EXHIBIT 99.128

Report to:

NI 43-101

TECHNICAL REPORT

KİRAZLI & AĞI DAĞI GOLD PROJECT

ÇANAKKALE PROVINCE

BIGA PENINSULA OF NORTHWESTERN TURKEY

Report Date: 31 July 2012

Effective Date: 30 June 2012

Prepared by:
Dr. Dennis Ferrigno, PE	CAF & Associates, LLC
Carl E. Defilippi, SME	Kappes, Cassiday & Associates
Pedro C. Repetto, PE	Repetto Consulting
Herb Welhener, SME	Independent Mining Consultants
Russ A. Browne, PE	Golder Associates
Dr. Michal Dobr	Golder Associates
Marc A. Jutras P. Eng.	Alamos Gold Inc.

	NI43-101
a woman owned small business

Author’s Certificate

Dennis P Ferrigno

I, Dennis Ferrigno, PE, as an author of this report entitled “NI 43-101 Technical Report for the Kirazli and Agi Dagi Project”, Çanakkale Province in the Biga Peninsula of Northwestern Turkey prepared for Alamos Gold Inc., dated July 31, 2012 do hereby certify that:

1. I am currently employed as a Senior Consultant for CAF & Associates, LLC located at 6354 S Yates Crt., Littleton, CO., 80123.

2. I am a graduate of Polytechnic Institute of New York and hold degrees from this institution; BSME, 1969; MSME, 1970; and DEngME, 1972.

3. I am a Professional Engineer in the Commonwealth of Pennsylvania, USA (PE019536E in current status); and the State of South Carolina, USA (PE 5199 in current status). I am active in the professional societies relevant to this work; SME and ASME.

4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am independent of the Issuer and related companies applying all of the tests in Section 1.4 of the National Instrument 43-101.

5. I am one of the authors of this Technical Report prepared for Alamos Gold dated July 31, 2012. I am responsible for:

•	Section 1.0	Summary
•	Section 2.0	Introduction
•	Section 3.0	Reliance on Other Experts
•	Section 26.0	Recommendations
•	Section 21.4	Contract Mining (co-responsible for and have reviewed Section 21.4)

6. I have had no prior involvement with the property that is the subject of the Technical Report. I visited the Kirazli and Agi Dagi Project Sites on December 18, 2011.

7. As of the date of the certificate, to the best of my knowledge, information and belief, the Technical Report contains the necessary scientific and technical information to make the Technical Report not misleading.

8. I have read NI 43-101; the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

9. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication in the public company files on their websites accessible by the public, of the Technical Report.

Dated this 31^st day of July, 2012

Dennis Peter Ferrigno

AUTHORS’ CERTIFICATES

Michal Dobr

I, Michal Dobr, P. Geo, as an author of this report entitled “NI 43-101 Technical Report for the Kirazli and Agi Dagi Project”, Çanakkale Province in the Biga Peninsula of Northwestern Turkey prepared for Alamos Gold Inc., dated July 31, 2012 do hereby certify that:

1. I am currently employed as Senior Hydrogeologist for Golder Associates Ltd., located at 500-4260 Still Creek Drive, Burnaby, BC, V5C 6C6, Canada.

2. I am a graduate of Charles University, Prague, 1982, and hold a B.Sc. in Engineering Geology and Hydrogeology.

3. I am a P. Geo with the Association of Professional Engineers and Geoscientists of British Columbia.

4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am independent of the Issuer and related companies applying all of the tests in Section 1.5 of the National Instrument 43-101.

5. I am one of the authors of this Technical Report prepared for Alamos Gold and dated July 31, 2012. I am responsible for Sections 5 and 20 of the Technical Report.

6. I have not had prior involvement with the property that is the subject of the Technical Report, participating in the preparations of a Prefeasibility Study. I visited the Kirazli and Agi Dagi Project on December 14 – 15, 2011.

7. As of the date of the certificate, to the best of my knowledge, information and belief, the Technical Report contains the necessary scientific and technical information to make the Technical Report not misleading.

8. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

Dated this 31^st day of July, 2012

Michal Dobr

Golder Associates Ltd.

500 – 4260 Still Creek Drive

Burnaby, BC V5C 6C6

CONSENT OF AUTHOR

TO:	The Alberta Securities Commission, Autorité des marchés financiers du Québec, British Columbia Securities Commission, Manitoba Securities Commission, Ontario Securities Commission, New Brunswick Securities Commission, Northwest Territories Registrar of Securities, Nova Scotia Securities Commission, Nunavut Registrar of Securities, Prince Edward Island Securities Office, Saskatchewan Financial Services Commission, Securities Commission of Newfoundland and Labrador, Yukon Registrar of Securities
AND TO:	Alamos Gold.
RE:	Agi Dagi and Kirazli Project, Preliminary Economic Assessment”, dated July 31, 2012 (the “Technical Report”)

The undersigned, an author of Sections 5 and 20 of the Technical Report, hereby:

1. Consents to the filing of the Technical Report by Alamos Gold with the securities regulatory authorities set out above;

2. Consents to the written disclosure of the Technical Report and of extracts from, or a summary of, the Technical Report as are contained in the press release dated June 27, 2012 issued and filed by Alamos Gold (the “Press Release”);

3. Confirms that I have read the Press Release and have no reason to believe that there are any misrepresentations in the information derived from that portion of the Technical Report for which I am responsible, or that the Press Release contains any misrepresentation of the information contained in that portion of the Technical Report for which I am responsible.

Dated the 31^st day of July 2012.

GOLDER ASSOCIATES LTD.

Mike Dobr, P. Geo.,

Senior Hydrogeologist

Allen R. Anderson Metallurgical Engineer Inc. NI 43-101

AUTHORS’ CERTIFICATES

Allen Ray Anderson

I, Allen Ray Anderson, “PE”., as an author of this report entitled “NI 43-101 Technical Report for the Kirazli and Agi Dagi Project”, Çanakkale Province in the Biga Peninsula of Northwestern Turkey prepared for Alamos Gold Inc., dated July 31, 2012 do hereby certify that:

1. I am currently employed as President of Allen R. Anderson Metallurgical Engineer Inc. located at 11050 E. Ft. Lowell Rd.; Tucson AZ; 85749.

2. I am a graduate of South Dakota School of Mines and Technology May 1977, and hold Bachelor of Science degree in Metallurgical Engineering.

3. I am a Registered Professional Engineer / Mining - Registration Number 50635 with the Arizona State Board of Technical Registration.

4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am independent of the Issuer and related companies applying all of the tests in Section 1.5 of the National Instrument 43-101.

5. I am one of the authors of this Technical Report prepared for Alamos Gold and dated July 31, 2012. I am responsible for Section 13 of the Technical Report.

6. I have had prior involvement with the property that is the subject of the Technical Report. As a process engineer at KD Engineering (KD) during the time previous studies authored by KD were completed, I provided process engineering support including input to Design Criteria, Process Flow Diagrams and Equipment Lists for the preliminary economic assessments. I visited the Kirazli and Agi Dagi Project on January 30, 31, 2010.

7. As of the date of the certificate, to the best of my knowledge, information and belief, the Technical Report contains the necessary scientific and technical information to make the Technical Report not misleading.

8. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

9. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication in the public company files on their websites accessible by the public, of the Technical Report.

Dated this 20th day of July, 2012
Allen R. Anderson Allen R. Anderson Metallurgical Engineer Inc. 11050 E. Ft. Lowell Rd. Tucson AZ 85749

NI 43-101

AUTHORS’ CERTIFICATES

Marc Jutras

I, Marc Jutras, P.Eng. M.A.Sc., as an author of this report entitled “NI 43-101 Technical Report for the Kirazli and Agi Dagi Project”, Çanakkale Province in the Biga Peninsula of Northwestern Turkey prepared for Alamos Gold Inc., dated July 31, 2012 do hereby certify that:

1. I am currently employed as Director Mineral Resource for Alamos Gold Inc. located at 130 Adelaide Street West, Suite 2200, Toronto, Ontario, Canada. M5H 3P5.

2. I am a graduate of the University of Quebec in Chicoutimi in 1983, and hold a Bachelor’s degree in Geological Engineering. I am also a graduate of the Ecole Polytechnique of Montréal in 1989, and hold a Master’s degree of Applied Sciences in Geostatistics.

3. I am a registered Professional Engineer (license # 24598) with the Association of Professional Engineers and Geoscientists of the Province of British Columbia. I am also a registered Engineer (license # 38380) with the Order of Engineers of Québec.

4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience. I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am not independent of the Issuer and related companies applying all of the tests in Section 1.5 of the National Instrument 43-101.

5. I am one of the authors of this Technical Report prepared for Alamos Gold and dated July 31, 2012. I am responsible for Section 14 (Mineral Resource Estimates) of the Technical Report. I am also responsible and have overseen the preparation of Section 6 (History), Section 7 (Geological Setting and Mineralization), Section 8 (Deposit Type), Section 9 (Exploration), Section 10 (Drilling). Section 11 (Sample Preparation, Analyses and Security), Section 12 (Data Verification), and Section 23 (Adjacent Properties) of the Technical Report.

6. I have had prior involvement with the property that is the subject of the Technical Report. I visited the Kirazli and Agi Dagi Project on November 1 to 10, 2009, June 20 to July 1, 2010, October 24 to 30, 2010. and September 10 to 17, 2011.

7. As of the date of the certificate, to the best of my knowledge, information and belief, the Technical Report contains the necessary scientific and technical information to make the Technical Report not misleading.

8. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

9. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication in the public company files on their websites accessible by the public, of the Technical Report.

Dated this 30^th day of July, 2012

Marc Jutras

NI 43-101

Herbert E. Welhener

I, Herbert E. Welhener, SME-QP, as an author of this report entitled “NI 43-101 Technical Report for the Kirazli and Agi Dagi Project”, Çanakkale Province in the Biga Peninsula of Northwestern Turkey prepared for Alamos Gold Inc., dated July 31, 2012 do hereby certify that:

1. I am currently employed as vice president for Independent Mining Consultants, Inc., located at 3560 E. Gas Road, Tucson, Arizona, 85714.

2. I am a graduate of University of Arizona in 1973, and hold a Bachelor of Science – Geology degree.

3. I am a Registered Member of the Society of Mining, Metallurgy, and Exploration, Inc. (# 3434330RM) and I am a Qualified Professional Member (Mining and Ore Reserves) of the Mining and Metallurgical Society of America (#01307QP), both recognized as a professional association as defined by NI 43-101.

4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am independent of the Issuer and related companies applying all of the tests in Section 1.5 of the National Instrument 43-101.

5. I am one of the authors of this Technical Report prepared for Alamos Gold and dated July 31, 2012. I am responsible for Sections 15 and 16 and co-responsible for Section 21.4 of the Technical Report.

6. I have had prior involvement with the property that is the subject of the Technical Report. I am one of the authors of the Preliminary Economic Assessment report titled “Technical Report on the Agi Dagi – Kirazli Gold Project, Canakkale Province, Republic of Turkey” dated 12 March 2010. I visited the Agi Dagi Project on December 16, 2011 and both Kirazli and Agi Dagi sites on November 5 – 7, 2009.

7. As of the date of the certificate, to the best of my knowledge, information and belief, the Technical Report contains the necessary scientific and technical information to make the Technical Report not misleading.

8. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

9. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication in the public company files on their websites accessible by the public, of the Technical Report.

Dated this 31^st day of July, 2012

signed “Herbert E. Welhener”

Herbert E. Welhener, SME-RM

Independent Mining Consultants, Inc.

3560 E. Gas Road, Tucson, Arizona 85714

AUTHORS’ CERTIFICATE

Russell A. Browne. P.E.

I, Russell A. Browne, P.E, as an author of this report entitled “NI 43-101 Technical Report for the Kirazli and Agı Dagı Projects,” Çanakkale Province in the Biga Peninsula of Northwestern Turkey prepared for Alamos Gold Inc., dated July 31, 2012 do hereby certify that:

1. I am currently employed as an Associate and Practice Leader for Golder Associates Inc. located at 595 Double Eagle Court, Suite 1000, Reno, Nevada 89521.

2. I graduated with a Bachelor of Science degree in Civil Engineering from California Polytechnic State University at San Luis Obispo in 1981. I graduated with a Master of Science degree in Civil/Geotechnical Engineering from the University of California at Berkeley in 1985.

3. I am a registered professional Civil Engineer in the united States of America in Nevada and Washington States and have been a registered Civil Engineer since 1988.

4. I am a member of the Society for Mining, Metallurgy, and Exploration (SME), and the American Society of Civil Engineers (ASCE)

5. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am independent of the Issuer and related companies applying all of the tests in Section 1.5 of the National Instrument 43-101.

6. I am one of the authors of this Technical Report prepared for Alamos Gold and dated July 31, 2012. I am responsible for Sections 17.3 and 24.1 of the Technical Report.

7. I have had prior involvement with the property that is the subject of the Technical Report which included Scoping Level support of heap leach facility siting and design for Fronteer Development in 2007 prior to Alamos Gold involvement. I visited the Kirazli and Ağı Dağıi Project Sites: from June 4 through June 6, 2007; from January 28 through February 2, 2010; from June 17 through June 23, 2010; from December 17 through December 23, 2010; from September 19 through September 25, 2011; and from December 13 through December 15, 2011.

8. As of the date of the certificate, to the best of my knowledge, information and belief, the sections of the Technical Report for which I am responsible contain the necessary scientific and technical information to make the Technical Report not misleading.

9. I have read NI 43-101, and the portions of the Technical Report for which I am responsible have been prepared in compliance with NI 43-101 and Form 43-101F1.

10. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication in the public company files on their websites accessible by the public, of the Technical Report

Dated this 31^st day of July, 2012

Russell A. Browne, P.E.

Golder Associates Inc

595 Double Eagle Court, Suite 1000

Reno, Nevada 89521

 

2

CARL E. DEFILIPPI

I, Carl E. Defilippi, as an author of this report entitled “NI 43-101 Technical Report for the Kirazli and Ağı Dağı Project”, Çanakkale Province in the Biga Peninsula of Northwestern Turkey prepared for Alamos Gold Inc. dated July 31, 2012, do hereby certify that:

1. I am currently employed as a Senior Engineer with the firm of Kappes, Cassiday & Associates located at 7950 Security Circle, Reno, Nevada USA 89506.

2. I am a graduate of the Mackay School of Mines, University of Nevada, and hold a B.Sc. Degree in Chemical Engineering (1978) and a M.Sc. degree in Metallurgical Engineering (1981).

3. I am a Registered Member of the Society for Mining, Metallurgy and Exploration (775870RM). I have practiced my profession continuously since 1982. I am a “Qualified Person for the purposes of NI 43-101 by reason of my education, affiliation with a professional association as defined by NI 43-101 and past relevant work experience.

4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am independent of the issuer and related companies applying all of the tests in Section 1.5 of the National Instrument 43-101.

5. I am one of the authors of this Technical Report. I am responsible for the preparation of Sections 17.1, 17.2, 17.4, 18.1, 18.2, 18.3, 18.5, 18.6, 18.7, 18.8, 19, 21.1, 21.2, 21.3, 22, 25 and 27 of the Technical Report. I am co-responsible for Section 3.

6. I have not had prior involvement with the property that is the subject of the Technical Report. I have visited the Ağı Dağı Kirazli Property from September 22 through September 24, 2010.

7. As of the date of the certificate, to the best of my knowledge, information, and belief, the sections of the Technical Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the Report not misleading.

8. I have read NI 43-101 and the sections of the Technical Report for which I am responsible have been prepared in compliance with NI 43-101 and Form 43-101F1.

9. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication in the public company files on their websites accessible by the public, of the Technical Report.

Dated this 31^st day of July 2012

Carl E. Defilippi

Kappes, Cassiday & Associates

7950 Security Circle

Reno, NV 89506-1995

Repetto Consulting LLC

9499 Oakbrush Way, Lone Tree, CO 80124, U.S.A.

Tel. 303-995-2563

Authors’ Certificate

Pedro C. Repetto

I, Pedro Repetto, PE, as an author of this report entitled “NI 43-101 Technical Report for the Kirazli and Agi Dagi Project”, Çanakkale Province in the Biga Peninsula of Northwestern Turkey prepared for Alamos Gold Inc., dated July 31, 2012 do hereby certify that:

1. I am currently employed as Sole Proprietor of Repetto Consulting LLC located at 9499 Oakbrush Way, Lone Tree, CO., 80124.

2. I am a graduate of Pontificia Universidad Catolica del Peru (Catholic University of Peru) and Purdue University, Indiana; and hold degrees from these institutions; Civil Engineer, 1965, and MSCE, 1970, respectively.

3. I am a Professional Engineer in the State of Colorado, USA (PE 36946 in current status); the State of Washington, USA (PE 47445 in current status); the State of Indiana, USA (PE 60900075 in current status; and, country of Peru (PE 5242 in current status). I am active in the professional societies relevant to this work; SME and ASCE.

4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. I am independent of the Issuer and related companies applying all of the tests in Section 1.4 of the National Instrument 43-101.

5. I am one of the authors of this Technical Report prepared for Alamos Gold dated July 31, 2012. I am responsible for

•   Section 4	Property Description and Location
•   Section 18.4	Water Supply

6. I have had no prior involvement with the property that is the subject of the Technical Report. I visited the Kirazli and Agi Dagi Project Sites on December 6-8 and December 13-16, 2011.

7. As of the date of the certificate, to the best of my knowledge, information and belief, the Technical Report contains the necessary scientific and technical information to make the Technical Report not misleading.

8. I have read NI 43-101; the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

9. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication in the public company files on their websites accessible by the public, of the Technical Report.

	Dated this 31st day of July, 2012
Pedro Cesar Repetto

1

Kirazlı and Ağı Dağı Gold Project NI 43-101

TABLE OF CONTENTS

1. SUMMARY	1
1.1 Background and Project Description	2
1.2 Process / Heap Leach Design	13
1.3 Capital, Operating Costs and Financial Analysis	14
1.4 Opportunity/Risks	17
1.5 Project Execution	20
1.6 Conclusions and Recommendations	20
2. INTRODUCTION	21
2.1 PFS Submission and Team	21
2.2 Project Schedule	23
3. RELIANCE ON OTHER EXPERTS	24
4. PROPERTY DESCRIPTION AND LOCATION	26
4.1 Location	26
4.2 Concessions	27
4.2.1 Kirazlı	27
4.2.2 Ağı Dağı	30
4.3 Land Ownership	33
5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRA-STRUCTURE AND PHYSIOGRAPHY	36
5.1 Location	36
5.2 Accessibility, Infrastructure, and Services	36
5.3 Climate	37
5.4 Physiography	38
5.5 Kirazlı	38
5.5.1 Location and Accessibility	38
5.5.2 Physiography	41
5.6 Ağı Dağı	41
5.6.1 Location and Accessibility	41

July 31, 2012 i

Kirazlı and Ağı Dağı Gold Project NI 43-101

5.6.2 Physiography	44
6. HISTORY	45
6.1 Kirazlı	45
6.2 Ağı Dağı	47
7. GEOLOGICAL SETTING AND MINERALIZATION	50
7.1 Regional Structural Setting of the Biga Peninsula	50
7.2 Regional Structural Setting of the Biga Peninsula	53
7.3 Geology of the Kirazlı Property	55
7.3.1 Local Geology	55
7.3.2 Alteration	58
7.3.3 Structure	61
7.3.4 Brecciation	61
7.4 Geology of the Ağı Dağı Property	62
7.4.1 Local Geology	62
7.4.2 Alteration	66
7.4.3 Structure	68
7.4.4 Brecciation	69
8. DEPOSIT TYPES	71
8.1 Deposit Type	71
8.2 Kirazlı	71
8.3 Ağı Dağı	74
9. EXPLORATION	79
9.1 Kirazlı	79
9.1.1 2010 and 1st Half of 2011 Exploration Program by Alamos	79
9.1.2 Exploration Targets on the Kirazlı Concession	82
9.2 Ağı Dağı	84
9.2.1 2010 and 1st Half of 2011 Exploration Program by Alamos	84
9.2.2 Targets on the Ağı Dağı Concession	88
10. DRILLING	90
10.1 Kirazlı	90
10.1.1 Pre-2004 Drilling Programs by Tüprag and NOEL	90

July 31, 2012 ii

Kirazlı and Ağı Dağı Gold Project NI 43-101

10.1.2 2004 Drilling Program by Fronteer/TCAM	92
10.1.3 2005 Drilling Program by Fronteer/TCAM	92
10.1.4 2006 and 1st Quarter of 2007 Drilling Program by TCAM/Fronteer	94
10.1.5 2nd Quarter 2007 to 2nd Quarter 2008 Drilling Program by TCAM	96
10.1.6 2010 and 1st Quarter 2011 Drilling Program by Alamos	98
10.2 Ağı Dağı	104
10.2.1 Pre-2004 Drilling Programs by Cominco	104
10.2.2 2004-2005 Drilling Programs by TCAM/Fronteer	105
10.2.3 2006 to 1st Quarter 2007 Drilling Programs by TCAM/Fronteer	107
10.2.4 2nd Quarter 2007 to 2nd Quarter 2008 Drilling Program by TCAM/Fronteer	110
10.2.5 2008 Drilling Program by TCAM/Fronteer	110
10.2.6 2010 Drilling Program by Alamos	111
11. SAMPLE PREPARATION, ANALYSES and SECURITY	124
11.1 Sample Collection	125
11.2 Shipping	125
11.3 Sample Preparation	125
11.4 Analysis for Gold	126
11.4.1 ACME Vancouver, Canada	126
11.4.2 ACME Santiago, Chile	126
12. DATA VERIFICATION	127
12.1 Summary	127
12.2 Kirazlı	127
12.2.1 Standards Used by Alamos	128
12.2.2 Blanks	133
12.2.3 Duplicates	134
12.2.4 Check of Assay Program	137
12.2.5 Twin Drill Holes	139
12.3 Ağı Dağı	140
12.3.1 Standards	140
12.3.2 Blanks	146
12.3.3 Duplicates	147
12.3.4 Check Assay Program	151

July 31, 2012 iii

Kirazlı and Ağı Dağı Gold Project NI 43-101

12.3.5 Twin Drill Holes	151
12.4 Kirazlı Cyanide Leach Assays from Alamos	154
12.5 Kirazlı Specific Gravity by Alamos	158
12.6 Ağı Dağı Cyanide Leach Assays from Alamos	158
12.7 Ağı Dağı Specific Gravity by Alamos	162
13. MINERAL PROCESSING AND METALLURGICAL TESTING	163
13.1 Summary of Previous Test Results	163
13.2 Alamos 2010 – 2012 Metallurgical Test Result Summary	165
13.3 Metal Recovery and Reagent Consumption Projections	170
14.0 MINERAL RESOURCE ESTIMATES	174
14.1 Summary	174
14.2 Kirazlı	176
14.2.1 Introduction	176
14.2.2 Drill Hole Data	176
14.2.3 Drill Hole Data Statistics	176
14.2.4 Geologic Modeling	180
14.2.5 Compositing	184
14.2.6 Exploratory Data Analysis (EDA)	185
14.2.7 Variography	189
14.2.8 Gold and Silver Grade Estimation	192
14.2.9 Validation of Grade Estimates	193
14.2.10 Resource Classification	197
14.2.11 Mineral Resource Calculation	197
14.2.12 Mineral Resources Comparison	200
14.3 Ağı Dağı	200
14.3.1 Introduction	200
14.3.2 Drill Hole Data	201
14.3.3 Drill Hole Data Statistics	201
14.3.4 Geologic Modeling	205
14.3.5 Compositing	209
14.3.6 Exploratory Data Analysis (EDA)	211
14.3.7 Variography	218

July 31, 2012 iv

Kirazlı and Ağı Dağı Gold Project NI 43-101

14.3.8 Gold and Silver Grade Estimate	223
14.3.9 Validation of Grade Estimates	225
14.3.10 Resource Classification	235
14.3.11 Mineral Resource Calculation	236
14.3.12 Mineral Resource Comparison	242
15. MINERAL RESERVE ESTIMATE	243
16. MINING METHODS	244
16.1 Geotechnical Considerations	244
16.2 Dilution Modeling and Factors	245
16.3 Open Pit Definition	245
16.4 Mine Plan	252
16.4.1 Final Pit and Phase Designs	253
16.4.2 Mine Production Schedule – General Approach	254
16.4.3 Final Mine Schedule	255
16.4.4 Mine Equipment Requirements	269
17. RECOVERY METHODS	273
17.1 Summary	273
17.2 Ore Processing	273
17.2.1 Primary Crushing	274
17.2.2 Coarse Ore Stockpile and Reclaim	274
17.2.3 Secondary Crushing	274
17.2.4 Agglomeration	275
17.2.5 Heap Stacking	275
17.2.6 Heap Leaching	275
17.2.7 Adsorption	276
17.2.8 Recovery Plant	277
17.3 Heap Leach Facilities	279
17.4 General Arrangements	280
18.0 PROJECT INFRASTRUCTURE	283
18.1 Summary	283
18.2 Access Roads	283

July 31, 2012 v

Kirazlı and Ağı Dağı Gold Project NI 43-101

18.3 Power Supply	284
18.3.1 Estimated Electric Power Consumption	284
18.3.2 Emergency Power	285
18.4 Water Supply	286
18.4.1 Operational and Construction Water Balance	287
18.4.2 Community Water Supply	290
18.4.3 Altın Zeybek Reservoir	292
18.4.4 Pre-Reservoir Water Demand	295
18.4.5 Pre-Reservoir Construction Water Supply Options	296
18.4.6 Post-Reservoir Process Water Supply	301
18.5 Project Buildings	303
18.5.1 Etili Complex	303
18.5.2 Kirazlı Mine Buildings	305
18.5.3 Ağı Dağı Mine Buildings	306
18.6 Diesel Fuel Delivery and Storage Systems	307
18.7 Explosives Storage	307
18.8 Site Services	308
18.8.1 Security	308
18.8.2 First Aid	308
18.8.3 Communications	308
18.8.4 Transportation	308
18.8.5 Solid Waste Disposal	308
19. MARKET STUDIES AND CONTRACTS	309
20. ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT	310
20.1 Introduction	310
20.1.1 Issues Scoping	310
20.1.2 History of Baseline Studies	311
20.1.3 Regional Baseline	312
20.2 Kirazlı Baseline	313
20.2.1 Climate and Meteorology	313
20.2.2 Ambient Air Quality	315
20.2.3 Noise Levels	315

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Kirazlı and Ağı Dağı Gold Project NI 43-101

20.2.4 Hydrogeology and Hydrology	315
20.2.5 Groundwater and Surface Water Quality	318
20.2.6 Soils and Land Use Capability	319
20.2.7 Flora	319
20.2.8 Fauna	320
20.2.9 Protected Areas	321
20.2.10 Local Demographics	322
20.2.11 Local Economy	323
20.2.12 Infrastructure and Services	323
20.3 Ağı Dağı Baseline	324
20.3.1 Climate and Meteorology	324
20.3.2 Ambient Air Quality	324
20.3.3 Noise Levels	324
20.3.4 Hydrogeology and Hydrology	325
20.3.5 Groundwater and Surface Water Quality	328
20.3.6 Soils and Land Use Capability	329
20.3.7 Flora	330
20.3.8 Fauna	330
20.3.9 Protected Areas	331
20.3.10 Local Demographics	331
20.3.11 Local Economy	332
20.3.12 Infrastructure and Services	333
20.4 Geochemical Evaluation for Kirazlı and Ağı Dağı	334
20.4.1 Objectives and Methodology	334
20.4.2 Results	335
20.5 Site Water Management for Kirazlı and Ağı Dağı	336
20.5.1 Site Water Management Objectives and Design Criteria	336
20.5.2 Surface Water Management Plan	346
20.6 Conceptual Closure Plan for Kirazlı and Ağı Dağı	350
20.6.1 Open Pits	351
20.6.2 Waste Rock Dumps	351
20.6.3 Heap Leach Facilities	351

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Kirazlı and Ağı Dağı Gold Project NI 43-101

20.6.4 Surface Water Management and Other Facilities	351
20.6.5 Maintenance	352
20.7 Permitting	352
20.7.1 The Turkish EIA Regulation	352
20.7.2 EIA and Mining	355
20.7.3 Mining Permits	355
20.8 Social Impact and Community Relations	357
20.8.1 Social Survey Report	357
20.8.2 Stakeholder Identification	358
20.8.3 Stakeholder Engagement and Consultation	359
20.8.4 Community Development	360
20.8.5 Grievance Mechanism	360
21. CAPITAL AND OPERATING COSTS	362
21.1 Summary	362
21.2 Capital Costs	362
21.2.1 Cost Basis	365
21.2.2 Indirect Costs	369
21.2.3 Engineering and Construction	370
21.2.4 Contingency	370
21.2.5 Sustaining Capital Costs	370
21.2.6 Owners Costs	371
21.2.7 Reforestation and Land Use Fees	371
21.2.8 Working Capital	371
21.2.9 Mining Capital	371
21.2.10 Pre-production Mining	372
21.2.11 Exclusions	373
21.2.12 Capital Cost Tables	373
21.3 Operating Costs	376
21.3.1 Summary	376
21.3.2 Operating Cost Basis	377
21.3.3 Owner’s Staff	388
21.4 Contract Mining	389

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Kirazlı and Ağı Dağı Gold Project NI 43-101

22. ECONOMIC ANALYSIS	390
22.1 Summary	390
22.1.1 Methodology	392
22.1.2 Metal Prices	393
22.1.3 Metal Sales Charges	393
22.1.4 Salvage Value	394
22.1.5 Income Taxes	394
22.1.6 Cash Flow Schedule	395
22.1.7 Sensitivity Analysis	399
23. ADJACENT PROPERTIES	402
24. OTHER RELEVANT DATA AND INFORMATION	403
24.1 Seismicity and Faulting Hazards	403
25. INTERPRETATION AND CONCLUSIONS	406
26. RECOMMENDATIONS	407
26.1 Introduction/Summary	407
27. REFERENCES	413

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Kirazlı and Ağı Dağı Gold Project NI 43-101

LIST OF TABLES

Table 1-1 Project Ownership and Development Timeline	6
Table 1-2 Firms Contributing to Design and Development of the Project	7
Table 1-3 Turkish Permits and Anticipated Approvals Timeline	8
Table 1-4 Kirazlı Resource Within the Mine Plan Estimate – Base Case	11
Table 1-5 Ağı Dağı Resource within the Mine Plan Estimate – Base Case	12
Table 1-6 Resources within Mine Plan	12
Table 1-7 Summaries of Capital Expenditures	15
Table 1-8 Summary of Operating Costs	16
Table 1-9 Unlevered After-Tax NPV (millions)	16
Table 1-10 After-tax NPV (millions) at Spot Gold and Silver Prices 27 June 2012	17
Table 1-11 Top Opportunities to Improve Project Performance	18
Table 1-12 Top Five Potential Risks	19
Table 1-13 Project Execution	20
Table 2-1 PFS Work Scope	21
Table 2-2 Qualified Personnel	22
Table 3-1 Technical Experts	24
Table 4-1 Kirazlı Gold Property – Mineral Tenure	27
Table 4-2 Ağı Dağı Gold Property – Mineral Tenure	30
Table 4-3 Location of Ağı Dağı Project Features	31
Table 4-4 Land Ownership – Kirazlı Project Features	33
Table 4-5 Land Ownership – Ağı Dağı Project Features	34
Table 10-1 Kirazlı Gold Property, Summary of Drilling Prior to Alamos	90
Table 10-2 Kirazlı Gold Property, Summary of Drilling by Alamos	90
Table 10-3 Classified Mineral Resources at a 0.5 g/t Au Cut-Off, dated August 1, 2007, for the Kirazlı Deposit	96
Table 10-4 Classified Mineral Resources for the Kirazlı Deposit – Alamos – March 2010	98
Table 10-5 Summary of 2010-2011 Kirazlı Diamond Drill Holes	99
Table 10-6 Mineralized Intercepts in 2010-2011 Kirazlı Diamond Drill Holes	100
Table 10-7 Ağı Dağı Gold Property, Summary of Drilling Prior to Alamos	104
Table 10-8 Kirazlı Gold Property, Summary of Drilling by Alamos	104
Table 10-9 Classified Mineral Resources at a 0.5 g/t Au Cut-Off, dated August 1, 2007, for the Deli Zone, Ağı Dağı Deposit	109
Table 10-10 Classified Mineral Resources at a 0.5 g/t Au Cut-Off, dated August 1, 2007, for the Baba Zone, Ağı Dağı Deposit	109
Table 10-11 Classified Mineral Resources for the Baba and Deli Deposits – Alamos – March 2010	111
Table 10-12 Summary of 2010 Ağı Dağı Diamond (AD series) and RC (A series) Drill Holes	113

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Table 10-13 Mineralized Intercepts in 2010 Baba and Deli Diamond and RC Drill Holes	115
Table 12-1 Standards used by Alamos at the Kirazlı Project	128
Table 12-2 Distance between Twin Drill Holes at Kirazlı	139
Table 12-3 Comparison of Assay Composites of Twin Drill Holes at Kirazlı	139
Table 12-4 Standards Used by Alamos at the Ağı Dağı Project	141
Table 12-5 Distance between Twin Drill Holes at Ağı Dağı	151
Table 12-6 Comparison of Assay Composites of Twin Drill Holes at Ağı Dağı	151
Table 12-7 SG Measurements in Drill Core at Kirazlı	158
Table 12-8 SG Measurements in Drill Core at Ağı Dağı	162
Table 13-1 Summary of Previous Process Test Work on Kirazlı and Ağı Dağı	164
Table 13-2 Principal Ağı Dağı – Kirazlı Alteration Types and Code	165
Table 13-3 Alamos Column Test Physical Data	166
Table 13-4 Baba and Deli Area Oxide Alteration Composite Column Test Result Summary	167
Table 13-5 Summary of Kirazlı Column Test Results	168
Table 13-6 Recovery Projections by Alteration Type and Area	171
Table 13-7 Reagent Consumption Estimates by Alteration or Oxidation Type and Area	173
Table 14-1 Drill Hole Summary – Kirazlı Area	177
Table 14-2 Geologic Units Modeled for the Kirazlı Area	180
Table 14-3 Rock Codes for the Kirazlı Area	184
Table 14-4 Drill Hole Composites Summary at Baba, Fire Tower, Deli, and Kirazlı	185
Table 14-5 List of Capping Thresholds of Higher Gold and Silver Grade Outliers at Kirazlı	187
Table 14-6 Modeled Variogram Parameters for Gold Composites at Kirazlı	190
Table 14-7 Modeled Variogram Parameters for Silver Composites at Kirazlı	191
Table 14-8 Block Grid Definition at Kirazlı	192
Table 14-9 Estimation Parameters for Gold and Silver at Kirazlı	193
Table 14-10 Average Gold and Silver Grade Comparison – Polygonal-Declustered Composites with Block Estimates – Kirazlı	194
Table 14-11 Gold and Silver Grade Comparison for Blocks Pierced by a Drill Hole – Paired Composites Grades with Block Grade Estimates – Kirazlı	196
Table 14-12 Level of Smoothing/Variability of Gold and Silver Estimates	197
Table 14-13 Classification Distances at Kirazlı	197
Table 14-14 Average Specific Gravity Values by Alteration and Oxidation Types at Kirazlı	198
Table 14-15 Oxide + Transition Mineral Resource* at Various Gold Grade Cut-Offs at Kirazlı	199
Table 14-16 Mineral Resources* Comparison at a 0.2 g/t Gold Cut-Off – Kirazlı	200
Table 14-17 Drill Hole Summary Statistics – Baba, Fire Tower, and Deli Areas	202
Table 14-18 Geologic Units Modeled for the Baba, Fire Tower, and Deli Areas	205
Table 14-19 Rock Codes for the Baba, Fire Tower, and Deli Areas	209
Table 14-20 Drill Hole Composites Summary at Baba, Fire Tower, and Deli	210
Table 14-21 List of Capping Thresholds of Higher Gold Grade Outliers at Baba, Fire Tower, and Deli	213
Table 14-22 List of Capping Thresholds of Higher Silver Grade Outliers at Baba, Fire Tower, and Deli	214

