VANCOUVER (miningweekly.com) – The TSX-listed stock of Canadian intermediate miner Alamos Gold jumped more than 15% Thursday following the company’s premarket announcement that it has received the forestry permits for the eagerly awaited Kirazli gold project, in Turkey – a key component of the Alamos’ near-term growth profile.

The project is expected to cost about $170-million, and Alamos has projected to bring the mine on line over the next 18-month period.

"It is our highest-return project and will be a significant source of free cash flow in the years ahead. This represents a significant breakthrough for the project," stated president and CEO John McCluskey.

The operation is slated to produce about 99 000 oz of gold over a potential five-year mine plan, first outlined in a 2012 prefeasibility study (PFS). Kirazli holds about 757 800 oz gold grading 0.72 g/t, and 9.2-million ounces of silver grading 8.74 g/t in the measured and indicated resource categories.

The project represents low capital intensity with a healthy after-tax internal rate of return of nearly 40% for the company.

With the federal Turkish forestry permits now in hand, the next step will see Alamos pursue the business opening and operation permit from the Çanakkale Governorship.

PROJECT PIPELINE
Alamos is working on completing feasibility studies to update the economics for both Kirazli and Aği Daği, as outlined in the positive 2012 pre-feasibility study, which is nearing completion. The company originally acquired Kirazli and the Ağı Dağı project for about $90-million in 2010.

The company is also undertaking a preliminary economic assessment on the higher-grade Çamyurt project. Several significant changes including weakness in the Turkish Lira and lower diesel prices since 2012 are expected to positively impact what were at the time attractive project economics.

Multinational Alamos is also focused on another key development project in Manitoba, Canada, where it is advancing the Lynn Lake openpit gold project. With more than 2.6-million ounces grading 2.03 g/t in the measured and indicated categories, it is one of the highest grade openpit deposits in Canada with significant exploration potential.

Alamos expects to publish a feasibility study on Lynn Lake in the third quarter this year.

The stock gained 15.19%, or C$1.51 on Thursday to a high of C$11.45 apiece.