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(Sharecast News) - Ariana Resources said in an update on Tuesday that it is preparing to launch a major new drilling programme at its flagship Dokwe gold project in Zimbabwe, following its recent dual listing on the Australian Securities Exchange.
The AIM- and ASX-traded company started trading in Sydney on 10 September after completing an AUD 11m (5.37m) initial public offering, giving it a market capitalisation of around AUD 72.5m.
It said drilling contractors had submitted tenders for an 11,000-metre diamond and reverse circulation campaign at Dokwe, which was expected to start in early October and was aimed at expanding the project's current 1.4 million ounce resource and 0.8 million ounce reserve while providing further technical data for a definitive feasibility study.
Dokwe hosts more than one million ounces of JORC-compliant gold resources and was forecast in its pre-feasibility study to produce at least 60,000 ounces of gold a year over a 13-year mine life, with a post-tax net present value of about $354m and an internal rate of return of 75% based on a gold price of $2,750 per ounce.
Ariana described the project, located about 110 kilometres west of Bulawayo, as one of the most significant undeveloped gold assets in Zimbabwe.
"The successful dual-listing of Ariana on the ASX and its associated capital raising of AUD 11m, is a landmark moment since first listing on AIM in 2005," said managing director Kerim Sener.
"The ASX listing provides a powerful platform for us to accelerate our growth strategy, broaden our investor base, and unlock the full potential of our asset portfolio.
"Central to this is the 100% owned Dokwe Gold Project in Zimbabwe, a highly compelling development opportunity with significant scale, strong economics and exciting upside potential."
Sener added that Ariana was "deploying all our skills and capabilities to build up a planned annual gold production of at least 60,000 ounces of gold per annum over a 13-year mine life, based on the PFS", and said the company was well positioned to continue building a "long-term, sustainable and globally recognised gold company".
Ariana also said gold-silver production was continuing from its 23.5%-owned Turkish operations at K1z1ltepe, with output from the Tav_an mine set to be augmented imminently, while it continues to advance its projects in Kosovo and Cyprus.
At 1417 BST, shares in Ariana Resources were up 5.1% at 1.5p.
Reporting by Josh White for Sharecast.com.