Ariana Resources granted permit for Red Rabbit Gold Project

3rd Jun 2015 08:47

Ariana Resources shares jumped more than 50% on Wednesday morning after the Anglo-Turkish gold explorer had its Red Rabbit Gold Project application approved.The application, made through its joint venture company, Zenit Madencilik, was for a permit covering an area in west Turkey, where the company will target production of 21,000 ounces of gold equivalent each year during the first five years. It expects to extend the current eight year life of mine.The group will only receive the permit if it pays statutory fees within the next three months, but has already secured a $33m (£21.5m) construction finance facility.Ariana's managing director Dr Kerim Sener said the decision marked a "significant milestone" for the company that moved it closer to becoming a gold producer."This critical permit approval has been a long time coming, but through perseverance and good-faith we have obtained the result we sought and expected. As a result, the construction phase of our Kiziltepe Mine is now just around the corner," he said.