REG - Ariana Resources PLC - Dokwe Gold Project Revised Pre-Feasibility Study
09/05/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240509:nRSI6830Na&default-theme=true
RNS Number : 6830N Ariana Resources PLC 09 May 2024
9 May 2024
AIM: AAU
DOKWE GOLD PROJECT
REVISED PRE-FEASIBILITY STUDY
Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral
exploration and development company with gold project interests in Africa and
Europe, is pleased to announce an interim revision to the Dokwe
Pre-Feasibility Study ("Dokwe" or "the Project") in Zimbabwe. Dokwe is 100%
owned by Rockover Holdings Limited ("Rockover") and is subject to outright
acquisition by Ariana through the merger announced on AIM: 25 April 2024
(https://www.londonstockexchange.com/news-article/AAU/merger-with-rockover-holdings-and-dual-list-on-asx/16439476)
.
Highlights:
· Pre-Feasibility Study ("PFS") financial model update on the Reserves
at Dokwe North provide a post-tax NPV(10) of US$160 million and an IRR of 41%
at a gold price of US$2,000/oz.*
· PFS outlines a mine life of c.13 years producing at a rate of
c.60,000 ounces of gold per annum (up to 76,000 ounces p.a.) from a single,
staged, open-pit with processing primarily via CIL, at an all-in sustaining
cost ("AISC") of US$1,144 per ounce.
· Peak capital funding requirement is estimated at US$82 million,
assuming implementation of the full mining and processing plan from mine
start-up, rather than a staged approach to capital investment; the expected
payback period for the Project is 2.7 years from the start of production.
· Further revisions to the PFS will commence following the completion
of a revised Mineral Resource Estimate for Dokwe North and Central
· Several potential exploration opportunities to increase the Resource
have been identified at Dokwe North and Dokwe Central, and across the wider
area.
* For the purposes of this update, the pits were not re-optimised and quotes
for individual CAPEX and OPEX components were not revised, with CPI and
exchange rate changes considered.
To read a pdf version of the release, please click
here: http://www.rns-pdf.londonstockexchange.com/rns/6830N_1-2024-5-8.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6830N_1-2024-5-8.pdf)
Dr. Kerim Sener, Managing Director, commented:
"This substantial update to the Dokwe Project PFS further underscores our
assessment that the Project represents a major value-accretive opportunity for
the proposed enlarged Company once we complete our merger with Rockover.
Notably, the revised PFS only includes the Dokwe North area and there is
significant scope to enhance the economics further if Dokwe Central is
included.
"As it stands, Dokwe represents a significantly de-risked, advanced project
development opportunity containing established Reserves, which has been
sufficiently well drill-tested to enable its immediate advance to the
Feasibility stage. On completion of the merger with Rockover, the project will
propel Ariana towards mid-tier company status, as we continue to build on our
mine development strategy and gain enhanced market recognition.
"Finally, we anticipate positive developments through further project
optimisation studies of the Dokwe Project, which require ongoing assessment,
along with similar studies being undertaken across the rest of our project
portfolio. Such project developments are communicated to the market via our
regulatory announcements at the earliest feasible time. We continue to work
hard to expand the opportunity at Dokwe and we will keep the market informed
of our progress."
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018 ("UK MAR").
About the Dokwe Project
The Dokwe North and Dokwe Central gold deposits are located 2km apart ("Dokwe"
or "Dokwe Project") and are situated in the Tsholotsho Communal Land 110km WNW
of Bulawayo, Zimbabwe (Figure 1). Bulawayo is the second largest city in
Zimbabwe (population 660,000) with excellent road, rail and air links to the
rest of the country and internationally, and represents a significant mining
services and educational centre, hosting both the Zimbabwe School of Mines and
the National University of Science and Technology.
The Dokwe Project was discovered by Rockover in 2002, utilising innovative
soil geochemical exploration methods capable of detecting mineralisation
beneath cover, subsequently drill-tested for the first time in 2004. It
represents the largest undeveloped gold project in Zimbabwe and is currently
100% owned by Rockover Holdings Limited.
