TORONTO, Jan. 15, 2018 (GLOBE NEWSWIRE) -- Alacer Gold Corp. (“Alacer” or the “Company”) (TSX:ASR) and (ASX:AQG) announces full-year 2017 production results, unaudited full-year cost results, and 2018 production and cost guidance.
Rod Antal, Alacer’s President and Chief Executive Officer, stated, “I am pleased to report that we produced 168,1631 ounces of gold at unaudited All-in Sustaining Costs2 (“AISC”) of $685 per ounce in 2017, meeting our original production and beating AISC cost guidance for the year. The production initiatives generated through our operational excellence program were very successful, delivering 64,542 ounces in the fourth quarter, making it the strongest quarter of the year. All of this was achieved with zero lost-time injuries in 2017 and we have now worked 401 days, or over 8.2 million man-hours without a lost-time injury.
2018 will be a pivotal year for Alacer as the Çöpler sulfide expansion project is delivered on time and under budget in the third quarter, providing long-term gold production for at least 20 years. The sulfide expansion project is currently 75% complete and dry commissioning is underway in some areas. Start-up of the plant will commence by first processing oxide ore through the crushing, grinding and carbon-in-pulp (“CIP”) circuits. Once these circuits are stable and the pressure oxidation circuits are ready, the full plant will be brought on line.
2018 production guidance is 120,000 to 190,0001 ounces from Çöpler oxides and sulfides. We also expect initial mining at a new oxide deposit, Çakmaktepe, later this year.”
2018 Overview (100%)
- Çöpler oxide gold production guidance of 70,000 to 90,000 ounces at All-in Sustaining Costs for the oxides of $750 to $800 per ounce
- Çöpler Sulfide Expansion Project
- Construction will be delivered under budget and on schedule
- Sulfide gold production is expected to be 50,000 to 100,000 ounces
- The full sulfide plant will start in the third quarter. The staged startup will begin with the crushing, grinding, CIP circuits first, and then the remainder of the plant, including the pressure oxidation circuits
- Costs and revenues associated with initial sulfide operations will be capitalized to the construction costs until commercial production is achieved
- Initial sulfide operating costs have been updated to reflect the period to commercial production. These initial operating costs are not indicative of the costs going forward and include:
- $45 million for processing costs; $3 million for ore blending; and $30 million sustaining capital which includes $22 million for the construction of phase two of the tailings storage facility (“TSF”)
- The Life-of-Mine operational and cost assumptions have been reviewed, confirming that the forecasts disclosed in the Technical Report continue to accurately depict the economic proposition of the Sulfide Project3
- Çakmaktepe mining expected to begin in the fourth quarter with nominal gold production expected in 2018
- Gediktepe DFS is scheduled to be completed in June 2018
2018 Guidance (100%)
Guidance for the Company’s 2018 gold production and costs are as follows:
| Heap-leach gold ounces produced (includes Çakmaktepe) | (‘000’s) | 70 to 90 |
| Sulfide plant gold ounces produced | (‘000’s) | 50 to 100 |
| Oxide ore tonnes stacked (includes Çakmaktepe) | (millions) | 2.3 |
| Oxide ore grade (includes Çakmaktepe) | (gpt gold) | 1.2 |
| Sulfide tonnes mined | (millions) | 1.9 |
| Sulfide ore grade | (gpt gold) | 2.7 |
| Waste tonnes mined | (millions) | 30 |
| Total Cash Costs (C2) (oxides only)4 | ($/oz) | 650 to 700 |
| All-in Sustaining Costs (oxides only)4 | ($/oz) | 750 to 800 |
| Çöpler oxide sustaining capital expenditure | ($ millions) | 7 |
| Çöpler sulfide sustaining capital expenditure | ($ millions) | 30 |
| Çöpler sulfide expansion capital expenditure | ($ millions) | 225 |
| Other growth capital expenditure (includes Gediktepe) | ($ millions) | 12 |
| Exploration expenditure | ($ millions) | 11 |
| General and Administrative | ($ millions) | 11 |
As the sulfide plant ramps up over the second half of the year, the plant’s performance will be assessed and with the real-time data the 2019 production and cost estimates will be provided with standard guidance disclosure.
Çöpler’s 2018 oxide sustaining capital expenditure is planned to total $7 million ($6 million attributable), which includes $3 million for the expansion of heap leach pad phase four to 58 million tonnes. Çöpler’s sulfide sustaining capital expenditure is expected to total $30 million ($24 million attributable) and includes $22 million ($18 million attributable) for the construction of phase two of the TSF. Growth capital expenditure for 2018 is planned to total $237 million, which includes $225 million ($180 million attributable) for the Çöpler Sulfide Expansion Project construction; $7 million ($3.5 million attributable) to complete the Gediktepe DFS, and $4 million ($2 million attributable) to bring Çakmaktepe into production.