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Table 14-23 Modeled Variogram Parameters for Gold at Baba/Fire Tower	219
Table 14-24 Modeled Variogram Parameters for Gold Composites at Deli	220
Table 14-25 Modeled Variogram Parameters for Silver at Baba/Fire Tower	221
Table 14-26 Modeled Variogram Parameters for Silver Composites at Deli	222
Table 14-27 Block Grid Definition at Baba, Fire Tower, and Deli	223
Table 14-28 Estimation Parameters for Gold and Silver at Baba and Fire Tower	224
Table 14-29 Estimation Parameters for Gold and Silver at Deli	225
Table 14-30 Average Gold and Silver Grade Comparison – Polygonal-Declustered Composites with Block Estimates – Baba, Fire Tower, and Deli	229
Table 14-31 Gold and Silver Grade Comparison for Blocks Pierced by a Drill Hole – Paired Composites Grades with Block Grade Estimates – Baba, Fire Tower, and Deli	233
Table 14-32 Level of Smoothing/Variability of Gold and Silver Estimates – Baba, Fire Tower, and Deli	234
Table 14-33 Classification Distances at Baba and Fire Tower	235
Table 14-34 Classification Distances at Deli	236
Table 14-35 Average Specific Gravity Values by Alteration and Oxidation Types at Baba, Fire Tower, and Deli	236
Table 14-36 Oxide + Transition Mineral Resource* at Various Gold Grade Cut-Offs at Baba	238
Table 14-37 Oxide + Transition Mineral Resource* at Various Gold Grade Cut-Offs at Fire Tower	239
Table 14-38 Oxide + Transition Mineral Resource* at Various Gold Grade Cut-Offs at Deli	240
Table 14-39 Oxide + Transition Mineral Resource* at Various Gold Grade Cut-Offs at Baba + Fire Tower + Deli	241
Table 14-40 Mineral Resources* Comparison at a 0.2 g/t Gold Cut-Off – Ağı Dağı	242
Table 16-1 Open Pit Mine Plan Mineral Resource	245
Table 16-2 Kirazlı – Inputs to Net Value Calculation	247
Table 16-3 Ağı Dağı – Inputs to Net Value Calculation	248
Table 16-4 Kirazlı – Ağı Dağı Mine Production Schedule	252
Table 16-5 Final Pit Design Tonnages	254
Table 16-6 Ağı Dağı – Ore Re-handle from Pre-Production Stockpile	257
Table 16-7 Ağı Dağı Mine Schedule – Baba & Deli Pits Production	259
Table 16-8 Kirazlı and Ağı Dağı – Ore Tonnage by Material Type	261
Table 16-9 Waste Tonnage by Material Type	264
Table 16-10 Pit Backfill Schedule	266
Table 16-11 Mine Major Equipment Fleet	271
Table 18-1 Kirazlı Project Electrical Power Consumption	285
Table 18-2 Ağı Dağı Project Electrical Power Consumption	285
Table 18-3 Kirazlı Critical Equipment	286
Table 18-4 Ağı Dağı Critical Equipment	286
Table 18-5 Summary of Project Water Balance and Raw Water Requirements for the Kirazlı and Ağı Dağı Projects	289
Table 18-6 Altın Zeybek Dam Project Characteristics	294

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Table 18-7 Groundwater Wells Drilled at Ağı Dağı	297
Table 18-8 Monthly Flow (L/s) at DSI 02-85 on Kocabaş River (1965-2010)	300
Table 18-9 Ağı Dağı and Kirazlı Construction Water Requirements and Estimated Monthly Surface Runoff from 100 Ha of Natural Catchment	301
Table 20-1 Preliminary Issues Scoping, Baseline and Technical Studies Addressing the Issues	311
Table 20-2 Populations of the Settlements in the Vicinity of Kirazlı Project Area	322
Table 20-3 Economic Activities in the Settlements in the Vicinity of Kirazlı Project Area	323
Table 20-4 Populations of the Settlements in the Vicinity of Ağı Dağı Project Area	332
Table 20-5 Economic Activities in the Settlements in the Vicinity of Ağı Dağı Project Area	333
Table 20-6 Design Criteria for Surface Water Management Systems	339
Table 21-1 Kirazlı Capital Costs	363
Table 21-2 Ağı Dağı Capital Costs	364
Table 21-3 Average Contracted Crew Labour Rates	366
Table 21-4 Earthworks – Unit Costs	366
Table 21-5 Kirazlı Future Capital Summary	370
Table 21-6 Ağı Dağı Future Capital Summary US$	371
Table 21-7 Expected Mine Fleet Capital Costs	372
Table 21-8 Summary of Direct Capital Costs by Category – Kirazlı	374
Table 21-9 Summary of Direct Capital Costs by Category – Ağı Dağı	375
Table 21-10 Operating Unit Costs Ağı Dağı and Kirazlı	376
Table 21-11 Power Consumed by Area – Kirazlı	381
Table 21-12 Power Consumed by Area – Ağı Dağı	382
Table 21-13 Project Staffing Levels	384
Table 21-14 General and Administrative – Project Staffing Levels	387
Table 21-15 General and Administrative Other G&A Expenses	388
Table 21-16 Owner’s Staff Costs – Kirazlı	389
Table 21-17 Owner’s Staff Costs – Ağı Dağı	389
Table 22-1 Combined Project Cash Cost per Ounce of Gold	391
Table 22-2 Combined Project Capital Cost to Completion of Mining Activities	391
Table 22-3 Combined Project Life-of-Project Summary	392
Table 22-4 Metal Prices	393
Table 22-5 Combined Cash Flow Schedule	396
Table 22-6 Combined Project Pre and Post Tax NPV and IRR	399
Table 22-7 After-tax NPV (millions) at Spot Gold and Silver Prices 27 June 2012	401
Table 24-1 Probabilistic Seismic Hazard Analysis – Agı Dagı PGA and Selected Spectral Accelerations	404
Table 24-2 Probabilistic Seismic Hazard Analysis – Kirazlı PGA and Selected Spectral Accelerations	404
Table 26-1 Ağı Dağı Kirazlı Combined Project Recommendations	408

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Kirazlı and Ağı Dağı Gold Project NI 43-101

LIST OF FIGURES

Figure 1-1 Projects Location Within the Region	1
Figure 1-2 Kirazlı Concession	2
Figure 1-3 Kirazlı General Arrangement	3
Figure 1-4 Agi Dagi Concession	4
Figure 1-5 Ağı Dağı General Arrangement	5
Figure 1-6 Kirazlı Lithology Interpretation – Section N 30350	9
Figure 1-7 Kirazlı Alteration Interpretation – Section N 30350	9
Figure 1-8 Baba Lithology Interpretation – Section N 2200	10
Figure 1-9 Baba Alteration Interpretation – Section N 2200	11
Figure 1-10 Sensitivity Analysis Post Tax IRR to Variable Operating Cost, Capital Cost and Gold Revenue	16
Figure 4-1 Location Map – Ağı Dağı / Kirazlı Gold Projects	26
Figure 4-2 Kirazlı Concession Boundary	29
Figure 4-3 Ağı Dağı Concession Boundaries	32
Figure 5-1 Location of Kirazlı and Ağı Dağı Mine Sites in Turkey	38
Figure 5-2 Satellite Image Showing the License Areas of Kirazlı Project and District Boundaries	39
Figure 5-3 Topographical Map Showing Kirazlı Project Units and Settlements in Vicinity	40
Figure 5-4 View of Kirazlı Site, Looking NW	41
Figure 5-5 Satellite Image Showing the License Areas of Ağı Dağı Project and District Boundaries	42
Figure 5-6 Topographical Map Showing Ağı Dağı Project Units and Settlements in Vicinity	43
Figure 5-7 View of Ağı Dağı Site, Looking SE	44
Figure 7-1 Simplified Geological Map of Biga Peninsula Showing Distribution and Age of Different Rock Units	51
Figure 7-2 Simplified Geological Map of Biga Peninsula Showing Distribution of Volcanic Rocks	53
Figure 7-3 Simplified Neotectonic Map of Turkey Showing Major Neotectonic Structures	54
Figure 7-4 Simplified Tectono-Stratigraphic Section of the Kirazlı Area	56
Figure 7-5 Geological Map of the Kirazlı Area	57
Figure 7-6 Kirazlı Gold Deposit, Surface Geology (by J. Ortega, 2011)	58
Figure 7-7 Kirazlı Gold Deposit, Surface Alteration (by J. Ortega, 2011)	59
Figure 7-8 Kirazlı Gold Deposit, Photos of Core Samples	62
Figure 7-9 Simplified Tectono-Stratigraphic Section of the Ağı Dağı Area	64
Figure 7-10 Geological Map of the Ağı Dağı Area	65
Figure 7-11 Simplified Tectono-Stratigraphic Section of the Ağı Dağı Area	67
Figure 7-12 Ağı Dağı Gold Deposit, Surface Alteration	68
Figure 7-13 Ağı Dağı Gold Deposits, Photos of Core Samples	70
Figure 8-1 Kirazlı Lithology Interpretation – Section N 30350	72

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Figure 8-2 Kirazlı Alteration Interpretation – Section N 30350	72
Figure 8-3 Kirazlı Gold Deposit, Photos of Core Samples	73
Figure 8-4 Baba Lithology Interpretation – Section N 2200	74
Figure 8-5 Baba Alteration Interpretation – Section N 2200	75
Figure 8-6 Deli Lithology Interpretation – Section N 4950	76
Figure 8-7 Deli Alteration Interpretation – Section N 4950	76
Figure 8-8 Baba Gold Deposit, Photos of Core Samples	77
Figure 8-9 Deli Gold Deposit, Photos of Core Samples	78
Figure 9-1 Kirazlı Gold Property, Rockpile Lithology Map and Gold in Rock	80
Figure 9-2 Kirazlı Gold Property, Rockpile Alteration Map and Gold in Rock	81
Figure 9-3 Kirazlı Gold Property,	82
Figure 9-4 Kirazlı Gold Property, 2007 Rock Sampling of Rock Pile	83
Figure 9-5 Baba Lithology Map by R. Baris Kaya & M. Özcan (2010)	85
Figure 9-6 Baba Alteration Map by R. Baris Kaya & M. Özcan (2010)	86
Figure 9-7 Deli Lithology Map by M. Özcan (2010)	86
Figure 9-8 Deli Alteration Map by M. Özcan (2010)	87
Figure 9-9 Ağı Dağı Gold Property	87
Figure 9-10 Çamyurt Tepe lithology and alteration map	89
Figure 10-1 Kirazlı Gold Deposit – Location of Tüprag Drill Holes	91
Figure 10-2 Kirazlı Gold Deposit – Location of 2004-2005 TCAM Drill Holes	93
Figure 10-3 Kirazlı Gold Deposit – Location of 2006 TCAM Drill Holes	95
Figure 10-4 Kirazlı Gold Deposit – Location of 2007 TCAM Drill Holes	97
Figure 10-5 Kirazlı Gold Deposit – Location of 2010-2011 Alamos Drill Holes	103
Figure 10-6 Ağı Dağı Gold Deposits – Location of 1996-1998 Cominco Drill Holes	105
Figure 10-7 Ağı Dağı Gold Deposits – Location of 2004-2005 TCAM / Fronteer Drill holes	106
Figure 10-8 Ağı Dağı Gold Deposits – Location of 2006 TCAM / Fronteer Drill Holes	108
Figure 10-9 Ağı Dağı Gold Deposits – Location of 2007-2008 TCAM / Fronteer Drill Holes	111
Figure 10-10 Ağı Dağı Gold Deposits – Location of 2010 Alamos Drill Holes on Alteration Map	122
Figure 12-1 QA/QC Results of Standard Samples from Alamos	129
Figure 12-2 Blank Correlation for Alamos Samples	134
Figure 12-3 Repeat Pulp Duplicate Correlation for Alamos Samples	135
Figure 12-4 Preparation Pulp Duplicate Correlation for Alamos Samples	136
Figure 12-5 Coarse Duplicate Correlation for Alamos Samples	136
Figure 12-6 Field Duplicate Correlation for Alamos Samples	137
Figure 12-7 Correlation Diagram for SGS Independent Control Samples	138
Figure 12-8 Correlation Diagram between SGS and ACME Samples	139
Figure 12-9 Assay Results of Twin Drill Holes KD-63 and 10-KD-120	140
Figure 12-10 QA/QC Results of Standard Samples from Alamos	141
Figure 12-11 Blank Results for Alamos Samples	147
Figure 12-12 Repeat Pulp Duplicate Correlation for Alamos Samples	148
Figure 12-13 Preparation Pulp Duplicate Correlation for Alamos Samples	148
Figure 12-14 Coarse Duplicate Correlation for Alamos Samples	149

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Figure 12-15 Field Duplicate Correlation for Alamos Samples	150
Figure 12-16 Field Duplicate Correlation for Alamos Samples (Detail)	150
Figure 12-17 Assay Results of Twin Drill Holes A-87 and 10-AD-357	152
Figure 12-18 Assay Results of Twin Drill Holes AD-152 and 10-AD-366	152
Figure 12-19 Assay Results of Twin Drill Holes AD-206 and 10-AD-358	153
Figure 12-20 Assay Results of Twin Drill Holes A-91 and 10-AD-361	153
Figure 12-21 Assay Results of Twin Drill Holes AD-284 and 10-A-408	154
Figure 12-22 Correlation between AuCN Results and Fire Assay – Kirazlı Oxide Zone – Teck Samples	154
Figure 12-23 Correlation between AuCN Results and Fire Assay – Kirazlı Sulphide Zone – Teck Samples	155
Figure 12-24 Correlation between AuCN Results and Fire Assay – Kirazlı Transition Zone – Teck Samples	156
Figure 12-25 Correlation between AuCN Results and Fire Assay – Kirazlı Oxide Zone – Alamos 2010-2011 Samples	156
Figure 12-26 Correlation between AuCN Results and Fire Assay – Kirazlı Sulfide Zone – Alamos 2010-2011 Samples	157
Figure 12-27 Correlation between AuCN Results and Fire Assay – Kirazlı Transition Zone	157
Figure 12-28 Correlation between AuCN Results and Fire Assay – Ağı Dağı Oxide Zone – Teck Samples	159
Figure 12-29 Correlation between AuCN Results and Fire Assay – Ağı Dağı Sulphide Zone – Teck Samples	159
Figure 12-30 Correlation between AuCN Results and Fire assay – Ağı Dağı Transition Zone – Teck Samples	160
Figure 12-31 Correlation between AuCN Results and Fire Assay – Ağı Dağı Oxide Zone – Alamos 2010 Samples	161
Figure 12-32 Correlation between AuCN results and fire assay – Ağı Dağı Sulphide zone – Alamos 2010 samples	161
Figure 12-33 Correlation between AuCN results and fire assay – Ağı Dağı Transition zone – Alamos 2010 samples	162
Figure 13-1 Typical Ağı Dağı Column Test Extraction Rate vs. Liquid to Solid Ratio	169
Figure 13-2 Kirazlı Column Test Extraction Rate vs. Liquid to Solid Ratio	169
Figure 14-1 Statistics on the Drill Hole Database in the Kirazlı Area	177
Figure 14-2 Drill Hole Location Map at Kirazlı	179
Figure 14-3 Lithology Solids at Kirazlı – Looking to the Northeast	181
Figure 14-4 Alteration Solids at Kirazlı – Looking to the Northeast	182
Figure 14-5 Oxidation Solids at Kirazlı – Looking to the Northeast	183
Figure 14-6 Basic Statistics of Capped Gold by Rock Type at Kirazlı	188
Figure 14-7 Basic Statistics of Capped Silver by Rock Type at Kirazlı	188
Figure 14-8 North-South Cross-Section 475640E – Looking to the West. Gold Block Grade Estimates and Drill Hole Grades at Kirazlı	194

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Figure 14-9 Grade Profiles of Declustered Composites and Block Estimates for Gold and Silver at Kirazlı	195
Figure 14-10 Statistics on the Drill Hole Database in the Baba, Fire Tower and Deli Areas	202
Figure 14-11 Drill Hole Location Map at Baba, Fire Tower, and Deli	204
Figure 14-12 Lithology Solids at Baba, Fire Tower and Deli – Looking to the North East	206
Figure 14-13 Alteration Solids at Baba, Fire Tower and Deli	207
Figure 14-14 Oxidation Solids at Baba, Fire Tower and Deli – Looking to the Northeast	208
Figure 14-15 Basic Statistics of Capped Gold by Rock Type at Baba	215
Figure 14-16 Basic Statistics of Capped Gold by Rock Type at Fire Tower	215
Figure 14-17 Basic Statistics of Capped Gold by Rock Type at Deli	216
Figure 14-18 Basic Statistics of Capped Silver by Rock Type at Baba	216
Figure 14-19 Basic Statistics of Capped Silver by Rock Type at Fire Tower	217
Figure 14-20 Basic Statistics of Capped Silver by Rock Type at Deli	217
Figure 14-21 Northeast-Southwest Cross-Section – Looking to the Northwest	226
Figure 14-22 Northeast-Southwest Cross-Section – Looking to the Northwest	227
Figure 14-23 Northeast-Southwest Cross-Section – Looking to the Northwest	228
Figure 14-24 Grade Profiles of Declustered Composites and Block Estimates for Gold and Silver at Baba	230
Figure 14-25 Grade Profiles of Declustered Composites and Block Estimates for Gold and Silver at Fire Tower	231
Figure 14-26 Grade Profiles of Declustered Composites and Block Estimates for Gold and Silver at Deli	232
Figure 16-1 Kirazlı Final Pit	249
Figure 16-2 Ağı Dağı Area (Baba and Deli Final Pits)	250
Figure 16-3 Deli Final Pit	251
Figure 16-4 Baba Final Pit	251
Figure 16-5 Kirazlı Pit at End of Mining – After Backfill	267
Figure 16-6 Baba Pit at End of Mining – After Backfill	268
Figure 16-7 Deli Pit at End of Mining – After Backfill	269
Figure 17-1 Kirazlı Simplified General Project Flow Sheet	273
Figure 17-2 Ağı Dağı HLF Simplified General Project Flow Sheet	274
Figure 17-3 Kirazlı General Arrangement	281
Figure 17-4 Ağı Dağı General Arrangement	282
Figure 18-1 Locations of Community Water Supply Springs and Depots near Kirazlı	291
Figure 18-2 Current Locations of Community Water Supply Springs and Depots at Ağı Dağı	292
Figure 18-3 Construction Water Requirements for Ağı Dağı until December 2014	295
Figure 18-4 Construction Water Requirements for Kirazlı until December 2014	296
Figure 18-5 Potential Groundwater Targets near Ağı Dağı	298
Figure 18-6 Potential Groundwater Targets Near Kirazlı	299
Figure 18-7 Kirazlı Mine Water Requirement – Worst Case Scenario	302
Figure 18-8 Ağı Dağı Monthly Mine Water Requirement – Worst Case Scenario	303
Figure 18-9 Etli Complex General Arrangement	304

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Figure 20-1 Local and Regional Average Monthly Precipitation	314
Figure 20-2 Local and Regional Average Monthly Air Temperatures	314
Figure 20-3 Main Water Basins around the Kirazlı Project Area	316
Figure 20-4 Village Water Sources in Kirazlı Project Area	317
Figure 20-5 Kirazlı Model Calibrated Heads and Reference Data	318
Figure 20-6 Protected Areas	322
Figure 20-7 Main Water Basins around the Ağı Dağı Project Area	326
Figure 20-8 Village Water Sources in Ağı Dağı Project Area	327
Figure 20-9 Ağı Dağı Model Calibrated Hydraulic Heads and Reference Data	328
Figure 20-10 Ağı Dağı Watersheds and Mine Facilities during Mining Operations	340
Figure 20-11 Kirazlı Watersheds and Mine Facilities during Mining Operations	341
Figure 20-12 Ağı Dağı Surface Water Management during Mining Operations (1 of 2)	342
Figure 20-13 Ağı Dağı Surface Water Management during Mining Operations (2 of 2)	343
Figure 20-14 Kirazlı Surface Water Management during Mining Operations (1 of 2)	344
Figure 20-15 Kirazlı Surface Water Management during Mining Operations (2 of 2)	345
Figure 22-1 Sensitivity Analysis Post Tax NPV to Variable Operating Cost, Capital Cost and Gold Revenue	400
Figure 22-2 Sensitivity Analysis Post Tax IRR to Variable Operating Cost, Capital Cost and Gold Revenue	400

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Kirazlı and Ağı Dağı Gold Project NI 43-101

UNITS AND ABBREVIATIONS

All costs are in United States dollars. Units of measurement are metric. Only common and standard abbreviations were used wherever possible. A list of abbreviations used is as follows:

Distances:	mm – millimeter
	cm – centimeter
	m – meter
	km – kilometer
Areas:	m2 or sqm – square meter
	ha – hectare
	km2 – square kilometer
Weights:	oz – troy ounces
	Koz – 1,000 troy ounces
	g – grams;
	kg – kilograms
	T or t – tonne (1000 kg)
	Kt or kt – 1,000 tonnes
	Mt – 1,000,000 tonnes
Time:	min – minute
	h or hr – hour
	op hr – operating hour
	d – day
	yr – year
Volume/Flow:	m3 or cu m – cubic meter
	m3/h – cubic meters per hour
Assay/Grade:	gpt or g/t – grams per tonne
	ppm – parts per million;
	ppb – parts per billion
	gms/MT – grams per metric tonne
Other:	TPD or tpd – tonnes per day
	m3/h/m2 – cubic meters per hour per square meter
	kWh – kilowatt hour
	Au – gold
	Ag – silver
	US$ or $ – United States dollar
	ASL – Above Sea level
	kg/MT – kilograms per metric tonne

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Kirazlı and Ağı Dağı Gold Project NI 43-101

1. SUMMARY

The Kirazlı and Ağı Dağı Gold and Silver Mine development projects (the “Projects”) are located in the Biga Peninsula in the province of Çanakkale, in northwestern Turkey. The Projects are owned by Alamos Gold Inc. (“Alamos”) through its wholly-owned Turkish subsidiaries Kuzey Biga Madencilik San. Tic. AŞ. (“Kuzey Biga”) and Doğu Biga Madencilik San. Tic. AŞ. (“Doğu Biga”).

This NI 43-101 documentation presents the updated resource estimates for the projects and establishes the mining sequences, pit configurations, production rates, and other considerations relevant to optimizing the financial performance of the projects in a manner that is consistent with the interests of local communities and other key stakeholders. A Prefeasibility Study (PFS) was completed on June 30, 2012. The PFS will be a reference document for the NI 43-101 documentation.

The financial analysis in this NI 43-101 and the referenced PFS is based on reasonable assumptions of technical, engineering, legal, operating, economic, social, and environmental considerations, as well as the evaluation of other relevant factors to determine the viability of the projects. This NI 43-101 documentation concludes that the required resources used in the mine plan can be secured to successfully implement and operate the projects.

Figure 1-1 identifies the location of the projects within the region.

Figure 1-1 Projects Location Within the Region

30 JUNE 2012

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Kirazlı and Ağı Dağı Gold Project NI 43-101

1.1 Background and Project Description

The Aği Dağı and Kirazlı projects comprise two separate, stand-alone mining projects, separated by a distance of about 19 kilometers. Alamos acquired the Aği Dağı and Kirazlı Projects in January 2010 from Teck Resources and Fronteer Development Group, which had held the property in a 60/40 joint venture. Part of the Kirazlı project footprint is located on a concession belonging to Polimetal Madencilik (a Joint Venture operated by Lidya Madencilik with Alacer Gold) consisting of 1,891.67 hectares. Alamos currently has an agreement in place with Polimetal with an option to acquire 100% at any time with a cash payment of $1M.

The Kirazlı Project is located in the Çanakkale Province in the Biga Peninsula of Northwestern Turkey. The property consists of 1,540.55 hectares of mineral tenure in two contiguous licenses. Figure 1-2 shows a summary of the Kirazli Project, and Figure 1-3 presents the general arrangement.

Figure 1-2 Kirazlı Concession

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Figure 1-3 Kirazlı General Arrangement

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Kirazlı and Ağı Dağı Gold Project NI 43-101

The Ağı Dağı Project is also located in the Çanakkale Province in the Biga Peninsula of Northwestern Turkey. The Ağı Dağı site includes the Baba and Deli ore deposits which will be mined by the open pit method, presented in Figure 1-4. The property consists of a total of 10,525.04 hectares of mineral tenure in 11 contiguous licenses. The Ağı Dağı Baba and Deli pits are at elevations of 725-910 meters above sea level and 535-740 meters above seal level, respectively.

Alamos acquired the Project and issued a preliminary economic assessment (PEA#428-01-028.01) dated March 29, 2010 “Scoping Study”. Since the issue of the PEA, Alamos has continued exploration drilling, gathered additional baseline data, conducted metallurgical testing, resource estimates used in mine plan, and additional test work for the Environmental Impact Assessment report (“EIA”), as well as geotechnical and water verification of site conditions to be used for this PFS as well as final design, construction, and operation.

  Figure 1-4 Agi Dagi Concession

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Figure 1-5 Ağı Dağı General Arrangement

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Kirazlı and Ağı Dağı Gold Project NI 43-101

The following timeline sets out the history of ownership and development of the Project.

Table 1-1 Project Ownership and Development Timeline

Timeline	Milestone
Mid 1987 thru 1989	Tüprag Metal Madencilik (“Tüprag”) acquired the Kirazlı Gold Property. Tüprag entered into the Kirazlı Mining Venture agreement (“KMV”) with Newmont Overseas Exploration Ltd. (“NOEL”)
1990	Ağı Dağı Property acquired by Tüprag Metal Madencilik Sanayi
1995 to 1998	Ağı Dağı Madencilik Sanayi A.Ş. spent US$ 1,137,454 on exploration of the property and drilled 8,276.9m in 74 holes and carried out various field surveys as described below.
2004-2005	Kirazlı 891.9 meters of drilling was completed in 4 holes in 2005, and 7,377.5 meters of drilling was completed in 44 holes in 2005.
April 2004	Ağı Dağı Fronteer Development Group Inc. entered into an option agreement with Teck-Cominco Arama ve Madencilik
2006	13,499.65 meters of drilling completed comprising, 832.3 meters Reverse Circulation (RC) drilling and 12667.7 meters of diamond drilling
2007	Kirazlı technical report completed for the Kirazlı property on behalf of Fronteer, and included a resource estimate for the property.
23 September 2009	Ağı Dağı and Kirazlı: Teck and Fronteer enter into property sale negotiations with Alamos by signing a memorandum of understanding (“MOU”)
9 December 2009	Alamos signs a Definitive Purchase Agreement for the Ağı Dağı and Kirazlı project, replacing the previous MOU.
6 January 2010	Alamos acquires the projects from Teck Resources and Fronteer Development for $40M in cash and 4 million common shares of Alamos.
March 29, 2010	Alamos issues a Scoping Study on the Kirazlı/ Ağı Dağı Properties
2010 to 2012	243 exploration drill holes (approximately 36,000 m) have been drilled in Kirazlı. 516 exploration drill holes (defining the Baba and Deli mine plan resource) have been drilled with a total of approximately 59,100 m of drilling at Ağı Dağı.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Alamos engaged industry professionals with significant experience and expertise in heap leach and gold facility project development. Table 1-2 highlights the firms used in the development and design of the gold and silver heap leach mining facilities, and that participated in the generation of this report.

Table 1-2 Firms Contributing to Design and Development of the Project

Organization	Responsibilities	Unique Qualifications
Kappes Cassiday & Associates	Pre-Feasibility Study report review; Project Engineer, process and infrastructure design	Heap leach process and infrastructure design for gold and silver greenfield development properties Currently completing design and commissioning for a project in Turkey working with DAMA Engineering
Golder Associates	Environmental Impact Assessment Civil, heap leach and geotechnical design Closure plan, site water management, water supply Hydrogeology Geochemistry	Turkey project office and experience in Turkish permitting for development projects Geotechnical Engineer and design for mining and environmental permit development projects Heap leach and waste dump design subject matter experts Water supply and surface water management subject matter experts
Independent Mining Consultants	Mine design and equipment selection	Mine planners for gold and copper properties Experience working for Alamos in Mexico
Hidrokon	Design, reservoir, pipelines, and pump stations.	Turkish dam and water reservoir design firm; known throughout Turkey for quality and cost delivery in projects
Call & Nicholas	Pit slope stability	Geotechnical pit slope and design experts for mine pit and heap leach slope and testing
Allen Anderson	Metallurgical testing; extraction forecast	Minerals testing and recovery of extracted ores for gold, copper and precious metals
DAMA	Turkish standards and local costing	Turkish management consultant experienced in local project delivery; scheduling and cost estimating
NetVizyon	Community and public relations experts	Recognized public relations firm Subject matter experts
ENCON	Environmental studies and permitting Community relations	One of the oldest and most highly regarded environmental and permitting firms in Turkey

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Kirazlı and Ağı Dağı Gold Project NI 43-101

In accordance with Turkish regulations, the following permits (Table 1-3) are required with the corresponding milestones.

Table 1-3 Turkish Permits and Anticipated Approvals Timeline

	Kirazlı	Ağı Dağı
EIA Approval	Q1-2013	Q2-2013
Forestry Permit and License to Start and Operate a Business Permit	Q3-2013	Q4-2013
Operating Permits	Q3-2013	Q4-2013
Construction Start	Q3-2013	Q4-2013
First Gold Pour	Q4-2014	Q4-2016

The Aği Daği and Kirazlı Gold deposits are high-sulphidation, epithermal gold deposits. Gold mineralization at Kirazlı and at Ağı Dağı is hosted within Miocene-age andesitic tuffs or felsic volcanic rocks and phreatic breccias typical in some deposits of this type.

The principal model for gold mineralization at the Ağı Dağı and Kirazlı Gold Properties is a high-sulphidation, epithermal gold deposit. Premier examples of this kind of deposit in the world are Yanacocha, Pierina and Alto Chicama in Peru. Most high-sulfidation deposits are large, low grade bulk-tonnage systems (Yanacocha), though vein-hosted high sulfidation deposits also occur (El Indio).

At Kirazlı, gold mineralization is hosted within heterolithic phreatomagmatic/phreatic breccia bodies cutting through Miocene-age andesitic tuffs. Mineralization can generally be subdivided into two main types:

A low-grade gold zone underlies much of Kirazlı Dağı, broadly enveloping the high-grade gold zones. This low grade mineralization occurs both above and below the zone of supergene oxidation (redox boundary). The wide spread, low grade mineralization is interpreted to be early and may be associated with the broad epithermal alteration that resulted in the chalcedonic silica (the second silica event). Please see Figures 1-6 and 1-7.

Four elongate bodies of high-grade gold mineralization occur in the advanced argillic zone overlapping slightly the bottom of the 1 km-long silica cap and the silica roots. High-grade gold mineralization also shows a strong spatial relationship with the margins of heterolithic breccia bodies. These bodies transect the redox boundaries.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Figure 1-6 Kirazlı Lithology Interpretation – Section N 30350

Figure 1-7 Kirazlı Alteration Interpretation – Section N 30350

At Ağı Dağı, gold mineralization is associated with felsic volcanic rocks of Miocene age and a northeast-trending silica cap rock about four km by two km in extent which forms a topographic high 700 to 900 meters in relief. The gold mineralization is disseminated and associated with intensely silicic alteration comprised of oxidized vuggy silica overprinting brecciated rocks hosted in volcanic felsic to intermediate

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Kirazlı and Ağı Dağı Gold Project NI 43-101

tuffs and occasionally phreatic breccia bodies. Hydrothermal breccias (crackle, jigsaw, hydrothermal) are most common. Pyrite is the most abundant primary sulfide mineral associated with gold in the sulphide rocks. Trace to minor amounts of enargite, covellite, galena and molybdenum are present locally.

Five main zones of gold mineralization are present at Ağı Dağı: the Baba, Ayı Tepe, Fire Tower, Ihlamur and Deli Zones. Please see Figures 1-8 and 1-9. Mineral resources have been generated for the Baba and Deli zones, and have also been developed for the Fire Tower zone. The Baba, Fire Tower and Deli zones occur along the east side of the NE-SW trending mountain ridge, corresponding to silicified dacite and phreatic breccia that may fill a paleo-basin in dacite and feldspar poropyritic andesite. Gold mineralization is continuous between Baba and Deli through Fire Tower, a strike distance of over 4 km. The Ayı Tepe and Ihlamur zones are on a sub-parallel trend to the north. Mineralization along the Ayı Tepe – Ihlamur trend has only been sporadically drilled.

The north part of Baba hill is composed of phreatic breccia and dacite flows and tuffs cutting andesites within a northeast trending, 500 meter wide paleo-basin filled with dacite flow and tuff. Ayı Tepe hill is underlain by the same geological units in the same relation as Baba. These two basins are elongated towards the northeast along the length of Ağı Mountain. As the andesites are principally argillic altered and weather recessively compared to dacites, they generally occur in topographic lows between the silicified ridges.

Figure 1-8 Baba Lithology Interpretation – Section N 2200

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Figure 1-9 Baba Alteration Interpretation – Section N 2200

The estimate of the resources within the mine plans at Kirazlı and Ağı Dağı was performed with the ordinary kriging technique. A total of 243 drill holes from Kirazlı and 516 drill holes from Ağı Dağı (Baba, Fire Tower, Deli) were part of the drill hole database. Gold and silver grades from original samples were composited to a 3 m regular length and higher grade outliers were capped. Variograms were utilized to identify the directions of greater grade continuity and modeled parameters were integrated in the grade estimation process. Alteration and oxidation units, which are controls on gold and silver mineralization, were also part of the grade interpolation strategy. The resulting gold and silver grade estimates were validated by various verification tests. The resources within the mine plans were constrained by an open pit surface optimized at a gold price of $1,250.00/oz and silver price of $22.50/oz within the oxide and transition material.

Table 1-4 presents the resource within the mine plan base case estimate for the Kirazlı area and Table 1-5 presents the same information for the Ağı Dağı area.