Figure 1: Summary map of Dokwe North and Central showing the outline of the
designed pre-feasibility pit for Dokwe North and the optimised pit (not
included in the pre-feasibility) for Dokwe Central. Certain previous drill
intercepts are also identified, with details provided in Table 1 below. The
2023-2024 due diligence drilling collars are also shown in magenta.
Tenure
Dokwe is held by Rockover through 81 blocks of gold claims and a further 22
copper base metal claims totalling 4,040 hectares ("Mining Claims", Figure 2).
A private Net Smelter Return ("NSR") royalty of 0.5% applies to the
aforementioned claims. An application has been made to convert the claims into
a single Mining Lease for gold and base metals covering 6,622 hectares (Figure
2). In addition, seven Exclusive Prospecting Orders ("EPOs") have been applied
for in the vicinity of the Dokwe Project extending towards Bulawayo.
Figure 2: Dokwe Project tenure map, showing the Mining Claims covering the
main prospect areas.
Summary of Geology
Dokwe is located within a covered Archaean Greenstone Belt, extending from the
border with Botswana (Maitengwe greenstone belt) and linking up with the
Bulawayo-Bubi Greenstone Belt to the east. The Archaean greenstone units are
overlain by Karoo and Kalahari sedimentary units of up to 25-40m in thickness.
The east-northeast striking greenstone belt has been complexly folded and
thrust-faulted and is dissected by a series of major sub-parallel sinistral
shear zones.
At the Dokwe Gold Project area, the barren sedimentary cover is dominated by
calcrete, with a few metres of sand at the surface, and mudstone and sandstone
located towards the base. The basement Archaean volcanic sequence comprises a
series of quartz-rich volcaniclastic units, tuffs, and agglomerates, that
grade into felsic irregular rhyolitic flows; intermediate vesicular dacite;
agglomerates and andesites. The volcanic sequence has undergone greenschist
facies metamorphism and deformation. The sequence appears intruded by near
syn-depositional quartz porphyries and later by dolerite. While
brittle-ductile deformation occurs throughout the deposit, somewhat more
brittle deformation, characterised by fracturing, is common in felsic tuff and
porphyry units whilst rather more ductile deformation characterises the
dacitic and andesitic units.
Dokwe North is characterised as a large low-grade deposit containing
relatively few quartz veins, with several very high-grade zones including
visible gold (Table 1). Due diligence drilling is confirming this
understanding of the grade distribution within the deposit (Table 2). Dokwe
Central is a smaller higher-grade pipe-like deposit containing abundant quartz
veins and several steeply plunging high-grade zones. The two deposits appear
to be strongly structurally controlled, occupying two distinct structural
domains within a broad ENE trending shear zone. Gold mineralisation at Dokwe
North is associated with silicified zones containing thin quartz-carbonate
pyrite veins and narrow shears. There is also an association with strongly
disseminated, fine-grained pyrite in the host rocks. Much of the economic gold
mineralisation occurs in the dacitic unit and in the overlying felsic tuff,
with lesser mineralisation in the quartz porphyry and andesitic units.
Table 1: Significant historic intercepts marked on the map in Figure 1
(representing down-hole widths).
Map Ref Hole ID From (m) To (m) Interval (m) Au g/t
Dokwe North
1 DPD123 229.0 237.0 8 197.22
2 DPD32 199.9 213.9 14 54.75
3 DPD77 174.6 259.6 85 5.23
incl. 174.6 189.6 15 13.64
Dokwe Central
4 DPD67 74.4 123.4 49 4.42
5 DPD35 43.0 70.0 27 6.53
6 DPD73 366.3 423.3 57 2.72
incl. 405.3 422.3 17 5.91
Table 2: Intercepts from 2023-2024 due-diligence drilling, from DPD129,
calculated using a 0.2 g/t Au cut-off (representing down-hole widths).
