REG - Ariana Resources PLC - Significant Enhancement of the Dokwe Gold Project

Ariana ResourcesAnnouncement

26/06/2025 07:00

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RNS Number : 4232O  Ariana Resources PLC  26 June 2025

 

26 June 2025

AIM: AAU

SIGNIFICANT ENHANCEMENT OF THE DOKWE GOLD PROJECT

VIA UPDATED ECONOMIC MODEL & STRATEGIC OPTIONS 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 updated economic model and Strategic Options
Study for the 100% owned Dokwe Gold Project ("Dokwe" or "the Project") in
Zimbabwe.

Highlights:

·    Revised Dokwe North Pre-Feasibility Study ("PFS") economic model on
Reserves at a gold price of US$2,750/oz provides:

·    Net Present Value ("NPV(10)") of US$354 million

·    Internal Rate of Return ("IRR") of 75%*

At the time of acquisition in 2024, the NPV(10) and IRR amounted to US$69
million and 24% respectively.

·    Up to 76,000 ounces p.a. from a single, staged, open-pit with
processing primarily via Carbon-in-Leach.

·    Expected payback period is 1.8 years from the start of production at
an estimated all-in sustaining cost ("AISC") of US$1,144 per ounce.

·    Dokwe Central resource is not included in the revised model and
provides for additional upside.

·    Whittle Consulting and Auralia Mining Consulting engaged in a
Strategic Options Study to examine the optimal mining and processing scenarios
for the development of Dokwe North and Central.

·    Annual production of up to 100,000 ounces of gold over 10-year Life
of Mine targeted for the Definitive Feasibility Study ("DFS").

Dr. Kerim Sener, Managing Director, commented:

"Over the past 12 months we have been making excellent headway with our
understanding of the Dokwe Project, its current value to our business and its
significant upside potential. In that time, the gold price has advanced from
about US$2,300 to US$3,300/oz, prompting several revisions to fundamental
project inputs. Accordingly, we have determined that now is an opportune
moment to re-run our financial model for Dokwe North (excluding Central) based
on the 2024 PFS update, announced in May 2024, which used a gold price of
US$2,000/oz. The results speak for themselves, underscoring the significant
value of the Dokwe asset to the Company and spurring further impetus for our
project development work.

"Meanwhile we are continuing to make substantial progress towards our DFS for
Dokwe. In addition to the work completed recently on a revised geological
model and consequent Mineral Resource Estimate, which outlined 23Mt at 1.5g/t
Au for 1.1 million ounces (all categories at a cut-off of 0.6g/t Au) within
pit-shells optimised at US$2,750/oz across Dokwe North and Central, we have
been investigating opportunities to further enhance the project beyond what
was envisaged in the PFS. Most significantly, work towards better
characterisation of the ore types through the deposit is providing important
insights into metallurgical performance, influencing and potentially improving
our processing flow-sheet.

"Most recently we have been working with Whittle Consulting and Auralia Mining
Consulting in Australia towards a Strategic Options Study for the Dokwe
Project. This work has highlighted several opportunities to further enhance
the value of the project through modified mining and processing approaches and
schedules. In particular, we are exploring the optimal sequence of mining
across Dokwe North and Central, the potential for enhancing the mining and
processing rate and the effects of compressing mine life. This integrated
approach suggests that we will achieve our objective of producing up to
100,000 ounces of gold per annum over at least 10 years from Dokwe.

"We are starting to put together detailed mining and processing information
for the DFS and have approached various local mining contractors for current
mining cost estimates and indications of fleet options and availability. We
are also engaging with Proccea Construction Co., one of our partners in
Türkiye and shareholder of Ariana, to provide process flow-sheets, plant
design and capital cost-estimates for the DFS once new metallurgical data
becomes available."

* For the purposes of this update, the gold price was increased and South
African CPI and exchange rate changes reviewed but the pits were not
re-optimised and quotes for individual CAPEX and OPEX components were not
revised.

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").

