Ariana Resources PLC (AIM:AAU)'s newly upgraded Slivova gold project fits the AIM-quoted gold company’s “sweet-spot” easily, so says WH Ireland analyst Paul Smith.
Ariana, via 75%-owned Western Tethyan Resources Ltd, today revealed a new major increase in gold resources at Slivova, in Kosovo, where total resource ounces now exceed 645,000.
“Slivova is now well on track to be developed conceptually as a high-grade, open-pit and underground mining operation,” Ariana managing director Kerim Sener said in a statement.
“We are increasingly confident that further resource expansions will occur as exploration proceeds at the site in the upcoming years.”
The resource upgrade was largely based on the incorporation of additional historical drilling data along with the reinterpretation of data into a new geology and resource model of the project.
New drilling is slated for the third quarter and promises to drive the project further.
It is expected to comprise a mix of resource in-fill drilling and new exploration holes, as multiple untested targets remain in the immediate vicinity (prospects such as Dzemajl, Valiaviste and Brus).
Ariana’s sweet spot
In a note, WH Ireland analyst Paul Smith said: “We rate the potential in Slivova highly and view today’s news positively.
“Slivova is a good prospect in our opinion and the first step into a very prospective belt in Europe – the Vardar Belt, a Jurassic-Cretaceous thrust and suture zone and part of the wider, and significant, Tethyan Belt which is host to many large deposits."
“We see Slivova fitting into Ariana’s project sweet spot easily,” Smith added.
“Ariana has demonstrated it is capable of funding and building these projects and uses pragmatic funding solutions and a strong technical skill base to deliver production and cash flow.”
Kerim Sener eyes new drilling
“Several exploration targets in the immediate vicinity require follow-up and drill-testing, and the broader project area contains significant exploration potential for similar mineralisation based on the latest regional BLEG stream-sediment results,” Sener said.
“We are firmly in the planning stage for a new drilling programme at Slivova, which will be focused in part on resource infill and extensional drilling.
“We are targeting a minimum resource of 200,000 oz of gold prior to the initiation of more advanced project development work and technical studies."
Mentor Demi, WTR managing director, meanwhile, highlighted that Slivova is well on its way to becoming an advanced project, yet with a lot of exploration upside.
Avrupa Minerals chief executive Paul Kuhn added: “We are truly excited about this new development in the progress of the Slivova Project, and look forward to continued success in the program. WTR and its associated company, Ariana Resources, are working hard to advance the project to the next level.”