“This further investment by Newmont into the company represents a further commitment to our exploration programs in southeastern Europe under the alliance agreement,” Ariana Resources managing director Dr. Kerim Sener said in a press release.
The exploration alliance — now in the third year of its five-year term — is being directed by Western Tethyan Resources (WTR), a Kosovo-based company in which Ariana holds a 76% interest, with technical support from Newmont.
WTR is currently holding several exploration licences in Kosovo, and is also pursuing target generation within other southeastern European nations: Bosnia and Herzegovina, Bulgaria, Greece, Kosovo, North Macedonia and Serbia.
Dr. Sener said that exploration programs to date have encompassed project generative work across Kosovo and North Macedonia, with several other projects across the alliance region having been reviewed and assessed.
“During the first two years of the alliance, through the collection of regional baseline data (geological, geochemical and geophysical), we have generated multiple priority targets and for which we have applied for new exploration licences,” Mentor Demi, managing director of WTR said.
“We have also drill tested our first project area, Hertica, and successfully outlined the presence of a copper-gold-molybdenum mineralized system.”
Alliance details
Under the terms of the alliance, any new project that Newmont considers merits further development will be held under a wholly owned entity of WTR.
Newmont has the option to invest a further $1 million in this company over a further two years, enabling it to earn-in to 60%. Further expenditures totalling $15 million on a pre-feasibility study that establishes a mineral resource of over 2 million oz. of gold will enable Newmont to earn-in to 75%.
Once Newmont decides to develop a mining project, funding will be on a pro-rata basis, unless WTR elects not to contribute, in which case Newmont will earn-in to a maximum of 85%. If either party withdraws from the project or dilutes below 10%, such party will relinquish its interest in return for a 2% net smelter return.
Other projects
Beyond its interest in WTR, Ariana also holds several advanced gold development assets, led by the 100% owned Dokwe project in Zimbabwe, which boasts 1.83 million oz. in resources, making it the largest undeveloped gold project in the African nation.
The company also has a 23.5% interest in the Turkish joint venture that holds the Kiziltepe mine and the Tavsan and Salinbas projects. Together, they hold a depleted resource totalling 2.2 million oz. of gold equivalent.
Additionally, it holds 61% of Venus Minerals, which has several copper exploration projects in Cyprus with a combined resource of 16.6 million tonnes grading 0.45% to 0.80% copper.
