10th Nov 2016 09:57
LONDON (Alliance News) - Ariana Resources PLC on Thursday said it has received excellent results from the scoping study carried out on the Tavsan project, part of the wider Red Rabbit gold project in Turkey.
Ariana said the scoping study showed a net present value for Tavsan of USD41.9 million, with payback within 1.1 years over the life of mine at a gold price of USD1,250 per ounce. Gold was trading at 1,285.38 mid-morning on Thursday. Ariana said the estimated life-of-mine gold equivalent cash cost of production would be USD559 to USD630 per ounce, giving a roughly 50% margin.
The study indicates an average life of mine production of 30,000 ounces of gold per year, with the potential to increase the resource estimate with drilling work. Capital expenditure has been estimated at USD20.0 million.
Additional drilling and metallurgical test work is due to be done on the Tavsan project in 2017 as part of a pre-feasibility study for the site, Ariana said.
Kerim Sener, Ariana's managing director, said the results of the scoping study were "excellent" and "reinforces our view that the Tavsan Sector will become a valuable additional source of revenue".
Shares in Ariana were up 7.4% to 1.82 pence on Thursday following the news.
By Sam Unsted; [email protected]; @SamUAtAlliance
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