AIM-listed gold-silver explorer Ariana Resources (LSE:AAU) has reported 50% higher resource indicated at its Tavsan project in Turkey.
Estimates now sit at 4.49 million tonnes at 1.76g/t gold and 5g/t silver.
At these levels Ariana said it would have access to 253,000oz gold and 723,000oz silver.
77% of the resource is now in JORC-compliant measured and indicated categories, the company said. An additional JORC exploration target of 9 million tonnes at 1 to 1.3g/t gold has been updated to reflect the latest information.
Talks with potential lenders are expected to commence imminently, Ariana said, so the JV can secure funding to exploit the project.
Ariana has 50% ownership of Tavsan as part of the Red Rabbit joint venture with Ankara-based engineering firm Proccea Construction. The JV has completed a pre-feasibility study for Tavsan and environmental impact studies are now being arranged.
AAU shares climbed 8% to 4.05p in Thursday trading.
Managing Director Dr Kerim Sener said: “We are extremely pleased with this latest resource update for the Tavsan Project. Mine design and associated capital cost estimations are currently being finalised.
“We expect to proceed with land acquisitions over the coming months and look forward to commencing discussions with potential lenders to fund the development of Tavsan mine.”
Sener added that while initial estimates put first production at Tavsan starting in late 2021, the process had been delayed by Covid-19. Further updates are expected in due course.
Author: Mark Sheridan
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