Table 1-4 Kirazlı Resource Within the Mine Plan Estimate – Base Case

			Oxide + Transition Base Case
	Measured					Indicated
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.2	884,000	1.17	33,400	13.22	375,600	29,864,000	0.70	673,100	8.35	8,016,900
Au Cut-Off g/t	Measured + Indicated					Inferred
	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.2	30,748,000	0.71	706,400	8.49	8,392,500	5,575,000	0.52	93,300	9.95	1,783,600

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Table 1-5 Ağı Dağı Resource within the Mine Plan Estimate – Base Case

Oxide (including overburden)
	Measured					Indicated
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.2	20,376,000	0.53	344,200	1.17	766,600	58,990,000	0.61	1,165,600	4.07	7,712,100
Au Cut-Off g/t	Measured + Indicated					Inferred
	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.2	79,366,000	0.59	1,509,800	3.32	8,478,700	20,861,000	0.53	355,800	2.86	1,920,400

The Kirazlı and Ağı Dağı resources within the mine plan are in two unique locations with Kirazlı located approximately 19 kilometers northwest of Ağı Dağı. Mining of the Kirazlı and Ağı Dağı (Baba and Deli) deposits will be done by open pit methods utilizing a traditional drill, blast, load and haul sequence to deliver ore to the primary crusher and the waste to waste dumps, pit backfill and / or as Heap Leach Facility construction fill.

The resources within the mine plan are based on 5 m bench height to match the resource model bench height. The resource within the mine plan tonnages included in this section is a sub-set of the mineral resource presented in Section 14. At this time, no additional dilution factors or mining losses have been applied to the grade model. Table 1-6 is a summary of the resources within the pit limit for Kirazlı and Ağı Dağı.

Table 1-6 Resources within Mine Plan

		Tonnage & Grade > + $0.10/t Net Value Cutoff						Contained Oz.		Recoverable Oz.
Deposit	Class	ktonnes	Net Value $/t	Gold g/t	Silver g/t	Recov Au g/t	Recov Ag g/t	Gold	Silver	Gold	Silver
Kirazli	Measured	738	37.62	1.30	15.86	1.08	4.41	30,763	376,395	25,545	104,594
Agi Dagi	Measured	17,518	12.00	0.52	1.16	0.42	0.26	290,957	651,119	238,778	147,958
Total	Measured	18,256	13.04	0.55	1.75	0.45	0.43	321,720	1,027,514	264,323	252,552
Kirazli	Indicated	24,861	18.98	0.73	11.63	0.59	3.63	583,248	9,295,713	468,604	2,901,857
Agi Dagi	Indicated	51,622	13.67	0.57	4.03	0.46	1.05	942,312	6,687,543	770,263	1,746,526
Total	Indicated	76,483	15.40	0.62	6.50	0.50	1.89	1,525,560	15,983,256	1,238,867	4,648,383
Kirazli	Sum M&I	25,599	19.52	0.75	11.75	0.60	3.65	614,011	9,672,108	494,149	3,006,451
Agi Dagi	Sum M&I	69,140	13.25	0.55	3.30	0.45	0.85	1,233,269	7,338,662	1,009,041	1,894,484
Total	Sum M&I	94,739	14.94	0.61	5.58	0.49	1.61	1,847,280	17,010,770	1,503,190	4,900,935

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1.2 Process / Heap Leach Design

The Kirazlı Project has been designed as a 15,000 tonne per day heap leach operation utilizing a multiple-lift, single-use leach pad. The ore will be processed by primary crushing and open circuit secondary crushing to a nominal size of 26 mm. The secondary crushed ore will be agglomerated with a nominal 2.5 kg/t cement in an agglomeration drum, stacked on the heap leach pad by conveyor stacking and processed by heap leaching methods.

Processing at Ağı Dağı will be similar to Kirazlı. Ağı Dağı has been designed as a 30,000 tonne per day heap leach operation utilizing a multiple-lift, single-use leach pad. The ore will be processed by primary crushing and open circuit secondary crushing to a nominal size of 26 mm. The secondary crushed ore will be agglomerated with a nominal 2.5 kg/t cement in an agglomeration drum, stacked on the heap leach pad by conveyor stacking and processed by heap leaching methods.

A single heap leach facility is planned for the Kirazlı site. The Kirazlı Heap Leach Facility (KHLF) will have a capacity of approximately 26 million tonnes. Similarly, a single heap leach facility is planned at the northern side of the Ağı Dağı site (HLF) with a capacity of approximately 70 million tonnes. These capacities were selected to process the measured and indicated mine plan resource for the selected pit design.

The preliminary design of the leach pads meets or exceeds North American standards and practices for containment, piping systems, and ponds, which is intended to lessen the environmental risk of the facilities to impact local soils, surface water, and groundwater in and around the site. Challenges to development of both sites include management of springs on and surrounding the sites, relatively steep topography, and the potential for relatively strong earthquake events. At the current level of review, these challenges have been overcome through use of sound engineering practices.

The HLFs are designed to operate as zero discharge systems; therefore, they include provisions to accommodate upset conditions such as severe storms and temporary loss of electric power or pumps.

The HLFs will have the following features:

• KHLF will be constructed in two phases to accommodate 26 million tonnes of processed ore. The Ağı Dağı HLF will be constructed in three phases to accommodate 70 million tonnes of processed ore.

• Both the KHLF and HLF will require large fills during construction to shape the sites for gravity solution control, storm water diversion, geotechnical stability, and will include ravine drains to collect and transmit spring flow to the natural drainage at the toe of the HLFs.

• Both the KHLF and HLF will have a composite base liner that meets or exceeds international standards consisting of (from the base up) 0.5 m of compacted low permeability soil, a 2.0 mm thick high density polyethylene (HDPE) geomembrane, and a 0.7 m thick drainage layer of crushed ore or mine waste.

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• Ore will be stacked in nominal 10-meter lifts using conveyors and radial stackers starting from the lower elevations of the leach pad. Benches will be provided between lifts to provide an overall heap slope of 3H:1V.

• Solution will be collected above the leach pad HDPE geomembrane and delivered to the Pregnant Pond using a drainage pipe system placed above the HDPE geomembrane within the 0.7 m drainage layer.

• During normal operation, pregnant solution will be removed from the Pregnant Pond to an adsorption facility. During upset conditions, water will overflow by gravity from the Pregnant Pond to Event Ponds.

• The Pregnant and Event Ponds have been sized to contain the sum of the normal operating volume, heap drain down during a 24-hour pump or power outage, precipitation falling on all lined areas during a 100-year, 24-hour storm event, and the seasonal accumulation of water expected for leaching operations during average climate conditions.

• The Pregnant and Event Ponds will be constructed with a double-lined system that meets or exceeds international standards consisting of (from the base up) 0.5 m of compacted low permeability soil, a 1.5 mm thick HDPE secondary geomembrane, an HPDE geonet leak detection layer, and a 2.0 mm thick HDPE primary geomembrane.

1.3 Capital, Operating Costs and Financial Analysis

The capital expenditures required for the project are noted below for Kirazlı and Aği Dağı. The costs are based on the pre-feasibility level design as outlined in this report and are considered to have an accuracy of +/-20%. The referenced PFS summarizes and details these capital cost estimates.

All capital cost estimates are based on the purchase of equipment quoted new from the manufacturer or estimated to be fabricated new. DAMA supplied local costs wherever possible for items such as labor rates, earthworks, civils, platework, duties and taxes. Major equipment not available within Turkey was sourced out of Europe whenever possible. Some specialized equipment such as conveyor stackers, retorts and carbon regeneration kilns were sourced out of North America.

All costs are in first quarter 2012 US dollars. Where prices were supplied in Euros, an average conversion rate of 1.33 US dollars per Euro was used. Where prices were supplied in Turkish Lira, an average conversion rate of 1.8 TL per US dollar was used.

The referenced PFS assumes that Aği Dağı and Kirazlı will each have stand-alone crushing, agglomeration, heap leach, and process plant facilities. Capital expenditures also include the cost of building a reservoir to supply drinking water for the local community and process water for mining operations. Pre-production capital expenditures for the projects are estimated to be $278.3 million for Aği Dağı and $146.1 million for Kirazlı, for a total of $424.4 million.

The Company currently has in excess of $280 million in cash and short-term investments on hand, and expects to further increase its cash balance prior to the commencement of construction at Kirazlı. In

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addition, given the sequencing of the projects with production at Kirazlı commencing in the fourth quarter of 2014 and production at Aği Dağı commencing two years later, positive cash flows from Kirazlı will subsidize the construction of Aği Dağı starting in mid-2015. As a result of these factors, the Company expects to be able to internally finance these projects.

Total sustaining capital expenditures and reclamation costs (net of salvage values) for the combined projects are estimated to be $26.9 million and $41.0 million respectively, over the life of the projects. All capital items include a contingency ranging from 10% to 20% depending on the nature of the capital item, which equates to a total contingency of $62.8 million, or 13% of the total project initial and sustaining capital.

Table 1-7 provides a summary of capital expenditures for the projects.

Table 1-7 Summaries of Capital Expenditures

	Aği Dağı (US$ millions)	Kirazlı (US$ millions)	Combined (US$ millions)
Total Pre-Production Capital	$278.3	$146.1	$424.4
Sustaining Capital	$17.2	$9.7	$26.9
Reclamation (net of salvage values)	$31.1	$9.9	$41.0
Total Project Capital	$326.6	$165.7	$492.4

Under the base case economic scenario contemplated in the PFS applying an average gold price assumption of $1,239 per ounce and $24.56 per ounce of silver, the Company estimates the total cost per tonne of ore to be $ 8.24 for Aği Dağı and $ 9.56 for Kirazlı (combined $8.60 total cost per tonne of ore).

The costs include mining, processing and general and administration costs, but exclude reclamation costs, which are included within total capital costs in the economic cash flow model. Revenues from the sale of silver are included as a by-product credit offset to selling costs. Mining costs assume that the Company will hire a contractor to conduct mining operations.

Operating costs for the project were estimated using staffing and wage requirements based on typical rates in the Turkish mining industry. Most unit consumptions of materials, supplies, power, and water are based on test work. Other values are based on information for similar operations, or generally accepted industry standards. The operating costs have been estimated and presented without added contingency allowances based upon the Pre-feasibility level design and operating criteria present in this report. The operating costs are considered to have an accuracy range of +/-20%.

Table 1-8 highlights costs on a per ounce basis by project and on a combined basis. Presented in Table 1-9 is the unleveled after-tax net present value (NPV).

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Table 1-8 Summary of Operating Costs per Gold Ounce

	Aği  Dağ (US$/oz)	Kirazlı (US$/oz)	Combined     (US$/oz)
Mining Cost	$393	$393	$393
Processing Cost	$168	$210	$182
General and Administrative	$45	$36	$42
Selling Costs and Silver by-product Credits	$(37)	$(145)	$(73)
Total Cash Operating Costs	$569	$494	$544
Royalties	$42	$21	$35
Total Cash Costs (including royalties)	$611	$515	$579

Table 1-9 Unlevered After-Tax NPV (millions)

Discount Rate	Aği Dağı	Kirazlı	Combined
0%	$258.3	$214.2	$472.5
3%	$167.7	$175.9	$343.6
5%	$121.5	$154.1	$275.6
Internal Rate of Return			22.3%

The sensitivity of the Project’s Internal Rate of Return (IRR) to gold revenue variations and variance of operating and capital cost are illustrated in Figure 1-10. Gold revenue is varied by plus and minus 20% from the base case recovery of 81% and/or $1,239 per gold ounce. The operating cost of $8.60 per ore tonne was varied by plus and minus 20%. The capital cost of $492.4 million was varied by plus and minus 20%. The project shows the most sensitivity to gold revenue variations.

Figure 1-10 Sensitivity Analysis Post Tax IRR to Variable Operating Cost, Capital Cost and Gold Revenue

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The economic analysis was prepared using a discounted cash flow (DCF) method which measures the NPV of future cash flow streams. The evaluation was based on the following main assumptions:

• Construction starts at Kirazlı in the third quarter of 2013 with construction at Aği Dağı starting in the fourth quarter of 2013

• First gold pour at Kirazlı during the fourth quarter of 2014 and the first gold pour at Aği Dağı during the fourth quarter of 2016

• For the combined project, period of analysis of 15 years

• Silver revenue included as a by-product credit

• 4% corporate tax rates

• Double declining balance depreciation method

• Exploration and concession expenses depreciated using units of production

• Costs are expressed in first quarter 2012 US dollars

• NPV analysis is presented as of January 1, 2013

According to Turkish Corporate Tax Law No. 5520, the effective corporate tax rate is 20%. Reduced corporate tax rates are available to companies that qualify under the tax incentive program codified into law on June 19, 2012. Prior year losses going back five years can be deducted when determining the corporate tax base, and accordingly expenses incurred during exploration can be deducted during the operational phase.

For the purpose of PFS work-up, Alamos has incorporated the corporate tax rate reduction into the economic analysis. Eligibility for these incentives is subject to an application approval process which Alamos has not applied for as of the date of the PFS. However, Alamos has consulted with an international accounting firm who has expressed a view that Alamos would be eligible for these incentives.

Alamos performed an after-tax NPV analysis using spot gold and silver prices as of 27 June 2012 ($1,575/oz gold and $27/oz silver). The analysis yielded an after-tax IRR of 36.5% and several after-tax NPVs were calculated at various discount rates, which are presented in Table 1-10.

Table 1-10 After-tax NPV (millions) at Spot Gold and Silver Prices 27 June 2012

Discount Rate  (%)	Ağı Dağı	Kirazlı	Combined
0%	608.6	330.4	939.0
3%	446.4	274.3	720.7
5%	362.2	242.4	604.6
10%	210.8	177.7	388.5

1.4 Opportunity/Risks

The referenced PFS addressed potential opportunities or risks that could increase or decrease project performance. Table 1-11 summarizes the top opportunities that will be further developed to increase project performance or schedule delivery.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Table 1-11 Top Opportunities to Improve Project Performance

Opportunity	Impact to improve Performance	Recommended Action	Approx. Estimated Cost Impact
Owner supplied equipment and operators for the ore and waste	Reduce operating costs by self performing mine operations	Trade study in FEED engineering	Savings of up to 7% on mine operating costs
Conversion of Inferred material to Measured and Indicated	Mineral resource model has inferred material, that is expected to be converted to measured and indicated	Continue to drill and explore site for the conversion of inferred material to measured and indicated	Approximately US$ 60 M increase to NPV
Steeper pit slopes	Current pit slope design is based on conservative estimates for slope stability.	During detailed design, these slopes will be better defined to steeper angles; thus reducing strip ratio and waste material generation	Potential increase to NPV
Conveyors versus haul trucks	Ağı Dağı mine plan haul is from the Baba and Deli pits to the central crusher and conveyor to heap leach and process. Changes to mine plan may demonstrate additional savings by utilization of additional conveyors at pit location versus haul trucks	During the final design, mine plan will be finalized with consideration of added conveyor lengths and generator power production for downhill ore handling	US$25M increase to NPV
Increased HLF stack height (ADA)	Does not require added liner and construction for heap leach associated with future expansions (Çamyurt)	During final design, the HLF will be reviewed and designed to increase the stack height from 70 meters to 90 meters for future expansion	Ability to accommodate additional 20M tonne of ore
Free digging without drill and blast	Ore materials may be of the geologic type that would not require drill and blast, thus reducing the need to drill, blast	During design phase additional samples will be taken to validate potential	Potential Increase to NPV
Increase resources from Çamyurt property	Increased resources within the mine plans utilize existing infrastructure and equipment	Complete drilling program	Potentially 600,000 Au oz increase

Furthermore the investment incentives that have been enacted into law on June 19, 2012 will have additional positive financial impact on the project. This analysis is currently being completed by KPMG, Turkey.

The PFS documents potential risks associated with project unknowns that could result in project delays, cost increases or impact to stakeholders. Table 1-12 summarizes the top five potential risks resulting from this analysis with the mitigation to minimize impact to project delivery.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Table 1-12 Top Five Potential Risks

Risk	Impact Performance	Recommended Action	Estimated Cost/ Schedule Impact
Permit delay	Potential delays could occur due to unexpected comments or requests for additional analyses during review process	Thorough and critical review of the EIA, initiate early engineering and procurement prior to permit approval to ensure schedule work-around in the event of delay; consistently engage with regulatory authorities and impacted communities	3-6 month delay
Construction water supply	Ağı Dağı HLF construction requires water for compaction of fills during construction end of 3rd Qtr 2014	Water for the HLF construction will be supplied by the reservoir; to mitigate potential delay in reservoir supply the project will	US$ 2M within current contingency allocation
		•  Expedite design, permitting, and construction of the reservoir
		•  Increase well development for construction water temporary supply
Community relations	If a community is not in favor of a development project, potential delays could be significant	•  Maintain positive on-going CR/PR activities	3-6 month delay
Turkish construction productivity	Potential Productivity Delay	Select experienced and qualified contractor	Estimate includes current Turkish contractor productivities; additional costs is within the project contingency
Reservoir delay for community and process water supply.	Community and process water supply from the reservoir.	Manage successful schedule delivery and integrate community in the project benefits	3-6 month delay

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Kirazlı and Ağı Dağı Gold Project NI 43-101

1.5 Project Execution

In order to achieve the below development milestones, it is expected that Front End Engineering Design (“FEED”) will commence in Q3, 2012. The FEED shall consist of a 20% to 25% design level of completion; with an expectation of a design confidence of 80% and cost estimate accuracy of +15% / -10%. Table 1-13 summarizes the follow-on milestones to comply with Q4-2014 / Q4-2016 Kirazlı / Ağı Dağı Gold pour dates.

Table 1-13 Project Execution

	Kirazlı	Ağı Dağı
FEED Engineering	Q3-2012	Q3-2012
EIA Approval	Q1-2013	Q2-2013
Forestry Permit and License to Start and Operate a Business Permit	Q3-2013	Q4-2013
Operating Permits	Q3-2013	Q4-2013
Construction Start	Q3-2013	Q4-2013
First Gold Pour	Q4-2014	Q4-2016

1.6 Conclusions and Recommendations

The conclusions and recommendations are summarized in Sections 25 and 26 of this NI 43-101 submittal. Based on above summary, the main conclusion is the project is technically and financially viable and should proceed to full development as documented in the PFS #002 dated June 30, 2012 PFS.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

2. INTRODUCTION

This report is prepared for Alamos Gold and reflects the information and data documented in the Prefeasibility Study PFS #002 dated June 30, 2012. The Aği Dağı and Kirazlı projects comprise two separate, stand-alone mining projects, separated by a distance of about 19 kilometers. As noted in the summary section of this NI 43-101 documentation, Alamos acquired the Aği Dağı and Kirazlı Projects in January 2010 from Teck Resources and Fronteer Development Group, which had held the property in a 60/40 joint venture.

Alamos issued a preliminary economic assessment (PEA#428-01-028.01) dated March 29, 2010 (“Scoping Study”). Since the issue of PEA#428-01-028.01, Alamos has continued exploration drilling, gathered additional baseline data, conducted metallurgical testing, resource estimates, and additional test work for the Environmental Impact Assessment report (“EIA”), as well as geotechnical and water verification of site conditions to be used for this PFS as well as final design, construction, and operation.

2.1 PFS Submission and Team

This NI 43-101 documentation follows a detailed submission of a preliminary feasibility study (PFS #002) dated June 30, 2012. The scope of the PFS is addressed below.

Table 2-1 PFS Work Scope

PFS Work Scope
Project Concession and Land Ownership	Water Supply
Property Description and Local Demographics	Infrastructure and Services
Design Criteria	Waste Management
Geology	Environmental and Permitting
Resource within the Mine Plan	Budgetary Capital and Operating Cost Estimate
Hydrology and Site Water Management	Water Supply
Hydrogeology	Tax
Geotechnical Analysis	Community Relations
Mining	Project Execution Plan
Process	Conclusions / Recommendations
Hydrology and Site Water Management

For purposes of preparing this PFS, Alamos engaged industry professionals with significant experience and expertise in heap leach and gold facility project development. The following table summarizes those key personnel and qualified persons involved in the delivery of the PFS.

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Table 2-2 Qualified Personnel

PFS Team Member	Corporate Affiliation	Project Responsibility	Qualified Person Experience
Dr. Dennis Ferrigno, PE	CAF & Associates, LLC	Owner Project Manager	40 years Engineer/Construction; former President & CEO Bateman Engineering
Pedro C. Repetto, PE	Repetto Consulting	Owner Geotechnic/ SME	40 years Geotech Engineering serving mining and heavy industry
Carl E. Defilippi, SME	Kappes Cassiday & Associates	Project Engineer & Lead Technical Process	30 years Chemical and Mine Process Engineering & Operations
Herb Welhener, SME	Independent Mining Consultants	Mine Planning Engineer / SME	40 years Mine Engineering serving mining industry
Russell A. Browne, PE	Golder Associates	Heap Leach Design and Siting / SME	25 years of experience in engineering of heap leach and waste rock dumps
Allen Anderson, PE	Metallurgical Consultants	Metallurgy and Recovery Leach Design	35 years of experience in the mine process industry in North and South America. Experience includes both consulting and operational roles.
Dr. Michal Dobr	Golder Associates	Hydrogeology/ SME	Senior Hydro geologist with 28 years of experience in characterization and evaluation of groundwater regimes, assessment and implementation of mine dewatering and depressurization procedures, and development and management of groundwater resources.
Marc A. Jutras P. Eng.	Alamos Gold Inc.	Mineral Resource Estimation / SME	More than 27 years of experience in the estimation of mine plan resources for precious and base metals of international projects. Professional engineer’s designation and master’s degree in Geostatistics.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

2.2 Project Schedule

The schedule for the project activity is noted below. The level of effort completed in PFS design was raised from a 70% to 80% confidence for some project features, which typically is at “feasibility level study/preliminary design accuracy”. This increased confidence level required additional detailed design and design drawings / design specifications; added materials lists, equipment lists, electrical load lists, and increased materials take-offs; higher accuracy cost estimates and operating cost estimates; and reduced contingency for future project execution unknowns. In addition, added drilling and logging for exploration and geotechnical design data (borings, water capacities, resource assays) as well as additional analysis were completed for column leach and recovery of metals from ore.

The benefit of this added level of effort is reducing project development schedule (eliminating the need for a feasibility study issue). It is estimated that the increased level of effort eliminates approximately 6 to 8 months of schedule by eliminating the need for a feasibility study and enabling the project to proceed to design and construction execution following board approvals and construction permit authorization.

Ağı Dağı Schedule Highlights PFS Completed – Q2 2012 Water Protocol Planned for – Q2 2012 EIA Permit Approvals – Q2 2013 Eng. / Construction Q4 2013 Long Lead Procurement – Q1 2014 FEED Engineering – Q3 2012 Construction Start – Q1 2014 Gold Pour – Q4 2016

Closure Plan The closure planning for the Ağı Dağı and the Kirazlı mine sites will be consistent with accepted closure guidelines for mines in Turkey and will follow the best practices and guidelines for mines in other parts of the world where heap leach operations are found. The reclamation and closure plan will be part of the EIA studies and submitted to Turkish Ministry of Environment and Urbanization.

Kirazlı Schedule Highlights PFS Completed – Q2 2012 Water Protocol Planned for – Q2 2012 EIA Permit Approvals – Q1 2013 Eng. / Construction – Q1 2013 Long Lead Procurement – Q1 2013 FEED Engineering – Q3 2012 Construction Start – Q3 2013 Gold Pour – Q4 2014

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Kirazlı and Ağı Dağı Gold Project NI 43-101

3. RELIANCE ON OTHER EXPERTS

The QPs, authors of this report, state that the information, opinions, estimates, and conclusions contained herein are based on:

• Information available at the time of preparing this report

• Assumptions, conditions, and qualifications as set forth in this report

• Data, reports, and other information supplied by Alamos and other third party sources

The authors have relied upon information from Alamos and previous reports regarding the Kirazlı and Ağı Dağı prefeasibility study.

The authors of this report have relied on the following non-Qualified Persons in preparation of this 43-101:

Table 3-1 Technical Experts

Corporate Affiliation	Project Responsibility	Reference
Call & Nicholas, Inc.	Pit Slope Stability Analyses	“Pre-feasibility Slope Angles and Fragmentation Distributions for the Baba, Deli and Kirazlı Pits”; Dave Nicholas Dated July 2012
Alamos Gold Inc.	Income Tax Rate Estimate and Incentives	“Alamos Gold Inc_Letter_18072002” to Greg Fisher Dated 26 June 2012
Alamos Gold Inc.	Concession Investments and Financial Analysis Review	“Dogu Biga Madencilik San. Tic. A.S. Summary Balance Sheet (In TL), 01.01.2012 – 31.03.2012” and “Kuzey Biga Madencilik San. Tic. A. S. Summary Balance Sheet (In TL) 01.01.2012 – 31.03.2012
Alamos Gold Inc.	Contract Mining Costs	Alamos Gold “Producer”
Alamos Gold Inc.	Non-disclosure of Reserves	Reliance on Alamos Corporate Management and Corporate Policy for non-disclosure of Reserves
Alamos Gold Inc.	Reservoir Capital and Operating Costs and Land Use fees	Cagin Sen; Alamos Gold “Producer”
DAMA	Contract Mining Cost Estimate Confirmation	Letter to Alamos Gold concerning independent review of contract mining costs in Turkey as they relate to contract mining for Kirazlı and Ağı Dağı Mines, Dated 31 July 2012 “Contract Mining Cost Study Kuzey Biga, Kirazli & Agi Baba”, August 2012

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Corporate Affiliation	Project Responsibility	Reference
Middle East Technical University	Geological Services	Assistance with Fault and Geologic Mapping; Dr. Bora Rojay; Middle East Technical University
Golder Associates	Fault Evaluation	Technical Memorandum, Results of an Initial Geomorphic and Geologic Evaluation of Potential Quaternary Faulting in the Vicinity of Alamos Gold Project, Turkey; Dr. Don West
Golder Associates	Seismic Hazard	Seismic Hazard Analysis, Ağı Dağı and Kirazlı Prospect Sites Biga Peninsula Turkey; Dr. Alan Hull; May 2012
Golder Associates	Groundwater Modeling	2011 Climate Baseline Update for Ağı Dağı and Kirazlı Mine Developments Alamos Gold, Turkey; Esra Sen
Golder Associates	Surface and Storm Water Hydrology	“Prefeasibility Cost Estimate for Water Management Infrastructure: Agi Dagi and Kirazli Gold Projects, Turkey”; Dr. Robert Millar; Dated May 25, 2012
Golder Associates	Environmental Studies, Permitting and Social or Community Impact	20.0 Environmental Studies, Permitting and Social or Community Impact; James Frolich, REA
Hidrokon	Water Reservoir Design and Costs	“Kuzey Biga Mining Operations Reservoir Water Supply”; Ahmet Süleyman ÜNSAL

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Kirazlı and Ağı Dağı Gold Project NI 43-101

4. PROPERTY DESCRIPTION AND LOCATION

The description and discussion of concession licenses and land ownership included in this chapter are based on the pertinent information provided by Alamos.

4.1 Location

The Ağı Dağı/Kirazlı Gold Project is located in the Çanakkale Province in the Biga Peninsula of Northwestern Turkey (see Figure 4-1). The project includes the Ağı Dağı Gold Property and the Kirazlı Gold Property, situated 19 km to the northwest. Details on both properties are given in the following sections.

Figure 4-1 Location Map – Ağı Dağı / Kirazlı Gold Projects

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Kirazlı and Ağı Dağı Gold Project NI 43-101

4.2 Concessions

4.2.1 Kirazlı

The Kirazlı Gold Property (“Kirazlı”) is accessible by a 3 km dirt road from the village of Kirazlı which in turn is located 40 km south of the regional capital of Çanakkale.

The property consists of 1,540.55 hectares of mineral tenure in two contiguous licenses (Table 4-1 and Figure 4-2) covering a prominent northwest trending ridge with 500 meters of relief. Both concessions are classified as operation licenses, transferred from exploration licenses.

Table 4-1 Kirazlı Gold Property - Mineral Tenure

No.	Acq. Date	License Area (ha)	License No.	Due Date	Owned By	Type
1	13.10.2009	979.30	62075	13-Oct-19	Doğu Biga	OPERATION
2	03.03.2011	561.25	57863	3-Mar-21	Doğu Biga	OPERATION

The concession boundary map for Kirazlı is shown in Figure 4-2 below.

Alamos acquired the Kirazlı Property simultaneously with the acquisition of Ağı Dağı, by way of purchase of the Turkish subsidiary which held Kirazlı, Doğu Truva Madencilik Sanayi Ticaret Limited Şirketi (Doğu Truva). Following the acquisition, Doğu Truva was renamed Doğu Biga Madencilik San. Tic. AŞ. (Doğu Biga).

The Kirazlı Property includes the following resource areas and exploration targets:

• Kirazlı

• Rockpile (exploration target)

• İri (exploration target)

• Çatalkaya (exploration target)

The Kirazlı mine project site is located in Mining Operation License No. 62075 issued by MIGEM, Turkish General Directorate of Mining Affairs. This operation license covers an area of 979.3 hectares. It was obtained on October 13, 2009 by Doğu Truva and is valid through October 13, 2019. The operation license is held by Doğu Biga and Polimetal Madencilik under option by Doğu Biga.

Part of the Kirazlı project footprint is located on Polimetal concession consisting of Mining Operation License No. 57607 of 1891.67 hectares. In July 2011 Doğu Biga and Polimetal signed an agreement for the lease and an option to earn a 100% interest for the mining license No. 57607.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Temporary Article #16 of Turkish Mining Law defines the due date for obtaining the operating permit for operation license No. 62075 (to be given by MIGEM) as October 13, 2012. Operating permit requirements are the following:

• EIA approval

• Land use permit

• License to start and operate a business

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Kirazlı and Ağı Dağı Gold Project 43-101

Figure 4-2 Kirazlı Concession Boundary

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Kirazlı and Ağı Dağı Gold Project 43-101

4.2.2 Ağı Dağı

The Ağı Dağı Gold Property is accessible by forestry roads from the village of Söğütalan from the north, Karaköy from the west, and Kızılelma from the south. Ağı Dağı is approximately 65 km from the regional capital of Çanakkale, and 19 km to the southeast of the Kirazlı Gold Property described above.

The property consists of a total of 10,525.04 hectares of mineral tenure, currently (June 20, 2012) comprised of 11 contiguous licenses (Table 4-3 and Figure 4-3) covering a prominent ridge with 900 meters of relief. The Ağı Dağı site includes the Baba and Deli ore deposits which will be mined by open pit method. The pits are at elevations of 725-910 and 535-740 masl, respectively.

Table 4-2 Ağı Dağı Gold Property – Mineral Tenure

No.	Acq.  Date	License  Area (ha)	License  No.	Due  Date	Owned  By	Type
1	13.10.2009	288.36	61832	13-Oct-19	Kuzey Biga	OPERATION
2	02.05.2011	1405,15	201001554	2-May-21	Kuzey Biga	OPERATION
3	09.12.2009	2338.00	77358	9-Dec-14	Kuzey Biga	OPERATION
4	09.12.2009	2288.72	40912	9-Dec-14	Kuzey Biga	OPERATION
5	13.11.2007	18.84	200710049	13-Nov-12	Kuzey Biga	EXPLORATION
6	13.11.2007	93.92	200710050	15-Nov-12	Kuzey Biga	EXPLORATION
7	23.11.2009	58.10	200906056	23-Nov-12	Kuzey Biga	EXPLORATION
8	23.11.2009	257.46	200906055	23-Nov-12	Kuzey Biga	EXPLORATION
9	25.04.2012	1706.32	201200477	25-Apr-19	Kuzey Biga	EXPLORATION
10	25.04.2012	1977.20	201200478	25-Apr-19	Kuzey Biga	EXPLORATION
11	25.04.2012	1498.12	201200479	25-Apr-19	Kuzey Biga	EXPLORATION

Licenses as of 30 June 2012

A two percent Net Smelter Return Royalty in favor of Franco Nevada Corp. is registered against part of the property.

Alamos acquired the Ağı Dağı Property simultaneously with the acquisition of Kirazlı, by way of purchase of the Turkish subsidiary which held Ağı Dağı, Kuzey Truva Madencilik Sanayi Ticaret Limited Şirketi (Kuzey Truva). Following the acquisition, Kuzey Truva was renamed Kuzey Biga Madencilik San. Tic. AŞ. (Kuzey Biga).

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Kirazlı and Ağı Dağı Gold Project 43-101

The Ağı Dağı site includes the following mineralized zones and exploration targets:

• Baba

• Deli

• Fire Tower

• Çamyurt

• Ihlamur (exploration target)

• Tavşan (exploration target)

• Ayı tepe (exploration target)

The two concessions where the Ağı Dağı project features are located are detailed below in Table 4-3.

Table 4-3 Location of Ağı Dağı Project Features

Location	License Start Date	License No.	License End Date	Due Date for Operation Permit	Project      Features in     License Area
ÇAN-BARDAKÇILAR	12/9/2009	77358	12/9/2014	12/9/2012	Deli Pit, North Dump, North HLF
ÇAN	12/9/2009	40912	12/9/2014	12/9/2012	Baba Pit

Licenses as of 30 June 2012

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Figure 4-3 Ağı Dağı Concession Boundaries

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Kirazlı and Ağı Dağı Gold Project NI 43-101

4.3 Land Ownership

There are two types of land ownership in Turkey:

• State Land (Treasury, Forestry, Pasture, Military, etc.)

• Private Land

The Kirazlı and Ağı Dağı properties include both state and private land. The majority of the project feature footprints are located in state forestry land which requires forestry permitting prior to construction activities. Tables 4-4 and 4-5 summarize the project feature locations with respect to forestry and non-forestry land for the Kirazlı and Ağı Dağı projects, respectively. Forestry permitting requirements is explained in the following section.

Table 4-4 Land Ownership – Kirazlı Project Features

Project Unit	Area  (ha)	Non-Forestry  Land	Forestry  Land
Waste Rock Storage Area	82.96	0.00	82.96
Leach Pad	54.67	0.00	54.67
Top Soil Stockpile - 1	12.63	5.13	7.50
Top Soil Stockpile - 2	12.56	0.54	12.02
Top Soil Stockpile - 3	12.73	1.80	10.93
Overland Conveyor	1.48	0.00	1.48
Agglomerator	0.15	0.00	0.15
Crushing Unit	1.04	0.00	1.04
Open Pit 1	57.59	0.00	57.59
Open Pit 2	1.19	0.00	1.19
Open Pit 3	2.93	0.00	2.93
Event Pond -1	4.82	0.00	4.82
ADR Plant	0.61	0.00	0.61
Stockpile	0.43	0.00	0.43
Access Road	4.34	0.00	4.34
Total	250.14	7.47	242.67
	%	3	97

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Table 4-5 Land Ownership – Ağı Dağı Project Features

Project Unit	Area  (ha)	Non-Forestry  Land	Forestry  Land
Waste Rock (N)	74.31	0.00	74.31
Top Soil Storage (NW)	14.64	2.33	12.31
Top Soil Storage (NE)	14.23	0.00	14.23
Heap Leach (NW)	98.47	13.94	84.53
Event Pond 1	0.64	0.00	0.64
Event Pond 1	1.60	0.00	1.60
Event Pond 1	4.21	0.00	4.21
Deli Pit (N)	10.49	0.00	10.49
Deli Pit (S - Main)	79.73	0.00	79.73
Baba Pit (S - Main)	58.30	0.00	58.30
Baba Pit (NE)	3.34	0.00	3.34
Baba Pit (SW)	6.21	0.00	6.21
Event Pond 2	4.70	0.00	4.70
Event Pond 1	1.56	0.00	1.56
ADR Plant	0.34	0.00	0.34
Top Soil Storage (SW)	19.24	0.00	19.24
ADR Plant	0.13	0.08	0.05
Explosive Magazine	0.93	0.00	0.93
Conveyor	0.03	0.00	0.03
Conveyor	0.11	0.00	0.11
Conveyor	0.03	0.00	0.03
Conveyor	0.23	0.00	0.23
Total	393.45	16.35	377.10
	%	4	96

Permits for mining projects in state forestry land are regulated by Forestry Law No.6831 and Regulation for Article 16 of Forestry Law (Regulation No.27715) of the Ministry of Forestry and Water Affairs.

