Alacer Gold Announces Maiden Mineral Reserve and a 70% Increase in Measured and Indicated Mineral Resource for Çakmaktepe as Well as Additional Exploration Results for Çakmaktepe

TORONTO, Dec. 18, 2017 (GLOBE NEWSWIRE) -- Alacer Gold Corp. (“Alacer” or the “Corporation”) (TSX:ASR) (ASX:AQG) is pleased to announce a maiden Mineral Reserve and a 70% increase in the Measured and Indicated Mineral Resource¹ for the Çakmaktepe near-mine deposits located in the Çöpler District. Alacer also announces initial exploration drilling results of the Çakmaktepe Far North exploration prospect. Çakmaktepe is adjacent to the Çöpler Mine which has approximately four million tonnes of spare capacity in the heap leach facility which will be used to treat oxide ore from Çakmaktepe.

Rod Antal, Alacer’s President and Chief Executive Officer, stated, “This is exciting growth. Our target has always been to bring Çakmaktepe online in 2018 and with mining planned to commence in Çakmaktepe next year, we will meet this objective. With this development, we now have an additional oxide ore source that will utilize the existing Çöpler oxide infrastructure. Turning this exploration potential into profitable production in a relatively short time frame is a significant achievement by the team.

Additionally, we recently completed five initial drill holes at Çakmaktepe Far North and are already seeing excellent potential with the assays revealing mineralization and good grade continuity. With many areas remaining open across Çakmaktepe, our targeted exploration program will continue into 2018 with a view to build on our results to date.”

Summary         

• The Measured and Indicated Mineral Resource estimate for Çakmaktepe in the Çöpler District has increased by ~70% (to 239,000 ounces) since December 2016. The Inferred Mineral Resource estimate increased by ~110% (to 50,000 ounces) since December 2016.
• Defined a Maiden Mineral Reserve of 176,000 ounces for the Çakmaktepe Resource.
• Pending approval of the revised Environmental Impact Assessment and Operating Permits, Alacer plans to commence mining the portion of the deposits not covered by Pasture Permits; estimated to be Q4 2018.
• This initial Çakmaktepe material will be trucked to the existing Çöpler processing facility and is estimated to contribute approximately 50,000 ounces of recoverable gold production, predominantly in 2019.
• Pasture permit applications have been submitted for the other areas of Çakmaktepe defined as Pasture land.
• The mine access road connecting Çöpler to the Çakmaktepe deposits is under construction and connects to the new tailings storage facility haul road.
• Exploration continues at Çakmaktepe and the updated Mineral Resource does not include drilling after June 21, 2017. Many areas of the Çakmaktepe deposit remain open.
• Initial drilling of Çakmaktepe Far North is encouraging and exploration of the area has been accelerated.
• The in-pit exploration program at Çöpler continues and is focused on finding additional oxide ore. 

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¹ Detailed information regarding the Çöpler District maiden Mineral Resource can be found in the press release entitled “Alacer Gold Announces Additional Exploration Results for Çakmaktepe and an Initial Mineral Resource in the Çöpler District,” dated December 19, 2016, available on www.sedar.com and on www.asx.com.au. 

An image of the Çakmaktepe Prospect Location Plan accompanying this release is available http://resource.globenewswire.com/Resource/Download/b48d4cbf-8528-494b-b39b-47b168db5c72  

2017 Çakmaktepe Mineral Resource Estimate Update and Initial Reserve Estimate

Note:  Mineral Resources are inclusive of Mineral Reserves. Mineral Resources are shown on a 100% basis, of which Alacer owns varying amount from 50% to 80%. Alacer’s attributable Measured and Indicated portion is 120,000 contained ounces and 29,000 Inferred contained ounces. The Ҫakmaktepe and Bayramdere deposits are part of the Çöpler Project and will contribute to the overall Çöpler Mineral Resource estimate. The key assumptions, parameters, and methods used to estimate the Mineral Resources are provided in the appendices to this announcement. We are not aware of any new information or data that materially affects the information included in this announcement and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed. Rounding differences will occur.

