Ariana Resources PLC has announced a substantial increase in the value of its Dokwe project in Zimbabwe, following a reassessment prompted by the rise in the price of gold.
The company now anticipates that build costs will be recovered in just over thirty months, with a post-tax Net Present Value (NPV) of US$160 million (10% discount) and an Internal Rate of Return (IRR) of 41% at a gold price of US$2,000 per ounce.
According to the revised figures, the project’s life of mine is projected to span 13 years, producing approximately 60,000 ounces of gold annually, with the potential for up to 76,000 ounces per annum. The mining operation will primarily involve a single, staged, open-pit approach, with processing primarily through Carbon in Leach (CIL), at an all-in sustaining cost (AISC) of US$1,144 per ounce.
According to Proactive Investor report, a peak capital funding requirement of US$82 million is estimated, assuming implementation of the full mining and processing plan from mine start-up, with an expected payback period for the project of 2.7 years from the start of production.
Furthermore, Ariana has announced plans to commence further revisions to the Pre-Feasibility Study (PFS) following the completion of a revised Mineral Resource Estimate for Dokwe North and Central. The company is also exploring potential additional resources at Dokwe North and Dokwe Central.
Kerim Sener, managing director of Ariana Resources PLC, commented on the development, stating: “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.”
He emphasized the significance of the Dokwe project, noting its advanced stage of development and established reserves, which position it well for immediate advancement to the Feasibility stage.
Sener also highlighted the potential for further economic enhancement, particularly if Dokwe Central is included in future assessments.
The impending merger with Rockover Holdings, the current owner of the Dokwe project, is expected to further solidify Ariana’s position and propel it towards mid-tier company status, as the company continues to execute its mine development strategy.
The announcement comes on the heels of Ariana’s recent decision to pursue the acquisition of Dokwe through a merger with Rockover Holdings, signaling the company’s commitment to maximizing the potential of the project and driving value for shareholders.
