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 allow for 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 expects 2018 to be a pivotal year, as the Çöpler sulphide expansion project comes on line in the third quarter and initial mining at new oxide deposit Çakmaktepe gets under way later this year.

A guidance of 120 000 oz to 190 000 oz from Çöpler oxides and sulphides is expected for 2018.

This comprises Çöpler’s oxide gold production guidance of 70 000 oz to 90 000 oz at an all-in sustaining cost for the oxides of $750/oz to $800/oz, and sulphide gold production of 50 000 oz to 100 000 oz.

The sulphide expansion project is currently 75% complete and dry commissioning is under way in some areas. Start-up of the plant will start by first processing oxide ore through the crushing, grinding and carbon-in-pulp (CIP) circuits.

The full sulphide plant will start in the third quarter, with the staged start-up beginning with the crushing, grinding and CIP circuits.

Meanwhile, Çöpler’s oxide sustaining capital expenditure (capex) of $7-million – $6-million attributable – is planned for 2018. This includes $3-million for the expansion of heap-leach pad Phase 4 to 58-million tonnes.

Çöpler’s sulphide sustaining capex is expected to total $30-million, while growth capex of $237-million is planned, which includes $225-million for the sulphide expansion project construction; $7-million to complete the Gediktepe definitive feasibility study and $4-million to bring Çakmaktepe into production.

About $11-million - $6-million attributable – is set aside for expenditure on Alacer’s exploration portfolio in Turkey during 2018, with focus on Çakmaktepe Far North and in-pit drilling at Çöpler to grow the oxide resource.

Key Contracts and Suppliers
Carpenteria Corsi (autoclaves)

On Budget and on Time?
Too early to state.

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