 

PFS Mineral Resources and Ore Reserves (2022)

 

Since 2004, the Project has undergone ten phases of drilling involving over
42,000 metres (of which c.38,000m is at Dokwe North and Central), three
Mineral Resource Estimates, and several geotechnical and metallurgical
studies. In March 2022, Minxcon (Pty) Ltd in South Africa (Minxcon) produced a
Pre-feasibility Study based on their estimate of a JORC 2012 classified in-pit
resource of 35.7Mt at 1.05g/t Au for 1.2 million ounces of gold at Dokwe
North. Dokwe Central was not included in this estimate as it had not been
estimated in accordance with JORC 2012 at that time. This resulted in an
estimated Proven and Probable JORC 2012 Ore Reserve comprising 18.25Mt at
1.36g/t Au for 795,800 ounces of gold for Dokwe North based on a gold price of
US$1,650 per ounce (Table 1), which is used as the basis of the revised
economic model.

 

Table 1: 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

 

Dokwe Site Plan

 

A potential site plan has been envisaged for the Dokwe Project as part of the
Strategic Options Study, with a ROM pad, a low-grade stockpile, a tailings
storage facility and two waste rock dumps (Figure 1). The infrastructure is
planned to be located in an area between the two deposits, which has been
assessed as most suitable from a geological, engineering and cost perspective.
Potential resource extensions along strike from Dokwe North and Dokwe Central
constrain the placement of the planned infrastructure and have been taken into
account.

 

 

Figure 1: Dokwe site plan as envisaged for the Strategic Options Study and
which will form the basis of the ongoing Definitive Feasibility Study. The
Dokwe North and Central orebodies are shown in red, sitting within the
US$2,750/oz Au pit shells.

 

Economic Model Review

 

The model which has been used as the basis for testing the effect of various
gold prices is a post-tax model, assuming a c.25% tax rate. The model also
includes a 5% government royalty. Based on the 795,454oz Au in Reserves (post
dilution and mining recovery adjustments), a mine life of 13 years is
envisaged.

 

OPEX and CAPEX have not been adjusted since the PFS, for which the gold price
was updated in May 2024
(https://www.londonstockexchange.com/news-article/AAU/dokwe-gold-project-revised-pre-feasibility-study/16460992)
. Work is currently underway with Whittle Consulting and Auralia Mining
Consulting in Australia towards a Strategic Options Study for the Dokwe
Project. This work has highlighted several opportunities to further enhance
the value of the project through modified mining and processing approaches and
schedules. The current economic model relates the parameters as set out in the
PFS.

 

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.

 

The PFS economic model has been updated with a range of gold prices as shown
in Table 2 and provides for a mine life of 13 years at a post-tax NPV(10) of
US$354 million and an IRR of 75% at a gold price of US$2,750/oz. This is based
on a CIL processing route. As the model currently stands, the break-even gold
price is US$1,329/oz.

 

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. At a
gold price of US$2,750, the expected payback period for the Project is 1.8
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.

 

Table 2: Comparison table showing the effect of changing gold price on the
post-tax economic model for Dokwe North at different post-tax NPVs in US$
millions. The quoted case (US$2,750/oz gold price) is shown in bold italic
font.

 

 Gold Price (US$/oz)          2,000  2,250  2,500  2,750  3,000  3,250
 NPV             @ 5%         246    334    422    510    598    686

 (US$ million)
                 @ 7.5%       199    274    348    423    498    573
                 @ 10%        160    225    290    354    418    482
                 @ 12.5%      130    186    242    298    354    410
                 @ 15%        105    154    204    253    301    350
 IRR (%)                      41%    53%    64%    75%    86%    97%
 Average Payback Years        2.7    2.3    1.9    1.8    1.6    1.5

 

Dokwe Project: General Information

 

The Dokwe gold deposits are located 110km west of Bulawayo, within the western
continuation of the Bulawayo-Bubi Greenstone Belt (Figure 2), where the
basement rocks hosting the deposits are overlain by 25-40m of Karoo and
Kalahari sedimentary units.

