The Hod Maden project is located in northeastern Turkey within the Eastern Pontides metallogenic belt. Gold-copper mineralization in the Main Zone at Hod Maden is multi stage and includes massive sulphide mineralization and breccia hosted mineralization. The project has a Mineral Reserve from May 2018 of 9.1 million tonnes at an average grade of 8.9 g/t Au and 1.4% Cu for 2.6 million ounces Au and 129,000 tonnes Cu in the Proven and Probable (2.6 g/t AuEq cut-off).
The Southern Zone was discovered in 2016 and is located approximately 300 metres south of the Main Zone. The Southern Zone gold-copper mineralization is hosted dominantly in dacitic volcanic rocks and breccias. Pyrite is the dominant sulphide phase with relatively minor chalcopyrite.
A Pre-Feasibility Study was released in 2018 and considered an underground mine with a processing rate of 900,000 tonnes per annum. The base case has a mine life of 11 years with average annual production of 266,000 ounces of gold equivalent per year at an average head grade of 11.9 g/t AuEq. The average recovery is expected to be 77% for gold and 94% for copper. The estimated upfront capital expenditure is $272 million. All-in sustaining costs are estimated to be $374 per ounce on a co-product basis. The post-tax NPV, using a 5% discount rate, is $1.1 billion with an internal rate of return of 50%.
With the release of the PFS, Hod Maden moves into the next stage of development. Lidya Madencilik has commenced the permitting process and is concurrently working on a gap analysis, trade-off studies and will begin a feasibility study by the end of the year.
A conference call was held on June 27, 2018 to further discuss the Hod Maden PFS results.
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PFS Report (16MB) PFS Presentation (2MB)
Approximately 25,000 metres of infill and exploration drilling was completed during 2017. Results reported include 28.0 metres of 47.5 g/t gold and 1.65% copper from 287.0 metres including 7.0 metres of 97.6 g/t gold and 3.86% copper from 308.0 metres.
Recent assay results from the South Zone and Russian Old Workings Zone were reported including 9.5 metres of 49.6 g/t gold from 460.0 metres including 6.0 metres of 76.6 g/t gold and 0.47% copper.
PEA results were published with a base case after-tax NPV of $1.37B and IRR of 153%.