Ariana Resources Boosts Cash with $3.7m Kiziltepe Stake Sale, Advances Dokwe Gold Project

Kiziltepe Stake Sale Boosts Ariana's War Chest

Ariana Resources (ASX:AA2, AIM:AAU) has wrapped up its involvement in the Kiziltepe gold-silver mine in Türkiye by selling its remaining 9.9% interest to Proccea Construction Co. for US$3.7 million gross cash, with proceeds received on 29 July 2026. This follows a prior sale of a 13.6% Zenit stake for US$19.5 million earlier in the year, further simplifying Ariana’s Turkish portfolio and injecting non-dilutive capital.

The transaction also settled an outstanding intercompany debt with Zenit for US$0.8 million. Post-sale, Ariana retains a 9.9% interest and a board seat in Zenit Madencilik, the operator of the Tavşan Mine and Salinbaş Project, maintaining exposure to future dividends and operational upside.

Cash Position Strengthened Ahead of Dokwe DFS

With the Kiziltepe sale completed, Ariana’s proforma cash stands at A$39 million as of 31 July 2026, providing a robust funding platform for its core focus: advancing the Definitive Feasibility Study (DFS) at the 100%-owned Dokwe Gold Project in Zimbabwe. The Dokwe project is one of the largest gold development assets in the country, boasting a JORC-compliant mineral resource estimate of 1.6 million ounces and an upgraded Ore Reserve of 1.13 million ounces.

The recent Pre-Feasibility Study (PFS) update, released in May 2026, optimised the project for a 2.5Mtpa throughput plant, increasing the Ore Reserve by 42% to 1.13Moz and delivering a pre-tax NPV10 of US$1.06 billion and an IRR of 92% at a gold price of US$4,250 per ounce. Capital expenditure remains manageable at US$164 million, with a low strip ratio of 3.7 and operating costs of US$1,685 per ounce.

Drilling Extends Mineralisation and Supports Resource Upside

Ariana’s extensive drilling campaigns at Dokwe have identified gold mineralisation beyond existing resource boundaries at Dokwe North and Dokwe Central, with encouraging shallow intercepts at the Sinkwe Prospect. The 5,659m reverse circulation drilling program completed in early 2026 extended mineralisation along strike by at least 150 metres at Dokwe North, with multiple intercepts of economic interest such as 22m at 1.49 g/t Au from 111m depth.

Follow-up diamond drilling has confirmed structural interpretations and aims to support further resource growth. These results underpin the company’s confidence in the DFS metallurgical testwork program currently underway in China and Australia, which will inform process design and tailings management.

Zenit Operations and Portfolio Simplification

In Türkiye, Zenit’s Tavşan Gold Mine reached full operational capacity in June 2026, contributing to year-to-date production of 9,838 ounces of gold and 28,194 ounces of silver. Heap-leach operations at Tavşan have ramped up steadily, with improvements made to crushing and processing infrastructure during the quarter.

Ariana’s divestments in Zenit reflect a strategic decision to focus capital and management resources on the high-potential Dokwe project, while maintaining a meaningful stake in Tavşan and Salinbaş. Zenit is preparing for a local public listing, which may unlock additional value for shareholders.

Financial Discipline and Forward Momentum

The company spent £662,000 on exploration during the quarter, primarily on drilling and feasibility studies at Dokwe, with no substantive mining production or development expenditure reported. Ariana’s cash flow statement shows a net cash inflow from investing activities of £13.8 million, largely driven by the asset sales, offsetting operating cash outflows.

Payments to related parties amounted to £221,000, reflecting directors’ fees and corporate services. The company’s balance sheet is now better positioned to fund the next phase of development at Dokwe without dilution, supporting shareholder value creation.