TSX-listed Alamos Gold said on Wednesday that it would be mobilising for full construction activities at its Kirazli project, in Turkey, in the next two months after it was granted the final permit needed for the development of the gold project.
News that the Çanakkale governorship had granted a business opening and operation permit for Kirazli sent the Canadian miner’s stock up nearly 5% to C$7.41 a share.
“We are very pleased to have achieved this key milestone. With the environmental impact study and forestry permits having been previously approved, we have all the required permits to ramp up full-scale construction activities,” said Alamos president and CEO John A. McCluskey.
Initial production is expected in the second half of 2020.
As outlined in the 2017 feasibility study, Kirazlı has a 44% after-tax internal rate of return and is expected to produce more than 100 000 oz of gold during its first full year of production at mine-site all-in sustaining costs of less than $40/oz. This is expected to bring consolidated production to over 600 000 oz/y.
The initial capital estimate for Kirazlı is $152-million of which $50-million to $60-million is expected to be spent in 2018, inclusive of $10-million spent through the first half of 2018. The bulk of the remaining initial capital will be spent in 2019 and the first half of 2020.
Kirazlı is an openpit gold and silver heap leach project located near the northwestern city of Çanakkale. Alamos bought the project in 2010, along with the Ağı Dağı, for $90-million.