Ariana Resources PLC (AIM:AAU, ASX:AA2, FRA:4A6) managing director, Kerim Sener, talked with Proactive about the company’s partial divestment of its Zenit mining operations stake, which has generated $19.5 million in cash and strengthened the company’s balance sheet as it advances the Dokwe gold project in Zimbabwe.
Sener explained that Ariana Resources has reduced its holding in Zenit to 9.9%, while retaining exposure to future upside ahead of a potential Istanbul Stock Exchange listing. He said the transaction leaves the company in a strong financial position as it continues feasibility work at Dokwe.
The discussion focused heavily on recent drilling success at Dokwe North, where RC drilling confirmed mineralisation extending at least 150 metres beyond the current resource envelope. Sener highlighted the significance of the latest high-grade intercepts, stating: “We do have mineralisation continuing in that direction. So this bodes really well because it represents material that is most easily accessed.”
He also outlined the next development milestones, including more than 2,000 metres of diamond drilling in partnership with Xinhai Mining to support metallurgical testing and feasibility studies. Material from the drilling program will be sent to Yantai in China for further analysis.
Sener said Dokwe continues to attract strong industry interest, including from financing groups and power providers, as Ariana evaluates a solar hybrid battery solution for future operation.
The interview also covered the Tavşan operation in Turkey and the future potential value uplift from Zenit’s planned public listing.
Proactive: Kerim,you’re receiving $19.5 million from the Zenit divestment. And that gives you 29 million pounds in cash, no debt. How does that change what you're able to do at Dokwe, and why was now the right time to sell?
Kerim Sener: This is a very significant transaction for the company. We've now completed on the partial divestment, taking our holding in Zenit mining operations down to 9.9%. That yields cash of $19.5 million, which we have received in Turkey. The 29 million pounds figure includes the value of the remaining interest, plus existing cash from the ASX listing and the agreement with Xinhai Mining associated with the development of the Dokwe project through feasibility.
Proactive: Drilling has confirmed mineralisation extending at least 150m beyond Dokwe North's current resource envelope. What does that tell you about the true scale of what you have there?
Kerim Sener: We completed RC drilling at Dokwe North, Dokwe Central and northeast of Dokwe North. The northeastern extension results are highly significant. We previously reported four metres at almost 17 grams per tonne from DRC25, demonstrating continuity of the high-grade shear zone. Additional step-out drilling confirmed mineralisation continues further northeast. This material is close to surface and currently outside the existing resource envelope, so it could contribute to a future resource update later this year. We also identified mineralisation continuity at Dokwe Central and Sinkwe.
Proactive: You mentioned diamond drilling for feasibility test work. Can you walk investors through the key milestones between here and the completed feasibility study?
Kerim Sener: We completed an agreement with Xinhai Mining for metallurgical sampling and test work, including over 2,000 metres of diamond drilling. Most drilling is focused on Dokwe North, with one hole planned at Dokwe Central. Two Xinhai-operated rigs are currently on site. Once samples are secured, material will be sent to Yantai in China for metallurgical test work, supported by IMO laboratories in Perth.
Proactive: You described Dokwe as potentially company-making and said it is attracting significant industry interest. Can you give investors a sense of what that interest looks like?
Kerim Sener: Dokwe attracted Xinhai initially, leading to an agreement completed late last year involving an 8 million AUD investment into Ariana through CDI issuance on the ASX. Additional CDI issuances are tied to metallurgical testing and feasibility completion. We have also had approaches from power operators as we assess a solar hybrid battery solution for the project. In addition, regional banks have expressed interest in financing aspects of the project.
Proactive: You're keeping a 9.9% stake in Zenit as it prepares for a Turkish public listing. How much further value could that remaining holding unlock for Ariana shareholders?
Kerim Sener: We retained the 9.9% interest because we believe Zenit represents additional upside. Tavşan entered production late last year and is currently ramping up. Zenit expects production of around 25,000 ounces per annum once steady-state production is reached. As Zenit progresses toward an Istanbul Stock Exchange listing, we expect the market to begin assigning greater value to the operations.