Note:  Mineral Reserves are shown on a 100% basis, of which Alacer owns 50%. The Mineral Reserves methodology and cut-off grades are summarized in the appendices to this announcement. Ҫakmaktepe is part of the Çöpler Project and will contribute to the overall Çöpler Mineral Reserve estimate. The key assumptions, parameters, and methods used to estimate the Mineral Resources and Mineral Reserves are provided in the appendices to this announcement. We are not aware of any new information or data that materially affects the information included in this announcement and that all material assumptions and technical parameters underpinning the estimates in this announcement to apply and have not materially changed. Rounding differences will occur.

Çakmaktepe Far North Drilling Highlights

Çakmaktepe Far North Project is located immediately north (about 1.5 km) of Çakmaktepe North. Five holes have been drilled with each showing good mineralization and grade continuity. Exploration of the mineralized trend has just commenced, and it is hoped that the mineralization extends further along the trend. The exploration area is predominantly in the Anagold 80:20 lease area. All the drilling to date is in the 80:20 lease area.

The deposits are hosted in a sequence of stacked, shallow-dipping fault-bounded slices of ultramafic rocks and sedimentary rocks (dominated by dolomites), apparently intruded by porphyritic granodioritic rocks. Gold mineralization is hosted at shallow depths (commonly <20 m below surface) in silicified carbonaceous rocks and gossanous ironstones and dolomites. Gold mineralization is largely present as oxide material but there are zones of less- or little-oxidized sulfides. Listwanites appears to be mineralized at the fault contact and unmineralized at the surface.

A geological map accompanying this release is available at  http://resource.globenewswire.com/Resource/Download/f2d091cd-11eb-4272-b5b7-a20d9e8b3646

An image of the SW-NE Interpretive Cross-section in Çakmaktepe Far North Project accompanying this release is available at http://resource.globenewswire.com/Resource/Download/2bb0cf19-16cc-4699-8b93-482b918fef60

The section has been tested with 5 drill holes within an area of approximately 170 m x 130 m as shown in the geological map. In contrast to Çöpler and Ҫakmaktepe mineralization, Far North’s copper content is very low. Silver is very rare and is not shown on the drill hole table.

Drill hole table shows the notable gold sections with a cut-off grade of 0.3 g/t Au.

HQ size scissors holes were drilled to test the mineralized zone for continuity and lateral changes. EW cross sections clearly indicate that the mineralized zone is a sub-horizontal zone extending from the fault bounded creek at the east to a fault zone on the west. Section A-A’ is located 60m to the north of B-B’ section. In both sections, mineralization to the west is terminated by a granodiorite intrusion. Jasperoid and breccia control on gold mineralization is clear in both cross sections. Exploration focus is on quartz vein density further north where the intensity of alteration increases. Quartz vein density reaches up to 5% in tested listwanites.

Cross section graphs accompanying this release are available at http://resource.globenewswire.com/Resource/Download/2516372f-9243-48b6-a585-9713fd432443

Çöpler District

Alacer’s exploration licenses surrounding the Çöpler Gold Mine span across a 17 km by 25 km area. The exploration licenses are managed under two separate joint ventures (“JV”). Alacer owns 80% of the licenses adjacent to Çöpler Mine under the Anagold Madencilik Sanayi ve Ticaret A.S. (“Anagold”) JV and 50% of the remaining licenses in the Çöpler District under the Kartaltepe JV, both in partnership with Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya Mining”).

Çöpler District images accompanying this release are available at http://resource.globenewswire.com/Resource/Download/6773b538-16c0-49a5-a758-d6cfc141c3f9

Çöpler District Location Plan

The Mineral Resource estimate for the Çakmaktepe Project has pit shells optimized within 4 zones of mineralization that comprise the Çakmaktepe deposit (Çakmaktepe North, Central, East and Southeast) as well as the Bayramdere deposit. The open pit shells are located within 5 km to 7 km of the existing Çöpler Mine infrastructure. The mineralization is contained within a network of fault and shear structures and is hosted within multiple lithologies. The mineralization style is similar to the Çöpler deposit and will be processed through the existing infrastructure at the Çöpler Mine.

The Mineral Resource estimate was based on 3D geological models developed to define the lithological contacts and sub-vertical shear zone style mineralization. Mineralized zones were then used to generate a block model estimate of the deposit mineralization. The model includes drill data and surface mapping through June 21, 2017.

