Salinbas

Salinbas & Ardala

Salinbas

Overview

The Salinbas Gold Project is located in north-eastern Turkey and contains a JORC (2012) Measured, Indicated and Inferred Resource of 1.5 million ounces of gold (as at July 2020). It is located within the multi-million ounce Artvin Goldfield, which contains the "Hot Gold Corridor" comprising several significant gold-copper projects including the 4 million ounce Hot Maden project, which lies 16km to the south of Salinbas. An Exploration Target of up to 2.7Moz gold and 16.1Moz silver was established for the project in 2018. There is potential for further resource extensions to be delineated within high-grade and steeply dipping breccia pipes (akin to the Hot Maden deposit), which likely merge with the Salinbas gold-silver zone. Furthermore, recent work has confirmed that the Ardala Zone is dominated by a significantly gold-enriched copper-molybdenum porphyry system. A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation.

The latest Mineral Resource estimate is based on a significant improvement in geological understanding which has further aided the definition of spatial continuity between drill holes. This applies specifically within the Main Zone of the Salinbas deposit towards the southwest.

SCOPING STUDY SUMMARY

Mine Life: 10 years
Cash Costs: US$770/oz
Processing: CIL
Planned Production Rate: 50,000 oz Au pa
JORC Resource: 9.9Mt @ 2.0 g/t Au, 10.2 g/t Ag (Indicated & Inferred)
Net Present Value US$108 million*
Internal Rate of Return 28%*
Payback 3.3 years on US$53.3 million initial capital*
Royalty: State Right and 2% NSR to Eldorado Gold Corporation

*Pre-tax base case at US$1,250/oz for gold as at April 2015 (completed by Auralia Mining Consulting).

Maps

ZOOMSB01 Salinbas overview map
SB01 Salinbas overview map
ZOOMSalinbas Cross Section
Salinbas Cross Section
Classification   Grade Metal Content
 Tonnage (t) Au (g/t) Ag (g/t) Cu (ppm) Mo (ppm) Au (oz) Ag (oz) Cu (t) Mo (t)
Measured 868,000 2.32 15.3  -  - 65,000 428,000 - -
Indicated 2,421,000 1.83 19.0  -  - 142,000 1,478,000 - -
Inferred 71,536,000 0.58 2.7 1,656 65 1,331,000 6,009,000 110,000 4,300
Total 74,825,000 0.64 3.4 1,656 65 1,537,000 7,914,000 110,000 4,300

Resource Estimate table for Salinbas and Ardala (July 2020):
Note: Summary 2020 Salinbas Project JORC 2012 compliant Mineral Resource Estimate, based on 134 drill holes and extensive surface sampling (dated 29 July 2020). Reporting is based on a 0.5 g/t Au cut-off grade for the Salinbas mineralisation and 0.25 g/t Au for the Ardala mineralisation. Figures in the table may not sum precisely due to rounding.

Overview

Overview

The Salinbas Gold Project is located in north-eastern Turkey and contains a JORC (2012) Measured, Indicated and Inferred Resource of 1.5 million ounces of gold (as at July 2020). It is located within the multi-million ounce Artvin Goldfield, which contains the "Hot Gold Corridor" comprising several significant gold-copper projects including the 4 million ounce Hot Maden project, which lies 16km to the south of Salinbas. An Exploration Target of up to 2.7Moz gold and 16.1Moz silver was established for the project in 2018. There is potential for further resource extensions to be delineated within high-grade and steeply dipping breccia pipes (akin to the Hot Maden deposit), which likely merge with the Salinbas gold-silver zone. Furthermore, recent work has confirmed that the Ardala Zone is dominated by a significantly gold-enriched copper-molybdenum porphyry system. A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation.

The latest Mineral Resource estimate is based on a significant improvement in geological understanding which has further aided the definition of spatial continuity between drill holes. This applies specifically within the Main Zone of the Salinbas deposit towards the southwest.
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