Ariana Resources plc (LON:AAU) has doubled the resources at Kizilcukur in Turkey, one of the potential satellites for the Kiziltepe mine currently under construction.
The Kizilcukur resource is now estimated at 33,000 ounces gold equivalent, which would be sufficient for an additional 18 months of operations at Kiziltepe.
A mining permit is already in place, while Ariana sees significant exploration upside along strike and on sub-parallel vein splays.
Kizilcukur is currently not part of the joint venture with Turkish firm Proccea constructing the Kiziltepe mine, but Kerim Sener, Ariana’s managing director, said because of the higher grades it would try to bring it forward in the mining schedule.
He added the drilling so far had been very encouraging.
“For only 1,598m drilled we have been able to expand the Mineral Resource by approximately 100%.
“This represents an exploration discovery cost of approximately US$7 per ounce, which has again emphasised how cost-effectively we are able to deliver on our exploration programmes.”
Kiziltepe is expected to produce around 20,000 ounces of gold per year, although there is some scalability in the plant and the precise numbers may vary depending on the grade and the gold price.