Technical information related to the Mineral Resource and Reserve estimate, including the drilling techniques, can be found in the Appendices of this press release. To view the complete drill assay results referenced in this press release, please visit the follow link:  http://www.alacergold.com/docs/default-source/news-wire-documents/supporting-information-for-alacer-gold-exploration-announcement.pdf?status=Temp&sfvrsn=0.9862888356081239

or visit the Corporation’s website at www.alacergold.com.

Metal price assumptions used in the Mineral Resource estimate are $1,400 per ounce of gold and $19 per ounce for silver. Metal price assumptions used in the Mineral Reserve estimate are $1,250 per ounce of gold and $17 per ounce for silver. Both the Mineral Resource and Reserve estimates assume a $1.40/tonne mined mining cost and processing costs ranging from $7.56/ore tonne to $9.28/ore tonne. Mineral Resource cutoff grades range from 0.35 to 0.50 g/t. Mineral Reserve cutoff grades range from 0.40 to 0.55 g/t.

The Çakmaktepe Project is made up of a number mineralized zones collectively referred to as the Çakmaktepe deposit. Bayramdere, by virtue of isolation, is referred to as a separate mineral deposit. Çakmaktepe and Bayramdere are adjacent to and on the western side of a major northwest striking regional fault structure. The regional structure appears to control the distribution of most mineralization to the east of the Çöpler Mine.

Metallurgically, the Ҫakmaktepe and Bayramdere ores are of similar nature to ores processed at the Çöpler Heap Leach operation. A number of bottle roll and column tests were conducted in 2016 and 2017 at the SGS laboratory in Perth, Australia. The Ҫakmaktepe and Bayramdere deposits have oxide leach gold recoveries ranging from 59% to 80% dependent on lithology type and deposit location.

The Çakmaktepe North and Central deposit is located on the 50% Alacer-owned (Kartaltepe) tenement. The northern mineralization is structurally confined to a major sub-vertical shear zone. Oxide mineralization is predominantly characterized by silica-iron-carbonate rich ‘jasperoid‘, less siliceous iron rich gossan, and epithermal veined and brecciated limestone. Mineralization is not solely contained within the shear zone, also occurring along flat thrust structures and lithological contacts cut by the shear zone. Contacts between ophiolite and limestone, limestone and hornfels, as well as all lithologies in contact with intrusive granodiorite sills and dykes are generally mineralized.

• The North deposit is confined to two major NW-SE trending fault zones. The western fault, Çakmaktepe Fault, delineates the western extent of Çakmaktepe North and separates it from the Çakmaktepe ophiolitic units. The fault has a dominant dextral component.
• The shear fault controls the north deposit at the west and separates the mineralization from ophiolite.
• The thrust fault delineates the eastern extent of Çakmaktepe Central and East deposit and separates them from the Çakmaktepe ophiolitic units.
• The listwanite horizon is the most favorable host rock for Au. Listwanite formed by the pre-mineral CO₂ metasomatism of ultramafic rocks forms a critical and reactive host rock in the Çakmaktepe prospect.
• Granodiorite intrusions show evidence of hydrothermal activity which either takes the form of massive Fe-dominated replacement (magnetite-specular hematite or pyrite) or sheeted crystalline quartz veins bearing jasperoids closer to granodiorite contacts. 

An image of Çakmaktepe North and Central Mineral Resource Shells accompanying this release is available at http://resource.globenewswire.com/Resource/Download/efc8a885-0a49-4fa9-be91-c6ed30aeddca

A majority of the mineralization within the Ҫakmaktepe North pit boundary is steeply dipping and extends to a depth of nearly 180 meters. The high gold grades along this trend and the local topography result in a high strip-ratio for an open pit design. Conversely, the mineralization within the Ҫakmaktepe Central pit boundary is found at much shallower depths and is oriented nearly horizontal. This orientation results in a lower strip-ratio pit with favorable conditions for rapid ore extraction and minimal pre-strip. The mine plan considers mining in the lower strip-ratio pit first.

