The development of Ariana Resources PLC's (AIM:AAU) second gold mine in Turkey “is advancing at pace”, according to the company’s managing director, Dr Kerim Sener.
In an update on progress, investors were told mine construction at Tavsan is expected to begin this quarter once permitting is finalised and bank finance approved.
Once up and running, the operation is slated to produce an annual 30,000 ounces (oz) of gold equivalent over eight years at a cost of around US$630 an ounce.
In preparation, over 3,900 metres of resource drilling have been completed. Assay results from the programme will form the basis for a revised resource and reserve estimate, which will be published as part of a feasibility study.
Ariana said the land acquisition and access process has been completed, while forestry permit applications “remain in process with the government”.
Discussions to raise debt financing for Tavsan are ongoing, investors were told.
"The Tavsan mine development programme is advancing at pace, and activities across the project are ramping up significantly as the project is progressing towards construction,” Sener said.
Ariana is developing the mine alongside local partners and owns 23.5% of the project, which is estimated to be host to a measured, indicated and inferred resource of 253,000oz of gold and 700,000oz of silver.
Kiziltepe, its first operation in Turkey, began producing in 2017 and generates an annual output of around 20,000oz of gold.