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AIM-listed mineral exploration and development company Ariana Resources (LON: AAU) shares are gaining Thursday after the Turkish Ministry of Environment and Urban Planning has now formally provided its approval of the Environmental Impact Assessment (EIA) report.
The report was submitted at the start of September for the Tavsan Mine in Western Turkey.
The EIA has been approved to develop the Tavsan gold and silver mine, targeting production of up to 30,000oz of gold each year over 8 years.
Zenit Madencilik San, a company that is 23.5% owned by Ariana, is managing the development program, with construction to commence following receipt of final permits.
Discussions regarding debt financing of the required construction capital are being advanced with potential lenders, Ariana said.
They also claimed opportunities for resource expansion have been demonstrated at Tavsan, and further drilling is expected to commence during Q4, which will lead to a revised resource.
Dr. Kerim Sener, Managing Director of Ariana, commented: “This project represents the second successful delivery of an environmentally approved mining project in Western Turkey by the company. The development of this project will benefit both local stakeholders and Ariana investors alike.
“Zenit have involved the local community at every stage of the development of the project over several years and we welcome the support that they have shown for the mine during the EIA process.”
The news has resulted in Ariana Resources shares rallying over 9.5% to 4.6p.
Ariana Resources shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are AAU shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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