Ariana Resources PLC (AIM:AAU) shares surged 31% in late afternoon trading after the company reported a major uplift in the economics of its Dokwe gold project in Zimbabwe.
A revised pre-feasibility study for the Dokwe North deposit now estimates a post-tax net present value (NPV10) of US$354mn and an internal rate of return of 75%, based on a gold price of US$2,750 an ounce. That compares to an NPV of just US$69mn and a 24% IRR when the project was acquired in 2024.
Production of up to 76,000 ounces per year is planned from a staged open-pit operation using a Carbon-in-Leach process, with a projected payback period of 1.8 years and all-in sustaining costs of US$1,144 an ounce.
Ariana’s managing director, Dr Kerim Sener, said the decision to re-run the numbers was driven by a sharp rise in gold prices and a better understanding of the asset.
"Factoring in recent robust gold prices delivers meaningful improvements to Dokwe’s economics, while further technical enhancements are being assessed as part of the current definitive feasibility study," said broker SP Angel.
The shares jumped 0.31p to 1.31p.