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Ariana Resources (LON:AAU) shares soared 40% after it said it been granted a forestry permit for the Red Rabbit Gold Project in the West of Turkey.
It means the company and local partner Proccea can now begin construction of the Kiziltepe mine, which will produce 21,000 ounces of the precious metal a year.
The build programme, funded by a US$33mln finance facility, will be outlined “in due course”, Ariana said. Proccea is in the process of compiling a revised timeline.
Managing director Kerim Sener told investors: "This is a significant milestone for Ariana, moving us a step closer to becoming a gold producer.
“This critical permit approval has been a long time coming but through perseverance and good-faith we have obtained the result we sought and expected.
“As a result, the construction phase of our Kiziltepe Mine is now just around the corner.”
Kiziltepe and Tavsan, which are 75km apart, are the major assets within the Red Rabbit area, which sits within the Western Anatolian Volcanic and Extensional Province.
It hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits, so the belief is Kiziltepe is just the start.
Ariana’s total resource inventory stands at 475,000 ounces of gold equivalent.
At 8.55am, the shares were changing hands for 1.15p each.