The Dokwe Gold Project in Zimbabwe has been valued at US$160 million following an updated resource estimate. The project, operated by AIM-listed Ariana Resources, saw a significant boost in its mineral resources, strengthening its potential as one of the country’s most promising undeveloped gold assets.
By Ryan Chigoche
This follows a 9% rise in the project’s In-Pit Mineral Resource Estimate announced in March. The updated Measured and Indicated resource now stands at 19.7 million tonnes at 1.54 grams of gold per tonne, equating to 977,000 ounces of gold using a 0.6g/t cut-off grade.
Including all categories—Measured, Indicated, and Inferred—the resource totals 44.9 million tonnes at 0.98g/t, approximately 1.42 million ounces of gold at a 0.3g/t cut-off.
The company attributes the stronger resource base to an improved geological model, providing greater flexibility in mine planning and supporting the updated project valuation.
Ariana presented the US$160 million valuation to its shareholders last week. This figure pertains solely to the Dokwe North deposit and excludes the 0.5% net smelter return royalty owed to Yataghan Investments.
Located in Tsholotsho District, about 110 kilometers northwest of Bulawayo, the Dokwe Project’s new model assumes a gold price of US$2,000 per ounce and targets an annual gold output of 60,000 ounces.
The company has also increased its expected capital expenditure to US$82 million, up from US$80 million, aiming to unlock value from the current 1.4 million ounces of gold within the optimized pit shells at Dokwe North and Central.
Ariana plans to update its pre-feasibility study (PFS) after completing a revised reserve estimate for both Dokwe North and Central.
The company sees strong potential to enhance the project’s economics by increasing gold output to 100,000 ounces per year and extending the mine life beyond 10 years. Plans include constructing a processing plant capable of handling 2 million tonnes of ore annually to support this expansion.
Between late 2023 and early 2024, Ariana drilled 1,222 meters of PQ and HQ diamond holes across both deposits. The drilling confirmed previous exploration data and indicated further growth potential.
Ariana identifies significant exploration opportunities near Dokwe North and Central. In the short term, the focus will be on areas with known gold anomalies and untested zones. Additional areas such as Dokwe Central, Siduli Pan, and Dokwe South remain underexplored and are considered key to future value.
Zimbabwe’s gold potential remains robust. In 1980, the country produced more gold than Western Australia. However, years of underinvestment have caused Zimbabwe to lag behind while WA has become a leading gold producer.
Experts highlight Zimbabwe’s promising geology, noting that the Zimbabwe Craton shares similarities with Western Australia’s Yilgarn Craton, one of the world’s richest gold regions. Companies like Caledonia Mining have demonstrated successful gold mining operations in the country.
Zimbabwe also boasts significant reserves of other minerals, including lithium and platinum group elements (PGEs), enhancing its appeal as a destination for international mining investment.
Ariana believes its early entry into Zimbabwe positions it advantageously. The company plans to advance the Dokwe Project into production while exploring additional growth opportunities as the country’s mining sector develops.
Gold Price Trends and Implications for the Dokwe Project
As of April 4, 2025, gold prices have surged to record highs, reaching approximately US$3,037.36 per ounce, driven by investor concerns over geopolitical tensions and economic uncertainties.
This marks a significant increase of over 18% since the beginning of the year.
Analysts attribute this surge to factors such as recent tariff announcements by President Trump, leading investors to seek safe-haven assets like gold.
Major financial institutions, including Goldman Sachs and Bank of America, have adjusted their gold price forecasts upward, anticipating continued gains driven by trade-war tensions and central bank demand.
This upward trend in gold prices could have positive implications for Ariana Resources’ Dokwe Gold Project. Higher gold prices may enhance the project’s profitability and attract additional investment, supporting Ariana’s plans to increase production and extend the mine’s operational life.
However, the gold market remains volatile, and prices can fluctuate based on global economic developments.
Ariana Resources will need to monitor these trends closely to optimize the project’s economic outcomes.