Allowing up to 6m of internal dilution provides for a total mineralised
intercept of 93.2m @ 1.80 g/t Au (from 86.0m to 179.2m).
Hole ID From (m) To (m) Interval (m) Au g/t
DPD129 86.0 131.0 45.0 2.75
incl. 86.0 101.0 15.0 4.55
incl. 104.9 117.0 12.1 4.15
DPD129 136.0 158.0 22 1.57
Mineral Resources and Reserves
Dokwe North has a JORC (2012) Compliant Measured, Indicated and Inferred
Resource of 35.7Mt @ 1.05g/t Au for 1,210,000 oz gold (Table 3). Dokwe
Central, which is located approximately 2km to the SSE of Dokwe North, has a
JORC (2004) non-AIM compliant Indicated and Inferred Resource of 1.14Mt @
2.17g/t Au for 80,000 oz gold (Figure 4). The Dokwe Central resource is
treated here as a historical estimate as it is not in accordance with an AIM
reporting standard and should be treated with caution. From the initial
reviews, both project areas have significant scope for further exploration
upside. Ore Reserves have only been estimated for Dokwe North as part of the
PFS (dated 1 September 2022), with a total of 18.25Mt at 1.36g/t Au for
795,800oz gold (Table 4).
Table 3: Mineral Resources for Dokwe North as at 1 September 2021. The Mineral
Resource is declared within an optimised pit using a cut-off grade of 0.3 g/t
Au. Mineral Resources are inclusive of Ore Reserves. Figures may not sum due
to rounding applied.
Mineral Resource Classification Tonnage (Mt) Gold (g/t) Gold (oz)
Measured 12.79 1.04 428,000
Indicated 22.92 1.05 774,000
Inferred 0.93 0.76 23,000
Measured & Indicated 35.71 1.05 1,210,000
Source: Minxcon (Pty) Ltd (2022) reported under JORC 2012
Notes:
Presented above are both gross and net attributable to Rockover.
Canister Resources (Private) Limited, a wholly-owned subsidiary of Rockover,
is the Operator.
Table 4: Mineral Reserves for Dokwe North as at 1 March 2022. The Mineral
Reserve includes diluted Measured and Indicated Mineral Resources only. Ore
Reserve estimate is stated as dry metric tonnes, with 5% ore losses and 5%
mining dilution applied, completed using a gold price of US$1,650/oz over the
Life of Mine. Figures may not sum due to rounding applied.
Ore Reserve Category Tonnage (Mt) Gold (g/t) Gold (oz)
Proven 7.21 1.33 307,900
Probable 11.04 1.37 487,900
Total 18.25 1.36 795,800
Source: Minxcon (Pty) Ltd (2022) reported under JORC 2012
Notes:
Presented above are gross and net attributable to Rockover.
Canister Resources (Private) Limited, a wholly-owned subsidiary of Rockover,
is the Operator.
Figure 4: Summary cross sections through Dokwe North (X-Y, Figure 1) and Dokwe
Central (XX-YY, Figure 1) showing grade block models (based on prior drilling)
and the surveyed positions of the due diligence drill holes (in blue). Swath
width at Dokwe North is significantly wider than at Dokwe Central, causing
more overlap of colours within a semi-transparent block model.
Pre-Feasibility Study
An independent Pre-Feasibility Study was commissioned by Rockover and was
completed in 2022 by Minxcon (Pty) Ltd in South Africa ("Minxcon") and then
revised as a financial model update in May 2024 to account for a higher gold
price forecast (US$1,650/oz to US$2,000/oz), CPI and associated exchange rate
(South African Rand to US Dollars) adjustments for CAPEX and OPEX calculated
at NPV(10) rather than NPV(8). Further revisions to the PFS will be undertaken
in due course to accommodate a revised Mineral Resource Estimate, pit
optimisations and re-quotes on CAPEX and OPEX, among other refinements.
