Positive Prefeasibility Study for Aği Daği and Kirazli

Alamos Gold has reported a positive prefeasibility study for its 100%-owned Aği Daği and Kirazli gold projects on the Biga Peninsula in northwest Turkey. The projects are located about 19 km apart and would be developed as separate open-pit, heap leach operations; however, the prefeasibility study treats them as a single development project. The study assumes that a contract miner will be hired.

The mine plans calls for the delivery of 30,000 mt/d of ore to the crusher at Aği Daği and 15,000 mt/d to the crusher at Kirazli. Mining activity after the pre-pro-duction periods will be for approximately seven years at Aği Daği and five years at Kirazli. First gold production from Kirazli is planned for 2014, followed by gold pro-duction from Aği Daği in 2016.

Annual combined gold production from the two mines is expected to peak in 2017 at 237,000 oz and will average 166,000 oz/y over the nine-year combined mine life. Total life-of-mine production is esti-mated at 1.5 million oz of gold and 4.9 million oz of silver.

Processing includes heap leaching of crushed ore with dilute cyanide solutions and precious metals production in car-bon adsorption-desorption-recovery (ADR) plants to produce gold/silver doré bars.

Wherever practical, identical equip-ment will be used at the two operations to minimize spare parts handling and inventories.

Pre-production capital expenditures are estimated at $424.4 million. Average life-of-mine cash operating costs are estimated at $544/oz sold, and total cash costs are estimated at $579/oz sold.

In addition to the Aği Daği-Kirazli prefeasibility study, Alamos has reported an inferred mineral resource estimate of 640,000 oz for the Çamyurt deposit, located 3 km southeast of Aği Daği. Drilling has defined a mineralized zone that is continuous for at least 1,200 m along strike, with additional potential to extend mineralization to the northeast and at depth. Grades at the deposit are sub-stantially higher than those at Aği Daği and Kirazli.

As featured in Womp 2012 Vol 08 - www.womp-int.com