Name of the Project
Hod Maden gold/copper project.

Location
In the Eastern Pontides metallogenic belt, in north-eastern Türkiye.

Project Owner/s
SSR Mining has announced a $270-million transaction to acquire up to 40% of the Hod Maden gold/copper development project from Lidya Mines.

Lidya Mines and Horizon Copper hold a 70% and 30% ownership interest respectively.

SSR will make a $120-million upfront cash payment for a 10% interest, handing it immediate operational control of Hod Maden.

Following completion of the earn-in structured cash milestone payments, SSR would own 40% of the project, Lidya will retain a 30% ownership interest and Horizon will own the remaining 30%.

Project Description
The feasibility study, released in November 2021, envisages an underground mine divided into two distinct mining zones, with a modified drift-and-fill technique applied to the upper mine area and a longhole stoping technique applied to the lower mine area.

The upper mine will be accessed through two shallow shafts to the north and south of the mineralisation.

The mine will produce 2.02-million ounces of gold and 255-million pounds of copper over a 13-year life-of-mine (LoM). Average production is estimated at 156 000 oz/y of gold and 19.6-million pounds of copper a year, with a mill design capacity of 800 000 t/y, and average gold and copper recoveries of 85% and 93% respectively.

Average head grade over the LoM is 8.8 g/t gold and 1.5% copper.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $1.3-billion and an internal rate of return of 41%, with an after-tax payback of two years from the start of production.

Capital Expenditure
Upfront capital expenditure is estimated at $309-million.

Planned Start/End Date
Not stated.

Latest Developments
SSR has reported that, following discussions with joint venture partners, it believes there are several positive operational value levers, as well as exploration potential, beyond the existing 13-year LoM plan presented in the 2021 feasibility study.

“We will spend the next 12 months updating the existing technical report for these value-enhancing opportunities, as well as to account for changes in market conditions,” SSR president and CEO Rod Antal has said.

SSR would work towards a full construction decision in 2024 to deliver first production in 2027.

Key Contracts, Suppliers and Consultants
GR Engineering Services, AMC Consultants and Hacettepe Mineral Teknolojileri (feasibility study).

Contact Details for Project Information
Sandstorm Gold, tel +1 604 689 0234 or email info@sandstormgold.com.