Firming gold prices give Ariana high value in Dokw...

Firming gold prices give Ariana high value in Dokwe

**Ariana managing director, Kerim Sener**

Zim Now Reporter

Ariana Resources has reported a big jump in its Dokwe project value following the rise in the gold price.

“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,” said Ariana managing director, Kerim Sener, in a statement.

The statement said further revisions to the PFS will commence following the completion of a revised Mineral Resource Estimate for Dokwe North and Central, Ariana added while it is looking at potential additional resources at Dokwe North and also Dokwe Central.

Ariana which announced its merger with Rockover to gain total control of Dokwe last month says build costs are now expected to be recouped in just over thirty months with a post-tax NPV of US$160 million (10% discount) and an IRR of 41% at a gold price of US$2 000/oz.

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 with the expected payback period for the project now 2.7 years from the start of production.

"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.”

Life of mine is projected to be 13 years producing at a rate of c.60 000 ounces of gold per annum (and up to 76 000 ounces p.a.) from a single, staged, open-pit with processing primarily via CIL, at an all-in sustaining cost of US$1 144 per ounce.