Ariana Resources PLC (AIM:AAU) results from the final drilling programme at its Tavsan mine project – to be its second operating mine in Turkey - highlight the potential for an increase in resource size and grad, suggests stockbroker WH Ireland.
High-grade ore (more than 3g/t gold) is already being stacked from the commissioning of the mine in preparation for first production and Ariana expects to put out an announcement about the plans for 2024 before the end of March.
“Tavsan will be an important new plant for Ariana in our view and essentially turns the company from a single-mine to multi-operational organisation which reduces risks and provides for production and cash flow growth,” said the broker.
Fair value from Ariana is at 5.5p as the miner demonstrates it can turn plans “from the hypothetical to the concrete”.
Shares were unchanged at 2.05p.