May 17, 2020

Ariana Resources forges ahead with plans for Turkish gold mine

mine sites
Ariana Resources
5 min
Ariana Resources forges ahead with plans for Turkish gold mine
Ariana Resources PLChas invested $8 million within its joint venture to establish a new open-pitgoldmine in western Turkey and just recently formally an...

Ariana Resources PLC has invested $8 million within its joint venture to establish a new open-pit gold mine in western Turkey and just recently formally announced that construction works have started in the Kiziltepe sector.

Kiziltepe is part of Ariana’s Red Rabbit Gold Project, which contains a JORC compliant resource of 475,000oz Au equivalent (ounces of gold and the gold equivalent of silver) within the Kiziltepe and Tavsan Sectors located 75 kilometers apart with its joint venture partner Proccea Construction Company.

Commencement of works on the site marks five years since the formation of the joint venture culminating in a series of works already undertaken including the feasibility study, environmental impact assessment, other technical studies and the securing of various permits.

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Dr Kerim Sener, Ariana’s Managing Director, explained that work had begun on securing the site with the erection of a perimeter fence, and that the forestry department had started clearing trees within areas in which permits had been sought.

He said: “We are initiating a drilling program in the foundation area of the designated mine site so we can calculate the volumes of concrete for the foundations and so on.

“Land acquisitions are essentially complete although there are a couple of other smaller parcels of land we are still working on, but not absolutely required for the operation to proceed, so there is quite a bit of activity on the ground at the moment.

“In terms of overall timeline, we hope to complete the first gold pour certainly by this time next year.”

Gold Finger

Ariana Resources PLC was founded in 2002 and picked up its first licenses in Turkey in early 2004 before becoming an AIM-listed company on the London Stock Exchange in 2005. Its long-term strategic plan is to develop its exploration portfolio through grassroots exploration, license acquisition and resource development.

In the past 10 years the company has dramatically evolved to one that has successfully defined a total resource of 1.5 million ounces of gold in Turkey, Europe’s largest gold producer with eight operating gold mines.

Turkey lies within the globally significant Tethyan metallogenic belt hosting some of the world’s largest gold, silver and copper deposits.

Today, Ariana Resources PLC has two major projects in Turkey: the Red Rabbit Gold Project, and another joint venture with Eldorado Gold in the Artvin Province in northeastern Turkey.

Economically Sound

The Red Rabbit project requires Proccea to contribute $8 million during the three phases of development culminating in the establishment of the mine at Kiziltepe. In return Proccea will receive a 50 percent equity stake in the project.

The project has $33 million in debt financing raised through the Turkish bank, Turkiye Finans Katilim Bankasi A.S. Sener, who is also a director of Australia-based private mineral exploration consultancy, Matrix Exploration Pty. Ltd, is confident the project is economically viable, particularly with the current fall in oil prices.

At the time of the project’s feasibility study, oil prices were in excess of $100 per barrel, but since those prices have crashed the knock-on effect has been to reduce the mining contractor’s costs.

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He said: “There has been a balancing out between the current market price for gold and the lower costs of oil. The current gold price of around $1,110 an ounce and with an oil price at $45 means the project remains economic.

“Gold prices are expected to rise steadily over the next eight years which is the current life of the Kiziltepe mine.

“Another factor which will affect the overall economics is that we expect to identify further resources we can optimise and ultimately feed through the process plant at the tail end of mine life as well as developing the surrounding project areas.”

Live long and prosper

The target is to keep the Kiziltepe plant running in excess of 10 years through further discoveries and for this reason the Tailings Storage Facility (TSF) has been designed with a capacity of 15 years.

As an Adjunct Research Fellow at the Centre for Exploration Targeting at the University of Western Australia, Sener is also involved in a number of research projects including investigating the potential for magmatic mineral systems on Mars to determine the prospectivity of the Martian crust.

Back on earth, Sener also believes there is potential for underground mining on the Red Rabbit Project although much of the current drilling is focused on the top 100 metre of the deposits.

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“There are indications that those deposits do continue at depth and one of our exploration targets will be to start testing deeper levels in the years ahead, because the grade and width of the veins suggest there is potential for underground operations in places,” he said.