In line with laws and regulations in force, open-pits and facilities (access roads, pipelines, communication lines, electricity transmission, conveyors, stockpiles, dump sites, HLFs, explosives magazine, etc.) of Ağı Dağı and Kirazlı projects will be permitted under separate applications.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Forestry permit application for the projects requires the following:

• Official Application Letter

• EIA Approval from Ministry of Environment and Urbanization

• Operating Permit (from MIGEM)

• Mining License (Operation licenses)

• 1/25000 scale topographic maps of the project area

• Forestry stand maps

• 1/1,000 scale project layout

• Coordinates of the area requested

• Forestry Cadastral Map

• Archeological / Cultural Protection Area Clearance (by Çanakkale Directorate of Culture and Tourism)

• Rehabilitation project*

• Draft design of pits and facilities

• Application Fees**

* Rehabilitation project will be prepared prior to forestry permit application and submitted together with the EIA reports. Technical monitoring reports will be prepared by Kuzey Biga and Doğu Biga annually and submitted to Regional Directorate of Forestry (Forestry) in line with Regulation No. 27715. Forestry will audit and approve the compliance of mining operations with the rehabilitation projects submitted.

** Application fees include the following:

• Re-forestation Fee (one-time fee)

• Land use Fee (to be paid annually)

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Table 4-5 Land Ownership – Ağı Dağı Project Features

Project Unit	Area  (ha)	Non-Forestry  Land	Forestry  Land
Waste Rock (N)	74.31	0.00	74.31
Top Soil Storage (NW)	14.64	2.33	12.31
Top Soil Storage (NE)	14.23	0.00	14.23
Heap Leach (NW)	98.47	13.94	84.53
Event Pond 1	0.64	0.00	0.64
Event Pond 1	1.60	0.00	1.60
Event Pond 1	4.21	0.00	4.21
Deli Pit (N)	10.49	0.00	10.49
Deli Pit (S - Main)	79.73	0.00	79.73
Baba Pit (S - Main)	58.30	0.00	58.30
Baba Pit (NE)	3.34	0.00	3.34
Baba Pit (SW)	6.21	0.00	6.21
Event Pond 2	4.70	0.00	4.70
Event Pond 1	1.56	0.00	1.56
ADR Plant	0.34	0.00	0.34
Top Soil Storage (SW)	19.24	0.00	19.24
ADR Plant	0.13	0.08	0.05
Explosive Magazine	0.93	0.00	0.93
Conveyor	0.03	0.00	0.03
Conveyor	0.11	0.00	0.11
Conveyor	0.03	0.00	0.03
Conveyor	0.23	0.00	0.23
Total	393.45	16.35	377.10
	%	4	96

Permits for mining projects in state forestry land are regulated by Forestry Law No.6831 and Regulation for Article 16 of Forestry Law (Regulation No.27715) of the Ministry of Forestry and Water Affairs.

In line with laws and regulations in force, open-pits and facilities (access roads, pipelines, communication lines, electricity transmission, conveyors, stockpiles, dump sites, HLFs, explosives magazine, etc.) of Ağı Dağı and Kirazlı projects will be permitted under separate applications.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Forestry permit application for the projects requires the following:

• Official Application Letter

• EIA Approval from Ministry of Environment and Urbanization

• Operating Permit (from MIGEM)

• Mining License (Operation licenses)

• 1/25000 scale topographic maps of the project area

• Forestry stand maps

• 1/1,000 scale project layout

• Coordinates of the area requested

• Forestry Cadastral Map

• Archeological / Cultural Protection Area Clearance (by Çanakkale Directorate of Culture and Tourism)

• Rehabilitation project*

• Draft design of pits and facilities

• Application Fees**

* Rehabilitation project will be prepared prior to forestry permit application and submitted together with the EIA reports. Technical monitoring reports will be prepared by Kuzey Biga and Doğu Biga annually and submitted to Regional Directorate of Forestry (Forestry) in line with Regulation No. 27715. Forestry will audit and approve the compliance of mining operations with the rehabilitation projects submitted.

** Application fees include the following:

• Re-forestation Fee (one-time fee)

• Land use Fee (to be paid annually)

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5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

Based upon available information there are sufficient surface rights for mining and processing operations. Adequate sources of water, power, and skilled personnel are available to make the project feasible.

5.1 Location

The Ağı Dağı and Kirazlı Projects are both located in Biga Peninsula of northwestern Turkey (Figure 5-1). Both properties are located within the administrative boundaries of Çanakkale Province which is the nearest large metropolitan center to both sites. The Kirazlı Project site is located approximately 30 km to the southeast of Çanakkale and Ağı Dağı Project site is located 25 km to the southeast of Kirazlı.

5.2 Accessibility, Infrastructure, and Services

The major roads connecting Çanakkale to neighboring cities and to its districts are shown in Figure 5-1. The Kirazlı site can be accessed directly from Çanakkale and the Ağı Dağı site can be accessed either from Çanakkale via Kirazlı or from Çan. All main roads are asphalt-paved and both mine sites can be reached by forestry (dirt) roads from then on. In addition to roads, the region is well-serviced with electricity and transmission lines. There is a large coal-fired power plant within the boundaries of Çan District, 15-20 km from the Ağı Dağı and Kirazlı sites. All villages in the Çanakkale province are connected to the national electrical grid. The total capacity of distribution substations is 617 MVA in the province (Çanakkale Governorship, www.canakkale.gov.tr).

The Çanakkale Airport, which became operational in 1995, is located at about 5 km distance from the city center. The Çanakkale Airport provides both civil and military service, and has a capacity of 3 planes, 2 runways, and 2 taxi routes. (Çanakkale Governorship, www.canakkale.gov.tr).

There is also a small airport in Gökçeada Island, consisting of one runway and one taxiway, serving for humanitarian aid purposes. (Çanakkale Governorship, www.canakkale.gov.tr).

Since 2009, Turkish Airlines has flown to Çanakkale from Istanbul 3 days a week, on Tuesdays, Thursdays and Sundays (www.turkishairlines.com).

BoraJet also provides flights from Çanakkale to İstanbul, Ankara, Diyarbakır, and Siirt (www.borajet.com.tr/tarifeler.aspx).

Sea transport between Çanakkale-Eceabat, Lapseki-Gelibolu, Bozcaada-Yükyeri and Çanakkale-Gökçeada is provided every half-hour daily by GESTAŞ, with vessels owned by the Special Provincial Administration. In addition, ferry services are provided by private sector companies between Çanakkale-Kilitbahir and Lapseki-Çardak. (Çanakkale Governorship, www.canakkale.gov.tr).

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İDO (İstanbul Seabus Co.) provides fast ferry cruises between Yenikapı (İstanbul) – Bandırma (Balıkesir) 3 times a day (www.ido.com.tr).

There are marine ports at Çanakkale Merkez (city center), Eceabat, Gelibolu, Lapseki, Ezine-Geyikli Yükyeri, Bozcada, Gökçeada, Çardak, and Kabatepe. In addition, there is the Çanakkale Kepez Port which recently became operational. Akçansa Cement Factory has a port in Ezine, and İçdaş one in Biga. (Çanakkale Governorship, www.canakkale.gov.tr).

5.3 Climate

Çanakkale, where Kirazlı and Ağı Dağı mine sites are located, is within the Marmara climate zone, which is a transition region between Mediterranean, Black Sea and, to an extent, continental climates. Areas along the coast of Çanakkale have Mediterranean climate characteristics: winters are warm and rainy, summers are dry and hot. The typical vegetation of this climate type is maquis/scrub. Inner and higher regions, especially north-facing sides of the hills, have Black Sea climate type. This climate type receives rain in all seasons; in fall rains are the heaviest and in spring they are the lightest. Typical vegetation of the Black Sea climate is mountain forests. In more inner regions, continental climate is dominant. Snowfall has been observed at high elevations, which includes the locations of the mine sites; however snow cover is expected to be only intermittent during the winter period.

The average annual temperature is 15oC at Çanakkale weather station (DMI) which is currently the only active regional long-term station. In general, the hottest temperatures in the region occur on the coast (Çanakkale). Temperatures tend to drop with distance inland and with increasing elevation. The highest temperatures are observed in the month of July, while the coldest temperatures occur in January. The average annual rainfall is approximately 580 mm at Çanakkale DMI station. The highest precipitation amounts are observed in the months of November and December, whereas the lowest precipitation amounts occur in July and August. Precipitation amounts tend to decrease from the northeast to southwest direction, with distance inland.

To collect site-specific data, two automatic meteorology stations were erected in May 2007, one next to the Kirazlı fire tower and the other next to the Ağı Dağı fire tower (SRK 2008a and 2008b). KBM has also installed additional stations in 2010 for data verification. In 2010 and 2011 additional data was collected on snowpack and precipitation in support of the project water balance. Climate and meteorology is further discussed in Section 20 for the region, and for the Kirazlı and Ağı Dağı sites. The climate update study also provided input to engineering design and closure planning of the proposed projects regarding extreme precipitation events at the two project sites.

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Figure 5-1 Location of Kirazlı and Ağı Dağı Mine Sites in Turkey

30 June 2012

5.4 Physiography

Elevations rise rapidly from zero to 250-500 masl within 5 to 10km inland from the Çanakkale coast. Both Kirazlı and Ağı Dağı mine sites are located at higher elevations, varying between 550 and 950 masl. The dominant vegetation type is forest. The main surface water flows observed in the Kirazlı and Ağı Dağı project areas are Koca Creek and Menderes Creek; many seasonal creeks have intermittent flows and are tributaries of these larger creeks.

Population and agricultural activity is concentrated in the valleys, whereas stock-breeding is the predominant economic activity in the highlands that are generally forested. Both Kirazlı and Ağı Dağı project areas are located in forested highlands that are owned and managed by the State.

5.5 Kirazlı

5.5.1 Location and Accessibility

The Kirazlı concession is located within the boundaries of Çanakkale central district and Bayramic District (Figure 5-2). The closest metropolitan center to the Kirazlı project site is Çanakkale. Kirazlı and Cazgırlar are the villages closest to the Kirazlı project site, at about 1.5 km and 4 km distance respectively from the nearest project unit (Figure 5-3). Kirazlı project site is located partly (around 35% of the footprint area) within the license area belonging to Polimetal Madencilik. A partnership agreement has been signed with Polimetal Madencilik on 21 July 2011 allowing Doğu Biga to use this license area.

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Figure 5-2 Satellite Image Showing the License Areas of Kirazlı Project and District Boundaries

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Figure 5-3 Topographical Map Showing Kirazlı Project Units and Settlements in Vicinity

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Access from Çanakkale to Kirazlı Village is via 40 km of paved two lane road. Access from Kirazlı Village to the Kirazlı project area is along 3 km of well-maintained dirt road which also provides access to other villages.

5.5.2 Physiography

Kirazlı Dağı (Kirazlı Mountain) forms one of the most prominent hills in the region with a maximum elevation of 811 masl (Figure 5-4). Relief in the area is approximately 250 m with slopes generally not exceeding 25-30%. Vegetation consists of mostly scrub oak and various shrubs up to 3 m in height. Isolated stands of 20 to 30 year old pines are also present. Large areas along the western side of the property have been stripped of the vegetation and replanted with pine seedlings.

Figure 5-4 View of Kirazlı Site, Looking NW

5.6 Ağı Dağı

5.6.1 Location and Accessibility

Most of Ağı Dağı concession is located in the Çan District, and the rest is located in neighboring Bayramic and Yenice districts (Figure 5-5). The largest and closest district center to the Ağı Dağı project site is Çan, located about 15 km north-northeast. Söğütalan and Kızılelma are the villages closest to the Ağı Dağı project site, at about 1 km and 1.5 km distance respectively from the nearest project unit (Figure 5-6). Karaköy, Cicikler, Bilaller and Bardakcilar villages are also near the Ağı Dağı property.

Ağı Dağı site can be accessed either from Çanakkale via Kirazlı or from Çan. Access from Kirazlı Village and from Çan is by paved two lane roads. The Ağı Dağı property can be reached from the villages of Söğütalan, Kızılelma and Karaköy by forest (dirt) roads. The drilling camp is located in the village of Söğütalan at the base of the Ağı Dağı project area.

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Figure 5-5 Satellite Image Showing the License Areas of Ağı Dağı Project and District Boundaries

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Figure 5-6 Topographical Map Showing Ağı Dağı Project Units and Settlements in Vicinity

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5.6.2 Physiography

The Ağı Dağı (Agi Mountain) is a prominent topographic feature high trending in a northeast direction for a distance of 5 km (Figure 5-7). The elevation of the ridge line varies from greater than 900 masl at the southwest end to about 700 masl at the northeast end.

Figure 5-7 View of Ağı Dağı Site, Looking SE

30 June 2012

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6. HISTORY

This section describes the history of the Ağı Dağı – Kirazlı Gold Projects since the 2010 acquisition by Alamos. For a description of the project history prior to 2010, the reader is referred to the “Technical Report on the Ağı Dağı – Kirazlı Gold Projects, Çanakkale Province; Republic of Turkey” (“Technical Report”) by K. D. Engineering, dated 12 March 2010.

Work activities of Alamos are reported here include the 2010 and 2011 program. The history is current to March 31, 2011, for drill programs, and September 15, 2011, for other programs.

6.1 Kirazlı

2010

Alamos analyzed 5,247 selected pulps from Teck Cominco’s Kirazlı core samples for hot cyanide soluble gold (“AuCN”) at ACME laboratory in Chile to confirm assay results provide a preliminary review of possible recoveries by cyanide leaching.

All prior forestry permits for roads and drilling platform had lapsed prior to the acquisition of the project. Alamos was required to apply for new Forestry permits, but the process was delayed by the revision of the Turkish Mining Law. The Kirazlı forestry permits were finally granted in August, 2010.

The Kirazlı 2010 drilling program started on August 30. A total of 4,375.30 meters of drilling was completed in 2010 including:

• 604.60 meters for metallurgical testing with five core holes 10-KD-120, 10-KD-121, 10-KD-121A, 10-KD-125 and 10-KD-126;

• 1,164.00 meters for pit stability testing with eight core holes 10-KD-122, 10-KD-123, 10-KD-124, 10-KD-127, 10-KD-128, 10-KD-129, 10-KD-129A and 10-KD-133;

• 2,606.70 meters for minable resource infill with sixteen core holes from 10-KD-130 to 10-KD-145 with the exception of 10-KD-133.

The metallurgical samples were selected by consultant Allen Anderson, and the selected intervals were sent in sealed drums to Kappes, Cassiday & Associates of Reno, Nevada for testing. Geotechnical logging of the pit stability drill holes was conducted by Calls and Nicholas from Tucson, Arizona or by Golder Associates Turkey under a protocol from Calls and Nicholas. All drill holes were logged and sampled for gold and silver assays and multi-elementary ICP analysis by the Alamos team.

Additionally, a total of 136 surface channel samples were collected within the area of the Kirazlı preliminary open pits outline from the “Technical Report”. They allowed the selection of one metallurgical bulk sample in the southern part of the Kirazlı orebody that was sent in a sealed drum to the same laboratory in June.

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In May, a topographic map with 5 m contours and a Digital Elevation Model were derived from Aster satellite imagery by Solucion Geographica Digital, a Mexican company that had done similar work for the Mulatos gold mine area.

In May, Nick Asbury and Lance Bacon, geotechnical engineers from Calls & Nicholas, completed surface cell mapping for pit slope stability at Kirazlı.

In September, the Rock Pile area was mapped in preparation for a future drill program. A total of 56 rock samples were collected to check prior results from Teck and from previously unsampled outcrops. Alteration was determined for 18 rocks with the ASD spectrometer.

In September, Nick Asbury, geotechnical engineer from Calls & Nicholas, did some mapping for pit stability at Kirazlı.

In October, Prof. Bora Rojay and Assoc. Prof. Dr. Lutfi Suzen from Middle East Technical University, Ankara, Turkey subcontracted by Golder & Associates released a report on the regional geology of the Kirazlı Prospect. Jorge Ortega, Alamos’s geologist, reviewed all core from previous operators to revise the geological interpretation of the Kirazlı deposit.

In November, the Kirazlı area was flown and detailed air photos were taken in view of completing a detailed topographic survey of the Kirazlı area by photogrammetry.

In November, Robert de l’Etoile, an independent consultant from SGS spent five days on the project with Marc Jutras, Director of Mineral Resources for Alamos, as part of an audit before the year-end minable resource calculations. Databases, core, geological models were reviewed and the field was visited. One objective of the site visit was to collect independent control samples for recent drill core. A total of 10 samples were collected at Kirazlı.

In December, two Golder geotechnical engineers, Russ Browne and Mike Klein, completed geotechnical investigations in three test pits in the proposed infrastructure areas at Kirazlı.

2011

The Kirazlı 2011 drilling program started on January 5 and was completed on March 7. A total of 1,919.65 meters of drilling was completed in 2011 including:

• 1,863.40 meters for minable resource infill with eighteen core holes from 11-KD-146 to 11-KD-160A.

• 56.25 meters for geotechnical testing of planned waste rock facility with three auger/core holes from 11-KD-161 to 11-KD-163.

In February, all topographic maps made by photogrammetry from air photos collected in November 2010 were completed. The consultant, Arda Arcasoy, also prepared a DEM model of the topography.

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In February-March, all cores from the project were reviewed by the Alamos geologists to further revise the geological interpretation of the Kirazlı deposit.

In the second quarter of 2011, Marc Jutras, Alamos’s Director of Mineral Resources completed the prefeasibility minable resource calculations using databases and geological models provided on March 31.

In June-July, the main Kirazlı deposit area was re-mapped by Jorge Ortega in an attempt to unify drill information and surface mapping. A total of 181 outcrops were visited with identification of lithology and alteration followed by confirmation of alteration by ASD spectrometry. A new geology and alteration map was prepared with the help of drill collar ASD interpretations in the logs.

6.2 Ağı Dağı

2010

Alamos analyzed 5,775 selected pulps from Teck Cominco’s Baba and Deli core samples for hot cyanide soluble gold (“AuCN”) at ACME laboratory in Chile to confirm assay results and get a preliminary confirmation of probable recoveries by cyanide leaching.

Following the acquisition of the project, Alamos started drilling on existing forestry permits. New Forestry applications were delayed by the revision of the Turkish Mining Law that was taking place at the time. The new Ağı Dağı forestry permits were finally granted after September, 2010.

The 2010 Ağı Dağı drill program started on March 20. A total of 17,160.90 meters of drilling was completed in 2010 including:

• 372.80 meters for metallurgical testing at Baba with 3 core holes: 10-AD-354, 10-AD-355 and 10-AD-356;

• 651.20 meters for pit stability testing at Baba, those were also used for metallurgical testing with 4 core holes: 10-AD-365; 10-AD-367; 10-AD-370 and 10-AD-375.

• 744.60 meters for pit stability testing at Baba with 4 core holes: 10-AD-368; 10-AD-369; 10-AD-372 and 10-AD-374.

• 1,808.60 meters for metallurgical testing at Deli with 9 core holes: 10-AD-357; 10-AD-358; 10-AD-361; 10-AD-366; 10-AD-373; 10-AD-377; 10-AD-377A; 10-AD-384 and 10-AD-388.

• 1,266.40 meters for pit stability testing at Deli with 6 core holes: 10-AD-371; 10-AD-378; 10-AD-381; 10-AD-382; 10-AD-385; and 10-AD-386.

• 6,299.10 meters of infill and definition drilling at Baba with 35 core holes: 10-AD-359; 10-AD-360; 10-AD-362 to 10-AD-364; 10-AD-376; 10-AD-379; 10-AD-380; 10-AD-383; 10-AD-387; 10-AD-390; 10-AD-393 and 10-AD393A; 10-AD-399; 10-AD-400; 10-AD-402; 10-AD-412; 10-AD-421; 10-AD-424; 10-AD-426 to 10-AD-429; 10-AD-431 to 10-AD-433; 10-AD-435 to 10-AD-440; 10-AD-442; 10-AD-445 and 10-AD-448.

• 4,755.00 meters of infill and definition drilling at Deli in 29 core holes: 10-AD-389 and 10-AD-389A; 10-AD-391 and 10-AD-392; 10-AD-394 to 10-AD-398; 10-AD-401; 10-AD-404 to 10-AD-407; 10-AD-413 to 10-AD-415A; 10-AD-418; 10-AD-425; 10-AD-430; 10-AD-434 and 10-AD-434A; 10-AD-441; 10-AD-443 and 10-AD-444; 10-AD-446 and 10-AD-447.

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• 1,028.50 meters of infill and definition drilling at Deli with 11 RC holes: 10-A-403; 10-A-408 to 10-A-411; 10-A-416 and 10-A-417; 10-A-419 and 10-A-420; 10-A-422 and 10-A-423.

• 84.25 meters for Infrastructure in the north dump area with 6 auger/core holes: 10-AD-449 to 10-AD-453 and 10-AD-452A.

• 150.45 meters for Infrastructure in the leach pad area with 6 auger/core holes: 10-AD-454 to 10-AD-459.

The metallurgical samples were selected by Allen Anderson with geology and assay results and the selected intervals were sent in sealed drums to Kappes, Cassiday & Associates in Reno, Nevada for testing. Geotechnical logging of the pit stability drill holes was done by Calls and Nicholas from Tucson, Arizona or by Golder Associates Turkey under a protocol from Calls and Nicholas. All drill holes were logged and sampled for gold and silver assays and multi-elementary ICP analysis by the Alamos team.

Additionally, a total of 175 surface channel samples were collected from trenches in the Baba and Deli preliminary open pits outlines. They allowed the selection of two surface metallurgical bulk sample in the Deli orebody and two more in the Baba orebody that were sent in sealed drums to the same laboratory.

In May, a topographic map with 5 m contours and a Digital Elevation Model were derived from Aster satellite imagery by Solucion Geographica Digital, a Mexican company that had done similar work for the Mulatos gold mine area.

In May, Nick Asbury and Lance Bacon, geotechnical engineers from Calls & Nicholas, completed surface cell mapping for pit slope stability at Ağı Dağı.

In June, Russ Browne, Golder geotechnical engineer, completed geotechnical investigations in test pits in the proposed infrastructure areas at Ağı Dağı.

In August, Prof. Bora Rojay and Assoc. Prof. Dr. Lutfi Suzen from Middle East Technical University, Ankara, Turkey subcontracted by Golder & Associates released a report on the regional geology of the Ağı Dağı Prospects.

In August-September, Anna Fonseca, consultant geologist, reviewed all core from previous operators and Alamos to revise the geological interpretation of the Baba and Deli deposits.

In October, Anna Fonseca, geological consultant submitted a petrographic report on the Ağı Dağı deposits.

In November, the Ağı Dağı area was flown and detailed air photos were taken in view of completing a detailed topographic survey of the Ağı Dağı area by photogrammetry. In December, two Canadian surveyors completed detailed ground topographic maps of the Ağı Dağı infrastructures.

In November, Robert de l’Etoile, an independent consultant from SGS spent five days on the project with Marc Jutras, Director of Mineral Resources for Alamos as part of an audit before the year-end minable

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resource calculations. Databases, core, geological models were reviewed and the field was visited. One objective of the site visit was to take independent control samples for recent drill core. A total of 20 samples were collected at Ağı Dağı.

In November-December, re-mapping of the main Baba and Deli deposit areas by Ramis Baris Kaya and Mehtap Özcan, respectively, was initiated. Updated geology and alteration maps were presented from this work.

2011

The Ağı Dağı 2011 drilling program started in March and none of these holes were included in the minable resource calculations used for the present report. In the second quarter of 2011, Marc Jutras, Alamos’s Director of Mineral Resources completed the prefeasibility minable resource calculations using databases and geological models provided on March 31.

In February-March, all cores from the project were reviewed by the Alamos geologists to further revise the geological interpretation of the Ağı Dağı deposits.

In February, all topographic maps made by photogrammetry from air photos collected in November 2010 were completed. The consultant, Arda Arcasoy, also prepared a DEM model of the topography.

In the summer, mapping of the main Baba and Deli deposit areas was completed and two revised geology and alteration maps were issued using all mapping and drill log information.

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7. GEOLOGICAL SETTING AND MINERALIZATION

7.1 Regional Structural Setting of the Biga Peninsula

Sections 7.1 and 7.2 of this chapter are reproduced from the “Technical Report on the Ağı Dağı – Kirazlı Gold Projects, Canakkale Province; Republic of Turkey” (“Technical Report”) by K. D. Engineering, dated 12 March 2010. There will be no further reference to this report in the Regional Geology sections.

Turkey consists of crustal fragments assembled by early Tertiary time as the result of southerly directed obduction events that recorded the collision of Gondwana and Laurasia. The Biga Peninsula is located in the western part of the Sakarya tectonic domain which is bounded by the Intra-Pontide suture to the north and the Izmir-Ankara-Erzincan suture to the south. The Biga Peninsula is made up of several northeasterly trending structural domes composed of metamorphosed Paleozoic and Mesozoic basement rocks and intervening, east by northeast trending, extensional basins filled with Paleogene and younger volcanic strata (Figure 7-1). Exotic blocks of eclogite and blueschist occur in a tectonic mélange that forms part of a possibly Permian volcanic-sedimentary complex adjacent to the Kazdag massif north of Küçükkuyu.

The basement rocks were subsequently intruded during the Miocene by a plutonic volcanic arc (now part of the Western Anatolia Volcanic Province), related to the final subduction and closure of the NeoTethys basin in the mid Miocene. This arc comprises Oligocene-early Miocene calc-alkaline granitoid intrusions, and associated volcanism, followed by Late Miocene-Pliocene alkaline volcanism. The arc is believed to have had a neutral to extensional character.

Within the Biga Peninsula, the basement metamorphic rocks occur in three distinct associations:

• Çamlıca metamorphics composed of a NE–SW-trending strip of quartz-micaschists with calc-schist, quartzite and amphibolite horizons, in the southwest (Okay & Satır 2000a) and Kemer micaschists (Beccaeletto et al. 2007). Early Cretaceous (Aptian) ultramafic rocks, the Denizgören ophiolite (partially serpentinized harzburgite), tectonically overlies these metamorphics to the northwest.

• Kazdağ Massif consisting of high-grade metamorphic rocks (amphibole-bearing gneisses with marble intercalations, metaophiolite, marble and gneiss); and,

• Karakaya formation (Bingöl et al. 1975) is mostly represented by Triassic low-grade metamorphics with exotic blocks of Permo-Carboniferous limestones; this unit is initially introduced as it is now known as the Karakaya Complex – strongly deformed and locally metamorphosed pre-Jurassic tectono-stratigraphic orogenic series.

These rocks are, in turn, unconformably overlain by little-deformed Jurassic–Lower Cretaceous sandstones and limestones (Bingöl et al. 1975; Altıner et al. 1991; Okay et al. 1991; Okay et al. 1996; Leven & Okay 1996). The sequence includes: (i) Liassic terrigeneous to shallow marine clastic sedimentary rocks;

(ii) Middle to Upper Jurassic platform-type neritic limestones; (iii) Lower Cretaceous pelagic limestones, and

(iv) Upper Cretaceous–Paleocene volcanic and sedimentary rocks.

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Figure 7-1 Simplified Geological Map of Biga Peninsula Showing Distribution and Age of Different Rock Units

(Ercan et al. 1985, 1995; Genç 1998; Okay & Satır 2000a, b; Karacık & Yılmaz 1998)

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Neogene calc-alkaline plutonic and associated volcanic rocks form the most widespread rock units in the Biga Peninsula. The field relations, geochemical and geochronological data suggest that magmatic activity commenced with intrusion(s) of granitoids, coeval with initial phase of volcanic activity, and continued with the second phase of volcanism. The Oligo–Miocene plutonic rocks can be named as Kestanbol granite, Evciler pluton (granodiorite, quartz monzonite, monzodiorite and quartz diorite), Eybek granodiorite, Ilıca granodiorite, Kozak granodiorite (granodiorite-dominated core enclosed by a ring of more quartz-rich granitic rock) and Karabiga granitoid (granodiorite and quartz-monzonite to granite.

The volcanic rocks of the Biga Peninsula were mapped by Ercan et al. (1995) and they are differentiated, based on lithology and age, into six distinct units: Eocene Balıklıçeşme volcanics, Oligocene Çan volcanics, Late Oligocene Kirazlı volcanics, Early–Middle Miocene Behram volcanics, Middle Miocene Hüseyinfakı volcanics and Late Miocene Ezine basalts (Figure 7-2).

• Balıklıçeşme Volcanics (Eocene); form the oldest volcanic rocks of the peninsula and crops out in the area between Lapseki and Biga. They are composed of andesitic and dacitic lavas and tuffs with occasional agglomerate.

• Çan Volcanics (Oligocene); seen in the area around Çan-Etili, Edremit and Canakkale and characterized by widespread outcrops of Oligocene andesitic, dacitic, rhyodacitic lavas and tuffs with occasional agglomerates.

• Kirazlı Volcanics (Late Oligocene); during its later stages, the nature of Oligocene volcanism in the Biga Peninsula has changed from andesitic (rarely dacitic) to more trachyandesitic and rarely basaltic character; latter occurs in the forming of dikes and local lava flows and forms small exposures commonly along NW–SE-trending faults, suggesting that these faults acted as conduits for the magma to reach the earth surface.

• Behram Volcanics (Early – Middle Miocene); are composed mostly of andesitic and latitic lavas with rare dacite and rhyodacite; tuffs and ignimbrites are also common. They either occur as lava flows or domes and volcanic necks.

• Hüseyinfakı Volcanics (Early – Middle Miocene); crop out around Ayvacık, and are represented by basalt and thracyandesite dikes and rare lava flows; they cut the Behram (Assos) ignimbrites.

• Ezine Basalt (Late Miocene); are latest product of Tertiary volcanism in the Biga Peninsula and are represented by alkaline olivine basalts. They form small exposures and occur commonly as dikes but domal morphologies are also common. They are common along E–W-trending normal faults, suggesting that these fractures played the role of conduits for the magma to reach the surface.

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Figure 7-2 Simplified Geological Map of Biga Peninsula Showing Distribution of Volcanic Rocks

(from Ercan et al. 1995)

7.2 Regional Structural Setting of the Biga Peninsula

The Biga Peninsula is under the influence of active dextral strike-slip faulting and N-S continental extension. The active geologic structures of the region fall, based on their orientation, into three distinct groups: NW–SE-, NE–SW-, E–W-trending faults. Among these, the most prominent faults are a number of NE–SW-trending dextral strike-slip fault systems that represent the branches of the North Anatolian Fault Zone (NAFZ) in the Biga peninsula; some of these faults are known as Yenice-Gönen and Etili faults.

The second group is E-W trending normal faults and commonly occur along the northern margin of Gulf of Edremit and along the southern margin of Lake Manyas. There are less prominent NW-SE trending faults which are interpreted as synthetic Riedel shears of NAFZ.

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Figure 7-3 Simplified Neotectonic Map of Turkey Showing Major Neotectonic Structures

(Bozkurt 2001); (b) major neotectonic structures of Biga Peninsula (from Okay & Satır 2000b; Bozkurt 2001; Kaymakçı et al. 2007)

Similarly trending faults played important roles during Oligocene–Miocene volcanism in the region; this suggests that many of the active faults are in fact reactivated structures dating back to Oligocene. NE–SW-trending faults controlled both the sedimentation and volcanic activity during Oligocene–Early Miocene period where so-called lower volcanic association and coeval sediments were deposited. NW–SE-trending faults formed the main pathway for trachyandesitic and rarely basaltic magmas during the formation of Kirazlı volcanics (Figure 7-3).

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7.3 Geology of the Kirazlı Property

The Kirazlı property is located in the Biga peninsula within the northern sector of the Aegean Horst and Graben System between the main branch of the NAFZ and one of its south branches, the Etili fault.

7.3.1 Local Geology

The lithostratigraphic column and the geology map of the Kirazlı area are respectively presented in Figures 7-4 and 7-5. Rojay B. and Süzen, M.L. (2010a) have mapped the Kirazlı property and presented additional descriptions of the Kirazlı geology. Drill observations complete the descriptions below.

Pre-Triassic metamorphic and ultramafics are present east of the Kirazlı property. The metamorphics consist of graphitic schists with boudinaged quartz veins, metavolcanics and sericitic shists while the ultramafic are serpentinized harzburgites interpreted as ophiolitic.

The base of the Triasic Karakaya sequence is also represented in the east of the property. It is situated tectonically on top of the ultramafics. The unit consists of a metaclastic sequence of black slates and marble olistoliths.

Oligo-Miocene calc-alkaline granite to granodiorite intrusions are found immediately east of the Kirazlı property around the village of Alankoy. The plutonic rocks are commonly cut by aplite veins.

Oligo Miocene volcanics cover large areas in the Biga Peninsula (Figure 7-2). The volcanic sequence is diversified and starts by andesitic-dacitic volcanism overlain by basalts. The top of the andesitic-dacitic sequence dominantly consists of tuffs that often were silicified.

The volcanic assemblage in the deposit areas is situated along the eastern rim of a caldera and is made up of andesite flows and tuffs with the proportion of tuffs increasing towards the top. Tuffs consist of predominantly lithic tuffs with subordinate crystal lithic tuff, ash flow and/or ash fall tuffs and epiclastic units. The intense hydrothermal alteration related to the epithermal gold deposit often makes it difficult to identify the effective primary nature of the altered volcanics on the Kirazlı hill flanks.

Phreatic and phreatomagmatic breccias cutting the volcanic sequence were mapped in the southeast of Kirazlı (Figure 7-6) and commonly identified in drilling. These breccias were emplaced as mushroom shaped pipes with roots that were identified to a vertical depth of 400 m. They are the result of the intense structural and volcanic activity. They consist predominantly of silicified matrix supported polymictic breccias with moderately angular to well-rounded clasts size varying from a few millimeters to over 10 centimeters. As they were principally observed in core; it is possible that some clasts would even be bigger. Locally, the presence of silicified charcoal clasts tends to prove that the breccias reached surface.

