Name of the Project
Cöpler sulphide expansion project.

Location
Turkey.

Client
Alacer Gold (80%).

Project Description
The Cöpler sulphide project will entail the introduction of a whole-ore pressure oxidation (POX) circuit that will extend the mine life and boost current resources and reserves. The POX facility is expected to process sulphide ore at a rate of 5 000 t/d and will result in a 20-year mine life for the project. Gold recovery for the sulphide plant is expected to average 96% over the life of the mine.

Twin horizontal enclaves will enable incremental improvements to increase the throughput rate by 2.2-million tonnes a year by 2021.

Over the remaining project life, the Cöpler mine is expected to produce about four-million ounces of gold.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $728-million and will provide an after-tax internal rate of return of 19.2%, with a payback of less than three years from the start of sulphide gold production.

Value
Capital expenditure is estimated at $744-million.

Duration
First gold pour is expected in the third quarter of 2018 and the plant will achieve initial design capacity of 1.9-million tonnes a year throughput rate by the end of 2019.

Latest Developments
Alacer Gold has completed foreign currency forward sales contracts to limit its exposure to the volatility of the Turkish Lira (TRY).

The hedging programme covers about 40% of the remaining sulphide expansion project capital expenditures and could reduce the overall capital cost of the $744-million project.

The programme forward sold $130-million to buy 500-million TRY, at an average conversion rate of 3.8, with settlement dates between June and September 2018.

The company has said that as the sulphide project continues to advance and the final commercial outcomes are known, it will be able to start quantifying the foreign currency impacts.

The hedge can be used in the current continuing Çöpler oxide operations or the sulphide project.

The sulphide project is now 48% complete and is on schedule, Alacer advised.

Key Contracts and Suppliers
Carpenteria Corsi (autoclaves)

On Budget and on Time?
The project is on schedule, with indications that the capital cost of the project could be reduced with the hedging programme.

Contact Details for Project Information
Alacer Gold, tel +1 303 292 1299, fax +1 303 297 0538 or email info@alacergold.com.