 

Figure 2: Aeromagnetic image showing the location of the Dokwe Project, and
large gold mines and deposit clusters in the Bulawayo-Bubi Greenstone Belt.

 

The Dokwe North deposit (Figure 3) consists of a sequence of Archaean
intermediate to felsic volcanic rocks, interbedded with layers of agglomerate
and tuff. A quartz-feldspar porphyry intruded into the upper part of the
sequence. The Archaean rocks have been folded, metamorphosed to greenschist
facies and sheared. Gold is particularly concentrated where a sub-vertical
shear zone interacts with lithological contacts, which typically dip towards
the southeast at a moderate angle. All Archaean rock types exhibit some degree
of gold mineralisation where they interact with the shear zone, with the
principal host rocks being dacite, tuff and porphyry. Coarse visible gold is a
characteristic feature of this deposit, with higher-grade zones developing
along discrete shear zones.

 

Dokwe Central (Figure 3) is a smaller, higher-grade pipe-like deposit
containing abundant quartz veins and several steeply plunging high-grade
zones. The Dokwe North and Central deposits are strongly structurally
controlled, occupying two distinct structural domains. The extent of gold
mineralisation at the two deposits is defined by 141 diamond drill holes and
57 percussion and RC drill holes across both resource areas. For Dokwe North,
the total metres drilled is 32,686m (116 holes) and for Dokwe Central, 5,271m
(25 holes), for a combined total of 37,957m of drilling. Average collar
spacing is approximately 50m and 30m in Dokwe North and Dokwe Central,
respectively. At both deposits there are indications that the mineralisation
remains open in several directions.

Figure 3: Summary map of Dokwe North and Central showing the outline of the
designed PFS pit for Dokwe North and the optimised pit, not included in the
PFS, for Dokwe Central (both in yellow). The 2024 optimisation pits are based
on Measured and Indicated Resources only, and are shown in blue. For Dokwe
Central a "Best Case" pit is shown in red, and represents an optimisation run
including Inferred Resources. Less than 1,000 metres of drilling is required
to test and re-classify the Inferred resources at Dokwe Central. The 2024 MRE
domain outlines are shaded in pink. Ariana's 2023-2024 due diligence drilling
collars are also shown in magenta.

Contacts:

 

 Ariana Resources plc                           Tel: +44 (0) 20 7407 3616

 Michael de Villiers, Chairman

 Kerim Sener, Managing Director

 Beaumont Cornish Limited                       Tel: +44 (0) 20 7628 3396

 (Nominated Adviser)

 Roland Cornish / Felicity Geidt

 Zeus Capital (Joint Broker)                    Tel: +44 (0) 203 829 5000

 Harry Ansell / Katy Mitchell

 Fortified Securities (Joint Broker)            Tel: +44 (0) 203 411 7773

 Guy Wheatley

 Shaw and Partners (Lead Manager - ASX)         Tel: +61 (0)2 9238 1268

 Damien Gullone

 Yellow Jersey PR Limited (Financial PR)        Tel: +44 (0) 7983 521 488

 Dom Barretto / Shivantha Thambirajah /         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.

 

The information in this report that relates to Exploration Results is based
upon information compiled by Ruth Woodcock, Exploration Group Leader, Ariana
Resources plc. Ruth Woodcock is a member of Recognised Professional
Organisations as defined by JORC 2012: a Chartered Geologist (CGeol,
Geological Society of London) and European Geologist (EurGeol, European
Federation of Geologists) and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity upon which she is reporting as a Competent Person as defined in the
2012 Edition of "The Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves." Ms. Woodcock consents to the inclusion in
this report of the matters based on the information compiled by her, 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 a major gold development project in Zimbabwe,
gold production in Türkiye and copper-gold exploration and development
projects in Cyprus and Kosovo.