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Figure 7-4 Simplified Tectono-Stratigraphic Section of the Kirazlı Area

(from Rojay B. and Süzen, M.L. 2010a)

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Figure 7-5 Geological Map of the Kirazlı Area

(from Rojay B. and Süzen, M.L. 2010a)

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Figure 7-6 Kirazlı Gold Deposit, Surface Geology (by J. Ortega, 2011)

7.3.2 Alteration

Sections 7.3.2 through 7.3.4 of this chapter are updated from the “Technical Report on the Ağı Dağı – Kirazlı Gold Projects, Canakkale Province; Republic of Turkey” (“Technical Report”) by K. D. Engineering, dated 12 March 2010, using DBM’s mapping and core logging observations.

Kirazlı has a well-developed alteration pattern typical of a high sulphidation epithermal system. Silicification is the most prominent alteration type surrounded by advanced argillic, argillic alteration, and propyllitic zones (Figure 7-7).

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Figure 7-7 Kirazlı Gold Deposit, Surface Alteration (by J. Ortega, 2011)

The earliest and most widespread silicification is represented by grey, massive, sugary, and vuggy silica. The prominent, large outcrops along the flanks of Kirazlı Dagi and Çatalkaya Tepe are primarily this early grey silica. Primary volcanic features including phenocrysts and fragments are locally preserved where the early grey silica is preserved as the dominant alteration facies. Elsewhere subsequent acid leaching processes have resulted in vuggy and cavity-riddled grey silica. This early, widespread silicification is barren and is interpreted to be the high-level alteration zone above the widespread argillic alteration.

The early grey silica is cut by yellow-green ‘chalcedonic’ to ‘opaline’ silica that occurs variably as a pervasive overprint, as in situ breccia matrix and in stockwork/veins. This dense, impermeable silica is best

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developed in the flat outcrops on the top of Kirazlı Dagi and represents Kirazlı Dağı’s ‘silica cap’. Numerous fractures and brittle faults occur within the silica cap rock. This second silica bearing event may be associated with the low-grade gold mineralizing event that appears to be localized in the rocks beneath this dense silica cap rock.

Another phase of silicification occurs as grey quartz with high content of pyrite/iron oxide and with some clay species filling fracture arrays and earlier quartz. This silicification is common in vertical to steeply dipping silica roots to the silica cap. This silica event, with its associated pyrite/iron oxide, carries the high-grade gold and silver.

The final phase of silicification is late crystalline silica that forms in cracks and vugs that overprint the chalcedonic and grey silica.

Underlying the massive grey silica and the later chalcedonic silica cap rocks is argillic alteration with a core of advanced argillic alteration immediately below the silica cap and around its subvertical silica roots, surrounded by widespread argillic alteration.

Advanced argillic alteration over-prints the earlier argillic alteration. This alteration type is characterized by alunite, dickite, pyrophyllite, zunyite and silica and its distribution has been defined by field observations, core logging and PIMA / ASD spectrometry studies. Where one or both of these minerals is abundant, the alteration was classified as advanced argillic. Alunite-dominated alteration occurs as pervasive, patchy and wispy flushes over the earlier argillic and silicified rocks in domes that envelope breccia shoots. Locally, abundant pink alunite veins characterized the alunitic advanced argillic alteration phase.

A late dickite-bearing event over-prints or may be pene-contemporaneous with the alunitic alteration. It is more widespread than the alunite, but the dendritic vein arrays follow the same breccia shoots. The late, greasy dickite occurs in association with both quartz and pyrite. There appears to be a progression from quartz to quartz-pyrite to quartz-pyrite-dickite to pyrite-dickite to dickite through time. The high-grade gold is spatially linked to these mineral associations, particularly the dickite dominated phase, and is interpreted to be temporally and mineralogically associated with them.

The argillic alteration is typically characterized by fine-grained, soft, grey dickite/kaolinite, and variable amounts of quartz. Disseminated pyrite or iron oxide minerals (dependant on the position relative to the redox horizon) are also ubiquitous. These minerals form a dark groundmass to white dickite/kaolinite pseudomorphs of feldspar phenocrysts. Primary volcanic textures are generally preserved, even locally highlighted, where this is the dominant alteration facies. It is interpreted that this widespread argillic alteration corresponds to the same alteration event as the overlying grey silica.

Propylitization occurs at depth in drill core and in outcrops at low elevations on the southwestern flank of Kirazlı Dagi. The presence of gypsum and calcite with the ubiquitous clays indicate propylitic alteration.

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7.3.3 Structure

There are four main structural trends that impact the rocks of Kirazlı Dagi. All show a range of intensities from isolated fractures through faults with gouge and/or slickensides and all are consistent with brittle deformation.

Steep NW/SE striking structures that control the overall trend of Kirazlı Dagi are early and are interpreted to be associated with caldera development. These structures are readily apparent in Landsat images.

NE/SW striking extensional block faults have resulted in a horst and graben configuration evidenced by the abrupt elevation changes in the silica cap. This is most clearly shown in the downward offset of the silica cap in the saddle area between Kirazlı Dagi and Çatalkaya Tepe. These block faults are highlighted by drainage lineaments and appear to be the structural corridors along which the breccia pipes were emplaced. The slip data on these structures suggests that these structures are reactivated structures and the fault planes themselves are marked by hematization (specular hematite) and accompanied mostly by other alteration and/or intense brecciation.

The north-striking high grade zone corresponds with abundant near-vertical north trending fractures and may have contributed to the localization of the phreatic breccia bodies.

East-striking faults correspond with offsets in high-grade mineralization and must, therefore, have developed after the second high-grade mineralizing event. This is most evident in a sinistral fault near the northern end of Kirazlı Dagi that also offsets a SW striking fault.

7.3.4 Brecciation

At Kirazlı, heterolithic phreatic and phreatomagmatic breccias have silicified and argillized heterolithic fragments, sulfide- and oxide-bearing fragments, angular through sub-rounded fragments and a sandy “rock flour” matrix. They are locally moderately well sorted through poorly sorted.

These phreatic and phreatomagmatic breccias are commonly hydrothermally altered but the envelope of the hydrothermal alteration extends largely beyond the heterolithic breccias. The hydrothermal alteration also affects host rocks that were also subject to fluid injections related to the heterolithic breccias such as fractured andesites with an element of clast rotation, jig-saw fit breccias or fractured andesites, crackle breccias. The hydrothermal breccia envelope is logged as an overprint over these various lithologic units.

Hydrothermal breccias represent the main lithological control to the gold mineralization.

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Figure 7-8 Kirazlı Gold Deposit, Photos of Core Samples

1 – 10-KD-123 at 32.2m: Andesite, Crackle Breccia, Advanced Argillic Alteration

2 – 10-KD-132 at 58.3m: Andesite, Hydrothermal Breccia, Vuggy Silica

3 – 10-KD-132 at 49.4m: Phreatic and Hydrothermal Breccia, Vuggy Silica

4 – 10-KD-122 at 98.6m: Phreatic Breccia, Massive Silica

7.4 Geology of the Ağı Dağı Property

7.4.1 Local Geology

The lithostratigraphic column and the geology map of the Ağı Dağı area are respectively presented in Figures 7-9 and 7-10. Rojay B. and Süzen, M.L. (2010b) have mapped the Ağı Dağı property and presented additional descriptions of the geology. Drill observations complete the descriptions below.

Pre-Triasic metamorphic and ultramafics are present southeast of the Ağı Dağı property. The metamorphics consist of amphibole gneisses with lenses of marble boudins, amphibolites, granitic-granodioritic gneisses while the ultramafic are metadunites and orthoamphibolites.

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The Triasic Karakaya sequence is also represented east of the map, outside the property. It has a faulted basal contact with gneisses and granodioritic units and is intruded by Oligocene age granitic units. The sequence consists of black slates and marble olistoliths of low grade metamorphism.

Oligo-Miocene calc-alkaline granite to granodiorite intrusions are found immediately north of the Karaköy village. They induced hornfels and skarns in the contact zones. The plutonic rocks are commonly cut by aplite veins.

Oligo Miocene volcanics cover large areas in the Biga Peninsula (Figure 7-2). The volcanic sequence is diversified and starts by andesitic-dacitic volcanism overlain by basalts. The top of the andesitic-dacitic sequence dominantly consists of tuffs that often were silicified.

On the Ağı Dağı relief, the Oligo Miocene volcanics mainly consist of andesite porphyry, porphyritic andesites, dacites-rhyolites flows and tuffs, silicified tuffs with proofs of explosive volcanism. Most of these units are intensely hydrothermally altered with silicification, allunitization, kaolintization and other argillic alteration, which sometimes make it difficult to identify the protore. The andesite porphyry facies is at the base overlain by the andesites. The dacite-rhyolite flow-tuff sequence is at the top. The felsic units are found in two parallel northeast trending basins that coincide with the tops of the mountain, with the Ayi Tepe and Ihlamur zone for the northwest trend and Baba, Fire Tower and Deli for the southeast trend.

Phreatic and phreatomagmatic breccias cutting the volcanic sequence were mapped and intersected by drilling in the two dacite basins. These breccias were emplaced as mushroom shape pipes with northeast trending roots that were identified to a vertical depth of 400 m and over a 2 km strike extent. They are the result of the intense structural and volcanic activity. The Baba, Ayıtepe, Fire Tower and Ihlamur are phreatic breccias. At Deli, part of the pipe is phreatomagmatic. At Deli, the subhorizontal to low-dipping near surface northeast mushroom-like extension of the breccia reaches at least 600 m away from the pipe root whose location is interpreted from drilling and from Induced polarization surveys. This extension often follows the andesite – dacite contact.

The breccias consist of mostly silicified matrix supported polymictic breccias with moderately angular to well rounded clasts varying in size from a few millimeters to over 10 centimeters. As they were observed in core at Ağı Dağı, it is possible that some clasts would even be bigger. There is no indication at Baba–Ayi Tepe that the breccias reached surface. The phreatomagmatic breccias at Deli contain volcanic clasts with fluidal textures.

Miocene lacustrine sequences of clastic rocks are present in the northeast trending valley from Karakoy to Kizilelma where they are thrusted onto Miocene volcanics along a NE-SW trending reverse fault.

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Figure 7-9 Simplified Tectono-Stratigraphic Section of the Ağı Dağı Area

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Figure 7-10 Geological Map of the Ağı Dağı Area

(from Rojay B. and Süzen, M.L. 2010b)

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7.4.2 Alteration

Sections 7.4.2 through 7.4.4 of this chapter are updated from the “Technical Report on the Ağı Dağı – Kirazlı Gold Projects, Canakkale Province; Republic of Turkey” (“Technical Report”) by K. D. Engineering, dated 12 March 2010, using KBM’s mapping and core logging observations.

Acid-sulphate alteration at Ağı Dağı covers an area in excess of 25 km² (Figure 7-11) and exhibits many of the alteration facies that typically relate to epithermal gold deposits. Each of the principal acid-sulphate alteration facies have been recognized including: silicic, vuggy silica, advanced-argillic, argillic, propyllitic, and sericitic facies. Silicification with vuggy and massive silica is the most prominent alteration type surrounded by several facies of advanced argillic then argillic alteration and propyllitic zones (that were not separated in Figure 7-12).

Silicification is a key component of all the Ağı Dağı system and is often hydrothermally brecciated. Primary volcanic features including phenocrysts and fragments are locally preserved where the early grey silica is preserved as the dominant alteration facies. Elsewhere subsequent acid-leaching processes have resulted in vuggy and cavity-riddled grey silica. The silicification mostly affects the phreatic/phreatomagmatic breccias and the dacite units. It exhibits a mushroom appearance that is coherent with the lithologies affected. The silica ribs or bluffs around the periphery of the mineralized zones may relate to low temperature outflow zones.

Argillic and advanced-argillic alteration are the most widespread alteration. It underlies the massive grey silica and the later chalcedonic silica cap rocks. The argillic alteration is typically characterized by fine-grained, soft, grey illite/montmorillonite/kaolinite and extends to the limit of the project area while advanced-argillic alteration is characterized by varying amounts of light pink to white alunite, pyrophyllite, halloysite, dickite, kaolinite, and quartz, and is found between the argillic and silica alteration zones. Disseminated pyrite or iron-oxide minerals (dependent on the rock’s position relative to the Redox horizon) are also ubiquitous. These minerals form a dark groundmass contrasting with white clay-altered (dickite/kaolinite) pseudomorphs of feldspar phenocrysts.

Alteration characteristics of Ağı Dağı can be summarized as follows from higher to lower temperature:

• Pervasive silicification; massive, vuggy, granular textured

• Advance argillic alteration; quartz + kaolinite + dickite +/- alunite and quartz + pyrophyllite +/- diaspore

• Argillic alteration; illite +/- smectite +/- kaolinite +/- chlorite

• Propyllitic alteration; chlorite +/- epidote

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Figure 7-11 Simplified Tectono-Stratigraphic Section of the Ağı Dağı Area

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Figure 7-12 Ağı Dağı Gold Deposit, Surface Alteration

(by M. Özcan and R. Baris-Kaya, 2011)

7.4.3 Structure

The first structural model for Ağı Dağı was developed as a result of interpretations by consultant Simon Meldrum, structural geologist Jeff Wilson, and geologist Paul Roberts. They identified a major NE-SW trending lineation-corridor, possibly a graben structure with step faulted margins and conjugate NW-SE trending normal faults.

The second structural model was interpreted from field observations and geophysical data by Prof. Dr. Erdin Bozkurt and included two sets of dominant structures: NE–SW and ~E–W-trending faults. The NE-SW structures form the most significant faults which are interpreted as the margin-bounding faults of the magmatic activity and subsequent alteration and mineralization. Three possible slip combinations can be considered along these faults; an early phase of sinistral strike slip faulting overprinted by an oblique – slip normal faulting which is obliterated and completely erased by normal faulting. The field relations suggest that these faults are reactivated structures.

The ~E–W trending high-angle oblique slip normal faults are the youngest structures which cut and displace the NE-SW trending margin-bounding faults. The orientation of these faults varies between ENE-WSW and WNW-ESE directions.

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Increased drilling and revised interpretation of the geological model by KBM have shown that there are two parallel NE-SW trending Graben structures along which dacite basins were emplaced over the andesites. The graben structures gave way to the surge of phreatic/phreatomagmatic breccias that are now coincident with the parallel hill tops in Baba-Ayi Tepe to the southwest and Ihlamur – Deli to the northeast.

7.4.4 Brecciation

At Ağı Dağı, breccias are important as mineralization controls. Two main breccia families are present: the phreatic breccias and the hydrothermal breccias. But there are additional other types of breccias.

Phreatic breccias include also phreatomagmatic breccias. These breccias are predominantly heterolithic, with a matrix of mostly rock flour (the phreatomagmatic variety also have a magmatic component but are less abundant than the phreatic breccia and were only identified at Deli). They are generally matrix-supported. These breccias have a mushroom shape with subhorizontal to low-dipping near surface extensions away from the feeder pipe. The breccias and particularly their contacts with host rocks are important for providing pathways for later hydrothermal fluids. The phreatic brecciation mostly pre-dates mineralization.

The crackle and jigsaw breccias relate to stress and are a part of the continuum that ranges from fracture zones through intense fracturing (crackle), fracture with an element of clast rotation (jigsaw) and progress through to hydrothermal breccias which may even be matrix (cement)-supported and heterolithic depending on the amount and force of injection of the hydrothermal fluids.

Other breccia categories present at Ağı Dağı are fault breccias.

Hydrothermal breccias are cemented by minerals that are derived from hydrothermal fluids (i.e. quartz-alunite-pyrophyllite-pyrite etc.). Hydrothermal breccias are often directly related to mineralization, with higher grades coinciding with those whose matrix is more pyrite (or Fe-oxide)-rich. Hydrothermal brecciation overlaps and includes all other categories of breccias.

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Figure 7-13 Ağı Dağı Gold Deposits, Photos of Core Samples

1 – 10-AD-427 at 20.3m: Baba, Andesite, Advanced Argillic Alteration

2 – 10-AD-381 at 107.2m: Deli, Phreatic Breccia, Massive Silica

3 – 10-AD-397 at 159.6m: Deli, Phreatic and Hydrothermal Breccia, Vuggy Silica

4 – 10-AD-406 at 157.2m: Deli, Dacite, Vuggy Silica

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8. DEPOSIT TYPES

The Aği Daği and Kirazlı Gold deposits are high-sulphidation, epithermal gold deposits. Gold mineralization at Kirazlı and at Ağı Dağı is hosted within Miocene-age andesitic tuffs or felsic volcanic rocks and phreatic breccias typical in some deposits of this type.

8.1 Deposit Type

The principal model for gold mineralization at the Ağı Dağı and Kirazlı Gold Properties is a high-sulphidation, epithermal gold deposit. Premier examples of this kind of deposit in the world are Yanacocha, Pierina and Alto Chicama in Peru. Most high-sulfidation deposits are large, low grade bulk-tonnage systems (Yanacocha), though vein-hosted high sulfidation deposits also occur (El Indio).

8.2 Kirazlı

At Kirazlı, gold mineralization is hosted within heterolithic phreatomagmatic/phreatic breccia bodies cutting through Miocene-age andesitic tuffs. Mineralization can generally be subdivided into two main types:

A low-grade gold zone underlies much of Kirazlı Dağı, broadly enveloping the high-grade gold zones. This low grade mineralization occurs both above and below the zone of supergene oxidation (redox boundary). The wide spread, low grade mineralization is interpreted to be early and may be associated with the broad epithermal alteration that resulted in the chalcedonic silica (the second silica event).

Four elongate bodies of high-grade gold mineralization occur in the advanced argillic zone overlapping slightly the bottom of the 1 km-long silica cap and the silica roots. High-grade gold mineralization also shows a strong spatial relationship with the margins of heterolithic breccia bodies. These bodies transect the redox boundaries.

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Figure 8-1 Kirazlı Lithology Interpretation – Section N 30350

Figure 8-2 Kirazlı Alteration Interpretation – Section N 30350

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Figure 8-3 Kirazlı Gold Deposit, Photos of Core Samples

1 – 10-KD-133 at 147.0m: Andesite, Hydrothermal Breccia, Silicified, Transition Facies, Low-grade Mineralization, 0.3 g/t Au

2 – 10-KD-137 at 61.0m: Andesite, Hydrothermal Breccia, Advanced Argillic Alteration, Transition Facies, Low-grade Mineralization, 0.4 g/t Au

3 – 10-KD-132 at 50.1m: Phreatic and Hydrothermal Breccia, Vuggy Silica, Transition Facies, High-grade Mineralization Zone A, 7.1 g/t Au

4 – 10-KD-122 at 117.6m: Phreatic and Hydrothermal Breccia, Massive Silica, Sulfide Facies, High-grade Mineralization Zone C, 1.3 g/t Au

Within sulphide facies rocks, primary metallic minerals identified in the mineralization are pyrite with minor galena, chalcopyrite and sphalerite, tetrahedrite-tennantite and copper tellurides, barite, jamesonite as well as silver minerals: native silver, acanthite, and pyrargirite-proustite. Native gold and/or electrum are identified in high-grade samples.

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8.3 Ağı Dağı

At Ağı Dağı, gold mineralization is associated with felsic volcanic rocks of Miocene age and a northeast-trending silica cap rock about four km by two km in extent which forms a topographic high 700 to 900 meters in relief. The gold mineralization is disseminated and associated with intensely silicic alteration comprised of oxidized vuggy silica overprinting brecciated rocks hosted in volcanic felsic to intermediate tuffs and occasionally phreatic breccia bodies. Hydrothermal breccias (crackle, jigsaw, hydrothermal) are most common. Pyrite is the most abundant primary sulfide mineral associated with gold in the sulphide rocks. Trace to minor amounts of enargite, covellite, galena, and molybdenum are present locally.

Five main zones of gold mineralization are present at Ağı Dağı: the Baba, Ayi Tepe, Fire Tower, Ihlamur and Deli Zones (Figure 8-4). Minable resources have been generated for the Baba and Deli zones, and have also been developed for the Fire Tower zone. The Baba, Fire Tower and Deli zones occur along the east side of the NE-SW trending mountain ridge, corresponding to silicified dacite and phreatic breccia that may fill a paleo-basin in dacite and feldspar poropyritic andesite. Gold mineralization is continuous between Baba and Deli through Fire Tower, a strike distance of over 4 km. The Ayi Tepe and Ihlamur zones are on a sub-parallel trend to the north. Mineralization along the Ayi Tepe – Ihlamur trend has only been sporadically drilled.

The north part of Baba hill is composed of phreatic breccia and dacite flows and tuffs cutting andesites within a northeast trending, 500 meter wide paleo-basin filled with dacite flow and tuff. Ayi Tepe hill is underlain by the same geological units in the same relation as Baba, (Figure 8-4). These two basins are elongated towards the northeast along the length of Ağı Mountain. As the andesites are principally argillic altered and weather recessively compared to dacites, (Figure 8-5), they generally occur in topographic lows between the silicified ridges.

Figure 8-4 Baba Lithology Interpretation – Section N 2200

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Figure 8-5 Baba Alteration Interpretation – Section N 2200

For the purposes of the sections presented here, propyllitic and sericitic alteration has been combined with argillic alteration in the current interpretation, and is therefore somewhat misleading as to the extent of argillic alteration.

Gold mineralization in the main part of the Baba Zone is spatially associated with the matrix-supported heterolithic phreatic breccia body cutting low dipping dacite tuffs overlying andesite flows. Silicic alteration (often vuggy and/or crackle-brecciated) overprints breccia and the dacite. Gold mineralization largely occurs within the breccia body, extending into the dacite tuffs. Some lower-grade mineralization also occurs in oxidized porphyritic andesite adjacent to the phreatic breccia. The bulk of gold mineralization occurs within the oxide zone.

The Deli hill is composed of a phreatic breccia pipe cutting through andesites forming a kilometer wide paleo-basin composed. Ihlamur occurs to the north of the Deli zone on Deli hill, where gold mineralization is hosted in the second NE-SW trending paleo-basin along Ağı Dağı mountain dacite is present (Figure 8-6).

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Figure 8-6 Deli Lithology Interpretation – Section N 4950

Figure 8-7 Deli Alteration Interpretation – Section N 4950

Phreatic breccias and dacites are the principle host to silicic and advanced argillic alteration, while argillic alteration occurs in the underlying andesites. Vuggy silica occurs as two tabular, shallow dipping zones to the southeast, connecting to a lens of vuggy silica to the northwest part of Deli (Figure 8-7). Higher grade gold mineralization is found in the upper part of the silicified zone while low-grade mineralization is common towards the bottom of the silica zone, coinciding with the bottom of the dacite or with phreatic breccia found at the dacite-andesite contact.

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The Deli geochemical signature is that of a classical high-sulphidation epithermal model with elevated Au-Pb-As-Ag. The Deli Zone is characterized by dacite volcaniclastics and elongated heterolithic phreatic/phreatomagmatic breccia bodies overprinted by intense vuggy silica alteration, overlying porphyritic andesites. The northeast-southwest trending paleobasins that host breccias are associated with breccia controlling faults, which are interpreted as the syn-mineral hydrothermal conduits. These faults and brecciated rocks have controlled later supergene oxidation.

Figure 8-8 Baba Gold Deposit, Photos of Core Samples

1 – 10-AD-500 at 4.0m: Phreatic Breccia, Vuggy Silica, Oxide Facies, 2.5 g/t Au

2 – 10-AD-485 at 65.2m: Phreatic Breccia, Massive Silica, Oxide Facies, 0.4 g/t Au Ayi Tepe Gold Deposit, Photos of Core Samples

3 – 10-AD-464 at 146.1m: Phreatic Breccia, Massive Silica, Oxide Facies, 0.6 g/t Au

4 – 10-AD-464 at 186.5m: Dacite, Vuggy Silica, Sulfide Facies, 0.8 g/t Au

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Pyrite is by far the most abundant primary sulfide mineral associated with gold. Trace to minor amounts of enargite, covellite, galena and molybdenum are present locally.

Figure 8-9 Deli Gold Deposit, Photos of Core Samples

1 – 10-AD-366 at 74.4m: Dacite, Hydrothermal Breccia, Massive Silica, Oxide Facies, High-grade zone 5.2 g/t Au

2 – 10-AD-377 at 75.0m: Dacite, Hydrothermal Breccia, Vuggy Silica, Oxide Facies, High-grade zone 4.0 g/t Au

3 – 10-AD-384 at 67.8m: Dacite, Hydrothermal Breccia, Vuggy Silica, Oxide Facies, 1.2 g/t Au

4 – 10-AD-397 at 44.6m: Dacite, Crackle Breccia, Vuggy Silica, Oxide Facies, 0.4 g/t Au

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9. EXPLORATION

This section of the report deals with all non-drilling exploration activities which post-date the January 2010 acquisition of the property by Alamos. For a summary of exploration activities of previous property operators, the reader is referred to the “Technical Report on the Ağı Dağı – Kirazlı Gold Projects, Çanakkale Province; Republic of Turkey” (“Technical Report”) by K. D. Engineering, dated 12 March 2010. As in the previous sections, the Kirazlı project is described first. Camyurt is not described here, as it is outside the scope of the report.

9.1 Kirazlı

Prior operators identified and expanded the minable resources at Kirazlı, and identified exploration targets outside the Kirazlı area. These programs led to the development of three new exploration targets within the Kirazlı license (Çatalkaya Porphyry, Rock pile, and Iri), giving potential for the addition of minable gold resources in new areas on the property. A summary of those targets is provided here, and is based almost entirely on the work of the previous operators.

9.1.1 2010 and 1^st Half of 2011 Exploration Program by Alamos

The selected pulps from Teck Resources Kirazlı core samples were analyzed for hot cyanide soluble gold (“AuCN”) at ACME laboratory in Chile by Alamos at the start of its Kirazlı exploration program. These results confirmed prior assay results and provided an indication of probable recoveries by cyanide leaching. The detailed results are discussed in section 12 “Data Verification.”

A total of 136 surface channel samples were collected within the area of the Kirazlı preliminary open pits outline. Twelve samples returned assays above 1 g/t Au with the best at 17.3 g/t Au.

New lithology and alteration maps of the Rockpile area were competed and alteration mapping was supported by results from an ASD spectrometer. The lithology map shows two geological units with porphyritic andesite to the north and northeast of andesitic tuffs (Figure 9-1). NNE linear lithology contacts are coherent with NNE trending structures identified in the field and the gold-in-soil anomaly at 500 ppb Au. Silicification trends NE-SW trending, oblique to lithologic contacts in the NW portion of the map area where most high-grade gold samples are located (Figure 9-2). A second NW-SE silicified trend in the centre of the map coincides with the other anomalous rock samples. A total of 56 rock samples were collected returning gold grades up to 22.0 g/t Au from previously unsampled outcrops.

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Figure 9-1 Kirazlı Gold Property, Rockpile Lithology Map and Gold in Rock

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Figure 9-2 Kirazlı Gold Property, Rockpile Alteration Map and Gold in Rock

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The 1/1000 topographic map of Kirazlı was completed by photogrammetry from detailed air photos. The map has a 1 m precision. All prior reference topographic points were checked in the ground prior to the airborne survey. It resulted in some corrections to some of the old government reference points that were filed and accepted by the government agency. All prior drill holes were re-surveyed in the ground during the program. A DEM and 3D simulations were also prepared by the consultant A. Arcasoy.

Figure 9-3 Kirazlı Gold Property

(3D topography with mosaic of airborne photos. View from the NW)

The main Kirazlı deposit area was re-mapped by Jorge Ortega in an attempt to unify drill information and surface mapping. A total of 181 outcrops were visited with identification of lithology and alteration followed by confirmation of alteration by ASD spectrometry. The new lithology and alteration maps were presented in the geology section as Figures 7-6 and 7-7.

9.1.2 Exploration Targets on the Kirazlı Concession

Çatalkaya Porphyry & Kale Zone: located 1.5 km on the south of the main Kirazlı minable resource block. Forty five rock chip and saw samples and 5 line-km soil grid samples were collected during the second phase exploration program at the Porphyry target. The sampling results were returned with very significant and consistent gold (10-551 ppb) and molybdenum anomalies (13-206 ppm), and also high chargeability and high magnetic anomalies are overlapping is an area 800 m in length by 800 m in width. The host rock is a highly altered, possibly a crystal tuff, which could be the base of an ash flow tuff. Alteration is pervasive sericite-quartz or quartz-alunite-pyrophyllite with hypogene alunite which can be easily recognizable in outcrop replacing plagioclase phenocrysts. Quartz veins are abundant in outcrop, some are B veins, but the majority is banded quartz in shades of pale and dark gray. A program of drilling is recommended as the target has high Au+/-Mo+/-Cu porphyry potential based on surface geochemical results, geological/alteration settings, and aerial extent.

Rock Pile: located 1 km down slope to the west from of the main Kirazlı minable resource. The Rock Pile area was initially defined by a 2006 soil program that returned high gold grade soil grid samples. Follow-up by Fronteer geologist Lindsay Hall in 2006 identified a series of vegetation covered “rock piles” in the area, many reaching 20 m in length, and frequently beside unnatural depressions/pits. Subsequent rock sampling in 2006 returned encouraging gold values from the samples of vuggy quartz float.

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To better understand the zone, a total of 9 trenches were excavated in 2007 totaling 70 meters, 71 rock saw samples were collected, and detailed mapping, outcrop surveying and 6 line-km IP was completed. The trenching showed the area to be underlain by lithic tuff locally intruded by heterolitic breccia. The exposures also showed evidence of gold-bearing epithermal fluids migrating along the contact zone between tuff and heterolitic breccia in an approximate NE-SW direction. One rock chip sample returned with bonanza grade (1080 g/t Au) and native gold was identified in petrographic and micro-probe studies. Results from other sampling included: 13 rock samples (cut off 4 and 40 g/t Au with an average = 9.2 g/t Au; and 50 rock samples (cut off 1 and 40 g/t), average = 3.8 g/t Au. The 2007 work outlined a mineralized zone roughly 400 m x 100 m at Rock pile and a recommendation for follow-up drilling was made.

Figure 9-4 Kirazlı Gold Property, 2007 Rock Sampling of Rock Pile

Iri Zone: located 2.5 km east of main Kirazlı minable resource block. It is characterized by a basement-hosted quartz vein–vein breccia discovered during the second phase exploration program in 2007. Mineralization at the Iri zone is quite distinctive at Kirazlı with milky quartz veins indicating a low pH environment. Surface geochemical sampling in 2007 returned significant gold values which graded 50 – 587 ppb from the outlined 500 m x 150 m in width area. Further follow-up was recommended.

Feeder Zone: lies within the main Kirazlı minable resource block and is centered on drill hole KD-31. This is a vertical hole that intersected very high gold grade (5.33 g/t Au over 55.60 m incl. 28.68 g/t Au over 7.9 m) from 107.8-163.4 m. It is hosted in brecciated creamy silica with patchy dickite alteration and minor sulfides. The weak to moderate silicic alteration sharply grades within a meter at 163 m to non – silicic rock, indicating that the footwall to the feeder zone has been passed. This intersection has now been interpreted as a possible feeder zone to the main Kirazlı minable resource and may be analogous to the mineralization observed at surface in the Rock pile area.

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Oxide Gap: located 300 m south of the Kirazlı main minable resource block and is a conceptual target, generated by using IP survey. The postulated oxidation surface has been calculated from drill holes and when compared to the chargeability data and topographic data, a “gap” with the potential for additional oxide mineralization as identified.

9.2 Ağı Dağı

Previous workers identified and developed the minable resources at the Baba and Deli zones of the Ağı Dağı property, and outlined several exploration targets on the concession. Since the acquisition of the property, Alamos through its 100% owned subsidiary Kuzey Biga Madencilik through has completed additional surface works and target generation over the concession, and has conducted additional drilling on the exploration targets. These works are described below.

9.2.1 2010 and 1^st Half of 2011 Exploration Program by Alamos

The selected pulps from Teck Cominco’s Ağı Dağı core samples analyzed for hot cyanide soluble gold (“AuCN”) at ACME laboratory in Chile by Alamos at the start of its Ağı Dağı exploration program provided an indication of potential gold recoveries by cyanide leaching. The detailed results are discussed in section 12 “Data Verification”.

A total of 175 surface channel samples were collected within trenches in the Baba and Deli preliminary open pits outline from the “Technical Report.” The samples confirmed prior surface results. Sixty three samples returned assay results above 1 g/t Au with the best at 8.1 g/t Au.

Ağı Dağı has experienced several mapping campaigns. Most recently, A. Fonseca provided a mapping and geologic interpretation in 2010, R. Baris Kaya & M. Özcan (2010), and M. Özcan (2010). The current geologic interpretation has built on the work of these and past workers.

The Baba zone consists of an asymmetric phreatic breccia pipe with a surface expression over 1.1 km wide and at least 300 m vertical extent. The upper 30 to 90 m of the pipe retains abundant evidence of phreatic activity, beneath which the breccia edifice is intensely overprinted by hydrothermal alteration and brecciation, leaving only sparse and subtle evidence of phreatic brecciation. The root zone is located to the north of the Baba mineralized zone, and preserves phreatic breccia. The upper portions of the Baba breccia is typically rock flour matrix-supported, with variably silicified, dominantly moderately to well rounded clasts whereas the deeper root zones have more angular clasts supported in a larger amount of matrix. Stratified matrix occurs sporadically in the breccia pipe. Rare silicified charcoal clasts were identified, which suggests that at least locally the breccia breached the surface.

The host lithologies at Baba include porphyritic andesite volcanics in a SW-NE trending Graben structure surrounded by felsic tuffs overlying a feldspar porphyry or thick porphyritic andesite flow. Basement schists are intersected in the south-eastern part of the deposit. Hydrothermal brecciation overprints all lithologies except the basement schists.

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The Deli zone consists a breccia pipe that has a single root and double upper cone with the surface expression of the breccia structure over 1.1 km wide, and the vertical extent over 300 m. The southern wall of the north-eastern cone appears to control the location of the high grade zone, which is contained within the adjacent volcanic rock, strongly affected by hydrothermal brecciation. The root portions of the breccia pipe and intermediate altitudes in the north-eastern cone have abundant evidence of phreatomagmatic activity whereas the upper portions of the pipes and most of the south-western cone are dominantly phreatic. There is no indication that the Deli breccia breached paleosurface.

Later in 2010, the main Baba and Deli deposit areas were re-mapped. The updated geology and alteration maps include surface observations and lithology from drill holes.

The Baba geology map confirms the importance of the phreatic breccias in the north of Baba (Figure 9-5) and that silicification is largely associated with the phreatic breccia (Figure 9-6). The Deli geology map only identifies phreatic breccia at surface in the southwest of the deposit area. Dacite tuff is mapped on the hill top and to the northwest of the deposit area. Andesite occupies the hill flank to the southeast and the center of the area (Figure 9-7). Most of the deposit area is silicified, with advanced argillic alteration on the flanks (Figure 9-8).

The alteration map was further revised in 2011 using all available drill hole information and additional ASD spectrometer results to produce an improved alteration map (Figure 7-12).

