Alacer forecasts big gold production increase in 2017

PERTH (miningweekly.com) – Dual-listed Alacer Gold has increased its production expectations for 2017, as higher gold production from the Çöpler gold mine, in Turkey, carried over from the end of 2016 into this year.

Alacer on Wednesday reported gold production of 33 861 oz for the December quarter, which was a significant improvement on the 23 202 oz produced in the previous quarter.

The miner’s production in 2016 was 119 036 oz, which CEO and president Rod Antal said would increase to between 160 000 oz and 180 000 oz this year.

Antal reported the company had seen a breakthrough of gold solution from the 1.6-million tonnes of higher-grade oxide ore stacked on the heap-leach pad during the fourth quarter, which assisted in production.

“With the carryover of unleached gold from 2016, the production guidance for 2017 is higher. In addition to the higher gold production, 2017 will be a pivotal year for Alacer as we continue to execute on our organic growth strategy,” he said.

“We will continue to advance the construction of the Çöpler sulphide expansion project, which is on schedule for first gold production next year, and will further define both Gediktepede and Cakmaktepe development timelines.”

Çöpler’s 2017 sustaining capital expenditure is expected to be A$12-million, which includes A$7-million for the final expansion of heap leach pad Phase 4, to 58-million tonnes.

A further A$436-million will be set aside for growth capital, including A$420-million for the Çöpler sulphide expansion project and A$16-million to progress technical work and site preparation for the Gediktepede project.

Furthermore, Alacer will spend A$15-million on exploration in Turkey during 2017.