A single heap leach facility is planned at the northern side of the Ağı Dağı site with a capacity of approximately 70 million tonnes. The capacity of the heap leach facility at Ağı Dağı was based upon the estimated measured and indicated resources at the time of the PFS; however, has the potential to be expanded to accommodate an additional 20 million tonnes.
Processing at Ağı Dağı includes heap leaching of crushed ore with dilute cyanide solutions with precious metals production in carbon adsorption-desorption-recovery (“ADR”) plants to produce gold/silver doré bars. Sufficient metallurgical testing has been completed on samples from the project to support the Pre-feasibility level design of the process facilities. Wherever practical, identical equipment was used at both Ağı Dağı and Kirazlı to minimize spare parts handling and inventories, and to facilitate major equipment operations and maintenance.
Gold and silver recoveries by alteration type were estimated based on a column leach testing program. Testing results indicated crushing with cement agglomeration is required to achieve the estimated recoveries. The overall gold recoveries at Ağı Dağı are expected to average 81% while silver recoveries are lower and expected to averaged 26%. Reagent consumptions are low to moderate and leach times are at 90 days at both projects.
Preferred sites have been selected for heap leach facilities and waste rock dump sites at Ağı Dağı. Preliminary designs were completed for these facilities, and geotechnical characterization and engineering analyses were conducted to confirm stability and support the Pre-feasibility cost model for both projects.
The power connection for Ağı Dağı will be from a substation at the coal powered generating station at Çan. Approximately 20 kilometers of new power lines will be required to feed power from Çan to Ağı Dağı.
Operational water will be used at the project to wet new ore stacked on the leach pad, replace evaporation losses on the heap leach pad facilities, provide dust-control for haul roads, access roads, crushing and ADR operations, and construction activities. Water will be supplied to the projects mainly via a pipeline from the planned reservoir, from wells, and/or from surface water collected at each site.
Alamos has initiated an engineering design and feasibility study for a reservoir which will supply potable water to nearby communities in Ağı Dağı and Kirazlı, comprising over 20 villages, and sustainable process water to Ağı Dağı and Kirazlı mining operations. Alamos has committed to design and construct the reservoir in partnership with the government agency, the State Hydraulic Works (“DSI”). Dam design includes sufficient capacity for peak process water requirements and has been sized to accommodate drinking water requirements for the projected population for the year 2065 of the surrounding communities.
Since acquiring the Ağı Dağı and Kirazlı projects in early 2010 and in line with the Company’s objectives of sustainable development and social responsibility, the Company recognized the importance of improving the quality of potable water delivered to the local communities within its project areas and has committed to the development of the reservoir.
A 2% Net Smelter Return Royalty in favour of Franco Nevada Corporation is registered against the Aği Daği property (which includes a portion of the Çamyurt Project).
Technical Information and Cautionary Notes on non-GAAP Measures and Additional GAAP Measures