LONDON (ShareCast) - (Sharecast News) - Exploration and development company Ariana Resources updated the market on the mine development programme underway at Tavsan on Wednesday.
The AIM-traded firm said the project is operated by Zenit, in partnership with Proccea Construction and Ozaltin Holding, and is 23.5% owned by Ariana.

It said the gold and silver mine was targeting production of up to 30,000 ounces of gold per annum over eight years.

More than 3,900 metres of resource drilling had been completed at Tavsan between December and March, while the land acquisition and access process was now complete, with forestry permit applications remaining in process.

Discussions regarding debt financing of the required construction capital were continuing between Zenit and potential lenders.

Ariana said it would be conducting a new mapping and exploration programme across Tavsan in the next few months, aiming to identify new zones of mineralisation.

"The Tavsan mine development programme is advancing at pace, and activities across the project are ramping up significantly as the project progresses towards construction," said managing director Kerim Sener.

"The latest Tavsan drilling programme experienced some delays due to exceptionally bad weather conditions and the decision to increase the scope of the programme as it proceeded.

"As a result, Zenit has now completed almost double the drilling metres that had been planned previously and successfully brought the programme to a close."

Dr Sener said assays from the 100-hole programme were now being awaited, following which a revised resource and reserve estimate would be published as part of the feasibility study.

"All geotechnical drilling required for the finalisation of the study has been completed, which is being revised with improved and updated operating and capital cost estimates.

"Essential freehold land acquisitions have also been concluded recently, allowing for the construction of mine infrastructure."

Following the environmental impact assessment, Dr Sener said the necessary forestry permit applications were submitted and were under review with the government.

"Mine construction is expected to commence during the second quarter of 2022, once the required permits are finalised and bank finance has been approved."

At 1113 BST, shares in Ariana Resources were up 2.95% at 4.02p.

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