Tavşan gold mine. Credit: Özaltın Holding
Ariana Resources (ASX: AA2) (AIM: AAU) soared after the Australian gold developer announced the imminent start of production at the Tavsan gold mine in Türkiye .
In a press release Wednesday, Ariana confirmed that all operating permits have been secured for the heap-leach operation, with first gold production expected in the current quarter.
The production, says Ariana, will complement output from the Kiziltepe mine, its first operating asset, contributing to sustained precious metals production in Türkiye. Both Kiziltepe and Tavsan are owned under a three-way partnership that is majority held by Özaltın Holding. Ariana holds a 23.5% interest in the partnership.
Ariana Resources’ London-listed shares rose nearly 19% on the latest update, giving it a market capitalization of roughly £46 million ($61 million). Its newly listed ASX shares also gained 6.1%.
The Tavsan project is underpinned by a gold resource totalling 311,000 oz., plus 1.1 million oz. of silver, supporting a potential mine life of eight years. Mining at Tavsan began last year, with the high-grade ores shipped to Kiziltepe for carbon-in-leach processing while the low-grade ores were stored on site in preparation for the heap-leach operation.
According to company estimates, approximately 800,000 tonnes of ore are currently stockpiled at the mine and awaiting loading.
Revenues from the heap-leach operations, Ariana said, will boost progress at its 100%-owned Dokwe project in Zimbabwe, for which the company is working on a definitive feasibility study, targeting annual production of 100,000 oz. over at least 10 years.
A pre-feasibility study released earlier this year outlined an open-pit mine operation capable of producing 65,000 oz. of gold annually over a 13-year period. The study was based on a resource estimate of over 1 million oz.