Name of the Project
Gediktepe gold project.

Location
The Gediktepe project is located in Balıkesir province, about 370 km west of Ankara and 190 km to the south of Istanbul, Turkey.

Client
The project will be a 50:50 joint venture between Alacer Gold and Lidya Mining upon completion of the clawback right exercised by Alacer. The estimated clawback cost as at June was $7.1-million Lidya Mining is the operator of Gediktepe.

Project Description
A prefeasibility study on the project has shown that Gediktepe is an economic and technically viable project.

Gediktepe is a polymetallic orebody that contains economic values for gold, silver, copper and zinc.

The sulphide deposit is overlain with oxide ore containing gold and silver, which is amenable to heap leaching.

The project will be an openpit mine and the oxide ore will be processed first, providing cash flow for the development and subsequent processing of the more prevalent sulphide ore. The sulphide ore contains gold, silver, copper and zinc, and will be processed through a multistage flotation circuit producing two marketable concentrates. The project has oxide proven and probable reserves of 3.2-million tonnes, with an average gold grade of 2.95 g/t and an average silver grade of 77.7 g/t, and measured and indicated resources of 3.8-million tonnes, with an average gold grade of 2.60 g/t and an average silver grade of 69 g/t.

A total of 3 000 t/d of oxide ore will be processed over three years at a conventional heap-leach facility.

Life-of-mine (LoM) oxide ore production has been estimated at 300 000 oz of gold equivalent – 250 000 oz of gold and 3.6-million ounces of silver.

Sulphide proven and probable reserves have been estimated at 21.7-million tonnes of ore grading 0.99% copper, 2.35% zinc, 0.93 g/t gold and 35.3 g/t silver.

Sulphide measured and indicated resources have been estimated at 32.2-million tonnes with average grades of 0.90% copper, 1.93% zinc, 0.77 g/t gold and 29.5 g/t silver.

Sulphide processing of 6 500 t/d will be undertaken over ten years using two four-stage flotation circuits to produce copper and zinc concentrates.

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 $475-million and an after-tax, unlevered internal rate of return of 47%, with a payback of 2.5 years from the start of production.

Value
The project will require $120-million in preproduction capital expenditure (capex).

Total project capex has been estimated at $246-million, comprising $111-million for the oxide project and $135-million for the sulphide project.

Duration
Not stated.

Latest Developments
The project will now move into a detailed study phase where technical work will continue to advance along with basic engineering.

During this next phase, the required land use permits will be secured and financing options will be considered. A key component of this phase will be the creation of the development schedule, including key milestones.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

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