Ariana Resources plc (LON:AAU) is eyeing a second mine at its Red Rabbit project in Turkey after a scoping study at Tavsan came back very favourably.
The scoping study showed production at that level would cost between US$559-630/oz over the expected four-year mine life and generate a net present value of US$41.9mln at a gold price of US$1,250.
Managing Director Kerim Sener tells Proactive: ''We're really excited about the results from this scoping study - it really maps out a future strategy for the company with respect to the second part of our Red Rabbit join venture.'' He added that following the numbers in the scoping study it will  look at fast-tracking further exploration and development work at Tavsan.
''We've got a very robust project ... we have a very good internal rate of return across the model range varying from 23% at the very bottom end, all the way up to 80% at the top of the range, with very fast payback within 1-2 years'', Sener said.