The Çakmaktepe East deposit is on the 50% Alacer-owned (Kartaltepe) tenement area and is a gold-copper deposit with mineralization occurring near surface in stacked iron rich gossans and associated oxidized host rocks. Most of mineralization occurs along the contacts of diorite and shear zone between ophiolites and calc-hornfels with the highest grades in proximity to diorite contacts. The Çakmaktepe East zone is now considered to be fully defined to a depth of 100m below surface.

A total of 15,606 m of drilling from Çakmaktepe East was used in the creation of the 2017 Çakmaktepe East resource model, inclusive of metallurgical and geotechnical holes. The drilling meterage is representative of all drilling completed to June 21, 2017.

An image of the Çakmaktepe East Resource Pit Outline accompanying this release is available at http://resource.globenewswire.com/Resource/Download/fca657f2-13b4-49ba-928e-96d00527465c

The Çakmaktepe Southeast deposit is on an 80% Alacer-owned (Anagold) tenement and is characterized by gold-copper-silver mineralization, mainly hosted within iron rich gossans and altered wall rocks developed along shallow dipping contacts between diorite, ophiolite and limestone lithologies. Mineralization is from surface to a depth of 50m. The zone was fully defined by resource drilling in 2015 upon which 2017 Mineral Resource estimates are based.

A total of 13,914 m of RC (93%) and diamond drilling (7%) was incorporated into the 2017 Mineral Resource estimate from the Çakmaktepe Southeast zone. The drilling meterage is representative of all drilling completed to June 21, 2017, and is inclusive of metallurgical and geotechnical holes.

An image of the Çakmaktepe Southeast Resource accompanying this release is available at http://resource.globenewswire.com/Resource/Download/b9b89c98-f8d9-4132-89b6-be4e94ee37ce

The Bayramdere deposit is on the 50% Alacer-owned (Kartaltepe) tenement area and is an oxide gold and copper deposit. Mineralization is localized within three stacked shallow dipping lodes. The mineralization has formed at the contacts of limestone and ophiolite lithologies with mineralization replacing limestone along the contacts. The limestone / ophiolite contacts are low-angle thrusts, with limestone typically being trapped as wedges of material within a dominantly ophiolite stratigraphy. Mineralization occurs within iron rich gossan horizons. Although a small deposit, Bayramdere is higher-grade and can support a high strip-ratio to access mineralization. A total of 10,709 m of drilling for Bayramdere was included into the Mineral Resource estimate, inclusive of metallurgical and geotechnical holes.

An image of the Bayramdere Resource Pit Outline accompanying this release is available at http://resource.globenewswire.com/Resource/Download/678628bd-781c-45a8-bd86-ec4979600214

Additional Drilling Information

A total of 119,447 m of drilling was completed to define the Mineral Resource estimate. In addition,

• MRMR geotechnical logging was integrated in 2017,
• Step-out drilling in 2017 defined new extension ore zones outside the known zones, and
• New metallurgy holes were drilled to provide additional samples for the Ҫakmaktepe Central district.

Further discovery potential at Çakmaktepe has been improved through the southernmost holes at Çakmaktepe Central. Given the position of the mineralization between Çakmaktepe North, East and Central mineralized zones, a broad-scale intrusive complex may be responsible for the mineralized dykes, sills and fluids associated with mineralizing and/or the high-grading of these deposits. The size and full extent of the epithermal system is not known as the surface expression is masked by meters of ophiolite scree. There is potential through:

• Definition of a mineralized feeder structure
• Further oxide mineralization associated with crossing structures, and
• Testing of the deeper sulfide mineralization.

Next Steps

An updated Environmental Impact Assessment (EIA) for production has been submitted to the Ministry of Environment. All permit requirements other than the EIA and Operating Permits have been obtained for the areas not requiring a Pasture Permit. A Pasture land mining permit has been filed and approval is pending. Construction of the haul road from the Çakmaktepe pits to the Çöpler Mine infrastructure continues with most of the road completed. The haul road is expected to cost approximately $2 million.

Exploration activity on the Çakmaktepe Far North mineralization will be accelerated in 2018; including both drilling and metallurgical studies.

