Ariana Resources PLC (AIM:AAU) has reported a significant boost to the economics of its Dokwe gold project, in Zimbabwe, with an updated model and strategic options study.
The updates come against a backdrop of significantly higher gold prices and improved understanding of the project.
The company said a revised pre-feasibility study for Dokwe North now shows a post-tax NPV10 of US$354 million and an internal rate of return (IRR) of 75%, based on a gold price of US$2,750 per ounce.
This marks a substantial increase from US$69 million and 24% previously, at the time of the project’s acquisition in 2024.
At Dokwe, production of up to 76,000 ounces of gold per year is planned, from a staged open-pit mine using a Carbon-in-Leach process.
Payback is expected to be 1.8 years, with an estimated all-in sustaining cost of US$1,144 per ounce.
Ariana managing director Dr Kerim Sener, in a statement, described it as an opportune moment to re-run the financial modelling, given that the previous version was based on $2,000 an ounce gold.
"Over the past 12 months we have been making excellent headway with our understanding of the Dokwe Project, its current value to our business and its significant upside potential,” Dr Kerim Sener said.
“In that time, the gold price has advanced from about US$2,300 to US$3,300/oz, prompting several revisions to fundamental project inputs.”
Sener added: “The results speak for themselves, underscoring the significant value of the Dokwe asset to the company and spurring further impetus for our project development work.”