Figure 9-5 Baba Lithology Map by R. Baris Kaya & M. Özcan (2010)

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Figure 9-6 Baba Alteration Map by R. Baris Kaya & M. Özcan (2010)

Figure 9-7 Deli Lithology Map by M. Özcan (2010)

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Figure 9-8 Deli Alteration Map by M. Özcan (2010)

The topographic map of Ağı Dağı was completed by photogrammetry from detailed air photos. The map has a 1 m precision. All prior reference topographic points were checked in the ground prior to the airborne survey. It resulted in some corrections to some of the old government reference points that were filed and accepted by the government agency. All drill collars were re-surveyed. A DEM and 3D simulations were also prepared by the consultant A. Arcasoy.

Figure 9-9 Ağı Dağı Gold Property

(Fire Tower 3D topographic with mosaic of airborne photos – View from the NW)

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9.2.2 Targets on the Ağı Dağı Concession

Ahırkaya Tepe: Ağı Dagi SW: located 1.5 km SW of Söğütalan Camp. The area was prospected after evaluation of the aeromagnetic survey. A soil program was carried out on 12,200 m spaced lines totaling 15 line-km with each line sampled at each 100 m. There were 153 samples collected. The soil geochemical anomalies and the lithological evidences indicated that the high aeromagnetic anomaly was associated with intrusion.

Camyurt Tepe: located 3.5 km south of Fire Tower. Geological mapping and prospecting identified a 1200 m long, locally up to 10 m wide, mostly 3 to 5 m thick NE trending silica zone (Figure 9-10). 14 rock chip samples were collected from the silica zone and surrounding argillic altered volcanics. The assay results of rock chip samples taken from the silica zone ranged between 0.77 g/t Au and 1.9 g/t Au. Subsequently, 44 rock channel samples were collected along with 336 soil samples on 16,100 m spaced lines. Based on the results from the work, follow-up I.P. and drilling was recommended for 2008.

Arıtaşı Tepe: located1.5 km NE of Deli Dağı. The area was prospected because of similarities in magnetic signiture to the main Ağı Dağı zone. The area is underlain by unaltered but moderately weathered intermediate to basic volcanic rocks. A 7.1 line–km soil survey was completed at 100 meter line spacing, with sample points every 100 meters in the area. In total, 101 soil samples were collected. Two of the lines close to Deli Dağı had anomalies up to 116 ppb and the survey closed off the NE extension of Deli Dağı anomaly. A few soil samples on the other lines had some point anomalies up to 55 ppb with no significant correlation between them. No work was recommended at Arıtaşı for 2008.

Emine Tepe: located 500 m north of AD-212. The target area is approximately 300 m long, and 50 m wide. A N-S trending silica zone within intermediate volcanic rocks was observed between two creeks during prospecting. There were 19 soil samples collected from six, 50 m spaced lines with 25 m sample intervals. The assay results of soil samples varied from 12 ppb to 62 ppb of Au.

Mortaş Tepe: located 1 km north of Emine Tepe. The area is underlain by intermediate and felsic volcanic rocks. An E-W trending silica zone is observed in the area. In total, 3.5 line-km of soil surveying on ten 100 m spaced lines with 50 m sampling intervals were performed. There were also 66 soil samples collected but only three of the samples received 10 ppb to 20 ppb of Au. No work was recommended at Mortaş in 2008.

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Figure 9-10 Çamyurt Tepe lithology and alteration map

Göleköy: located south of Göle village and 5 km from Etili camp on the Sögütalan road. A soil program was completed in the area. There were 192 soil samples collected from five soil lines of 200 meters line spacing that totaled 9 line-km. The sample intervals were 50 m. There were five samples which exceeded 10 ppb with the remainder <10 ppb. Three line-km of additional soil sampling was recommended west of existing soil survey.

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10. DRILLING

10.1 Kirazlı

Since the beginning of exploration work on the property in1987, a total of 199 drill holes totaling 30,759.45 meters have been drilled (Table 10-1).

Table 10-1 Kirazlı Gold Property, Summary of Drilling Prior to Alamos

Period	Start Hole	End Hole	# Holes	Meterage
Pre-2004	KRC-01	KRR-24	69	7,211.90
2004	KD-01	KD-03	4	891.90
2005	KD-04	KD-47	44	7,377.60
Mar 2006-Mar 2007	KD-48	KD-96	57	10,990.75
Apr 2007-June 2007	KD-97	KD-119	25	4,287.30
Total			199	30,759.45

Since the involvement of Alamos in the property in 2010 until the drill data cut-off date for this pre-feasibility report a total of 45 drill holes totaling 6,092.40 meters have been drilled (Table 10-2).

Table 10-2 Kirazlı Gold Property, Summary of Drilling by Alamos

Period	Start Hole	End Hole	# Holes	Meterage
2010	10-KD-120	10-KD-145	29	4,375.30
2011 until Feb. 28	11-KD-146	11-KD-159	16	1,717.10
Total			45	6,092.40

10.1.1 Pre-2004 Drilling Programs by Tüprag and NOEL

Between 1987 and 1992, the two companies carried out the following drill programs:

• Percussion drilling (KRP Series) with 25 holes totaling 563.65 meters. The drill program confirmed and rooted the soil anomalies. It identified areas of bedrock with gold greater than 0.2 g/t Au in sixteen drill holes with assays above 1 g/t Au over more than 10% of the drilled length. The highest assay at 4.2 g/t Au over 2 m was at collar of KRP- 08 (Figure 10-1).

• RC (reverse circulation) drilling (KRR Series) with 24 holes totaling 3,274.50 meters. The drill program achieved the delineation of significant areas of oxide and sulfide Au mineralization. Out of 2,179 chip samples in the program, 731 returned assays above 0.2 g/t Au and 219 above 1 g/t Au. The highest assay is 59.7 g/t Au over 1.5 m in KRR-17. The main mineralized intercepts are: 1.12 g/t Au over 36 m from 100.5m in KRR-01; 1.04 g/t Au over 94.5 m from 81 m in KRR-05; 2.58 g/t Au over 114 m from 34.5 m in KRR-07. 1.68 g/t Au over 36 m from 22.5 m in KRR-12; 11.9 g/t Au over 22.5 m from 39 m in KRR-17; 1.72 g/t Au over 115 m from 34.5 m in KRR-18; 2.79 g/t Au over 61.5 m from 28.5 m in KRR-20 and 1.09 g/t Au over 82 m from 31.5 m in KRR-23 (Figure 10-1).

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Figure 10-1 Kirazlı Gold Deposit – Location of Tüprag Drill Holes

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Diamond core drilling (KRC Series) with 20 holes totaling 3,373.75 meters. The drill program achieved the delineation of significant areas of oxide and sulfide Au mineralization. Out of 2,279 samples in the program, 539 returned assays above 0.2 g/t Au and 113 above 1 g/t Au. The highest assay is 34.8 g/t Au over 35 cm in KRC-12. Of particular interest are intercepts of 1.13 g/t Au over 138.65 m from 38.25 m in KRC-08; 1.53 g/t Au over 19.65 m from 45.65 m in KRC-11; 1.11 g/t Au over 48.55 m from 59.55 m in KRC-12 and 1.18 g/t Au over 32.5 m from surface in KRC-16 (Figure 10-1).

10.1.2 2004 Drilling Program by Fronteer/TCAM

Fronteer carried out exploration on the property using diamond drilling between May 2004 and January 2005. A total of three diamond drill holes (KD-01A/02/03) and one failed diamond drill hole (KD-01) were completed for a total 891.90 meters (grey drill holes in Figure 10-2).

KD-01A was a twin hole to Tüprag’s hole KRR-07 and KD-02 was a twin hole to KRR-18, two RC holes that had returned high-grade intercepts (Figure 10-1). The program confirmed the presence of the high-grade mineralization intersected in the historic reverse circulation holes beneath the silica cap and returned improved intercepts of 4.08 g/t Au over 130.2 m from 31.8 m (including 9.66 g/t Au over 51.2 m and 50.7 g/t Au over 7.8 m) in KD-01A and 1.89 g/t Au over 63.4 m from 33.9 m (including 4.07 g/t Au over 22.9 m) in KD-02.

The results of the 2004 work program were considered to be very encouraging with excellent potential to add further high-grade resources on the property as well as identify new sulfide breccias at depth. A 5,000 meter follow-up diamond drill program was proposed for 2005 to test the limits of the known high-grade zone on close-spaced centers and to also carry out step-out holes on other areas within Kirazlı Dağı.

Further details of this program can be found in the Technical report available on SEDAR dated February 11, 2005 and titled “The Exploration Activities of Fronteer Development Group Inc. on the Kirazlı Gold Property, Çanakkale Province, Republic of Turkey during the Period May 2004 to January 2005” (Ian Cunningham-Dunlop, 2005).

10.1.3 2005 Drilling Program by Fronteer/TCAM

From February to December 2005, Fronteer completed an exploration program that involved 7,377.60 m of diamond drilling in 44 holes from KD-04 to KD-47. TCAM remained the operator during this period after an extension of the existing service agreement.

The program expanded the known high-grade zone in the north-western part of the Kirazlı hill (2005 drill holes are in dark blue in Figure 10-2). It intersected significant high-grade gold mineralization such as 3.14 g/t Au over 61.2 m from 25.5 m in KD-09 or 3.16 g/t Au over 79.3 m in KD-44 including 9.08 g/t Au over 24.7 m. It also delineated a deeper high-grade feeder zone (5.31 g/t Au over 55.6 m from 107.8 m in KD-31 including 15.9 g/t Au over 18.0 m or 5.7 g/t Au over 42.75 m from 162 m including 15.4 g/t Au/14.0 m in KD-46).

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The program also intersected significant local silver mineralization (27g/t Ag/117 m and 89 g/t Ag/64 m), identified areas of drill-ready surface mineralization, and improved on the understanding of the geology and of the geometry of mineralized zones.

Figure 10-2 Kirazlı Gold Deposit – Location of 2004-2005 TCAM Drill Holes

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In addition to ongoing field work, Fronteer commissioned an independent resource estimate from Giroux Consultants Ltd. The new Kirazlı resource outlined 5.43 million tonnes at 1.4 g Au/t and 9.7 g Ag/t classified as indicated (244,000 ounces of gold and 1,693,000 ounces of silver) and 17.8 million tonnes at 0.98 g Au/t and 6.7 g Ag/t classified as inferred (563,000 ounces of gold and 3,859,000 ounces of silver) at a 0.5 g/t gold cut-off. The resource area was open for expansion to the north and south and at depth.

The results of the Kirazlı 2005 program and the resource estimate detailed above were deemed to be very positive and there was excellent potential to expand the near surface high-grade resources as well as identifying new high-grade zones both near surface and at depth. A 5,000 meter diamond drill program was proposed for 2006 to test both the lateral extent of the known high-grade zone and to test other mineralized areas at Kirazlı. Preliminary environmental and engineering studies were also suggested.

Further details of this program can be found in the Technical report available on SEDAR dated March 10, 2006, as amended on May 25, 2006, and as further amended May 25, 2006 and titled “The Exploration Activities of Fronteer Development Group Inc. on the Kirazlı Gold Property, Çanakkale Province, Republic of Turkey during the Period February to December, 2005” (Ian Cunningham-Dunlop and Gary Giroux, 2006).

10.1.4 2006 and 1st Quarter of 2007 Drilling Program by TCAM/Fronteer

From May 2006 to March, 2007, an exploration program was conducted by Fronteer (and then TCAM after May 1, 2006 after back-in decision was announced) that involved 10,990.75 m of diamond drilling in 57 holes from KD-48 to KD-96, Figure 10-3. The two main thrusts of the 2006/2007 drill program were to: a) to refine the extents of the resource area outlined in the 2004/2005 program (Kirazlı Zone); and b) to test several exploration targets on the property namely the SW Zone, North Zone, and Çatalkaya Tepe.

The program expanded gold mineralization near the high-grade main Kirazlı zone with intersections such as 1.20 g/t Au over 82.2 m from 32.3 m in KD-63 with a deep feeder at 1.41 g/t Au over 32.9 m from 288.6 m in the same drill hole.

It also identified a second high-grade zone (SW Zone) with mineralized intercepts such as 1.29 g/t Au over 46.0 m from 46.5 m and 1.40 g/t Au over 115.5 m from 118.0 m in KD-54 or 1.43 g/t Au over 85.8 m from 30.7 m in KD-90. Deep high-grade feeder zones were also intersected in the SW zone (11.0 g/t Au over 15.2 m from 183.9 m).

The program expanded and increased the overall grade of the current resource block, identified areas warranting trenching and further exploration drilling, and improved the understanding of the geology and of the geometry of mineralized zones.

A new NI 43-101-compliant resource estimate was completed in June of 2007. The updated Mineral Resources for the Kirazlı deposit are estimated as follows:

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Figure 10-3 Kirazlı Gold Deposit – Location of 2006 TCAM Drill Holes

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Table 10-3 Classified Mineral Resources at a 0.5 g/t Au Cut-Off,

dated August 1, 2007, for the Kirazlı Deposit

OXIDE RESOURCE
CLASS	TONNES	Au g/t	Ag g/t	Au ozs	Ag ozs	AuEq ozs
Measured	800,000	1.5	12.3	39,000	330,000	45,600
Indicated	3,900,000	1.1	10.4	143,000	1,292,000	168,840
Inferred	5,100,000	1.1	3.8	177,000	617,000	189,340
SULPHIDE RESOURCE
CLASS	TONNES	Au g/t	Ag g/t	Au ozs	Ag ozs	AuEq ozs
Measured	300,000	1.4	1.5	12,000	13,000	12,260
Indicated	4,500,000	1.1	1.6	155,000	257,000	160,140
Inferred	19,600,000	1.3	1.5	799,000	941,000	817,820
TOTAL RESOURCES
CLASS	TONNES	Au g/t	Ag g/t	Au ozs	Ag ozs	AuEq ozs
Measured	1,100,000	1.4	9.6	51,000	342,000	57,840
Indicated	8,300,000	1.1	5.8	297,000	1,549,000	327,960
Inferred	24,600,000	1.2	2.0	976,000	1,558,000	1,007,160
Classified at 0.5 g/t cut-off

Based on the ongoing success of the exploration work, TCAM proposed an aggressive program for the period May 2007 to April 2008.

Further details of this program can be found in the Technical report available on SEDAR dated August 1, 2007 and titled “Technical Report on the Kirazlı Gold Property, Çanakkale Province, Republic of Turkey for Fronteer Development Group Inc.” (Ian Cunningham-Dunlop and Christopher Lee, 2007).

10.1.5 2^nd Quarter 2007 to 2^nd Quarter 2008 Drilling Program by TCAM

TCAM carried out a program of diamond and RC drilling between April 2007 and June 2007 which included 4,642.50 meters of drilling in 26 drill holes (KD92B, KD-97 to KD-119, Figure 10-4). The main objective of drilling was to expand the resources and also test several targets outside the main resource block.

The 2007 drill program further expanded the resource. However, drill results were not as impressive as the previous year with the best composites at 1.11 g/t Au over 23.4 m from 174.1 m; 1.47 g/t Au over 31.5 m from 161.5 m in KD-99 (SW zone) or 1.52 g/t Au over 12.0 m in KD-101A (main Kirazlı zone). Additionally KD-97 returned a silver zone with no associated gold at 522.9 g/t Ag over 23.5 m from 48.0 m.

The 2007 exploration program continued to expand the size of the known Kirazlı resource. Drilling in and around the current resource at Kirazlı either confirmed the extents and predicted grades of the resource block model, or intersected minor, previously unidentified, mineralized extensions to the current resource.

Mineralized intercepts falling outside of the above resource model are found in holes KD-97, KD-98, KD-99, KD-101/101A, KD-111 and KD-118. These intercepts were expected to add a small number of tonnes at comparable grades to the current resource.

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Figure 10-4 Kirazlı Gold Deposit – Location of 2007 TCAM Drill Holes

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Additional information on the 2007 drill program by TCAM / Fronteer can be found in the Technical Report available on SEDAR dated March 10, 2006, titled “Technical Report on the Aği Daği – Kirazlı Gold Projects, Çanakkale Province; Republic of Turkey” by K. D. Engineering, dated 19 September 2008.

10.1.6 2010 and 1^st Quarter 2011 Drilling Program by Alamos

In the Technical report dated March 12, 2010, a new resource calculation was tabulated encompassing all drilling prior to Alamos. The resource at a 0.2 g/t Au cut-off for Kirazlı is given in Table 10-4. The resource was tabulated using optimistic pit geometries and floating cones to fulfill the requirements of the NI 43-101 regulations of a reasonable expectation of economic extraction. The previous mineral resource estimates by Fronteer were not constrained by a pit model, resulting in a reduction of inferred resources as compared to the last estimate.

Table 10-4 Classified Mineral Resources for the Kirazlı Deposit – Alamos – March 2010

		Au  Cut-Off g/t	Tonnage tonnes	Average Au  Grade g/t	Average Ag  Grade g/t	Au  Metal Content ounces	Ag Metal   Content   ounces
Kirazlı	Indicated	0.20	11,831,000	0.83	13.92	316,000	5,295,000
Kirazlı	Inferred	0.20	8,574,000	0.65	15.93	179,000	4,391,000

After acquisition of the project in January 2010, AGI carried out an infill drill program of diamond drilling between August 30, 2010 and March 13, 2011. They included 4,375.30 m in 29 holes from 10-KD-120 to 10-KD-145 drilled in 2010 and 1,863.40 m in 18 holes from 11-KD-146 to 11-KD-160A drilled in 2011. All these drill holes were included in a resource calculation for the prefeasibility.

Also in March 2011, three holes (11-KD-161 to 11-KD-163) totaling 56.25 m were drilled for geotechnical purposes on infrastructure areas. The location of the Alamos drill holes are presented in Table 10-5 and in Figure 10-5.

Infill drilling at the Kirazlı Main Zone (equivalent to both historic Kirazlı and SW zones from TCAM) in 2010 and 1^st quarter of 2011 continued to confirm expected grades and thicknesses as predicted by the block model of March 2010, while results from some holes significantly exceeded predicted values. Additionally, assay results from twins of holes drilled by previous operators also generally exceeded historical results at the Kirazlı Main Zone.

Notable assay results from this program include (see also Table 10-6):

•     10-KD-120	101.9 m at 1.81 g/t Au from 26.1 m
•     10-KD-121	26.8 m at 3.99 g/t Au from 9.3 m
•     10-KD-121A	32.7 m at 2.37 g/t Au from 30.0 m (6m overlap with previous composite)
•     10-KD-122	110.0 m at 1.55 g/t Au from 67.0 m
•     10-KD-126	82.8 m at 1.36 g/t Au from 4.1 m
•     10-KD-132	46.2 m at 1.74 g/t Au from 28.2 m
•     10-KD-139	92.5 m at 2.74 g/t Au from 92.5 m

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•     10-KD-141	138.3 m at 1.20 g/t Au from 106.8 m
•     10-KD-143	50.3 m at 4.42 g/t Au from 43.4 m
•     11-KD-146	50.3 m at 1.76 g/t Au from 15.5 m
•     11-KD-150	66.8 m at 1.82 g/t Au from surface
•     11-KD-152	82.1 m at 3.59 g/t Au from 27.6 m

Table 10-5 Summary of 2010-2011 Kirazlı Diamond Drill Holes

DDH_ID	Easting	Northing	Elevation	Depth	Azimuth	Dip	Zone
10-KD-120	475500.9	4430310	733.295	143.2	90	-60	Main zone N
10-KD-121	475638.5	4430612	680.954	36.1	0	-90	Main zone N
10-KD-121A	475638.8	4430611	680.832	185	0	-90	Main zone N
10-KD-122	475574.4	4430098	718.145	177	90	-60	Main zone S
10-KD-123	475416	4429885	637.778	120	0	-90	Main zone S
10-KD-124	475576.2	4430679	662.963	124	0	-90	Main zone N
10-KD-125	475575.3	4430098	718.288	138.3	0	-90	Main zone S
10-KD-126	475413.5	4429882	637.797	102	90	-45	Main zone S
10-KD-127	475692.4	4430253	780.886	150	0	-90	Main zone N
10-KD-128	475560.6	4430544	719.835	150	293	-58	Main zone N
10-KD-129	475434.8	4430371	725.613	170	95	-70	Main zone N
10-KD-129A	475435	4430369	725.569	30	95	-70	Main zone N
10-KD-130	475627.9	4430737	627.621	120	230	-60	Main zone N
10-KD-131	475624.1	4430738	627.76	146.5	150	-60	Main zone N
10-KD-132	475661.3	4430587	679.323	179	270	-60	Main zone N
10-KD-133	475557.8	4430548	719.569	243	90	-60	Main zone N
10-KD-134	475750.9	4430507	673.706	120.3	270	-70	Main zone N
10-KD-135	475661	4430519	700.477	161.6	270	-76	Main zone N
10-KD-136	475690.7	4430641	651.969	184.3	270	-60	Main zone N
10-KD-137	475600.2	4430577	701.921	200.6	0	-90	Main zone N
10-KD-138	475492.2	4430584	710.964	125.2	90	-65	Main zone N
10-KD-139	475524.2	4430430	753.434	234.6	45	-60	Main zone N
10-KD-139A	475525.5	4430429	753.442	32	45	-60	Main zone N
10-KD-140	475649.8	4430330	765.957	260	0	-90	Main zone N
10-KD-141	475503.6	4430353	739.514	245.3	90	-65	Main zone S
10-KD-142	475633.8	4429953	738.323	153.2	0	-90	Main zone S
10-KD-143	475668.1	4429919	755.997	148.3	270	-70	Main zone S
10-KD-144	475624.8	4430004	733.213	165.8	270	-60	Main zone S
10-KD-145	475554.4	4430180	724.769	130	90	-60	Main zone
11-KD-146	475503.6	4430307	733.517	198	270	-80	Main zone N
11-KD-147	475639	4429894	746.25	113.5	0	-90	Main zone S
11-KD-148	475524.5	4429754	686.304	103.6	0	-90	Main zone S
11-KD-149	475493.3	4429799	678.341	186.6	270	-60	Main zone S
11-KD-150	475556.6	4430085	705.478	144.6	270	-70	Main zone S
11-KD-151	475579.1	4430044	711.416	129	270	-60	Main zone S
11-KD-152	475492.8	4429801	678.072	157.4	90	-60	Main zone S
11-KD-153	475586.3	4429919	711.583	114.6	0	-90	Main zone S
11-KD-154	475469.5	4429882	655.322	120.5	90	-75	Main zone S
11-KD-155	475422.5	4429678	656.199	12.2	90	-62	Main zone S

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DDH_ID	Easting	Northing	Elevation	Depth	Azimuth	Dip	Zone
11-KD-155A	475424.2	4429679	656.433	3.6	92	-62	Main zone S
11-KD-156	475362.8	4429677	644.374	58	90	-65	Main zone S
11-KD-157	475345.7	4429969	604.075	25.2	270	-60	Main zone S
11-KD-157A	475351	4429963	606	64.3	270	-60	Main zone S
11-KD-158	475264.6	4429752	607.504	99.2	90	-60	Main zone S
11-KD-159	475579	4430033	728	186.8	45	-60	Main zone S
11-KD-160	475401	4429962	622	122.3	270	-60	Main zone S
11-KD-160A	475404.1	4429959	622	24	270	-60	Main zone S
Sub-Total			47 holes	6,238.7
11-KD-161	476616	4429304	451	16.65	0	-90	Infrastructure
11-KD-162	476502	4429238	450	15	0	-90	Infrastructure
11-KD-163	476592	4429206	447	24.6	0	-90	Infrastructure
Sub-Total			3 holes	56.25
Total			50 holes	6,294.95

Table 10-6 Mineralized Intercepts in 2010-2011 Kirazlı Diamond Drill Holes

Drill Hole    Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
10-KD-120	Core	143.20	26.10	128.00	101.90	1.81
			135.30	143.20	7.90	1.03
10-KD-121	Core	36.10	9.30	36.10	26.80	3.99
10-KD-121A	Core	185.00	30.00	62.70	32.70	2.37
			67.20	82.40	15.20	0.33
			92.20	97.30	5.10	0.35
			110.50	168.10	57.60	0.88
			171.10	185.00	13.90	0.81
10-KD-122	Core	177.00	8.40	13.70	5.30	0.38
			19.70	28.80	9.10	0.24
			32.40	36.90	4.50	0.28
			67.00	177.00	110.00	1.55
10-KD-123	Core	120.00	0.00	13.70	13.70	0.44
			17.90	35.70	17.80	1.30
10-KD-124	Core	124.00	15.20	20.80	5.60	0.33
			112.80	120.30	7.50	0.30
10-KD-125	Core	138.30	11.30	78.80	67.50	0.58
			99.40	103.40	4.00	0.73
			110.90	119.90	9.00	0.25
			128.50	132.20	3.70	0.87
10-KD-126	Core	102.00	4.10	86.90	82.80	1.36
10-KD-127	Core	150.00	129.50	134.30	4.80	0.34
10-KD-128	Core	150.00	No composite
10-KD-129	Core	170.00	No composite
10-KD-129A	Core	30.00	No composite
10-KD-130	Core	120.00	81.50	84.50	3.00	0.42
			87.50	90.50	3.00	0.36
10-KD-131	Core	146.50	31.80	50.50	18.70	0.41
			53.50	57.80	4.30	0.42
			73.50	79.50	6.00	0.25
			91.50	94.50	3.00	0.22
			129.50	132.50	3.00	0.23
			135.50	139.30	3.80	0.49

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Drill Hole    Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
10-KD-132	Core	179.00	0.00	25.20	25.20	0.93
			28.20	74.40	46.20	1.74
			104.40	130.00	25.60	0.52
			143.25	159.50	16.25	0.35
10-KD-133	Core	243.00	32.50	40.00	7.50	0.33
			47.50	51.70	4.20	0.28
			60.10	196.00	135.90	0.67
			199.00	217.00	18.00	0.38
			224.50	232.00	7.50	0.28
10-KD-134	Core	120.30	29.30	46.80	17.50	0.26
			54.20	68.60	14.40	0.27
			77.30	98.30	21.00	0.40
			107.30	120.30	13.00	0.36
10-KD-135	Core	184.30	0.00	8.00	8.00	0.42
			11.10	155.50	144.40	0.88
10-KD-136	Core	184.30	10.50	15.00	4.50	0.22
			18.50	26.00	7.50	0.41
			31.50	37.00	5.50	0.45
			43.00	50.80	7.80	0.41
			53.80	98.00	44.20	1.32
			111.70	122.00	10.30	0.61
			125.00	133.00	8.00	0.62
			139.00	146.50	7.50	0.38
			152.20	155.20	3.00	0.41
			176.20	180.70	4.50	0.31
10-KD-137	Core	200.60	10.30	14.70	4.40	0.24
			22.70	34.60	11.90	0.41
			56.60	135.40	78.80	0.46
			141.40	167.00	25.60	0.39
10-KD-138	Core	125.20	No composite
10-KD-139	Core	234.60	56.80	61.00	4.20	0.33
			92.50	185.00	92.50	2.74
			216.50	234.60	18.10	0.82
10-KD-139A	Core	32.00	No composite
10-KD-140	Core	260.00	46.00	79.00	33.00	1.31
			85.00	121.00	36.00	0.42
			124.00	174.50	50.50	0.41
			201.00	208.50	7.50	0.25
			214.50	250.50	36.00	0.36
			253.50	260.00	6.50	0.41
10-KD-141	Core	245.30	52.40	101.80	49.40	1.30
			106.80	245.30	138.50	1.20
10-KD-142	Core	153.20	6.00	16.00	10.00	0.50
			54.00	115.50	61.50	0.59
			136.5	141.00	4.50	0.40
			144.00	153.20	9.20	0.80
10-KD-143	Core	148.30	43.40	93.70	50.30	4.42
			97.20	107.00	9.80	0.67
10-KD-144	Core	165.80	11.80	14.80	3.00	0.45
			18.30	23.50	5.20	0.90
			42.50	45.50	3.00	0.33
			48.50	122.00	73.50	0.87
			129.50	165.80	36.30	1.48
10-KD-145	Core	130.00	94.50	100.50	6.00	0.23
			103.50	113.50	10.00	0.33

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Drill Hole   Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
			126.50	130.00	3.50	0.33
11-KD-146	Core	198.00	14.50	24.00	9.50	1.63
			32.20	47.70	15.50	0.40
			109.70	114.50	4.80	0.85
			120.50	123.50	3.00	0.33
			132.50	135.50	3.00	0.23
			143.50	163.00	19.50	0.51
11-KD-147	Core	113.50	15.50	65.80	50.30	1.76
			77.0	80.80	3.00	0.21
11-KD-148	Core	103.60	12.00	31.30	19.30	0.30
11-KD-149	Core	186.60	0.00	19.10	19.10	1.24
			51.20	67.00	15.80	1.06
			162.30	185.50	23.20	1.07
11-KD-150	Core	144.60	0.00	66.86	66.80	1.82
			122.30	125.30	3.00	0.99
11-KD-151	Core	129.00	0.00	42.20	42.20	1.21
N270° / -60°			57.30	61.80	4.50	1.41
			65.30	71.60	6.30	1.15
11-KD-153	Core	114.60	0.00	19.40	19.40	0.24
N0° / -90°			26.30	29.30	3.00	0.22
			52.50	65.10	12.60	1.01
11-KD-154	Core	120.50	0.00	7.00	7.00	0.52
			22.30	79.60	57.30	0.81
			96.30	111.30	15.00	7.65
11-KD-152	Core	157.40	0.00	19.10	19.10	0.47
			27.60	109.70	82.10	3.59
11-KD-155	Core	12.20	No composite. Hole abandoned
11-KD-155A	Core	3.60	No composite. Hole abandoned
11-KD-156	Core	58.00	0.00	30.20	30.20	0.67
11-KD-157	Core	25.20	9.50	15.20	5.70	0.92
11-KD-157A	Core	64.30	5.40	12.90	7.50	0.86
11-KD-158	Core	99.20	79.00	95.50	16.50	0.38
11-KD-159	Core	186.80	0.00	4.10	4.10	1.50
			31.10	34.20	3.10	0.30
			39.90	86.00	46.10	0.57
			90.50	109.60	19.10	0.48
			115.40	186.80	71.40	0.86
11-KD-160	Core	122.30	4.50	12.00	7.50	0.41
			24.20	47.50	23.30	0.65
			52.00	69.00	17.00	1.17
11-KD-160A	Core	24.00	3.00	22.60	19.60	0.40

Of particular interest is 10-KD-120, a twin hole of KD-63 drilled by TCAM. KD-63 was reported as 82.2 m grading 1.19 g/t Au with a core recovery of 68%. 10-KD-120 intersected 101.9 m grading 1.81 g/t Au with a core recovery of 85%. Results of twin holes will be discussed in section 12.

The infill drilling program allowed the definition of the controls of the gold mineralization as well as the delineation of four high-grade zones (see section 8.2). Typical cross-sections interpreted from drilling information are presented in Figures 8-1 and 8-2.

The infill program needs to be completed in the south of the main Kirazlı zone and in the satellite pits areas.

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Figure 10-5 Kirazlı Gold Deposit – Location of 2010-2011 Alamos Drill Holes

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10.2 Ağı Dağı

Since the involvement of Cominco in the property in 1995, a total of 365 drill holes totaling 56,506.60 meters have been drilled (Table 10-7).

Table 10-7 Ağı Dağı Gold Property, Summary of Drilling Prior to Alamos

Period	Start Hole	End Hole	# Holes	Meterage
Pre-2004	A-1	A-74	74	8,276.90
2004	AD-75	AD-112	39	5,893.70
2005	AD-113	A-169	62	10,774.75
Mar 2006-April 6 2007	AD-170	A-299	141	23,907.55
April 6 2007- Aug 2007	AD-300	AD-350	52	7,352.40
2008	AD-351	AD-353	3	502.50
Total			371	56,707.80

Since the involvement of Alamos in the property in 2010 until February 28, 2011 limit date for the drill holes considered in the pre-feasibility resources presented in this report, a total of 113 drill holes totaling 17,160.90 meters have been drilled (Table 10-8). These are summarized in the following pages and also detailed in Sections 11 and 12 of this report.

Table 10-8 Kirazlı Gold Property, Summary of Drilling by Alamos

Period	Start Hole	End Hole	# Holes	Meterage
2010 - DD	10-AD-354	10-AD-459	102	16,132.40
2010 - RC	10-A-403	10-A-423	11	1,028.50
Total			113	17,160.90

10.2.1 Pre-2004 Drilling Programs by Cominco

During the period 1996 – 1998 Cominco Madencilik Sanayi A.Ş. (“Cominco”) drilled 8,276.90 m in 74 shallow, vertical holes on the Ağı Dağı property. About 90% of the m (7,601.8 m) drilled was reverse circulation drilling (in blue on Figure 10-6); the remainder (675.1 m) was core drilling (in green on Figure 10-6).

In total, 52 holes were drilled in the Baba and Ayı Tepe zones, 10 in the Fire Tower zone, 9 in the Deli zone and 3 in the Tavsan Tepe zone. The 38 holes in the heart of the Baba zone were drilled on a 62.5 m by 125 m grid oriented 060° and 150°. Twenty one of these holes had intercepts with greater than 0.5 g/t gold. RC hole A-7 may be considered as the discovery hole of the Baba zone with 0.55g/t Au over 99.0 m from 3.0 m. RC hole A-52 intersected 0.99 g/t Au over 96.0 m from 9.0 m and RC hole A-57 intersected 1.54 g/t Au over 66 m from surface. Several other drill holes intersected relatively shallow (i.e., depth less than 100 m) intervals of mineralization grading 1 to 2 g/t gold over lengths of several tens of meters. These intervals have been correlated tentatively as subhorizontal zones of mineralization that extend between holes separated by a distance of 60 m or more.

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In Deli, only low-grade mineralization was intersected as in RC hole A-2 with 0.39 g/t Au over 27 m which may be considered as the discovery hole for the Deli zone; RC hole A-44 with 0.36 g/t Au over 81.0 m from surface. In Fire Tower, diamond drill hole AD-3 intersected 0.38 g/t Au over 7.0m from surface while the Tavsan drill holes only intersected minor gold mineralization.

Additional information on this drilling program is available in the report dated August 31, 2004 by R.K. Valenta for Fronteer Development Group titled “Ağı Dağı Gold Property, Çanakkale Province, Turkey.”

Figure 10-6 Ağı Dağı Gold Deposits – Location of 1996-1998 Cominco Drill Holes

10.2.2 2004-2005 Drilling Programs by TCAM/Fronteer

Upon optioning the property in April 2004, Fronteer carried out an aggressive exploration program between April 27, 2004 and December 2005. TCAM was the operator during this period by means of a service contract with Fronteer and geologists representing Fronteer were involved in the work programs which were administered by a Fronteer-TCAM Technical committee.

A total of 5,893.7 m in 39 holes were drilled in 2004 and 10,774.75 m in 62 holes in 2005 (only drill holes fully completed during the calendar year were included in this total) for a total of 16,668.45 m in this continuous drill campaign (this total was corrected from the 16,777.55 m reported by Fronteer).