About Alacer

Alacer is a leading intermediate gold mining company, with an 80% interest in the world-class Çöpler Gold Mine in Turkey operated by Anagold Madencilik Sanayi ve Ticaret A.S. (“Anagold”), and the remaining 20% owned by Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya Mining”). The Corporation’s primary focus is to leverage its cornerstone Çöpler Mine and strong balance sheet to maximize portfolio value and free cash flow, minimize project risk, and therefore, create maximum value for shareholders. The Çöpler Mine is in east-central Turkey in the Erzincan Province, approximately 1,100 kilometers southeast from Istanbul and 550 kilometers east from Ankara, Turkey’s capital city.

Alacer is actively pursuing initiatives to enhance value beyond the current mine plan:

• Çöpler Oxide Production Optimization – Expansion of the existing heap leach pad capacity to 58 million tonnes continues. The Corporation continues to evaluate opportunities to extend oxide production beyond the current reserves, including a new heap leach pad site to the west of the Çöpler Mine.  
    
• Çöpler Sulfide Expansion Project (the “Sulfide Project”) – The Sulfide Project construction is more than 60% complete, under budget, and on schedule for first gold production in the third quarter 2018. The Sulfide Project is expected to deliver long-term growth with robust financial returns and adds 20 years of production at Çöpler. The Sulfide Project will bring Çöpler’s remaining life-of-mine (“LoM”) gold production to 4 million ounces at All-in Sustaining Costs averaging $645 per ounce^{2, 3}.  
    
• The Corporation continues to pursue opportunities to further expand its current operating base to become a sustainable multi-mine producer with a focus on Turkey. The systematic and focused exploration efforts in the Çöpler District, as well as in other regions of Turkey, are progressing. An updated Mineral Resource and maiden Mineral Reserve estimate was released for Çakmaktepe and Bayramdere⁴, and the Çöpler District remains the focus with the potential to add oxide production in 2018 utilizing the existing Çöpler infrastructure. In the region, work has commenced on a Definitive Feasibility Study (“DFS”) for the Gediktepe Project⁵ and is expected to be complete in June 2018.

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2} All-in Sustaining Costs per ounce is a non-IFRS performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation to IFRS, please see the “Non-IFRS Measures” section of the latest MD&A.

³ Detailed information regarding the Sulfide Project, including the material assumptions on which the forward-looking financial information is based, can be found in the technical report dated June 9, 2016 entitled “Çöpler Mine Technical Report” (the “Çöpler Technical Report”), available on www.sedar.com and on www.asx.com.au.

⁴ Detailed information regarding the Çöpler District Mineral Resource and Mineral Reserve can be found in the press release entitled “Alacer Gold Announces Additional Exploration Results for Çakmaktepe and an Initial Mineral Resource in the Çöpler District,” dated December 19, 2016, available on www.sedar.com and on www.asx.com.au.

⁵ Additional information on the Gediktepe Project can be found in the press release entitled “Alacer Gold Announces a New Reserve for its Gediktepe Project Providing Future Growth,” dated September 13, 2016, available on www.sedar.com and on www.asx.com.au.

Alacer is a Canadian corporation incorporated in the Yukon Territory with its primary listing on the Toronto Stock Exchange. The Corporation also has a secondary listing on the Australian Securities Exchange where CHESS Depositary Interests (“CDIs”) trade.

APPENDIX 2

Drill Hole Results Received After June 21, 2017

Graphs with Drill Hole Results accompanying this release are available at 

http://resource.globenewswire.com/Resource/Download/ccd6dd44-81c4-4ff2-a73e-b1fc353451d7

http://resource.globenewswire.com/Resource/Download/5504b75b-4f0e-4f60-9b7a-84612dbdb522

http://resource.globenewswire.com/Resource/Download/62c7c0a3-2080-4be6-ac18-9c6f548c6fcb

APPENDIX 3

Diagrams

Diagrams accompanying this release are available at 

http://resource.globenewswire.com/Resource/Download/9183036f-cd76-4cae-8a14-303b13248c20

http://resource.globenewswire.com/Resource/Download/0175c06b-2055-468b-8399-23b9cd23ed5d

http://resource.globenewswire.com/Resource/Download/c608fd63-eab6-4c3b-ae0d-1982703cbf7e

http://resource.globenewswire.com/Resource/Download/72b03862-998b-4a70-ab71-535922f5ad22