The slump in gold prices is not curtailing the efforts of Arian Resources (ARA.U-T) to arrange production financing for the Julietta gold-silver project in the Madagan region of the Russian Far East.
Having recently completed a US$1.7-million private placement, Arian plans to undertake additional equity and/or debt financings during 1998 to build a 350-tonne-per-day operation. The company says operating costs are estimated at US$123 per gold equivalent oz., placing the deposit in the lowest 5% of gold mining operations worldwide.
“Even at the current depressed gold price, the economics of the Julietta project remain robust,” company officials noted in a release.
The development plan is based on average production of 130,000 gold-equivalent oz. per year over the first three years at grades of more than 1 gold-equivalent oz. per tonne.
Arian recently boosted its ownership of Julietta to 79% from 49% by acquiring an additional 30% of the Russian stock company that owns and operates Julietta. To acquire the additional interest, Arian paid US$250,000 and issued 660,000 shares to one Russian partner and US$250,000 and 750,000 shares to a second partner. The balance of the purchase price, US$2.34 million, is payable by the end of August 1998.
The Russian stock company which owns the Julietta deposit also holds a surrounding land package, as well as three nearby licences.
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