 

Ariana owns 100% of the Dokwe Gold Project ("Dokwe") in Zimbabwe. Dokwe is
made up of the Dokwe North and Dokwe Central gold deposits which are located
in the Tsholotsho District near the city of Bulawayo. The deposits have a
combined in-pit JORC Measured, Indicated and Inferred Resource of over 1.42
million ounces of gold (as at March 2025) and the project represents the
largest undeveloped gold project in Zimbabwe.

 

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 and Tavsan mines and the Salinbas project.

 

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 76% 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 Ventures
Limited (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 projects in Cyprus,
some of which are in application, containing a combined JORC Indicated and
Inferred Resource of 16.6Mt @ 0.45% to 0.80% copper (excluding additional
gold, silver and zinc).

 

Ariana owns several investments in listed and private companies via its
Australian subsidiary Asgard Metals Pty. Ltd. ("Asgard"), which also
provides technical input into the various investee company exploration
programmes. Investments have been made 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. Its most advanced interest is through a 4.1%
holding of Panther Metals Limited (ASX: PNT).

 

Zeus Capital Limited, Fortified Securities and Shaw and Partners are the
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.

 

Glossary of Technical Terms:

 

"Au" chemical symbol for gold;

 

"g/t" grams per tonne;

 

"Global Resources" Total project resources, both contained within pits and
outside, including mineralisation with potential for underground development;

 

"In Pit Resources" Resources which are constrained by optimisation pit shells,
with "current" economic inputs, which define minable mineralisation, and
demonstrates reasonable prospects for economic extraction;

 

"Inferred Mineral Resource" is that part of a Mineral Resource for which
quantity and grade (or quality) are estimated on the basis of limited
geological evidence and sampling. Geological evidence is sufficient to imply
but not verify geological and grade (or quality) continuity. It is based on
exploration, sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill
holes. An Inferred Mineral Resource has a lower level of confidence than that
applying to an Indicated Mineral Resource and must not be converted to an Ore
Reserve. It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with continued
exploration;

 

"Indicated Mineral Resource" is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape and physical characteristics
are estimated with sufficient confidence to allow the application of Modifying
Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is derived from
adequately detailed and reliable exploration, sampling and testing gathered
through appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes, and is sufficient to assume geological and
grade (or quality) continuity between points of observation where data and
samples are gathered. An Indicated Mineral Resource has a lower level of
confidence than that applying to a Measured Mineral Resource and may only be
converted to a Probable Ore Reserve;

 

"JORC" Joint Ore Reserves Committee;

 

"k" thousand

 

"km" Kilometres;

 

"m" Metres;

 

"Measured Mineral Resource" is that part of a Mineral Resource for which
quantity, grade (or quality), densities, shape, and physical characteristics
are estimated with confidence sufficient to allow the application of Modifying
Factors to support detailed mine planning and final evaluation of the economic
viability of the deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and drill
holes, and is sufficient to confirm geological and grade (or quality)
continuity between points of observation where data and samples are gathered.
A Measured Mineral Resource has a higher level of confidence than that
applying to either an Indicated Mineral Resource or an Inferred Mineral
Resource. It may be converted to a Proved Ore Reserve or under certain
circumstances to a Probable Ore Reserve;

 

"MRE" Mineral Resource Estimate;

 

"M" million

 

"oz" Troy ounces;

 

"Probable Ore Reserve" is the economically mineable part of an Indicated, and
in some cases, Measured Mineral Resource. The confidence in the Modifying
Factors applying to a Probable Ore Reserve is lower than that applying to a
Proven Ore Reserve;

 

"Proven Ore Reserve" is the economically mineable part of a Measured Mineral
Resource. A Proven Ore Reserve implies a high degree of confidence in the
Modifying Factors;

 

"Reasonable Prospects for Eventual Economic Extraction" or RPEEE is a term
used in the JORC code which states that the resource as reported should have
an assumed profitability within a realistic and defined time period. It is
accepted that the method of extraction (open pit or underground) and the
method of processing needs to have been reasonably determined (but not
necessarily finalised) at the time of reporting;

 

"t" tonnes;

 

Ends.

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