Turkey Regional Exploration

The Gediktepe Project is located in Balıkesir Province, about 370 km west of Ankara and 190 km to the south of Istanbul. As of December 31, 2016, Gediktepe is owned on a 50/50% basis with our joint venture partner, Lidya Mining.

Gediktepe is a polymetallic orebody that contains economic values for gold, silver, copper and zinc. The sulfide deposit is overlain with oxide ore containing gold and silver which is amenable to heap leaching. Gediktepe will be an open pit mine and the oxide ore will be processed first, providing cash flow for the development and subsequent processing of the more prevalent sulfide ore. The sulfide ore contains gold, silver, copper and zinc and will be processed through a multi‐stage flotation circuit producing two marketable concentrates.

Overall Project Economics:
  • Total payable metals of 400,000 ounces of gold, 8 million ounces of silver, 315 million pounds of copper and 780 million pounds of zinc
  • LoM production over 12 years of 1.8 million ounces on a Gold Equivalent Ounce basis
  • Pre‐production capital expenditure of $120 million
  • An additional $126 million in project capital required for the sulfide ore flotation plant and  related infrastructure
  • Project after‐tax net present value at 5% is $475 million
  • Project after‐tax, unlevered internal rate of return of 47%
  • Project payback achieved in 2.5 years from start of production
  • After‐tax free cash flow of $745 million generated over the LoM
  • LoM average costs on a AuEq basis:
    • Total Cash Costs of $613 per ounce AuEq
    • All‐in Sustaining Costs of $625 per ounce AuEq
    • All‐in Costs of $759 per ounce AuEq
As a result of the positive Gediktepe PFS, the Project has moved into a detailed study phase where basic engineering and more detailed technical studies will be completed. Permitting work and some site preparation will be undertaken concurrently with the detailed studies.