Name of the Project
Gediktepe gold project.

Location
Balıkesir province, in Western Turkey.

Project Owner/s
The project is a joint venture (JV) between Alacer Gold Corporation and Lidya Madencilik Sanayi ve Ticaret.

Project Description
An updated prefeasibility study (PFS) has delivered positive results.

The updated PFS envisages Gediktepe as an openpit mine.

Oxide ore will be processed predominantly for the first two years.

The oxide ore treatment rate is 1.1-million tonnes a year in a carbon-in-pulp plant. The sulphide treatment rate is 2.4-million tonnes a year, processing the polymetallic sulphide ore in a concentrator to produce separate copper and zinc concentrates.

A 5.5 MW secondary grinding ball mill will be added to the grinding circuit.

Sequential flotation will be used to produce separate copper and zinc concentrates for export.

Gediktepe is expected to recover total recovered metals, to doré and concentrates, of 345 000 oz of gold, more than eight-million ounces of silver, 254-million pounds of copper and 626-million pounds of zinc for a total of 1.6-million recovered gold equivalent ounces over an 11-year mine life.

The project has total proven and probable oxide reserves of 2.76-million tonnes grading 2.34 g/t gold and 56.7 g/t silver.

Total proven and probable sulphide reserves are estimated at 18.58-million tonnes grading 0.85 g/t gold, 31.8 g/t silver, 0.92% copper and 1.98% zinc.

Total measured and indicated resources are estimated at 30.22-million tonnes grading 0.9 g/t gold, 30.7 g/t silver, 0.81% copper, 1.57% zinc and 0.34% lead.

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 $258.4-million and an internal rate of return of 27%, with a payback of 4.1 years.

Capital Expenditure
Preproduction capital expenditure of $164-million is required for the oxide ore phase, with an additional $71-million in project capital required for the sulphide ore flotation plant and related infrastructure.

Planned Start/End Date
Not stated.

Latest Developments
Alacer Gold’s has sold 50% nonoperating interest in the Gediktepe project to its JV partner.

Alacer has retained a 10% net smelter royalty (NSR) on all oxide ore production and a 2% NSR on all sulphide ore production. It will also receive $10-million in cash as various milestones were met.

Should JV partner Lidya Madencilik Sanayi ve Ticaret abandon the Gediktepe project, Alacer will retain an option to take back the project for no additional consideration. Also, should first production at Gediktepe not occur within ten years of closing the transaction, Alacer will be able to regain its 50% ownership interest in the asset in exchange for relinquishing its NSR.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Alacer Gold Corporation, tel +1303292 1299 or email info@alacergold.com.