In the longer term, it is planned to develop a second mine at Tavsan and ultimately produce from both simultaneously at a rate of 50,000 oz Au per annum.

Sener said: “We believe there is potential to do that, but it will take a few more years to get through resource development stage and feasibility of Tavsan. We would rather finance through cash flow than to go back to the market to raise new development funds.”

Looking to sell

Ariana’s second project in Turkey is its joint venture with Eldorado Gold. It is located in Artvin Province in the north-east of Turkey where Ariana Resources has defined more than a million ounces of gold.

At present the joint venture companies are exploring the possibility of vending the project to another company or selling it out right.

“We have had a number of expressions of interest from Turkish conglomerates seeking to get into the gold space,” explained Sener. “We have signed confidentiality agreements with 10 of them now and they are reviewing data.”

Due to the somewhat less certain political situation in Turkey, which has an interim government in place until the elections are held this November, no hard and fast decisions are expected just yet.

“We are keeping that on care and maintenance at this stage and doing a little bit of exploration and continuing discussions with these groups so that when the time is right we will hopefully be in a position to sell that project in due course.”

In keeping with its strategy of exploration and development Ariana Resources has also established a subsidiary company called Asgard Metals Pty Ltd to focus specifically on non-gold resources mainly in Turkey but also looking at critical and specialty metals in other areas.

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May 18, 2021

Anglo American: FutureSmart Mining

Anglo American
FutureSmart Mining
3 min
Anglo American is reimaging mining to improve people’s lives by leveraging technology, digitalisation and sustainability for FutureSmart Mining

Anglo American’s approach to technology, digitalisation and sustainability is changing the nature of the way the company mines. These are the step-change innovations that will transform the nature of mining – how the company sources, mines, processes, moves and markets its products – and how its stakeholders experience that business. Anglo American is transforming its physical and societal footprint with FutureSmart Mining.

FutureSmart Mining

“FutureSmart Mining is our innovation-led approach to sustainable mining,” Anglo American’s Tom McCulley told Mining Gllobal. In his role as CEO for Anglo American Peru & Group Head of Projects he has overseen investment of more than $5bn at the company’s Quellaveco copper project in Peru.

“These are the step-change innovations that will transform the nature of mining – how we source, mine, process, move and market our products – and how our stakeholders experience our business. It’s about transforming our physical and societal footprint.”


Anglo is undertaking a feasibility study to assess the possibility of rolling out one of its FutureSmart technologies, Coarse Particle Recovery (CPR), at Quellaveco. “CPR crushes particles to 2.5 times larger than normal, reducing energy consumption and mill time, leading to a 20% increase in throughput and 85% water recovery - a key issue in Peru given the concerns around water scarcity,” says McCulley.

“By allowing water to release from the much coarser particles, CPR will reduce the risks associated with wet tailings and ultimately help eliminate them altogether. When combined with low cost additives, it is possible to dewater residual waste and produce dry stackable tailings. This technology remains a focus area for us as water sent to tailings facilities often represents the largest water loss at a mine.”


Quellaveco is going to be the first mine to run the FutureSmart operating model from day one. Anglo’s idea is to build a stable base on which it can layer new technologies, CPR being one of them. 

“We will also be a fully digital mine, which brings us future benefits in terms of understanding and applying changes in real time,” adds McCulley. “Our trucks and our drills will be automation-ready. We have taken the approach that, when we decide to move into an autonomous operation, no jobs will be lost, but the nature of some people’s jobs will have to change.”


FutureSmart is a blend of technology and sustainability,” said McCulley in an interview with Global Business Reports. “If you go back to the vision and design of Quellaveco, it has really been focused on the long-term sustainability of the mine through effective use of things like water, energy and the environment. Quellaveco has been focused on technology such as automation, with digital and analytical tools all coming together. We will be looking at future technologies to bolt on as we go to ensure that we are optimizing the sustainable use of resources and remaining cost-effective.”


Anglo American’s Quellaveco copper project in Peru has created 15,000 jobs during construction and approximately 2,500 jobs are planned for operations, increasing Peru’s copper production by a forecast 300,000 tonnes per year. The mine’s first copper production is expected in 2022. To learn more about Anglo American's Quellaveco copper project read our feature here.

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