Alacer Gold Corp. (TSX:ASR,ASX:AQG) updated its mineral resource and reserve estimates, also releasing an updated production profile for its Turkey-based Copler gold mine.
Alacer Gold Corp. (TSX:ASR,ASX:AQG) updated its mineral resource and reserve estimates, also releasing an updated production profile for its Turkey-based Copler gold mine. Overall, Copler’s reserves have increased by 24 percent; as a result, production has been bumped up to over 800,000 ounces and the mine’s life has been extended to 2039.
Specifically, oxide production has been increased by over 245,000 ounces and sulfide production has risen by 555,000 ounces.
Other key improvements include:
- Oxide Heap Leach Pad Phase 4 expansion now has increased capacity of 58 million tonnes from 49 million tonnes
- Sulfide Tailing Storage Facility capacity increased to facilitate an additional 4.5 years of production
- Enhanced recovery model employed, leading to increased metallurgical recovery, averaging 72% going forward
- Improved oxide/sulfide ore discriminator model implemented
Rod Antal, president and CEO of Alacer, commented:
This very positive update to our Mineral Resource and Mineral Reserve estimates significantly improves our gold production profile going forward and will provide us with a number of benefits as we transition into sulfide ore production in late 2017. We will generate significant additional free cash flow from increased ounces of high-margin oxide production between 2015 and 2019 and specifically in 2018 as we bring the sulfide plant into full production. We will also be able to add sulfide ounces in the first five years of POX production, improving the Sulfide Project investment case. All of these factors greatly improve our fundamental operating metrics and further strengthens and de-risks our business profile.
The improvements reflect the addition of over 245,000 ounces (increase of 44%) to oxide production and 555,000 ounces (increase of 22%) to sulfide production, resulting in an extension of the mine life by an additional 4.5 years.
Over the past 12 months various technical work streams have allowed us to improve our understanding of the Çöpler orebody and further demonstrates the advantages of our investment in this brownfield project. Çöpler continues to deliver and the Sulfide Project remains on track.
Alacer is a leading intermediate gold mining company, with an 80% interest in the world-class Çöpler Gold Mine in Turkey. The Corporation’s primary focus is to maximize portfolio value, maximize free cash flow, minimize project risk, and therefore create maximum value for shareholders.