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Figure 10-7 Ağı Dağı Gold Deposits – Location of 2004-2005 TCAM / Fronteer Drill holes

The program included 35 RC drill holes (in grey-blue on Figure 10-7) totaling 3,783.1 m and 66 diamond drill holes (in light green of Figure 10-7) totaling 12,885.35 m. Most of these holes were focused on expanding the newly discovered Deli Zone and testing both the Fire Tower and Ayı Tepe zones. The distribution by zone was as follows:

• Baba – 16 drill holes for 2,912.35 m

• Ayı Tepe – 10 drill holes for 2,327.20 m

• Fire Tower – 14 drill holes for 3,085.20 m

• Deli – 61 drill holes for 8,343.70 m

Highlights included:

• Baba – Diamond drill hole AD-100: 1.48 g/t Au over 58.0 m from 6.0 m and 2.18 g/t Au over 10.2 m from 80.55 m.

• Ayı Tepe – Diamond drill hole AD-117: 1.37 g/t Au over 32.9 m from 92.2 m.

• Fire Tower – Diamond drill hole AD-86: 1.19 g/t Au over 20.2 m from 17.8 m.

• Deli – RC drill holes A-91: 2.46 g/t Au over 48.0 m from 49.5 m; A-92: 2.54 g/t Au over 46.5 m from 49.5 m; diamond drill holes AD-118: 3.97 g/t Au over 44.0 m from 60.0 m; AD-126: 3.73 g/t Au over 57.3 m from 38.2 m and AD-162: 4.38 g/t Au over 42.4 m from 63.6 m.

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An independent resource estimate was completed for the Baba and Deli Zones (January 2006). The resource for the Baba Zone included 6.44 million tonnes averaging 0.858 g/t gold (178,000 ounces of gold) classified as indicated and 18.4 million tonnes averaging 0.78 g/t gold (461,000 ounces of gold) classified as inferred at a 0.5 g/t gold cut-off. The Deli Zone included 1.36 million tonnes averaging 0.90 g/t gold and 5.6 g/t silver (39,000 ounces of gold and 246,000 ounces of silver) classified as indicated and an additional 16.41 million tonnes averaging 1.1 g/t gold and 7.8 g/t silver (582,000 ounces of gold and 4,103,000 ounces of silver) classed inferred at a 0.5 g Au/t cut-off.

The results of the 2004-05 programs were deemed to be positive with the resources at the Baba and Deli Zones still open for expansion and the potential to find additional resources through continued drilling considered to be excellent.

Further details of this program can be found in the Technical report available on SEDAR dated March 10, 2006, and titled “The Exploration Activities of Fronteer Development Group Inc. on the Ağı Dağı Gold Property, Çanakkale Province, Republic of Turkey from April 2004 to December 2005” (Ian Cunningham-Dunlop and Gary Giroux, 2006).

10.2.3 2006 to 1^st Quarter 2007 Drilling Programs by TCAM/Fronteer

Following the success of the 2004-05 programs, a second exploration campaign was launched in March 2006 and continued to March 2007. The 2006-07 programs included a total of 141 drill holes totaling 23,907.55 m.

The program included 43 RC drill holes (in grey in Figure 10-8) totaling 4,160.9 m and 98 diamond drill holes (in greyish green in Figure 10-8) totaling 19,746.65. Drilling was focused on expanding the Deli and Baba resources, as well as testing Tavşan Tepe, Ihlamur, and Fire Tower. The distribution by zone was as follows:

• Baba – 36 drill holes for 6,265.45 m

• Ayı Tepe – 4 drill holes for 1,276.00 m

• Fire Tower – 23 drill holes for 4,995.50 m

• Deli – 72 drill holes for 10,776.50 m

• Tavşan Tepe – 3 drill holes for 172.10 m

• Ihlamur – 3 drill holes for 422.00 m

Highlights included:

• Baba – RC drill holes A-256: 0.57 g/t Au over 145.5 from 3.0 m; Diamond drill holes AD-258: 3.35g/t Au over 10.0 m from 106.5 m and AD- 262: 1.01 g/t Au over 34.5 m from surface.

• Ayı Tepe – Diamond drill hole AD-286: 0.48 g/t Au over 36.6 m from 116.4 m.

• Fire Tower – Diamond drill hole AD-248 very close to Deli: 1.28 g/t Au over 49.9 m from 163.6 m; AD-214: 0.59 g/t Au over 22.2 m from 4.0 m and 0.56 g/t Au over 31.95 m from 100.55 m. Deli – RC drill holes A-177: 2.27 g/t Au over 52.5 m from 39.0 m; Diamond drill holes AD-212: 4.05 g/t Au over 107.6 from 65.7 m; both drill holes are located in the high-grade zone in the north of the deposit.

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• Tavşan Tepe – RC drill hole A-185: 0.65 g/t Au over 7.5 m from 27 m.

• Ihlamur – RC drill hole A-191: 0.62 g/t Au over 10.5 m from 31 m and 1.07 g/t Au over 9 m from 47.5 m.

Figure 10-8 Ağı Dağı Gold Deposits – Location of 2006 TCAM / Fronteer Drill Holes

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Kirazlı and Ağı Dağı Gold Project NI 43-101

A 43-101-compliant resource estimate was completed in June of 2007. The updated Mineral Resources for the Ağı Dağı project are reported for the two Main resource areas, the Deli and Baba zones as shown in Tables 10-9 and 10-10:

Table 10-9 Classified Mineral Resources at a 0.5 g/t Au Cut-Off,

dated August 1, 2007, for the Deli Zone, Ağı Dağı Deposit

OXIDE RESOURCE
CLASS	TONNES	Au g/t	Ag g/t	Au ozs	Ag ozs	AuEq ozs
Measured	1,500,000	1.9	13.9	90,000	669,000	103,380
Indicated	16,600,000	1.2	10.6	636,000	5,661,000	749,220
Inferred	7,700,000	1.4	18.5	337,000	4,571,000	428,420
SULPHIDE RESOURCE
CLASS	TONNES	Au g/t	Ag g/t	Au ozs	Ag ozs	AuEq ozs
Measured	100,000	1.4	8.0	5,000	27,000	5,540
Indicated	1,700,000	1.0	6.5	56,000	365,000	63,300
Inferred	2,500,000	1.0	6.2	80,000	497,000	89,940
TOTAL RESOURCE
CLASS	TONNES	Au g/t	Ag g/t	Au ozs	Ag ozs	AuEq ozs
Measured	1,600,000	1.8	13.5	94,000	696,000	107,920
Indicated	18,300,000	1.2	10.2	693,000	6,027,000	813,540
Inferred	10,200,000	1.3	15.5	418,000	5,068,000	519,360
Classified at 0.5 g/t cut-off

Table 10-10 Classified Mineral Resources at a 0.5 g/t Au Cut-Off,

dated August 1, 2007, for the Baba Zone, Ağı Dağı Deposit

OXIDE RESOURCE
CLASS	TONNES	Au g/t	Ag g/t	Au ozs	Ag ozs	AuEq ozs
Measured
Indicated	14,300,000	0.8	1.0	385,000	448,000	393,960
Inferred	7,000,000	0.8	0.3	188,000	66,000	189,320
SULPHIDE RESOURCE
CLASS	TONNES	Au g/t	Ag g/t	Au ozs	Ag ozs	AuEq ozs
Measured
Indicated	700,000	0.7	0.7	15,000	16,000	15,320
Inferred	2,100,000	0.7	0.3	47,000	19,000	47,380
TOTAL RESOURCES
CLASS	TONNES	Au g/t	Ag g/t	Au ozs	Ag ozs	AuEq ozs
Measured
Indicated	15,000,000	0.8	1.0	400,000	464,000	409,280
Inferred	9,100,000	0.8	0.3	235,000	86,000	236,720
Classified at 0.5 g/t cut-off

Recommendations of the Fronteer-TCAM Technical Committee for exploration for the period May 1, 2007 to May 1, 2008 include 10,000 m of diamond and reverse circulation drilling to continue testing the known zones of mineralization at Baba Dağı, Ayı Tepe, Fire Tower, Ihlamur Ridge, Tavşan Tepe, and Deli; infill drilling within the Baba and Deli resource blocks in order to move defined blocks from inferred to indicated categories.

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Further details of this program can be found in the Technical report available on SEDAR dated August 1, 2007 and titled “Technical Report on the Ağı Dağı Gold Property, Çanakkale Province, Republic of Turkey for Fronteer Development Group Inc.” (Ian Cunningham-Dunlop and Christopher Lee, 2007).

10.2.4 2^nd Quarter 2007 to 2nd Quarter 2008 Drilling Program by TCAM/Fronteer

TCAM carried out a program of diamond and RC drilling between April 2007 and August 2007 which included 7,352.40 m of drilling in 52 drill holes (AD-300 to AD-350; Figures 10-9). The main objective of drilling was to expand the limits of the known resources at Baba, Deli Dağı and Ayı Tepe and also test several targets outside the Main resource block at Ihlamur Ridge, Fire Tower, and Tavşan. Details of the drilling component and QA-QC can be found in Sections 11 and 12.

The program included 18 RC drill holes totaling 1,399.0m (in light blue on Figure 10-9) and 34 diamond drill holes totaling 5,953.4m (in light brown on Figure 10-9). The distribution by zone was as follows:

• Baba – 4 drill holes for 437.00 m

• Ayı Tepe – 9 drill holes for 1,987.70 m

• Fire Tower – 9 drill holes 1,361.20 m

• Deli – 17 drill holes for 2,219.60 m

• Tavşan Tepe – 7 drill holes for 602.60 m

• Ihlamur – 6 drill holes for 744.30 m.

Highlights included:

• Baba – There is no significant intersection to report. All drill holes were located near the edge of the resource in attempt to expand it.

• Ayı Tepe – Grade and thicknesses of drill intercepts remained lower than in the Baba and Deli zones. Diamond drill hole AD-317: 0.78 g/t Au over 21.0 m from 70.5 m and 0.41 g/t Au over 31.9 m from 188.6 m.

• Fire Tower – Diamond drill holes AD-310: 1.07 g/t Au over 5.9 m from 62.5 m and AD-325: 0.69 g/t Au over 48.0 m from 49.5 m.

• Deli – RC drill hole A-326: 0.66 g/t Au over 21.0 m from 6.0 m; Diamond drill hole AD-307: 0.58 g/t Au over 16.9 m from 151.5 m.

• Tavşan Tepe – There was no significant result from Tavşan Tepe.

• Ihlamur – Diamond drill holes AD-301: 2.1 g/t Au over 4.5 m from 2.7 m and 0.85 g/t Au over 25.4 m from 79.1 m and AD-339: 0.61 g/t Au over 29.6 m from 74.1 m.

10.2.5 2008 Drilling Program by TCAM/Fronteer

A limited diamond drilling program was carried out on the Baba target in 2008. There were 3 holes drilled totaling 502.50 meters at Baba. Additionally, 5 holes were drilled at the Camyurt target that led to the discovery of gold mineralization in the prospect. Drilling of the Camyurt project is not further reported here.

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The three holes drilled in Baba (in dark green on Figure 10-9) were to expand the limits of the known resources. They did not intersect any significant mineralization.

Figure 10-9 Ağı Dağı Gold Deposits – Location of 2007-2008 TCAM / Fronteer Drill Holes

10.2.6 2010 Drilling Program by Alamos

In the Technical Report dated March 12, 2010, a new resource calculation was tabulated encompassing all drilling prior to Alamos. The resource at a 0.2 g/t Au cut-off for Baba and Deli is given in Table 10-11. The resource was tabulated using optimistic pit geometries and floating cones to fulfill the requirements of the NI 43-101 regulations of a reasonable expectation of economic extraction. The previous mineral resources by Fronteer were not constrained by a model pit resulting in a significant reduction of inferred resources compared to the last estimate.

Table 10-11 Classified Mineral Resources for the Baba and Deli Deposits – Alamos – March 2010

		Au Cut- Off g/t	Tonnage tonnes	Average Au Grade g/t	Average Ag Grade g/t	Au Metal Content ounces	Ag Metal     Content     ounces
Baba	Indicated	0.20	26,601,000	0.52	0.60	445,000	513,000
Baba	Inferred	0.20	9,898,000	0.48	0.50	153,000	159,000
Deli	Indicated	0.20	25,362,000	0.67	5.96	546,000	4,860,000
Deli	Inferred	0.20	7,970,000	1.17	11.18	300,000	2,865,000
Baba+Deli	Indicated	0.20	51,963,000	0.59	3.22	991,000	4,860,000
Baba+Deli	Inferred	0.20	17,868,000	0.79	5.26	453,000	2,865,000

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When it acquired the project in January 2010, Alamos started drilling on existing forestry permits. Alamos carried out an infill drill program of diamond and RC drilling between March 20, 2010 and December 23, 2011. In 2012 drilling at Ağı Dağı only resumed after the closing date for the prefeasibility resources and the 2012 drill program is therefore not part of the current report.

The 2010 drill program included 16,132.40 m in 102 diamond drill holes from 10-AD-354 to 10-AD-459 and 1,028.50 m in 11 RC drill holes from 10-A-403 to 10-AD-423. All these drill holes were included in a resource calculation for the prefeasibility. The location of the Alamos drill holes are presented in Table 10-12 and in Figure 10-11.

Infill drilling at the Baba / Ayı Tepe and Deli zones in 2010 continued to confirm expected grades and thicknesses as predicted by the block model of March 2010, while results from some holes significantly exceeded predicted values. Additionally, assay results from twins of holes drilled by previous operators also generally exceeded historical results.

Notable assay results from this program include (see also Table 10-13):

•     10AD354	1.06 g/t Au over 19.0 m (Baba)
•     10AD355	0.87 g/t Au over 72.5 m (Baba)
•     10AD359	1.93 g/t Au over 28.0 m (Baba)
•     10AD361	2.89 g/t Au over 48.8 m (Deli)
•     10AD364	4.20 g/t Au over 50.2 m (Baba)
•     10AD366	5.02 g/t Au over 14.8 m (Deli)
•     10-AD-377	1.68 g/t Au over 53.6 m (Deli)
•     10-AD-387	2.25 g/t Au over 31.3 m (Baba)
•     10-AD-388	4.12 g/t Au over 28.9 m (Deli)
•     10-AD-392	1.26 g/t Au over 62.4 m (Deli)
•     10-AD-393	1.33 g/t Au over 42.0 m (Baba)
•     10-AD-393A	1.11 g/t Au over 44.5 m (Baba)
•     10-AD-397	1.38 g/t Au over 39.6 m (Deli)
•     10-AD-401	1.11 g/t Au over 58.4 m (Deli)
•     10-A-403	0.81 g/t Au over 96.0 m (Deli)
•     10-AD-406	1.60 g/t Au over 25.3 m (Deli)
•     10-A-408	1.32 g/t Au over 39.0 m (Deli)
•     10-AD-421	0.89 g/t Au over 23.6 m (Baba)
•     10-AD-431	0.78 g/t Au over 80.6 m (Baba)
•     10-AD-433	1.11 g/t Au over 25.0 m (Baba)
•     10-AD-440	0.51 g/t Au over 57.9 m (Baba)
•     10-AD-441	0.73 g/t Au over 58.5 m (Deli)

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Table 10-12 Summary of 2010 Ağı Dağı Diamond (AD series) and RC (A series) Drill Holes

DDH_ID	Easting	Northing	Elevation	Depth	Azimuth	Dip	Zone
10-AD-354	495134.2	4413497	886.778	119.2	310	-78	Baba
10-AD-355	495056.8	4413706	856.672	143	130	-61	Baba
10-AD-356	494905.4	4413760	813.239	110.6	0	-90	Baba
10-AD-357	497368.5	4415603	766.261	110	130	-61	Deli
10-AD-358	497330.8	4415702	748.287	145.4	130	-60	Deli
10-AD-359	495140.4	4413649	883.647	150.5	133.26	-60	Baba
10-AD-360	495115.8	4413714	875.08	154.4	210	-80	Baba
10-AD-361	497241.2	4415855	708.258	152.4	130	-55	Deli
10-AD-362	495117.4	4413715	875.165	113.2	20	-80	Baba
10-AD-363	494921.5	4413819	810.77	150.1	150	-60	Baba
10-AD-364	495096.1	4413554	872.41	120	300.96	-90	Baba
10-AD-365	495255.5	4413599	921.851	180	218	-58	Baba
10-AD-366	497119.2	4415790	683.985	192.6	130	-60	Deli
10-AD-367	495243.6	4413732	917.44	140.3	130	-60	Baba
10-AD-368	495147.5	4413539	887.131	194.5	130	-60	Baba
10-AD-369	494974.7	4413597	844.435	151.1	0	-90	Baba
10-AD-370	494844.2	4413661	817.891	140.9	0	-90	Baba
10-AD-371	497068	4415632	731.284	198.6	190	-50	Deli
10-AD-372	495002.2	4413772	835.685	259	310	-60	Baba
10-AD-373	497297	4415673	747.249	168.4	122	-60	Deli
10-AD-374	494945.5	4413646	832.372	140	0	-90	Baba
10-AD-375	495055.2	4414027	862.021	190	0	-90	Baba
10-AD-376	495070.9	4413619	855.859	145	313	-75	Baba
10-AD-377	497124	4415835	676.912	149.8	135	-60	Deli
10-AD-377A	497121.7	4415837	676.687	250.1	135	-60	Deli
10-AD-378	497017.4	4415404	786.819	180.7	334	-52	Deli
10-AD-379	494749.2	4413743	775.564	164.5	310	-60	Baba
10-AD-380	494848.3	4413608	826.996	133.8	310	-75	Baba
10-AD-381	496812.5	4415506	767.52	310.8	90	-63	Deli
10-AD-382	496877.6	4415632	711.344	183.5	130	-60	Deli
10-AD-383	495036.4	4413882	837.739	290.1	309	-62	Baba
10-AD-384	497008.9	4415655	712.711	284.1	130	-60	Deli
10-AD-385	497285.1	4415608	755.55	158.5	0	-90	Deli
10-AD-386	497068.5	4415727	713.072	234.3	0	-90	Deli
10-AD-387	495038.9	4413879	837.631	201.3	235	-60	Baba
10-AD-388	497056.5	4415755	702.513	355.8	0	-90	Deli
10-AD-389	497340.8	4415892	706.539	22	110	-55	Deli
10-AD-389A	497342	4415891	706.723	276.4	110	-55	Deli
10-AD-390	495039.6	4413879	837.716	251.7	130	-60	Baba
10-AD-391	497496.6	4415753	723.579	200.5	180	-60	Deli
10-AD-392	497319.1	4415883	708.715	255	155	-60	Deli
10-AD-393	495145.5	4413539	887.075	187.3	310	-60	Baba
10-AD-393A	495146	4413539	886.987	175.5	310	-60	Baba
10-AD-394	497539.9	4415659	703.439	105.7	0	-90	Deli
10-AD-395	497561	4415568	699.794	83.1	130	-75	Deli
10-AD-395A	497560.2	4415569	699.785	3.7	130	-75	Deli

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DDH_ID	Easting	Northing	Elevation	Depth	Azimuth	Dip	Zone
10-AD-396	497120.3	4415749	703.213	279.6	310	-60	Deli
10-AD-397	497053.6	4415754	702.413	222.7	214	-60	Deli
10-AD-398	497398.1	4415719	755.086	265.2	0	-90	Deli
10-AD-399	495078.4	4413461	877.776	181	270	-60	Baba
10-AD-400	495027	4413524	866.455	152.5	0	-90	Baba
10-AD-401	497351.7	4415486	772.065	131	90	-60	Deli
10-AD-402	495012.6	4413452	865.121	146.7	0	-90	Baba
10-AD-404	497439.9	4415866	704.077	145.1	130	-60	Deli
10-AD-405	497188.9	4415512	752.65	93.3	130	-60	Deli
10-AD-406	496927.1	4415587	727.65	196.6	40	-60	Deli
10-AD-407	497208.3	4415608	742.569	115.1	215	-60	Deli
10-AD-412	495067.3	4413760	853.485	239.2	310	-75	Baba
10-AD-413	497284.1	4415355	735.694	150.1	310	-60	Deli
10-AD-414	497053	4415757	702.291	298	0	-60	Deli
10-AD-415	497437.1	4415866	704.111	7.7	310	-60	Deli
10-AD-415A	497438.6	4415864	704.035	246	310	-60	Deli
10-AD-418	497229.8	4415933	687.738	255.9	155	-70	Deli
10-AD-421	495079.9	4413660	864.319	156	130	-60	Baba
10-AD-424	494707.6	4413655	784.379	90.4	130	-60	Baba
10-AD-425	497228.6	4415935	687.487	236.5	310	-70	Deli
10-AD-426	494945.4	4413644	832.261	146.9	70	-60	Baba
10-AD-427	495036.3	4413587	855.598	152.2	130	-90	Baba
10-AD-428	494805.3	4413755	796.46	222.5	310	-60	Baba
10-AD-429	495037.3	4413586	855.598	121.4	310	-90	Baba
10-AD-430	497237.6	4415661	738.954	134.9	130	-60	Baba
10-AD-431	494867	4413736	814.097	135.1	0	-90	Baba
10-AD-432	495254.4	4413693	923.283	236	130	-60	Baba
10-AD-433	494885.1	4413649	825.501	112.8	0	-90	Baba
10-AD-434	497165	4415731	710.187	67.3	130	-60	Deli
10-AD-434A	497168.1	4415729	710.324	151.1	130	-60	Deli
10-AD-435	494926.5	4413543	844.227	108.6	130	-60	Baba
10-AD-436	494956	4413732	827.538	156.9	125	-60	Baba
10-AD-437	495196	4413771	894.983	248.9	0	-90	Baba
10-AD-438	495259.3	4413533	912.272	224.9	310	-60	Baba
10-AD-439	495018.2	4414009	846.909	132.3	130	-75	Baba
10-AD-440	495056.5	4414022	862.021	251	80	-60	Baba
10-AD-441	497281.3	4415607	755.52	148.4	130	-60	Deli
10-AD-442	494921.2	4414010	823.559	253.7	310	-60	Baba
10-AD-443	497114.7	4415554	747.125	123.1	130	-60	Deli
10-AD-444	497462.1	4415520	751.458	114.6	180	-60	Deli
10-AD-445	495139.2	4414031	901.763	251.6	360	-90	Baba
10-AD-446	496699.9	4415376	798.323	192.5	0	-90	Deli
10-AD-447	496699.4	4415377	798.32	233.7	270	-60	Deli
10-AD-448	495161.3	4414007	907.129	341.3	130	-75	Baba
10-AD-449	496482.6	4416628	428.265	20	0	-90	North dump
10-AD-450	496597.9	4416409	452.989	15.9	0	-90	North dump
10-AD-451	496569.1	4416306	466.394	15	0	-90	North dump

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DDH_ID	Easting	Northing	Elevation	Depth	Azimuth	Dip	Zone
10-AD-452	496407.9	4415941	576.271	16.7	0	-90	North dump
10-AD-452A	496409	4415934	575	1.45	0	-90	North dump
10-AD-453	497034.8	4416218	541.598	15.2	0	-90	North dump
10-AD-454	493855.6	4414242	650.687	30.45	0	-90	North dump
10-AD-455	493641	4414179	635.446	20	0	-90	Heap leach
10-AD-456	493655.5	4413887	632.737	20	0	-90	Heap leach
10-AD-457	493609.8	4413831	630.557	20	0	-90	Heap leach
10-AD-458	493670.9	4413854	634.112	32	0	-90	Heap leach
10-AD-459	493548.6	4413777	590.23	28	0	-90	Heap leach
Sub-Total			102 holes	16,132.40
10-A-403	497427.1	4415551	763.716	136.5	130	-60	Deli
10-A-408	497361.6	4415524	770.365	94.5	130	-60	Deli
10-A-409	497537.1	4415665	703.828	70	0	-90	Deli
10-A-410	497600.4	4415806	684.785	126	45	-70	Deli
10-A-411	496652	4415426	761.144	118.5	0	-60	Deli
10-A-416	497266	4415948	689.083	99	0	-90	Deli
10-A-417	497275.4	4415950	688.954	103.5	90	-55	Deli
10-A-419	496746	4415669	686.634	91.5	130	-60	Deli
10-A-420	496958.2	4415813	666.54	84	180	-60	Deli
10-A-422	496881.7	4415773	660.512	63	110	-60	Deli
10-A-423	496903.8	4415858	632.201	42	180	-60	Deli
Sub-Total			11 holes	1,028.50
Total			113 holes	17,160.90

Table 10-13 Mineralized Intercepts in 2010 Baba and Deli Diamond and RC Drill Holes

Drill Hole Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
10-AD-354	Core	119.20	0.00	19.00	19.00	1.06
			23.50	35.50	12.00	0.70
			41.50	57.50	16.00	0.82
			70.00	76.00	6.00	0.63
			89.50	101.60	12.10	0.95
			113.20	117.30	4.10	3.12
10-AD-355	Core	143.00	2.70	15.80	13.10	0.45
			20.30	23.30	3.00	0.41
			33.30	41.00	7.70	0.25
			48.80	121.30	72.50	0.87
			131.80	134.20	2.40	0.63
10-AD-356	Core	110.60	23.20	26.20	3.00	0.26
			38.00	106.10	68.10	0.39
10-AD-357	Core	110.00	50.00	93.10	43.10	0.67
10-AD-358	Core	145.40	5.30	17.80	12.50	1.00
			26.60	31.00	4.40	0.26
			98.30	128.20	29.90	0.66
10-AD-359	Core	150.50	5.50	8.50	3.00	0.45
			26.50	54.50	28.00	1.93
			59.00	82.90	23.90	0.63
			100.80	103.80	3.00	0.38
			106.80	114.00	7.20	0.43

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Drill Hole Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
			120.30	140.00	19.70	1.08
10-AD-360	Core	154.40	20.70	27.90	7.20	0.41
			32.10	59.00	26.90	0.43
			72.00	143.60	71.60	0.89
10-AD-361	Core	152.4	37.80	40.80	3.00	0.46
			52.20	101.00	48.80	2.89
10-AD-362	Core	113.20	27.30	71.60	44.30	0.58
			74.60	86.60	12.00	0.41
			89.60	95.80	6.20	0.21
			103.30	106.30	3.00	0.28
			109.30	113.20	3.90	1.21
10-AD-363	Core	150.10	6.00	19.40	13.40	0.21
			25.40	38.90	13.50	0.39
			49.00	55.00	6.00	0.25
			58.00	77.80	19.80	0.32
			83.40	87.90	4.50	0.26
			90.90	95.70	4.80	0.23
			100.20	129.80	29.60	0.26
10-AD-364	Core	120.00	0.00	50.20	50.20	4.20
			54.30	70.50	16.20	0.77
			87.50	90.50	3.00	0.60
			98.50	103.00	4.50	0.32
10-AD-365	Core	180.00	7.20	20.00	12.80	0.40
			23.00	43.50	19.50	0.46
			48.50	53.00	4.50	0.34
			96.50	110.50	14.00	0.31
			116.50	131.30	14.80	0.83
			144.50	155.20	10.70	0.53
			164.50	179.00	14.50	0.48
10-AD-366	Core	192.6	52.50	55.00	3.00	0.34
			61.10	75.90	14.80	5.02
			82.90	89.00	6.10	0.80
10-AD-367	Core	140.30	66.70	72.70	6.00	0.73
			80.00	83.00	3.00	0.38
			105.50	118.80	13.30	0.85
			130.00	135.00	5.00	0.56
10-AD-368	Core	194.50	1.50	44.00	42.50	0.70
			48.70	109.40	60.70	0.64
10-AD-369	Core	151.10	37.30	47.50	10.20	0.47
10-AD-370	Core	140.90	4.50	26.60	22.10	0.93
			30.20	43.50	13.30	0.36
			49.00	52.70	3.70	0.21
10-AD-371	Core	198.60	61.80	64.90	3.10	0.54
10-AD-372	Core	259.00	22.00	35.40	13.40	0.24
			40.50	47.40	6.90	0.22
			87.00	107.00	20.00	0.32
			110.00	116.60	6.60	0.34
			135.40	143.60	8.20	0.23
			148.00	154.00	6.00	0.23
			158.50	168.50	10.00	0.25
			171.50	203.00	31.50	0.31
			207.20	216.90	9.70	0.33
			219.80	224.40	4.60	0.27
10-AD-373	Core	168.40	12.80	23.80	11.00	0.93
			54.30	89.50	35.20	0.36

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Drill Hole Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
			103.00	119.50	16.50	1.18
10-AD-374	Core	140.00	49.20	57.80	8.60	0.91
			73.30	77.50	4.20	0.37
10-AD-375	Core	190.00	6.00	19.00	9.00	0.27
			32.80	35.80	3.00	0.27
			54.00	57.00	3.00	0.23
			84.10	106.30	22.20	0.28
			114.70	128.50	13.80	0.33
10-AD-376	Core	145.00	7.80	12.00	4.20	0.92
			21.00	54.40	33.40	0.58
			57.40	89.70	32.30	0.94
10-AD-377	Core	149.00	30.00	83.60	53.60	1.68
10-AD-377A	Core	250.10	107.60	120.20	12.60	0.35
10-AD-378	Core	180.00	16.70	24.20	7.50	0.72
			72.50	75.50	3.00	0.23
10-AD-379	Core	164.50	5.20	10.80	5.60	0.55
			32.00	35.00	3.00	0.38
			112.50	119.00	6.50	0.25
10-AD-380	Core	133.80	2.90	5.90	3.00	0.25
			9.00	12.00	3.00	0.24
			19.50	27.00	7.50	0.39
			30.00	34.50	4.50	0.26
10-AD-381	Core	310.80	106.30	113.80	7.50	0.56
			126.80	133.40	6.60	0.26
			261.35	267.20	5.85	0.25
10-AD-382	Core	183.50	110.00	113.30	3.30	0.41
10-AD-383	Core	290.10	38.30	41.30	3.00	0.25
			56.70	61.20	4.50	0.22
			117.40	120.40	3.00	0.32
			124.90	137.90	13.00	0.33
			157.00	166.00	9.00	0.34
10-AD-384	Core	284.10	9.50	27.00	17.50	0.48
			65.80	79.90	14.10	0.56
			96.20	101.80	5.60	0.34
			108.00	144.90	36.90	0.60
			248.00	253.10	5.10	0.86
10-AD-385	Core	158.50	25.30	32.00	6.70	0.70
			39.50	48.50	9.00	0.87
			59.50	62.60	3.10	0.25
			69.80	72.80	3.00	0.22
			77.20	87.00	9.80	0.93
10-AD-386	Core	234.32	10.50	13.50	3.00	0.20
			85.20	104.50	19.30	0.39
			123.70	130.30	6.60	0.24
			154.60	161.10	6.50	0.29
			185.10	189.10	4.00	0.94
			231.00	234.30	3.30	0.84
10-AD-387	Core	201.30	20.60	26.60	6.00	0.22
			88.00	119.30	31.30	2.25
			125.30	128.30	3.00	0.29
			143.50	149.50	6.00	0.22
			155.50	161.50	6.00	0.26
			165.90	181.40	15.50	0.25
10-AD-388	Core	355.70	127.10	156.00	28.90	4.12
			163.50	177.00	13.50	1.45

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Drill Hole Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
			200.00	203.00	3.00	0.32
			214.70	219.20	4.50	0.27
			254.00	264.00	10.00	0.35
			297.00	300.00	3.00	0.53
10-AD-389	Core	22.00	12.30	18.30	6.00	0.52
10-AD-389A	Core	276.10	0.60	8.30	7.70	0.41
			32.10	36.40	4.30	0.31
			63.80	75.70	11.90	0.64
			78.70	84.20	5.50	0.48
			98.50	117.30	18.80	0.91
			124.10	128.80	4.70	0.42
			178.70	184.40	5.70	0.35
			195.90	214.00	18.10	0.48
			222.50	226.60	4.10	0.47
10-AD-390	Core	251.70	29.10	32.10	3.00	0.22
			41.10	50.80	9.70	0.23
			61.30	67.20	5.90	0.22
			82.20	85.70	3.50	0.22
			90.20	102.10	11.90	0.25
			106.60	109.60	3.00	0.25
			113.10	116.70	3.60	0.49
			124.20	135.30	11.10	0.29
			141.50	155.00	13.50	0.26
			160.70	190.90	30.20	0.37
			194.10	210.00	15.90	0.30
10-AD-391	Core	200.50	12.00	19.00	7.00	0.32
10-AD-392	Core	255.00	35.80	98.20	62.40	1.26
			149.50	152.50	3.00	0.22
			155.50	175.00	19.50	0.63
			179.50	205.70	26.20	0.99
10-AD-393	Core	187.30	3.00	7.50	4.50	0.35
			14.30	38.00	23.70	0.48
			41.00	83.00	42.00	1.33
			93.00	103.80	10.80	0.59
10-AD-393A	Core	175.50	4.50	8.80	4.30	0.45
			20.00	36.60	16.60	0.61
			45.50	90.00	44.50	1.11
			93.00	117.50	24.50	0.65
10-AD-394	Core	105.70	3.00	16.80	13.80	0.87
10-AD-395	Core	83.10	8.30	22.30	14.00	0.25
10-AD-396	Core	279.60	112.50	117.00	4.50	0.83
			120.00	123.00	3.00	0.30
			128.40	131.40	3.00	0.23
			140.40	155.40	15.00	0.77
			165.50	168.50	3.00	0.28
10-AD-397	Core	222.70	106.50	112.50	6.00	0.39
			122.50	125.50	3.00	0.26
			132.50	172.10	39.60	1.38
10-AD-398	Core	265.20	56.50	77.50	21.00	0.62
			82.00	125.40	42.00	0.66
			128.50	137.80	9.30	0.37
			149.00	155.00	6.00	0.43
			158.00	175.50	17.50	0.25
			180.00	190.00	10.00	0.50
10-AD-399	Core	181.00	33.50	65.10	31.60	0.88

