The Kiziltepe area contains all of the primary mining infrastructure for the project, including the open pits of Arzu South, Arzu North, Banu and Derya. The 20,000 ounce per year Kiziltepe Gold Mine was completed in H1 2017 with first gold pour achieved in March 2017. The mine is now fully commercially operational and cashflow generating.
- Production commenced in March 2017
- Commercial production achieved by July with cash costs for Q3 estimated at US$ 570/oz
- Gross JV revenue in Q3 was US$ 5.05M
- Targeting mill throughput in excess of 180,000tpa, up from design plan of 150,000tpa
- Process recovery of gold exceeding feasibility expectations at 95%
- c.46,000 tonnes of ore at 2.14g/t Au stockpiled, representing over three months of production
- Expecting delivery of c. 20,000 oz Au eq. p.a. from H2 2017 for a period of 8 years initial mine life
The Kiziltepe Project area currently consists of five mineralised zones; Arzu South, Arzu North, Banu, Derya and Kepez. Arzu South is the largest of the zones and trial mining was undertaken in this area during 2009. A series of additional mineralised zones of similar character are known within the project area. The Kiziltepe area is dominated by Miocene volcanic rocks, which host mineralised quartz veins. The gold (Au) mineralisation identified in the Sindirgi region is classified as a low-sulphidation epithermal type including quartz veins, vein breccias and stockworks. Silver (Ag) mineralisation is present with the gold in both the mineralised quartz veins and the stockwork mineralised envelope around the veins. The Ag:Au ratio is up to 5:1 but more commonly 15:1 or 30:1.
Resource base growth potential
Only 6% (2km) of the total vein system across the entirety of the Kiziltepe sector (34km) defined to date has been drill-tested and contains the current resource. As a result there is significant potential to grow the future resource base, which may contribute to enhance the economics of the Kiziltepe mine.
- Potential total LOM at Kiziltepe Sector of 11.5 years including satellite deposits (up from 8, as per DFS)
- JORC Mineral Resource increased in 2017 to 338,500 oz Au equivalent
- Substantial increase in tonnage to c. 3.8Mt with inclusion of subsidiary veins which do not currently form part of the mine plan
- New resource excludes certain satellite veins (e.g. Kepez) which could increase the LOM further
- JORC Exploration Target of a further c. 1.25Mt @ 1.8 g/t Au and 31 g/t Ag established for vein extensions across Kiziltepe that have not yet been drill tested
Definitive Feasibility Study Summary*
*base case at US$1,304/oz
Click the years below to reveal timeline detail.
2017First gold pour in March 2017. Commercial production achieved by July 2017 with cash costs for Q3 estimated at US$ 570/oz
2016Construction of processing plant, mine office infrastructure and main pit complete. Tailings dam construction.
2015Forestry approval received following which gold mine construction commences
2014$33 million credit agreement with Turkiye Finans Katilim Bankasi A.S. to fully finance mine construction.
2013Positive Definitive Feasibility Study at Kiziltepe, EIA approved for Kiziltepe Gold-Silver Mine.
2011JORC compliant Resource Estimate and Scoping Study for the Kiziltepe Sector.
2009First gold production at Kiziltepe for 387 oz Au and MoU on Red Rabbit JV with Proccea Construction.
2007First JORC resource estimate announced on Kiziltepe of 135,000oz Au.
2005Acquisition of Kiziltepe licences from Newmont.
2000Newmont Mining Corporation acquired key licences and undertook initial drilling and other sampling programmes.
1990Discovery of gold at Kiziltepe during a regional BLEG stream-sediment sampling programme undertaken by Eurogold in 1990.