For the purposes of the May 2024 update, the pits have not been re-optimised
and quotes for individual CAPEX and OPEX components were not updated. A cost
escalation based on South African CPI was adjusted for US exchange rate,
resulting in a slight decrease in CAPEX and OPEX. As a result, the original
PFS numbers were used for this update. CAPEX and OPEX will be updated with
re-quotes as part of a more detailed revision of the PFS that is in the
process of being commissioned. The next PFS revision will also include revised
geological models and the expected inclusion of Dokwe Central into the mining
plan.
A combined Proven and Probable Ore Reserve Estimate comprising 18.25Mt grading
1.36g/t Au for 795,800 ounces of gold was declared (Table 5) for Dokwe North
as part of the 2022 PFS. Both the Mineral Resource Estimate and Ore Reserve
calculation have been prepared in compliance with JORC 2012.
The PFS outlined a plan to develop the project as an open pit mining operation
producing 1.5Mt of ore per annum from a single pit, at a stripping ratio of
5:1. The mine is envisaged to be contractor operated with an owner's
management team. The pit development is staged, prioritising high-grade ore.
Ore will be processed at a treatment plant to be constructed on-site with a
treatment capacity of 125,000tpm, allowing for production of c.60,000 ounces
per annum (up to 76,000 ounces p.a.). Both Carbon in Leach ("CIL") and Heap
Leach ("HL") treatment methods were considered viable for the purposes of the
PFS, demonstrating similar economics, and both methods will be considered
further in a future Feasibility Study.
The revised PFS economic results provide for a mine life of 13 years at a
post-tax NPV(10) of US$160 million and an IRR of 41% at a gold price of
US$2,000/oz. This is based on a CIL processing route. The Project's all-in
sustaining cost (AISC) is US$1,144 per ounce with an AISC margin of 42%.
To fund the Project, a capital investment of US$82 million (peak funding
requirement) is required, assuming implementation of the full mining and
processing plan from mine start up, rather than a potential scaled and staged
approach to capital investment. The expected payback period for the Project is
2.7 years from the start of production.
Sensitivity analyses indicate that the Project is most affected by changes in
grade and gold price, while it is least sensitive to capital requirements.
Contacts:
Ariana Resources plc Tel: +44 (0) 20 3476 2080
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited (Nominated Adviser) Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited (Joint Broker) Tel: +44 (0) 20 7886 2500
Hugh Rich / Atholl Tweedie / Rauf Munir
WHIreland Limited (Joint Broker) Tel: +44 (0) 207 2201666
Harry Ansell / Katy Mitchell / George Krokos
Yellow Jersey PR Limited (Financial PR) Tel: +44 (0) 7983 521 488
Dom Barretto / Shivantha Thambirajah / arianaresources@yellowjerseypr.com (mailto:arianaresources@yellowjerseypr.com)
Bessie Elliot
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.
Editors' Note:
The information in this announcement that relates to exploration results is
based on information compiled by Dr. Kerim Sener BSc (Hons), MSc, PhD,
Managing Director of Ariana Resources plc. Dr. Sener is a Fellow of The
Geological Society of London and a Member of The Institute of Materials,
Minerals and Mining and has sufficient experience relevant to the styles of
mineralisation and type of deposit under consideration and to the activity
that has been undertaken to qualify as a Competent Person as defined by the
2012 edition of the Australasian Code for the Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code) and under the AIM
Rules - Note for Mining and Oil & Gas Companies. Dr. Sener consents to the
inclusion in the report of the matters based on his information in the form
and context in which it appears.
Daniel van Heerden, a Director of Minxcon (Pty) Ltd, is the Competent Person
for the Dokwe North Ore Reserve and has read and understood the requirements
for the 2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition). Daniel
is a Competent Person as defined by the JORC Code 2012 Edition, having five
years' experience that is relevant to the style of mineralisation and type of
deposit comprising the Dokwe North project, and to the activity for which he
is accepting responsibility. Daniel consents to the inclusion in this
announcement of the matters based on his information in the form and context
in which it appears.