Expenditure on Alacer’s exploration portfolio in Turkey is planned to total $11 million during 2018, of which $6 million is attributable to Alacer. Our 2018 exploration program will focus on Çakmaktepe Far North and in-pit drilling at Çöpler with the goal of continuing to grow the oxide resource. Alacer’s exploration portfolio is held in various joint ventures with our Turkish partner, Lidya Madencilik San. Ve Tic, A.Ş. (“Lidya Mining”).
| Alacer Contribution (%) |
Exploration 100% ($ millions) |
Exploration Attributable ($ millions) |
|
| Çöpler District 80/20 | 80% | 3.3 | 2.6 |
| Çöpler District 50/50 | 50% | 2.5 | 1.2 |
| Turkey Regional & Other | Various | 5.7 | 1.9 |
| TOTAL | 11.4 | 5.7 |
Rounding differences will occur
2017 Highlights (100%)
- Zero lost-time injuries for the year
- Çöpler gold production of 168,163 ounces
- Preliminary unaudited Total Cash Costs (C2) of $530 per ounce
- Preliminary unaudited All-in Sustaining Costs of $685 per ounce
- Cash balance of $203 million and debt of $250 million at year end
- Çöpler Sulfide Expansion Project is under budget and remains on schedule at 75% complete
- At the end of 2017 approximately 97% of the concrete work was complete; approximately 90% of structural steel was erected; all field fabricated tanks were complete; all major mechanical equipment was installed; and cable pulling and electrical installation was in progress.
- The Çöpler sulfide stockpiles have grown to 8.8 million tonnes at an average grade of 3.42 gpt gold or approximately 960,000 ounces of contained gold ounces.
- Delivered a maiden Mineral Reserve and a 70% increase to the Mineral Measured and Indicated Resource for Çakmaktepe in the Çöpler District5
Fourth quarter and full-year 2017 financial statements and the related management’s discussion and analysis are planned to be released on or about February 6, 2018 (North America) with a conference call the following day. Conference call details will be announced in due course.
Çöpler Gold Mine Production Statistics for 2017
| Çöpler Gold Mine | Q1 2017 |
Q2 2017 |
Q3 2017 |
Q4 2017 |
Year 2017 |
|
| Oxide ore mined | (000’s) | 1,030 | 1,721 | 1,908 | 1,652 | 6,311 |
| Oxide ore mined | (gpt gold) | 1.03 | 0.91 | 1.14 | 1.40 | 1.13 |
| Oxide ore mined | (ozs) | 33,947 | 50,176 | 69,979 | 74,382 | 228,484 |
| Oxide ore treated | (000’s) | 1,007 | 1,738 | 1,904 | 1,577 | 6,226 |
| Oxide ore treated | (gpt gold) | 1.03 | 0.91 | 1.14 | 1.44 | 1.13 |
| Sulfide ore mined | (000’s) | 139 | 135 | 394 | 1,020 | 1,688 |
| Sulfide ore mined | (gpt gold) | 2.43 | 3.19 | 4.43 | 3.48 | 3.59 |
| Sulfide ore stockpiled | (ozs) | 10,874 | 13,867 | 56,083 | 114,202 | 195,026 |
| Waste tonnes mined | (000’s) | 7,999 | 6,557 | 6,793 | 7,416 | 28,765 |
| Gold produced | (ozs) | 32,918 | 31,391 | 39,312 | 64,542 | 168,163 |
| Gold sold | (ozs) | 34,804 | 28,415 | 38,381 | 63,056 | 164,656 |
| Çöpler Attributable4: (80% ownership) | ||||||
| Gold ounces produced | (ozs) | 26,333 | 25,113 | 31,450 | 51,634 | 134,530 |
| Gold ounces sold | (ozs) | 27,843 | 22,732 | 30,705 | 50,445 | 131,725 |
Notes
In this announcement:
- All production statistics are on a 100% basis except where otherwise noted.
- All $’s are US$’s except where otherwise noted.
- All ounces are troy ounces of gold.
- 2018 Budget assumptions for Turkish Lira to US$ of 3.8 to 1.00.
- 2018 gold sales - approximately 52,800 ounces will be sold at the hedged price of $1,280 an ounce and the remainder at $1,300 an ounce.
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 Company’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. A maiden Mineral Reserve of 111,000 ounces was released for Çakmaktepe in December 2017 and adds oxide production starting in 2018. The Company 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 75% 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 gold production to over 2 million ounces at All-in Sustaining Costs averaging $645 per ounce.
- The Company 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. A 70% increase to the Çakmaktepe Mineral Measured and Indicated Resource estimate was released in December 2017, and the resource remains open. The Çöpler District remains the focus in 2018 with the goal of continuing to grow oxide production and utilize the existing Çöpler infrastructure. In the region, work continues on a Definitive Feasibility Study (“DFS”) for the Gediktepe Project and is expected to be complete in June 2018.
Alacer is a Canadian company incorporated in the Yukon Territory with its primary listing on the Toronto Stock Exchange. The Company also has a secondary listing on the Australian Securities Exchange where CHESS Depositary Interests (“CDIs”) trade.
