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 Resource from July 2016 of 7.1 million tonnes at an average grade of 12.2 g/t Au and 2.30% Cu for 3.43 million ounces AuEq in the Indicated Category (2.0 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 Preliminary Economic Assessment was released in 2017 and considered an underground mine with three different mining and processing rates, varying from 0.8 to 1.2 million tonnes per annum (mtpa). The base case of 1.0 mtpa throughput has a mine life of 9 years with metal production totaling 2.6 million ounces of gold and 142,000 tonnes of copper over the project's life. The average recovery is expected to be 88% for gold and 90% for copper from the production of two concentrates on site, a copper-gold concentrate and a gold-bearing pyrite concentrate. The estimated initial capital expenditure is $169 million.
Lidya Madencilik is working toward the release of a Preliminary Feasibility Study and has three active drill rigs conducting infill and step-out drilling.
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%.