Aim-listed gold developer Ariana Resources’ 75%-owned subsidiary Western Tethyan Resources (WTR) has completed a preliminary economic assessment (PEA) on the Slivova gold project, in Kosovo, south-east Europe, finding it can produce on average 13 000 oz/y.
WTR has an earn-in agreement with TSX-V-listed Avrupa Minerals on the project, whereby WTR can earn up to 85% ownership by spending €1.8-million and completion of a feasibility study on the project.
The PEA also deems the project to have a conceptual pre-tax net present value of $27-million and an internal rate of return of 29% - at a gold price of $1 835/oz.
WTR estimates the project will require $33.4-million in capital expenditure, while it estimates sustaining capital requirements at $9.4-million.
The average production of 13 000 oz/y can take place over a seven-year mine life from a combined openpit and underground mining operation.
The PEA finds a gold recovery rate of between 92% and 94.5% is possible using the carbon-in-leach processing method.
Ariana MD Dr Kerim Sener comments the PEA is an excellent outcome for the Slivova project, since it demonstrates its potential economics and highlights opportunities to enhance the project in the longer term.
He adds the broader exploration potential of the Slivova project area, in particular the opportunity to define further mineralisation down-plunge of the existing orebody, bodes well for further economic upside.
Ariana is now looking to complete further work to demonstrate this upside through a phased exploration programme, which will target the definition of additional resources and further investigate various aspects of the proposed mine design and processing route, among other technical matters, in addition to project-level environmental and social studies.