Alacer studies second mine in Turkey

JOHANNESBURG (miningweekly.com) – TSX- and ASX-listed Alacer Gold is advancing a second project in Turkey to detailed study phase, following the completion of a prefeasibility study (PFS), which demonstrates the Gediktepe project’s technical and financial feasibility. 

The PFS established a maiden resource and reserve for the Gediktepe project, which Alacer owns in a 50:50 joint venture (JV) with Lidya Mining, and will be followed by basic engineering and more technical studies.

The PFS determined that the Gediktepe project, formerly known as the Dursunbey project, contains 400 000 oz of gold, eight-million ounces of silver, 315-million pounds of copper and 780-million pounds of zinc.

The JV partners are considering an openpit mine for Gediktepe, which will start processing oxide ore using conventional heap leach and the Merrill Crowe process. Production will transition to sulphide processing in the third year of operations. The sulphide ore will be processed through two four-stage flotation circuits, one for copper and one for zinc recovery. The concentrates will be shipped offsite for processing at smelters.

Reporting on the results of the PFS on Wednesday, Alacer said that the project was expected to deliver 1.8-million ounces on a gold-equivalent basis over 12 years of operation. It would require preproduction capital of $120-million and an additional $126-million for a sulphide ore flotation plant.

The PFS estimated a net present value of $475-million and an internal rate of return of 47%, based on a gold price of $1 250/oz, a silver price of $18.25/oz, a copper price of $2.75/lb and a zinc price of $1/lb. The project has a 2.5 year payback period from the start of production.

Alacer said that Gediktepe would deliver $745-million in aftertax cash flow over its 12-year operating life.

“It is an outstanding result and a credit to our partner and to our team who have converted a grassroots exploration target into a discovery and advanced it to a PFS, all in the span of just four years. Not only does this achievement illustrate our ability to capture and convert value from exploration, but it also demonstrates the great prospectivity in Turkey,” commented Alacer CEO Rod Antal.

Alacer’s flagship project is the Çöpler mine, in Turkey.