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Alamos suspends construction activities at Kirazli

An undated photo of the Kirazli project area.

An undated photo of the Kirazli project area.

14th October 2019

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Canadian miner Alamos Gold has suspended construction activities on its Kirazlı project, in Turkey, and says that the mine will not meet its target of initial production by late next year.

This comes as the company’s mining concessions in Turkey expired on Sunday.

The project has been in the spotlight in recent months, following protests against the proposed mine over environmental concerns, including deforestation around the mine site and fears over the mine’s use of cyanide.

The licences had not been revoked and could be renewed, Alamos said in a statement on Monday, adding that it was working with the Turkish Department of Energy and Natural Resources on securing the renewal of the mining concessions.

The renewal was required from the same government department that granted the operating permit for Kirazlı in March.

Alamos also again defended its project against “false information” that it said was spread about project through social media.  The company previously said that it had paid for future reforestation at the site and has denied cyanide would leak into the surrounding area.

The company said it would provide an updated guidance on the construction schedule and budget for Kirazlı following the receipt of the concession renewal and resumption of construction activities.

The company said in March that it would spend $75-million in 2019 on completing work on the water reservoir and ramping up major construction activities and earthworks. The remaining $60-million of Kirazlı’s total initial capital budget of $152-million was earmarked for 2020.

Kirazlı will 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 $400/oz. This is expected to bring consolidated production to more than 600 000 oz/y, while significantly lowering the company’s cost profile.

Edited by Creamer Media Reporter

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