Drilling set to fire up at Dokwe Gold Project as Ariana targets resource extensions

• Ariana launches ~11,000m drill program at its 100%-owned 1.1Moz Dokwe Gold Project in Zimbabwe
• The first phase of the program is set to start, with a JORC resource update due in 2026
• Ariana’s long-life growth potential in Africa complemented by cash flow from Turkish mines 

Special Report: Ariana Resources has launched the first stage of an extensive ~11,000m drilling campaign at its fully owned Dokwe Gold Project in Zimbabwe.

 The fresh exploration drive is aiming to expand its 1.1Moz resource base, with Ariana (ASX:AA2) appointing specialist drill contractor Torque Africa Group to conduct the initial reverse circulation phase.

The program will target high-priority zones at Dokwe North and Dokwe Central, including known extensions and a recently identified gold-in-soil anomaly northeast of Dokwe North.

Site preparation is already complete, with roads and drill pads cleared ready for the arrival of Torque’s rig. The Thor 5000 rig has proven capability to achieve the depths and angles required to test the identified targets and is now on its way from South Africa.

The initial exploration phase will comprise 26 holes for around 4000m of drilling and Ariana expects to have Initial assay results back from the lab before the end of the year.

MD Dr Kerim Sener said: “We are pleased to have appointed Torque Africa as drilling contractors for the initiation of our exploration program at Dokwe.

We will be utilising an RC drilling rig capable of drilling to depths in excess of 300m to test several targets identified in our recent work programs in the Dokwe North and Central areas.

“In addition, the team have identified many other targets across the Dokwe Project area which are expected to be drill-tested as part of the current program.

“Following the results of this initial phase of drilling, we anticipate either extending the RC program or commencing a program of diamond drilling as a prelude to JORC resource upgrade, targeted for 2026.

“The company is excited to be starting this drilling program following its successful ASX listing and looks forward to continuing to update the market as the program progresses.”

Solid gold foundation

The new campaign follows a comprehensive review of soil, drill hole, and geophysics datasets, which have resulted in improved geological models for the deposits and across the wider project area.

The project currently hosts 1.1Moz at 1.52g/t gold (with a 0.6g/t cut-off) across Dokwe North and Central, making it already the largest undeveloped gold project in mining-friendly Zimbabwe.

Its pre-feasibility study detailed an NPV of US$354 million, but that was based on a US$2750/oz gold price, well below current spot levels of more than US$4170.

The PFS also included all-in sustaining costs of just US$1144/oz, and an internal rate of return (IRR) of 75%, based on a 65,000oz per annum operation and maximum capex of US$82 million.

A feasibility study due in 2026 will examine scale-up scenarios targeting 100,000ozpa over a 10-year mine life.

Dual-track growth

The Dokwe campaign comes as Ariana transitions to producer at the Tavşan Mine’s heap leach project in Türkiye. Final permitting has been secured and ore loading has commenced at the project where production is expected to start this quarter.

Tavşan hosts a JORC 2012 resource of 311,000oz gold and 1.1Moz silver, which underpins an eight-year mine life. It was built by Zenit Mining Operations, in which Ariana holds a 23.5% stake.

Zenit has driven consistent production and cash flow from the nearby Kiziltepe mine, which supported £7.74 million (A$15.8 million) in special dividends between 2021 and 2022. Last year Kiziltepe produced just under 21,000oz of gold.

Adding to the appeal of Ariana’s profitable production in Türkiye, recent M&A activity in the country has underscored the value embedded in Ariana’s portfolio.

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.