Acquisition:
2016 / 01 / 19
Agreement:
Bonus Payment
Terms:
US$2.5M, within 60 days of the commencement of commercial production
The Kirazli development project is located in the Çanakkale Province of northwestern Türkiye and is an epithermal, high-sulphidation, disseminated gold system.
A Feasibility Study was completed in early 2017 and evaluated an open-pit operation that would process 15,000 tpd through primary crushing and open circuit secondary crushing followed by heap leaching methods to extract the gold and silver. Average annual production is estimated to be 104,000 ounces of gold and 617,300 ounces of silver over a five year mine life, underpinned by a Proven and Probable Mineral Reserve of 33.9 Mt of 0.7 g/t gold and 9.4 g/t silver (as at Dec. 31, 2020). Mineral Reserve cut-off grade for the Kirazli Pit are determined as a net of process value of $0.10 per tonne for each model block. For more information visit www.alamosgold.com.
Alamos expects to first develop Kirazlı and then utilize its cash flows to fund the development of Ağı Dağı. Federal government approval has been received for all permits required to construct Kirazlı, including the Environmental Impact Assessment approval, Forestry Permit, and GSM (Business Opening and Operation) permit. A 24-month development timeline for Kirazli is anticipated, including approximately three months of pre-commercial production.
Within 60 days of the commencement of commercial production at Kirazli, Sandstorm will receive a production bonus of $2.5 million. The bonus is payable by Newmont Corporation who assumed the obligation when they acquired Fronteer Gold in 2011. Sandstorm acquired the bonus payment as part of the Teck royalty package in January 2016.
