Acquisition:
2016 / 01 / 19
Agreement:
Royalty
Terms:
1.0% NSR until 100 kozs are produced; then
1.5% NSR until next 100 kozs are produced; then
2.0% NSR on any production thereafter.
2.0% NSR on all other metals
Tavşan is located in western Türkiye about 210 km north-east of Izmir. Tavşan and the Kiziltepe mine, located 72 km away, form the Red Rabbit Gold project. It is owned by Zenit Madencilik San. ve Tic. A.S. which is a three-way partnership operating in Türkiye between Ariana Resources plc (23.5%), Proccea Construction Co. (23.5%), and Ozaltin Holding A.S (53%).
Gold mineralization at Tavşan is epithermal in style, with associated silver and antimony, broadly situated along the thrust contact between Jurassic massive-bedded limestone and an overlying Cretaceous multi-lithic ophiolite sequence. Gold was discovered in an area of outcropping mineralized jasperoids covering 4 km by 4 km and is up to 30 metres thick. The mineralized jasperoid units at Tavşan are extensive and contain additional exploration potential for the project.
The Tavşan Feasibility Study proposes an open-pit, heap leach operation with ore being trucked to the Kiziltepe mill. Preliminary column-leach test work has shown recoveries of 80% for gold and 26% for silver.
A JORC Mineral Resource Estimate for Tavşan was announced in March 2024 outlining:
Proven Reserves: 2.48 Mt grading 1.5 g/t Au and 5.0 g/t Ag for 116.4 koz Au and 401.1 koz Ag
Probable Reserves:1.99 Mt grading 1.3 g/t Au and 4.15 g/t Ag for 84.6 koz Au and 266.2 koz Ag
Measured Resources: 3.76 Mt grading 1.35 g/t Au and 4.75 g/t Ag for 163.5 koz Au and 574.9 koz Ag
Indicated Resources:2.41 Mt grading 1.2 g/t Au and 4.1 g/t Ag, for 94.0 koz Au and 319.1 koz Ag
Inferred Resources:1.47 Mt grading 1.1 g/t Au and 4.5 g/t Ag for 53.4 koz Au and 210.4 koz Ag
Mineral Resources are inclusive of Mineral Reserves (cut-off grades 1.5 g/t Au high-grade and 0.5 g/t Au).
The Tavsan royalty was part of the royalty package acquired from Teck Resources in January 2016. The royalty is a 1.0% NSR on the first 100,000 ozs of gold equivalent produced, 1.5% on the next 100,000 ozs and then is a 2.0% NSR royalty thereafter.
