Name and Location
Ağı Dağı gold project, Çanakkale province, Turkey.

Client
Alamos Gold.

Project Description
The Aği Daği property currently consists of 10 514 ha of mineral tenure over 15 contiguous operation and exploration licences, covering a prominent ridge, with 900 m of relief; it also includes the Çamyurt project.

A positive prefeasibility study (PFS) on Ağı Dağı completed in 2012 envisages a standalone openpit, heap-leach operation. Under the PFS, Ağı Dağı is expected to produce an average of 143 000 oz/y of gold at total cash costs of $611/oz (inclusive of royalty) over a seven-year mine life. The nearby Çamyurt deposit was not incorporated into the PFS; however, significant capital spending on infrastructure that is expected to benefit the economics of the Çamyurt project has been included.

The Ağı Dağı deposit will be mined using openpit methods through a traditional drill, blast, load and haul sequence to deliver ore to the primary crusher and waste to waste dumps, pit backfill and/or as heap-leach pad construction fill.

The pit designs are based on a 5 m bench height to match the resource model bench height.

The PFS assumes that a contract miner will be hired to provide mine equipment and operating personnel during preproduction and throughout the life-of-mine operations.

The mine plan calls for the delivery of 30 000 t/d of ore to the crusher at Ağı Dağı. The mine has been designed as a heap-leach operation using a multiple-lift, single-use leach pad. Primary crushing and open-circuit secondary crushing will process ore to a nominal size of one inch.

The secondary crushed ore will be agglomerated with cement in an agglomeration drum, stacked on the heap-leach pad using conveyor stacking, with conventional heap-leaching methods to protect the ore.

A single heap-leach facility, with a capacity of about 70-million tonnes, is planned at the northern side of the Ağı Dağı site.

Net Present Value/Internal Rate of Return
As part of the PFS, an unlevered after-tax economic analysis of the base case scenario was completed.

The analysis yielded an after-tax internal rate of return of 22.3% and several after-tax net present values that were calculated at various discount rates.

Value
Total capital expenditure is estimated at $326.6-million.

Duration
Production is expected in 2016.

Latest Developments
Alamos Gold has received the final signatures from the Turkish Ministry of the Environment and Urbanisation, approving the environmental-impact assessment for its Ağı Dağı gold project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Alamos Gold, Scott Parsons, tel +1 416 368 9932 x 439 or email sparsons@alamosgold.com.