t he
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 is usi ng the local company “Tsentrgeolsemka LLP”.
Tsentrgeolsemka LLP is independent of Arras. Arras plan to mobilize diamond drill rigs with the capaci ty
to drill deeper to enable the Company to fully evaluate the continuation of the high-grade mineralization
to depth.
Results:
Bg21003 was collared 340 m south-west of Bg21004 and drilled at an angle of -70 o towards the south to
a final depth of 404.7 m. The hole was designed to test a clustering of Au-Cu-As-Bi anomalies within t op
of bedrock samples retrieved through historical KGK drilling by Copperbelt. The hole started in reasonably
strong mineralization, up to 0.8 g/t Au, 0.62 % Cu, 2.45 g/t Ag, and 75 ppm Mo within a diorite with strong
to very strong argillic alteration comprising of il lite and smectite with subordinate kaolinite, befor e
entering an unmineralized post-mineral xenolithic porphyritic diorite dyke with strong to moderate argillic
3 Arras Minerals Corp.
alteration at a depth of 132.6 to 185.3 meters down -hole. After the porphyritic diorite dyke, the hole
entered a weakly porphyritic, moderately argillic a ltered late-mineral diorite variant with very weak
mineralization (with sporadic higher grades up to 0.75 % CuEq, dominated by copper over gold) in which
the hole was terminated. The porphyritic diorite dy ke is interpreted to have filled a pre-existing E-W
trending fault zone that has juxtaposed the strongl y Cu-Au mineralized diorite of the main Beskauga
deposit to the north, with a distinct weakly minera lized diorite variant to the south and may have
structurally offset the southern portion of the ore body. The presence of two distinct diorite variants is
further supported by trace element lithogeochemistry.
Bg21004 (see Figures 2 and 3) was collared 100 m west of Bg21001 (for results of Bg21001, refer to Arras’
press release dated January 31, 2022), and drilled at an angle of -70 o towards the south to a final depth
of 1164.3 m where it was terminated due to maximum depth capacity of the drill rig. The mineralization
observed in hole Bg21004 is hosted within a sodic (strong albite alteration with a characteristic reddening
caused by hematite dusting **) altered diorite that has been later overprinted by moderate, to very strong,
argillic alteration comprising of illite and smecti te; with subordinate kaolinite and dickite present at
shallow levels (confirmed by Arras using TerraSpec SWIR/NIR spectroscopy). Mineralization occurs as a
mixture of disseminated, vein, and fracture-controlled zones of chalcopyrite, tennantite, and pyrite w ith
minor bornite, covellite, and molybdenite. Zones of sheeted and/or intense stockwork quartz-Cu sulfide
veins correlate with high-grade gold and copper ass ays up to 4.5 g/t Au and 3.01 % Cu, respectively (s ee
Figure 4). Higher Mo grades up to 833 ppm occur sporadically but are more abundant in the deepest parts
of the hole. An unmineralized post-mineral, yet arg illic altered, xenolithic porphyritic diorite dyke was
intersected in two intercepts at depths of 586.85 to 623.7 meters and 640.5 to 715.0 meters down-hole.
When removing the grade dilution resulting from the unmineralized dyke, it leaves a residual intercept of
1010.4 meters of mineralization grading 0.65 % CuEq or 0.80 g/t AuEq within the mineralized diorite.
_____________________________________________________________________________________
** Sodic (and potassic) alteration in many alkalic porphyry systems is characterized by hematite dusting of feldspars and the
zone of “reddening” can provide a useful vector toward mineralization. In alkalic porphyry systems, sodic alteration can occur in
the upper levels of the system, which is in accord with the epithermal overprinting observed within the Beskauga deposit. Arras
recently initiated petrological and lithogeochemical studies to fully characterize the alteration, evaluate the alkalic or high-K
calc-alkaline nature of the Beskauga deposit, and inform continued exploration.
4 Arras Minerals Corp.
Figure 1. Location of the holes completed to date as part of Arras’ planned 30,000 meter drill program on the Beskauga Main
deposit and the wider area.
5 Arras Minerals Corp.
Figure 2. Cross-section showing hole Bg21004 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 releases on June 20, 2022). CuEq grades of key
intercepts in Bg21004 and historical holes are shown. Note that hole Bg21004 demonstrates the continuity of high-grade
mineralization to depth, up to 460 m beneath the base of the current block model. The cross-section demonstrates the
steep, southeast dipping high-grade copper-gold-silver trend observed through Arras’ exploration to date. This trend is
observed beginning at the paleo-bedrock surface (44m in depth), to average between 200-300m wide and to be consistently
mineralized down to at least 1000 meters. Mineralization remains untested at depth.
6 Arras Minerals Corp.
Figure 3. Cross-section showing hole Bg21004 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 releases on June 20, 2022). AuEq grades of key
intercepts in Bg21004 and historical holes are shown. Note that hole Bg21004 demonstrates the continuity of high-grade
mineralization to depth, up to 460 m beneath the base of the current block model. The cross-section demonstrates the
steep, southeast dipping high-grade copper-gold-silver trend observed through Arras’ exploration to date. This trend is
observed beginning at the paleo-bedrock surface (44m in depth), to average between 200-300m wide and to be consistently
mineralized down to at least 1000 meters. Mineralization remains untested at depth.
7 Arras Minerals Corp.
Figure 4. Photos of the diamond drill core from Bg21004 showing the typical styles of veining, mineralization and alteration
observed throughout the hole.
8 Arras Minerals Corp.
About the Beskauga Deposit:
The Beskauga deposit is a gold-copper-silver deposi t 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 mil lion
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 complet ed
between 2007 and 2021. For further details regardin g the Mineral Resource estimate at the Beskauga
project, please see the technical report entitled “ Beskauga Copper-Gold Project, Pavlodar Province, th e
Republic of Kazakhstan, dated February 20, 2022, an d filed on the Company’s website and on the
Company’s SEDAR profile at www.sedar.com .
The constraining pit was optimized and calculated using an 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.
Based on exploration undertaken to date, the Beskau ga deposit is interpreted by Arras to represent a
gold-rich porphyry copper-gold deposit that has bee n overprinted by high-sulfidation epithermal
mineralization, either through telescoping or due t o clustering of multiple porphyry centers within th e
Beskauga license that have superimposed alteration 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 B eskauga. Bozshakol is one of the largest copper
resources in Kazakhstan with 1.123 billion tonnes a t 0.35% Cu, 0.14 g/t Au and 1.00 g/t Ag in Measured
and Indicated Resources. The mine has a 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 benefits from excellent modern infrastructure and accessibility and is located at 350m above sea
level. The region is mining-friendly and hosts several large-scale mining operations. Arras’ 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 the Company to draw upon. Paved road access, 1100 KVA power
lines, heavy rail, and the Irtysh–Karaganda irrigat ion canal all lie within a 25-kilometer radius of t he
project. The capital city of Nur-Sultan, located approximately 300 kilometers along a four-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:
Diamond drill core was sampled in 1-meter intervals (except were shortened by geological contacts) using
a rock saw. Core diameter is a mix of HQ and NQ depending on the depth of the drill hole. Samples were
cut and sampled at Arras’ operational base in the town of Ekibastuz, Kazakhstan by Company personnel.
All sample preparation and geochemical analysis of the diamond drill core were undertaken by ALS Global
at its laboratories in Karaganda (Kazakhstan) and Loughrea (Republic of Ireland), respectively. ALS Global
is an accredited laboratory that is entirely independent of the Company.