Ariana Resources PLC (AIM:AAU) said an Environmental Impact Assessment (EIA) report for the Tavsan gold-silver mine in Western Turkey has been formally approved.
The Ministry of Environment and Urban Planning approved the EIA, allowing for the development of Tavsan, which is targeting production of up to 30,000 ounces of gold per annum over eight years.
Zenit Madencilik San. ve Tic, a company 23.5%-owned by Ariana, will manage the development programme, with construction expected to begin following the receipt of final permits.
Discussions regarding debt financing for the construction are being advanced with potential lenders, Ariana said.
"The approval of the EIA for the Tavsan gold-silver mine demonstrates the determination of the Zenit team to develop this valuable asset through to commercial production,” said Ariana managing director Dr. Kerim Sener. “This project represents the second successful delivery of an environmentally approved mining project in Western Turkey by the company.”
"Zenit will now proceed through the final permitting and construction phases, while the Ariana team continues its focus on value accretive exploration.
“As recently reported, there remains the potential to substantially increase the resource base at Tavsan with further drilling and development work. With this in mind, as we accelerate towards production and the generation of maiden revenues at Tavsan, our attention remains squarely on the evaluation and development of our wider investment portfolio across the full-cycle of exploration, development and production," he added.
Tavsan contains a JORC measured, indicated and inferred resource of 253,000 ounces of gold and 0.7mln ounces of silver as of June 2020