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Ariana Resources upbeat on resource upgrade at Tavsan
Exploration and development company Ariana Resources announced a JORC resource update for the Tavsan Project on Monday.
The AIM-traded firm said Tavsan was part of the Red Rabbit joint venture with Proccea Construction, and was 50% owned by Ariana through its shareholding in Zenit Madencilik.
It said the resource estimate "substantially" de-risked the project, following a material improvement in the resource classification, with 71% of the resource now in measured and indicated.
A global resource of 3.98Mt at 1.32 g/t Au and 4.46 g/t Ag for 168,900 oz Au and 571,700 oz Ag was reported, contained largely within scoping study pit shapes.
An additional JORC exploration target of up to a further 9.70Mt at 1.30 g/t Au was also highlighted.
Ariana said the new classification enabled the joint venture to proceed with a feasibility study and environmental impact assessment for Tavsan, without further resource drilling.
Potential resource extensions were represented by a number of drill holes, including 11m at 5.11 g/t Au + 6.83g/t Ag, 6m at 3.37g/t Au + 3.67g/t Ag and 9m at 1.30g/t Au + 4.32g/t Ag within around 20m from surface, the board said.
"This is an exceptionally pleasing and robust resource update for the Tavsan Project," said managing director Dr Kerim Sener.
"We are increasingly confident in the potential for Tavsan to be developed in the medium-term and that planned mine life can be increased beyond four years, as previously defined in the scoping study of 2016."
Dr Sener said the joint venture was targeting the development of Tavsan as a semi-autonomous project with the Kiziltepe Mine, within the broader context of the Red Rabbit joint venture with Proccea Construction.
"Further work will be required on a feasibility study and EIA, which the JV is aiming to complete largely in-house, along with associated permitting.
"The JV is planning to commence these work programmes during 2018, which are expected to be funded through cash flow from the Kiziltepe Mine."