About Ariana Resources:
Ariana is an AIM-listed mineral exploration and development company with an
exceptional track-record of creating value for its shareholders through its
interests in active mining projects and investments in exploration companies.
Its current interests include gold production in Türkiye and copper-gold
exploration and development projects in Cyprus and Kosovo.
The Company holds 23.5% interest in Zenit Madencilik San. ve Tic. A.S. a joint
venture with Ozaltin Holding A.S. and Proccea Construction Co. in Türkiye
which contains a depleted total of c. 2.2 million ounces gold equivalent (as
at March 2024, using a price ratio of 90 Ag to 1 Au). The joint venture
comprises the Kiziltepe Mine and Tavsan mines and the Salinbas projects.
The Kiziltepe Gold-Silver Mine is located in western Türkiye and contains a
depleted JORC Measured, Indicated and Inferred Resource of 171,700 ounces gold
and 3.3 million ounces silver (as at March 2024). The mine has been in
profitable production since 2017 and has been producing at an average rate of
c.22,000 ounces of gold per annum. A Net Smelter Return ("NSR") royalty of
2.5% on production is being paid to Franco-Nevada Corporation.
The Tavsan Gold Mine is located in western Türkiye and contains a JORC
Measured, Indicated and Inferred Resource of 311,000 ounces gold and 1.1
million ounces silver (as at March 2024). Following the approval of its
Environmental Impact Assessment and associated permitting, Tavsan is being
developed as the second gold mining operation in Türkiye and is currently in
construction. A NSR royalty of up to 2% on future production is payable to
Sandstorm Gold.
The Salinbas Gold Project is located in north-eastern Türkiye and contains a
JORC Measured, Indicated and Inferred Resource of 1.5 million ounces of gold
(as at July 2020). It is located within the multi-million ounce Artvin
Goldfield, which contains the "Hot Gold Corridor" comprising several
significant gold- copper projects including the 4 million ounce Hot Maden
project, which lies 16km to the south of Salinbas. A NSR royalty of up to 2%
on future production is payable to Eldorado Gold Corporation.
Ariana owns 100% of Australia-registered Asgard Metals Fund ("Asgard"), as
part of the Company's proprietary Project Catalyst Strategy. The Fund is
focused on investments in high-value potential, discovery-stage mineral
exploration companies located across the Eastern Hemisphere and within easy
reach of Ariana's operational hubs in Australia, Türkiye, UK and Zimbabwe.
Ariana owns 75% of UK-registered Western Tethyan Resources Ltd ("WTR"), which
operates across south-eastern Europe and is based in Pristina, Republic of
Kosovo. The company is targeting its exploration on major copper-gold deposits
across the porphyry-epithermal transition. WTR is being funded through a
five-year Alliance Agreement with Newmont Mining Corporation
(www.newmont.com) and is separately earning-in to up to 85% of the Slivova
Gold Project.
Ariana owns 61% of UK-registered Venus Minerals PLC ("Venus") which is focused
on the exploration and development of copper-gold assets in Cyprus which
contain a combined JORC Indicated and Inferred Resource of 16.6Mt @ 0.45% to
0.80% copper (excluding additional gold, silver and zinc.
Panmure Gordon (UK) Limited and WH Ireland Limited are brokers to the Company
and Beaumont Cornish Limited is the Company's Nominated Adviser.
For further information on Ariana, you are invited to visit the Company's
website at www.arianaresources.com.
Ends.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END DRLUPUUGAUPCGQRRecent news on Ariana Resources
See all newsREG - Ariana Resources PLC - Dokwe Gold Project Revised Pre-Feasibility Study
AnnouncementRCS - Ariana Resources PLC - Attendance at 121 Mining Investment, London
AnnouncementREG - Ariana Resources PLC - 2024 Production Guidance
AnnouncementREG - Ariana Resources PLC - Merger with Rockover Holdings and Dual-List on ASX
AnnouncementREG - Ariana Resources PLC - Holding(s) in Company
Announcement