Ariana Resources (LSE:AAU) shares surged on Tuesday, to close the session 11% higher at 2.06p, after the company published an improved pre-feasibility study for the Dokwe gold project.
The mineral exploration and development company, which holds gold projects in Africa and Europe, says the PFS supports an optimised 2.5Mtpa processing case, low total pre-production capital of US$164m, an approximate one-year payback and a 92% internal rate of return.
The study models a two-phase production profile, with an initial 12-year open-pit phase averaging c.80,000oz a year followed by eight years of stockpile processing at c.20,000oz a year and a peak annual run-rate of c.100,000oz.
The updated Ore Reserve at Dokwe North is reported as 11.0Mt @ 1.91 g/t (674,300oz high-grade), 16.3Mt @ 0.57 g/t (297,700oz medium-grade) and 18.6Mt @ 0.27 g/t (163,200oz low-grade).
Key economics include a life-of-mine C1 operating cost of US$1,685/oz, an AISC of US$1,995/oz, total LoP EBITDA of US$1,993m and gross LoP gold sales of US$4,515.9m.
Ariana says it is well funded with pro‑forma cash and investments of A$53m, no debt, and that a three‑rig c.3,700m diamond drilling programme and metallurgical testwork are underway ahead of a DFS due in Q1 2027.
"This is a major milestone for the Company as it progresses its DFS and sets the scene for a significantly expanded mining and processing rate yielding an NPV10 in excess of US$1bn," Dr Kerim Sener.
