Published: February 16, 2017 |

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Alamos Gold Inc. has completed the feasibility study for its Kirazli gold project, located in the Canakkale Province in northwestern Turkey. The study is a continuation of the pre-feasibility study completed on the project in 2012.

“This further validates the overall attractiveness of the Kirazli project. Despite using a lower gold and silver price, Kirazli’s economics have improved substantially. With its low capital and operating costs and quick payback, Kirazli is one of the highest return, undeveloped gold projects in any price environment. Kirazli represents our next phase of growth and will be a significant source of free cash flow in the coming years,” said John A. McCluskey, president and chief executive officer of Alamos Gold.

FEASIBILITY STUDY HIGHLIGHTS

•  Declaration of an initial proven and probable mineral reserve of 26.1 million tonnes grading 0.79 grams per tonne of gold (g/t Au) and 12.0 grams per tonne of silver, containing 0.67 million ounces of gold and 10.1 million ounces of silver;

•  Average annual gold production of 104,000 ounces over five years with life of mine production of 540,000 ounces;

•  Life of mine total cash costs of $339 per ounce of gold and mine-site all-in sustaining costs of $373 per ounce, among the lowest in the industry;

•  Initial capital estimate of $152 million and total life of mine capital, including sustaining capital and closure costs, of $180 million;

•  After-tax net present value (NPV) of $187 million at an 8 percent discount rate ($223 million at a 5 percent discount rate) and an after-tax internal rate of return (IRR) of 44 percent, representing a 1.4 year payback using base case gold and silver price assumptions of $1,250 and $16.00 per ounce, respectively;

•  Applying the same base case gold and silver price assumptions to the 2012 pre- feasibility study, the after-tax NPV (8 percent) more than doubles from $82 million to $187 million and the after-tax IRR improves from 26 percent to 44 percent, highlighting a significant improvement in the project economics.

To read more details in the company’s press release, CLICK HERE

About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson mine in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico. Additionally, the company has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,300 people and is committed to the highest standards of sustainable development.

To stop by Alamos’ website, CLICK HERE

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