Ariana ramps up Turkish gold ops as Tavşan mine kicks off

• Tavşan heap leach project in Türkiye receives final permits, with ore loading now underway
• Operations boost Ariana Resources’ Turkish production, as well as revenue and dividend flow, a rare junior gold play on the ASX
• They’ll also bolster progress at Ariana’s 100%-owned Dokwe project in Zimbabwe, which offers significant long-term upside

Special Report: The final regulatory box has been ticked at the Tavsan Heap-Leach Project in Türkiye, with operational permitting now complete and ore loading underway.

The Tavşan mine was built by Zenit Mining Operations, in which Ariana holds a 23.5% stake, and represents the latest step in Ariana’s (ASX:AA2) ongoing expansion of gold production in Türkiye.

The milestone marks the start of the project’s transition to gold production, expected to begin this quarter.

Mining at Tavsan already started last year, with high-grade ore trucked to Zenit’s nearby Kiziltepe Mine for processing through the carbon-in-leach plant.

About 800,000t of run of mine lower grade ore has been stockpiled and is now being prepared for the heap leach pad, with crushing ongoing since August and stacking now in progress.

Higher-grade ore will continue to benefit from the superior recovery rates at the Kiziltepe CIL plant, while lower-grade material will be processed on-site.

Tavşan hosts a JORC 2012 Resource of 311,000oz of gold and 1.1Moz of silver, underpinning an eight-year mine life with potential for expansion through further exploration.

The development at Tavşan complements Ariana’s record of profitable production in Türkiye. Since 2016, Kiziltepe has been delivering steady output, and has underpinned the delivery of a £7.74 million (A$15.8 million) special dividend from 2021 to 2022. Last year, Kiziltepe produced just under 21,000oz of gold.

Timing just right

Managing Director Dr Kerim Sener said: “The start of heap-leaching operations at Tavşan is an important milestone and paves the way for sustained gold production from our interests in Türkiye, augmenting the existing production via the Kiziltepe CIL processing plant.

“With the gold and silver price continuing their relentless upward trajectory, the timing of the start-up of heap-leach operations at Tavşan could not have been better.

“We commend the Zenit operational team, and our partners Proccea Construction Co. and Ozaltin Holding A.S., for their hard work and perseverance in overcoming a complex range of technical, logistical and operational challenges, and anticipate many years of successful operations at Tavşan, building on the strong track record established at Kiziltepe.

“We look forward to first gold production from the Tavşan heap leach and a renewed dividend flow from Zenit during 2026.”

Dokwe progress under way

While Ariana’s Turkish joint ventures provide cash flow and near-term growth, its 100%-owned 1.4Moz Dokwe project in Zimbabwe could be a company-making asset.

Dokwe is Zimbabwe’s largest undeveloped gold project, with strong economics detailed in its pre-feasibility study, based on a conservative US$2750/oz gold price – more than  US$1000 below current spot levels.

A bankable feasibility study is due next year and will explore ways to increase production to 100,000oz per annum over 10 years, which would make Dokwe a significant mid-tier gold development asset in southern Africa.

Near and long term potential

Ariana’s combination of producing Turkish assets and Dokwe offers a rare mix of near-term cash flow and long-life development potential on the ASX.

Based on Dokwe’s pre-feasibility study its NPV is US$354m. That’s before factoring in the dramatically higher spot gold price. Ariana currently has exploration under way at Dokwe as drilling to date has supported resource upgrades into higher JORC categories.

The PFS outlines a 65,000oz per annum operation, an AISC of only US$1144 per ounce, maximum capital drawdown of only US$82m and delivers an IRR of 75%.

The BFS, due for release in 2026, is examining multiple opportunities to increase that output to 100,000oz per annum for 10 years.

Value upside

Last month Canadian mid-tier miner Alamos Gold sold some of its Turkish assets for $470 million. The sale of those assets to Turkish conglomerate Tumad equated to US$220/oz ($330/oz) gold-equivalent for 1.9Moz gold and 20Moz silver.

Even halving that benchmark, Ariana’s ~470,000oz equity ounces in Turkey alone imply a value significantly above its current enterprise value.

This, in turn, implies little to no value assigned to Ariana’s 1.4Moz Dokwe project.

Beyond Dokwe and its producing assets in Türkiye, Ariana also owns development-stage projects in Türkiye, as well as Kosovo and Cyprus.

This article was developed in collaboration with Ariana Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.