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 owned in a 50/50 joint venture between Ariana Resources plc and Proccea Construction Co.
Gold mineralization at Tavşan is epithermal in style, with associated silver and antimony, broadly situated along the thrust contact between Jurassic massively-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 that up to 30 metres thick. The mineralized jasperoid units at Tavşan are extensive and represent 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 updated in November 2022 contains Measured Resource of 3.1 Mt grading 1.6 g/t Au and 5.1 g/t Ag for 154.3 koz Au and 501.9 koz Ag, Indicated Resource of 2.3 Mt grading 1.4 g/t Au and 5.5 g/t Ag, and Inferred Resource of 1.3 Mt grading 1.2 g/t Au and 5.4 g/t Ag (at cut-off grades 1.5 g/t Au high-grade and 0.7 g/t Au low-grade).
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.