TSX- and ASX-listed Alacer Gold says its sulphide project, at the Çöpler mine, in Turkey, is nearing completion and remains on track for start-up in the third quarter.
The project capital cost estimate has been reduced from $744-million to $673-million.
“Wet commissioning of the crushing and grinding circuits is under way, with the crusher tested on oxide ore. We expect the full oxide circuit to start processing ore during August.
“We will then star up the sulphide plant shortly thereafter, meeting our third-quarter schedule,” Alacer president and CEO Rod Antal said on Tuesday.
The sulphide project is expected to add about 20 years of production at the mine.
Meanwhile, the company’s oxide plant, at the Çöpler mine, is off to a good start this year, with production of 63 073 oz achieved for the six months to June 30, at an all-in sustaining cost (AISC) of $659/oz.
Success from the in-pit exploration programme resulted in an increase in the full-year oxide gold production guidance to between 110 000 oz and 130 000 oz and a decrease in oxide AISC to between $650/oz and $700/oz.
The company’s normalised earnings a share for the second quarter ended June 30, was $0.02 after adjusting for noncash items, including unrealised noncash foreign exchange losses and incentive tax credits – bringing the company’s half-year normalised earnings a share to $0.05 apiece.
Attributable net profit totalled $6.6-million.
“Our strong operational and financial performance year-to-date, combined with the imminent completion of the sulphide plant in the third quarter and mining at Çakmaktepe in the fourth quarter, delivers on our growth objectives in this transformational year for Alacer,” said Antal.
He added that approval of the revised Çakmaktepe environmental-impact assessment and operating permit is progressing. Site clearing is complete and access road construction from Çakmaktepe to the Çöpler infrastructure is nearing completion.
Pending permit approval, Alacer plans to start mining at the site in the fourth quarter.
Additionally, during the quarter, the company received positive drilling results at Ardich, within the Çöpler district, including 50.2 m at 3.01 g/t gold near surface.