Ariana Resources plc (LON:AAU) is eyeing a substantial increase the life of its Kiziltepe gold mine in Turkey after a big resource hike.
The mine is now estimated to contain 257,500 oz of gold and 4.87Moz silver to make 338,500oz gold equivalent overall.
That is an increase of 100,000 oz on the previous JORC estimate.
Ore tonnage meanwhile has risen to 3.8Mt following the inclusion of all subsidiary veins drill tested to date, while there is a further 1.25Mt at 1.8g/t gold and 31 g/t silver in vein extensions across Kiziltepe that have not yet been drill tested.
WATCH: Ariana Resources' boss on 'significant' Kiziltepe resource increase
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Kerim Sener, Ariana’s managing director, said this exploration target can add a further 90,000 oz in addition to the 100,000 oz gold equivalent resources from today’s upgrade.
“At a 60% exploration target and resource to reserve conversion rate, which has historically held for this project, such increases in the resource could provide up to 12 years of mine life at current throughput rates,” he said.
Overall, the total resource within the Red Rabbit Project Area and surrounding projects now stands at 605,000 oz gold equivalent.
Red Rabbit includes Kiziltepe and is a joint venture between Turkish group Proccea and Ariana.
"Completion of our drilling programmes late last year confirmed for the first time that the Arzu vein system extends for a further 650m beneath cover rocks, which separate the Arzu South and North pits,” he added.
These revisions also encompass several subsidiary veins at Kiziltepe outside of the four main veins to be mined as part of the current mine plan.
Sener added that one month since it started production Kiziltepe is into its ramp-up phase and operations are proceeding well.