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Drill Hole Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
			73.20	86.30	13.10	0.48
10-AD-400	Core	152.50	7.10	10.00	2.90	0.99
			16.80	36.80	20.00	0.28
			51.10	55.20	4.10	0.23
			62.20	69.70	7.50	0.48
10-AD-401	Core	131.00	4.50	12.00	7.50	0.44
			17.30	75.70	58.40	1.11
10-AD-402	Core	146.70	31.80	42.00	10.20	0.27
			48.20	55.70	7.50	0.28
10-A-403	RC	136.50	0.00	96.00	96.00	0.81
			103.50	108.00	4.50	0.32
			115.50	120.00	4.50	0.32
10-AD-404	Core	145.10	9.00	27.00	18.00	0.46
			30.00	49.50	19.50	0.72
			89.00	95.10	6.10	0.44
10-AD-405	Core	93.20	19.70	26.20	6.50	1.81
10-AD-406	Core	196.60	8.50	13.40	4.90	0.70
			56.00	72.00	16.00	0.63
			72.40	87.30	9.90	0.35
			91.80	98.00	6.20	0.30
			125.00	129.50	4.50	0.50
			135.50	160.80	25.30	1.60
10-AD-407	Core	115.10	No composite
10-A-408	RC	94.50	10.50	22.50	12.00	0.51
			30.00	69.00	39.00	1.32
10-A-409	RC	255.00	0.00	16.50	16.50	0.72
10-A-410	RC	126.00	28.50	40.50	12.00	0.57
			45.00	55.50	10.50	0.30
			58.50	64.50	6.00	0.28
			112.50	115.50	3.00	0.28
10-A-411	RC	118.50	No composite
10-AD-412	Core	239.20	9.10	18.10	9.00	0.62
			22.70	30.00	7.30	0.39
			34.00	37.00	3.00	0.29
			40.00	43.10	3.10	0.38
			54.80	61.90	7.10	0.25
			81.80	85.90	4.10	0.29
			96.40	190.20	93.80	0.52
10-AD-413	Core	150.10	0.00	5.10	5.10	0.43
10-AD-414	Core	298.00	75.40	78.40	3.00	0.46
			100.40	123.20	22.80	2.70
			127.20	131.70	4.50	0.27
10-AD-415	Core	7.70	No composite
10-AD-415A	Core	246.00	6.00	20.50	13.50	0.53
			24.00	87.00	63.00	0.45
			96.00	112.50	16.50	0.37
			197.70	200.70	3.00	0.33
			203.70	215.80	12.10	0.38
10-A-416	RC	97.50	12.00	15.00	3.00	0.57
			22.50	43.50	21.00	0.69
			52.50	61.50	9.00	0.42
			78.00	88.50	10.50	0.31
10-A-417	RC	103.50	45.00	49.50	4.50	0.25
10-AD-418	Core	255.90	42.00	53.30	11.30	0.28

July 31, 2012 Page 119

Kirazlı and Ağı Dağı Gold Project NI 43-101

Drill Hole Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
			133.20	139.10	5.90	0.27
			150.50	155.00	4.50	0.22
			189.70	206.50	16.80	0.97
10-A-419	RC	91.50	24.00	27.00	3.00	0.24
			46.50	52.50	6.00	0.53
10-A-420	RC	84.00	40.50	60.00	19.50	0.66
			67.50	78.00	10.50	0.98
10-AD-421	Core	156.00	14.10	26.20	12.10	0.71
			55.90	60.40	4.50	0.41
			63.40	68.30	4.90	2.21
			76.40	100.00	23.60	0.89
10-A-422	RC	63.00	6.00	12.00	6.00	2.45
			19.50	34.50	15.00	0.94
			43.50	63.00	19.50	0.38
10-A-423	RC	42.00	10.50	21.00	10.50	0.22
			28.50	31.50	3.00	0.52
10-A-424	Core	90.40	8.30	11.30	3.00	0.27
10-AD-425	Core	236.50	28.80	33.00	4.20	0.46
			121.60	124.20	3.20	0.28
			136.20	147.50	11.30	0.47
			155.80	163.30	7.50	0.30
			175.60	190.60	15.00	0.34
			193.60	196.60	3.00	0.31
			201.10	204.10	3.00	0.29
			222.10	231.10	9.00	0.23
10-AD-426	Core	149.60	57.60	68.10	10.50	0.29
10-AD-427	Core	152.20	0.00	49.70	49.70	0.36
			64.20	85.00	20.80	1.09
10-AD-428	Core	222.50	0.00	55.50	55.50	0.55
			67.30	77.70	10.40	0.45
			82.20	86.30	4.10	0.29
			110.50	127.10	16.60	0.30
			137.30	141.40	4.10	0.24
			162.60	179.20	16.60	0.26
			213.60	22.50	8.90	0.31
10-AD-429	Core	121.40	0.00	12.30	12.30	0.32
			19.50	51.80	32.30	0.47
10-AD-430	Core	134.90	40.40	46.40	6.00	0.38
			52.40	69.00	16.60	0.21
			72.00	83.40	11.40	0.86
10-AD-431	Core	135.10	0.00	3.40	3.40	0.38
			7.90	88.50	80.60	0.78
10-AD-432	Core	236.00	81.80	88.30	6.50	0.32
			91.30	103.90	12.60	0.59
			111.50	114.80	3.30	0.31
			135.70	143.10	7.40	0.34
			166.30	170.80	4.50	0.76
10-AD-433	Core	112.80	29.90	54.90	25.00	1.11
10-AD-434	Core	67.30	No composite – Hole re-drilled as  10-AD-434A
10-AD-434A	Core	151.10	21.50	25.00	3.50	0.25
			79.40	99.80	20.40	0.42
10-AD-435	Core	108.60	41.90	46.40	4.50	0.43
10-AD-436	Core	156.90	47.70	54.00	6.30	0.83
			61.50	75.90	14.40	0.65

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Drill Hole Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
			80.90	93.70	12.80	0.34
10-AD-437	Core	248.90	19.50	27.00	7.50	0.39
			42.50	52.60	10.10	0.28
			58.60	67.60	9.00	0.42
			75.10	90.10	15.00	0.31
			94.60	102.10	7.50	0.27
			106.60	112.60	6.00	0.22
			120.20	132.10	11.90	0.37
			135.10	140.50	5.40	0.35
			148.00	151.00	3.00	0.47
			170.50	173.50	3.00	0.28
			178.00	189.60	11.60	0.71
			193.40	207.20	13.80	0.36
10-AD-438	Core	224.90	1.50	7.80	6.30	0.37
			81.50	118.70	37.20	0.50
			124.70	127.70	3.00	0.22
			145.90	149.20	3.30	0.31
10-AD-439	Core	132.30	19.70	30.40	10.70	0.26
			37.90	42.40	4.50	0.27
			53.60	59.60	6.00	0.23
10-AD-440	Core	251.00	3.60	32.00	28.40	0.48
			38.00	95.90	57.90	0.51
			98.70	105.20	6.50	0.28
			111.30	117.30	6.00	0.26
			129.30	144.20	14.90	0.26
			154.50	163.60	9.10	0.23
			169.80	173.30	3.50	0.30
			180.90	201.10	20.20	0.39
			235.40	238.50	3.10	0.72
			247.20	251.00	3.80	0.24
10-AD-441	Core	148.40	40.50	99.00	58.50	0.73
10-AD-442	Core	253.70	57.40	64.90	7.50	0.42
			70.90	93.40	22.50	0.36
			99.40	117.00	17.60	0.28
			123.00	143.90	20.90	0.35
			148.40	179.50	31.00	0.46
			182.50	186.50	4.00	0.51
			191.00	198.50	7.50	0.32
			205.80	218.80	13.00	0.36
			221.90	226.30	4.40	0.33
10-AD-443	Core	123.10	No composite
10-AD-444	Core	114.60	0.00	26.70	26.70	0.40
			36.30	49.90	13.60	0.72
			100.60	109.10	8.50	0.28
10-AD-445	Core	251.60	34.30	43.30	9.00	0.27
			46.30	50.80	4.50	0.28
			75.40	107.30	31.90	0.39
			112.50	135.30	22.80	0.36
			141.30	146.00	4.70	0.25
			157.00	160.00	3.00	0.21
			165.30	170.00	4.70	0.21
			218.30	224.70	6.40	0.23
10-AD-446	Core	192.50	No composite
10-AD-447	Core	233.70	162.40	171.50	9.10	0.21
			182.00	185.00	3.00	0.24

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Kirazlı and Ağı Dağı Gold Project NI 43-101

Drill Hole Number	Drilling Method	Total Depth (m)	From (m)	To (m)	Interval (m)	Assay (g/t Au)
			188.00	192.50	4.50	0.23
			199.60	205.70	6.10	0.29
10-AD-448	Core	341.30	12.30	15.60	3.30	1.03
			43.10	49.70	6.60	0.28
			116.50	130.50	14.00	0.38
			150.90	165.00	14.10	0.25
			172.50	175.50	3.00	0.25
			195.00	198.00	3.00	0.25
			225.50	234.50	9.00	0.45
			239.20	244.10	4.90	0.33
			251.40	254.40	3.00	0.30
			267.40	271.70	4.30	0.27
			301.00	310.00	9.00	0.29
10-AD-449	Core	20.00	No composite – Geotechnical Hole
10-AD-450	Core	15.90	No composite – Geotechnical Hole
10-AD-451	Core	15.00	No composite – Geotechnical Hole
10-AD-452	Core	16.70	No composite – Geotechnical Hole
10-AD-452A	Core	1.45	No composite – Geotechnical Hole
10-AD-453	Core	15.20	No composite – Geotechnical Hole
10-AD-454	Core	30.45	No composite – Geotechnical Hole
10-AD-455	Core	20.00	No composite – Geotechnical Hole
10-AD-456	Core	20.00	No composite – Geotechnical Hole
10-AD-457	Core	20.00	No composite – Geotechnical Hole
10-AD-458	Core	32.00	No composite – Geotechnical Hole
10-AD-459	Core	28.00	No composite – Geotechnical Hole

Figure 10-10 Ağı Dağı Gold Deposits – Location of 2010 Alamos Drill Holes on Alteration Map

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The infill drilling program allowed for the definition of the controls of the gold mineralization as well as the delineation of the high-grade zone in Deli (see section 8.3). Typical cross-sections interpreted from drilling information are presented in Figures 8-1 and 8-2 for the Baba deposit and Figures 8-3 and 8-4 for the Deli deposit.

The 2010 drill program increased in the overall resources and a conversion of a significant part of the inferred resources to measured and indicated resources resulting in an increase of measured and indicated resources by 31% as compared to the March 2010 tabulation. All details on these resources are presented in section 14.

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11. SAMPLE PREPARATION, ANALYSES AND SECURITY

For a discussion of sample preparation, analysis and security for work conducted prior to the acquisition of the Ağı Dağı and Kirazlı project by Alamos, the reader is referred to the report titled “Technical Report of the Ağı Dağı – Kirazlı Gold Project, Çanakkale Province, Republic of Turkey, by K.D. Engineering”, dated 19 September 2008AGIAGI. Presented here is a discussion of sample preparation, analysis and security methods of Alamos following the January 2010 acquisition of the project, for both Ağı Dağı and Kirazlı.

The 2010 and 2011 drill programs by Alamos at the Kirazlı and Ağı Dağı Project were carried out using the drill contractor Spektra Jeotek. All drilling was supervised by Alamos technical staff applying industry standard best practice.

Proposed drill collars planned on field maps, and located in the field by GPS. All completed drill holes were surveyed using a satellite GPS (Trimble R6) or total station when the GPS does not locate sufficient satellites to provide reliable results. Survey control was established using survey monuments across the property. Drill holes were collared under the supervision of an Alamos geologist.

Drill holes were collared in PQ diameter core to improve core recoveries. The holes were reduced to HQ diameters in areas of poor ground condition, to avoid abandoning the hole. Core was placed in plastic boxes with depth markers every drill run (up to 3 meters). Flexit, Reflex or Liuhe (similar to Flexit) survey tests were collected at 10 meters depth, and then at every 50 meters intervals down-hole. The casing was removed after drilling was completed and a metal cap labelled with the drill hole number was placed on the collar to mark the hole location, azimuth and inclination, and to secure the drill hole.

Core boxes and RC chips were transported from the drill to the Etili core shed each morning. Core logging procedures follow industry standards and a defined sample protocol.

Drill holes with recoveries less than 70% through mineralized intervals were re-drilled from the same drill location.

All samples collected by Alamos during its drill programs were subjected to a quality control procedure conforming to industry best practice in the handling, sampling, analysis and storage of the drill core. All drill holes were sampled and assayed continuously. Samples intervals were selected on a geological basis and were typically between 0.5 and 2.0 meter in length. In general, sample length samples were 1.5 m long in unmineralized zones and 1 m in mineralized zones.

For Kirazlı, there were 243 holes with 28,975 assays within the database. For the estimation we used all holes located within the block model areas, including the pre-2010 holes. 70% of the samples at Kirazlı were 1.5 m long. There is only 1 sample less than 0.5 m long, at 0.40 m due to a narrow geological feature. In areas of poor core recoveries, samples greater than 2 m were collected. A total of 18 samples are greater than 2 m at Kirazlı.

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For Ağı Dağı, there were 516 holes with 60,947 assays within the database. For the estimation we used all holes located within the block model areas, including the pre-2010 holes. 73% of the samples at Ağı Dağı were 1.5 m long. There are only 3 samples less than 0.5 m long, the shortest being 0.25 m. They were caused by specific and narrow geological features. In areas of poor core recoveries, samples greater than 2 m were collected. A total of 85 samples are greater than 2 m at Ağı Dağı.

Core was cut length wise in half with half the core being submitted for assaying. Sampling did not cross areas with no or very low core recovery. For metallurgical drill holes, core was quartered, with half core submitted for metallurgical testing and a quarter remaining in the core box.

11.1 Sample Collection

Samples of drill core were cut by a diamond blade rock saw, with half of the sawn core placed in individual cloth bags and half placed back in the original core box. The sample bags are closed and placed in sealed shipment bags. Samples were prepared at the Etili camp by local workers trained and supervised by Alamos technicians and geologists. The retained core is stored in a secure area at the Etili core facility.

Reverse circulation chip samples were collected and split using a splitter located on the drill rig immediately after the cyclone and then placed in cloth bags. The sample bags are closed and placed in sealed shipment bags. The reverse circulation drill samples were collected continuously at 1.5 meters intervals. The splitter and cyclone were cleaned between each sample with a brush and a compressed air hose. The RC drill samples were taken by Alamos personnel with supervision of an Alamos geologist.

11.2 Shipping

The core and RC samples were shipped by an independent transport company in woven plastic bags for sample preparation to the ACME preparation laboratory in Ankara, Turkey. After these samples were processed, the pulps were sent for analysis by the laboratory to the ACME analytical Laboratories Ltd. (“ACME”) assay laboratory in Vancouver, Canada or in Santiago, Chile. Rejects and pulps from the Ankara preparation laboratory are returned and are stored onsite at the Etili camp.

Notification of receipt of sample shipments by the laboratory is confirmed by electronic mail. No problems were encountered in transport during the program.

11.3 Sample Preparation

All samples were prepared at the ACME Ankara preparation laboratory. Individual core samples typically ranged from 1.0 kg to 18.0 kg in weight due to the PQ size of the core, while reverse circulation chip samples ranged from 1.0 kg to 19.0 kg with an average of 8 kg. The entire sample was weighted then crushed to 2 mm size in a Terminator crusher. Approximately a 250 g split is pulverized in a chrome steel ring mill. Coarse reject is bagged and stored. Pulps were initially shipped to Vancouver, Canada for fire assays and ICP and to Santiago, Chile for cyanide leach extraction and analyses of gold (AuCN) and copper (CuCN). After September 2010, all analyses were made in Chile.

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11.4 Analysis for Gold

ACME have analysed all surface rock samples and all drill core and chip samples. The samples were prepared by the ACME preparation laboratory in Ankara and then analysed by either ACME laboratories in Chile or in Vancouver, Canada.

11.4.1 ACME Vancouver, Canada

ACME Vancouver was used until September 2010. Au and Ag were first determined by fire-assay fusion of a 30 g sub-sample with atomic absorption spectroscopy until September 2010. For gold assays equal or greater than 5.0 g/t Au, a new fire assay with gravimetric finish was systematically required.

Mo, Cu, Pb, Zn, Ag, Ni, Co, Mn, Fe, As, U, Au, Th, Sr, Cd, Sb, Bi, V, Ca, P, La, Cr, Mg, Ba, Ti, Al, Na, K, W, Zr, Sn, Y, Nb, Be, Sc, and S were extracted by four acid total digestion and analyzed by ICP.

When the ICP results was greater than 1,000ppm for Cu, Pb, Zn, the sample was sent to Chile for fire assay on these elements.

11.4.2 ACME Santiago, Chile

After September 2010, all analyses initially made in Vancouver were made in Santiago Chile using the same methods and protocols.

Extraction of gold and copper by hot cyanide leaching (AuCN & CuCN) was made from the beginning at the ACME laboratory in Chile. Then the analysis is made by standard fire assay with atomic absorption spectroscopy finish on 20 g pulp.

Results from both labs are reported electronically to the project site in Etili. Assay Certificates are filed and catalogued at AGI / AGI’s Office in Etili, Çanakkale Turkey.

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12. DATA VERIFICATION

12.1 Summary

Sample data verification for work programs preceding the acquisition on the property by Alamos are described in “Technical Report on the Ağı Dağı – Kirazlı Gold Projects, Çanakkale Province; Republic of Turkey” (“Technical Report”) by K. D. Engineering, dated 12 March 2010. Discussions related to twin-hole programs, specific gravity testing and past metallurgical testing is also provided in the March 2010 report. The reader is referred to the 2010 report for a discussion of these past works. Between January 2010 and January 2012, QA/QC review was conducted by Dominique Fournier. Following January 2012, QA/QC review was conducted by Gary Lustig with M. Özcan. Starting in January 2012, Alamos conducted a QA/QC review of the all historic data as part of an on-going QA/QC review program, which includes Alamos’s data used in this PFS study. The purpose of QA/QC in the drill-program is to ensure that data used in the resource calculations is reliable. Therefore, several levels of controls are made in the sampling, preparation and assaying process. Controls include:

• Field duplicates

• Coarse duplicates

• Pulp duplicates

• Internal laboratory pulp duplicates

• Blanks and standard samples

• Internal laboratory blank and standard samples

Some of these controls aim at verifying analytical precision and accuracy of the assay laboratory, others focus on controlling the sample prep laboratory as well and field sampling finally get checked. Mistakes do happen. The QA/QC program enables us to identify and correct them.

Analytical accuracy defines the proximity of an analytical result with regard to a value accepted as valid. Analytical accuracy is verified by introducing blanks to monitor contamination; introducing standard samples to monitor analytical accuracy; and making comparisons between laboratories.

Analytical precision defines the ability to reproduce an analytical result, no matter whether the result is correct or not. Precision of the assay laboratory is checked by comparing the initial assay (first assay) with duplicate assays.

12.2 Kirazlı

This section describes data verification for the Kirazlı project following the January 2010 acquisition of the project by Alamos. For a discussion of data verification of the historic work, the reader is referred to the document “Technical Report on the Ağı Dağı – Kirazlı Gold Projects, Çanakkale Province; Republic of Turkey” (“Technical Report”) by K. D. Engineering, dated 12 March 2010.

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12.2.1 Standards Used by Alamos

Eight different standards from CDN Resource Laboratories Ltd., of Delta, B.C. were used. The concentration and the two-standard deviations of these standards purchased are presented in Table 12.1.

Table 12-1 Standards used by Alamos at the Kirazlı Project

STANDARD	Concentration (g/t Au)	2-standard deviations (g/t Au)	Amount
CDN-GS-11	11.21	0.87	4
CDN-CGS-22	0.64	0.06	32
CDN-GS-5D	5.06	0.25	9
CDN-GS-2F	2.16	0.24	45
CDN-CM4	1.16	0.12	3
CDN-CM5	0.294	0.046	3
CDN-CM6	1.43	0.09	17
CDN-CM7	0.427	0.04	33
CDN-CM8	0.91	0.11	21
TOTAL STANDARDS			164

The standards were randomly inserted into the sequences approximately every 25 samples. Additionally, standards were specifically added to zones with expected gold grades. A total of 205 standards were analyzed between August 2010 and March 2011. When result of standards exceeded 2 standard deviations, there was an alert. When it exceeded 3 standard deviations, the results were not validated and the batch of samples around the failed standard was re-analyzed. The graphs of Figure 12-1 and Table 12-1 only present results that were validated after re-analyze and validation of the standards in the second assay run.

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Figure 12-1 QA/QC Results of Standard Samples from Alamos

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Only three of the standards fell out of the 3 standard deviation limit. Assays were nevertheless validated as none of the assays in the batch were at the same grade range as the failing standard but they fell in grade ranges of other validated standards.

12.2.2 Blanks

Blanks are generally used to check the cleanliness of the laboratory and should produce negligible gold results on a consistent basis.

Blanks used by Alamos

Non-mineralized limestone material was collected from an outcrop, silica blank from the ALS laboratory and blank rejects from TCAM RC holes were collected, mixed and tested before using. These blanks were randomly inserted into the sequences approximately every 25 samples. Additionally, blanks were specifically added to zones with expected gold grades and as the first sample submitted in each batch. A total of 195 blanks were analyzed between August 2010 and March 2011. The results of these analyses are presented in Figure 12-2. The results were generally close to zero but one sample at 0.028 g/t Au in a high-grade gold zone slightly exceeded the accepted limit of 0.025 g/t Au. In the sample database, samples below the detection limit of 0.005 g/t Au were set at 0.0025 g/t Au (half the detection limit). Values are accepted within 5 times the detection limit (0.025 g/t Au).

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Figure 12-2 Blank Correlation for Alamos Samples

12.2.3 Duplicates

The field duplicate aims at monitoring the preparation in the field and the geological heterogeneity of a sample. The coarse duplicate aims at monitoring the preparation at the laboratory as various assays are made from different pulps issued from the same coarse split. The pulp duplicate aims at monitoring the analytical precision as various assays are made from the same pulp.

Duplicates from Alamos

There are four types of duplicate samples used by DBM. Repeat Pulp Duplicates are made from the re-analysis of the same pulp. Preparation Duplicates are analysis of separate pulps made from splits of the same material after initial coarse crushing (-10 mesh, 2 mm). Both of these duplicates are analyzed routinely as part of ACME’s internal QC program. Coarse duplicates are preparation duplicates on samples requested by DBM. Field duplicate samples are made of quarter cores directly collected from core boxes. The first valid assay was used for resource calculations, not the average of the various duplicates. The only exception is for re-run of assay batches invalidated for QA/QC reasons. In this case the first assay of the validated re-run was used.

The repeat pulp duplicates were randomly done by ACME. A total of 171 repeat pulp duplicate samples were assayed during the period, not considering duplicates that randomly duplicated blanks and standards. As expected from pulp duplicates, correlation between the original sample and its duplicate is very good (Figure 12-3).

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The preparation duplicates were randomly done by ACME. A total of 132 preparation pulp duplicate samples were assayed during the period. Once again, as expected from pulp duplicates, correlation between the original sample and its duplicate is very good (Figure 12-4).

Figure 12-3 Repeat Pulp Duplicate Correlation for Alamos Samples

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Figure 12-4 Preparation Pulp Duplicate Correlation for Alamos Samples

The coarse duplicate samples were only inserted into the sequences approximately every 25 samples for the metallurgical drill holes. Assay samples were already collected on quarter core from these intervals. It was therefore not possible to collect field duplicates, due to insufficient sample. A total of 50 coarse duplicate samples were taken during this period. One sample showed different assay results between the original sample and its duplicate (Figure 12-5).

Figure 12-5 Coarse Duplicate Correlation for Alamos Samples

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The field duplicates were randomly inserted into the sequences approximately every 25 samples. A total of 139 field duplicate samples were taken during this period. The graph of Figure 12-6 shows good correlation between the sample and its field duplicate low variability.

Figure 12-6 Field Duplicate Correlation for Alamos Samples

12.2.4 Check of Assay Program

Robert de l’Etoile, a consultant from SGS, collected and analyzed at SGS-Bulgaria 30 samples from the Baba, Deli and Kirazlı deposits for his report on the update of the mineral resource estimation of the Baba, Deli and Kirazlı deposits. The results of a sign test did not indicate a bias among the 30 pairs, with correlation coefficient of 0.92. The consultant concluded then that the control assays reproducibility was very good.

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Figure 12-7 Correlation Diagram for SGS Independent Control Samples

A second round of 470 check samples from pulps was submitted to SGS-Bulgaria. The samples were selected to represent all zones at a broad range of grades.

The correlation coefficient between the pairs is 0.99, with an average grade of 1.11 g/t Au for SGS and 1.18 g/t Au for Acme. The average of the SGS assays is 6.4% lower than the ACME assays. The results of a sign test identify a very minor bias among the 470 pairs (the lowest level of bias). However, the result of the bias is uncertain. It may be related to be:

• High bias by ACME

• Low bias by SGS

• A combination of both (SGS being in the low side of the 2 standard deviations and ACME being on the high side of the two standard deviations).

The assays from 0 to 1 g/t Au represent 93% of the total Ağı Dağı and Kirazlı (“AD-K”) database and do not show any bias. The average of the SGS assays is only 1.1% lower than the ACME assays. The assays from 0 to 2 g/t Au represent 97% of the total AD-K database and do not show a bias. The average of the SGS assays is only 3.8% lower than the ACME assays. There is a limited bias in the higher assay range but is limited, affecting only 3% of the assays in the prefeasibility study. In addition, gold composites used for resource calculations are capped and therefore a slight bias should not affect resource estimate.

With the excellent correlation coefficient and the low difference in the averages of assay results between the two laboratories, the quality of the ACME assay results is confirmed by the checks at the SGS laboratory.

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Figure 12-8 Correlation Diagram between SGS and ACME Samples

12.2.5 Twin Drill Holes

A total of 4 TCAM drill holes were twinned by Alamos in order to validate the historic results, and to investigate the impact of improved core recoveries on assay results. The distance between the drill holes is presented in Table 12-2. The average distance between the original drill hole and its twin is 4.6 m but for the last three holes in the table, it is 3.2 m as there is 8.7 m distance between 10-KD-120 and its twin KD-63.

Table 12-2 Distance between Twin Drill Holes at Kirazlı

Area	TCAM drill number	Alamos drill number	Distance (m)
Kirazlı	KD-63	10-KD-120	8.7
Kirazlı	KD-39	10-KD-121	3.5
Kirazlı	KD-39	10-KD-121A	2.6
Kirazlı	KRR-05	10-KD-159	3.5

Table 12-3 Comparison of Assay Composites of Twin Drill Holes at Kirazlı

Historic hole	Type	From (m)	To (m)	Int (m)	Grade (g/t Au)	Core Rec.	Alamos twin	Type	From (m)		To (m)		Int (m)		Grade (g/t Au)		Core Rec.		Var.
KD-63	Core	26.10	143.2	117.1	0.94	71%	10-KD-120	Core		26.1		143.2		117.1		1.64		87%		175%
KD-39	Core	0.00	30.0	30.0	1.01	23%	10-KD-121	Core		0.0		30.0		30.0		2.80		79%		277%
KD-39	Core	30.00	185.0	155.0	0.59	69%	10-KD-121A	Core		30.0		185.0		155.0		0.96		92%		164%
KRR-05	RC	25.5	175.5	150.0	0.87	N/A	11-KD-159	Core		39.9		186.8		146.9		0.66		89%		74%

An example of the assay results of twin drill holes is presented in Figure 12-9.

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Figure 12-9 Assay Results of Twin Drill Holes KD-63 and 10-KD-120

The results in Table 12-3 show an increase in the gold grade of the mineralized composites for the same mineralized zones in 3 of the 4 twin holes. Twin hole 11-KD-159 returned a lower grade composite that its twin hole KRR-05 that was deemed to also had very good recovery. The results show that the average grade of the twin interval is improved with higher core recoveries.

12.3 Ağı Dağı

This section describes data verification for the Kirazlı project following the January 2010 acquisition of the project by Alamos. For a discussion of data verification of the historic work, the reader is referred to the document “Technical Report on the Ağı Dağı – Kirazlı Gold Projects, Çanakkale Province; Republic of Turkey” (“Technical Report”) by K. D. Engineering, dated 12 March 2010.

12.3.1 Standards

Standards were used to test the accuracy of the assays and to monitor the consistency of the laboratory.

Standards used by Alamos

Ten CDN Resource Laboratories Ltd standards were randomly inserted approximately every 25 samples. Additionally, standards were specifically added to zones with expected gold grades. A total of 429 standards were analyzed between March 2010 and January 2011 (Table 12-4). The standard assay results are presented in Figure 12-10 and generally fall within the accepted range of 2 standard deviations. Any failure of ³3 standard deviations resulted in the batch being rejected by Alamos, and the samples associated with the failed standard were re-analyzed by the laboratory.

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Table 12-4 Standards Used by Alamos at the Ağı Dağı Project

STANDARD	Concentration         (g/t Au)	2 standard         deviations (g/t Au)	Amount
CDN-GS-1P5	1.37	0.12	16
CDN-GS-22	0.64	0.06	83
CDN-GS-5D	5.06	0.25	31
CDN-GS-2E	1.52	0.14	103
CDN-GS-2F	2.16	0.24	97
CDN-CM4	1.16	0.12	38
CDN-CM5	0.294	0.046	67
CDN-CM6	1.43	0.09	21
CDN-CM7	0.427	0.04	18
CDN-CM8	0.91	0.11	16
TOTAL STANDARDS			429

A total of 28 of the standards fell beyond the 3 standard deviation limit, 15 are above and 13 below the accepted range. Assays were nevertheless validated as none of the assays in the batch were at the same grade range as the failing standard.

Figure 12-10 QA/QC Results of Standard Samples from Alamos

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12.3.2 Blanks

Blanks are generally used to check the cleanliness of the laboratory and should produce negligible gold results on a consistent basis.

Blanks used by Alamos

Several types of blank geologic material have been used by Alamos in its sampling program. Non-mineralized limestone material was collected from a local outcrop, silica blank was obtained from ALS laboratory, and blank rejects from TCAM RC holes were collected, mixed and tested before using in the sampling. Blanks were randomly inserted into the sequences approximately every 25 samples. Additionally, blanks were specifically added to zones with expected gold grades and as the first sample submitted in each batch.

A total of 504 blanks were analyzed between March 2010 and January 2011. The results of these analyses are presented in Figure 12-11. The results were generally close to zero with two samples exceeded 0.025 g/t Au. Samples below analytical detection limit (<0.005 g/t Au) were assigned a value of 0.025 g/t Au in the assay database. Therefore, two blank samples exceeded the reset value for blanks below detection limit for gold.

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Figure 12-11 Blank Results for Alamos Samples

12.3.3 Duplicates

Field duplicate results are intended to monitor sample preparation in the field, and the geological heterogeneity of a sample. The coarse (preparation) duplicate monitors the preparation at the laboratory as various assays are made from different splits from the pulp prepared from the same coarse split. The pulp duplicate aims at monitoring the analytical precision as various assays are made from the same pulp.

Duplicates from Alamos

Four types of duplicate samples are used by Alamos. Repeat pulp duplicates are prepared from the re-analysis of the same pulp while preparation pulp duplicates are analysis of two pulps made from the same coarse material. Coarse duplicates are made from duplicates after the initial crushing of the sample (size < 1mm). Field Duplicate samples are made of quarter cores directly collected from core boxes. The 1st assay was validated on a systematic basis for resource calculations, not the average of the various duplicates. The only exception is for re-run of assay batches invalidated for QA/QC reasons. In this case the first assay of the validated re-run was used.

Repeat pulp duplicates were randomly inserted by ACME. A total of 433 repeat pulp duplicate samples were assayed during the program. In this program, the correlation between the original sample and its pulp duplicate is acceptable (Figure 12-12).

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Figure 12-12 Repeat Pulp Duplicate Correlation for Alamos Samples

Preparation pulp duplicates were randomly inserted by ACME. A total of 343 preparation pulp duplicate samples were assayed during the period. The correlation between the original samples and its duplicate is considered acceptable (Figure 12-13).

Figure 12-13 Preparation Pulp Duplicate Correlation for Alamos Samples

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Coarse duplicate samples were inserted into the sample sequence approximately every 25 samples for the metallurgical drill holes. Because assay samples were already collected on quarter core there was insufficient material to collect field duplicates. A total of 144 coarse duplicate samples were collected during this period. The graph of Figure 12-14 shows a very good correlation between the sample and its coarse duplicate which indicates the lack of significant “nugget effect”.

Figure 12-14 Coarse Duplicate Correlation for Alamos Samples

Field duplicates were randomly inserted into the sequences approximately every 25 samples. A total of 303 field duplicate samples were taken during this period. The graphs (Figures 12-15 and 12-16) show a good correlation between the original samples and their field duplicates which indicates the lack of significant “nugget effect”.

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Figure 12-15 Field Duplicate Correlation for Alamos Samples

Figure 12-16 Field Duplicate Correlation for Alamos Samples (Detail)

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12.3.4 Check Assay Program

Results of an independent check on the assay results of the Ağı Dağı and Kirazlı projects were presented in section 12.1.4. The consultant, Robert de l’Etoile, concluded that the “control assays reproducibility was very good”.

A second round of 470 samples from Ağı Dağı was sent together with samples of Kirazlı to the SGS laboratory in Bulgaria. Results are discussed in the same section. With the excellent correlation coefficient and the low difference in the averages of assay results between the two laboratories, the quality of the ACME assay results is confirmed by the checks at the SGS laboratory.

12.3.5 Twin Drill Holes

A total of 7 TCAM drill holes were twinned by Alamos in order to validate the historic drill results, and to investigate the impact of improved core recoveries on assay results. Six twin holes were drilled in the Deli zone and one in the Baba deposit. The distance between the twined holes is presented in Table 12-5. Due to difficult ground conditions encountered during drilling of a twin drill hole the average drill spacing is 5 m from the original drill hole, and somewhat larger than planned. A comparison of Assay composites of twin drill holes at Ağı Dağı is presented in Table 12-6.

Table 12-5 Distance between Twin Drill Holes at Ağı Dağı

Area	TCAM drill number	Alamos drill number	Distance (m)
Deli	A-87	10-AD-357	3.6
Deli	AD-152	10-AD-366	4.4
Deli	AD-206	10-AD-358	6.7
Deli	A-91	10-AD-361	8.4
Deli	AD-124	10-A-403	4.1
Deli	AD-284	10-A-408	6.2
Baba	A-29	10-AD-374	2.9

Table 12-6 Comparison of Assay Composites of Twin Drill Holes at Ağı Dağı

Historic hole	Type	From (m)	To (m)	Int (m)	Grade (g/t  Au)	Core Rec.	Alamos  twin	Type	From (m)	To (m)	Int (m)	Grade (g/t  Au)	Core Rec.	Var.
A-87	RC	13.5	94.5	81.0	0.66	N/A	10-AD-357	Core	13.0	94.1	81.1	0.39	49%	-59%
AD-152	Core	7.5	89.0	81.5	0.13	33%	10-AD-366	Core	7.5	89.0	81.5	1.07	76%	811%
AD-206	Core	4.5	31.0	26.5	0.34	59%	10-AD-358	Core	4.5	31.0	26.5	0.53	69%	155%
A-91	RC	19.0	101.0	82.0	1.52	N/A	10-AD-361	Core	19.0	101.0	82.0	1.77	93%	116%
AD-124	Core	0.0	96.0	96.0	0.69	46%	10-A-403	RC	0.0	96.0	96.0	0.81	N/A	117%
AD-284	Core	8.45	69.0	60.55	0.61	51%	10-A-408	RC	8.45	69.0	60.55	0.99	N/A	161%
A-29	RC	49.2	57.8	8.6	0.44	N/A	10-AD-374	Core	49.2	57.8	8.6	0.91	96%	207%

Drill holes 10-AD-357, 10-AD-358 were drilled at the very beginning of the drill program before drilling techniques could be improved to systematically ensure core recoveries greater than 80%.

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Hole 10-AD-357 returned a lower grade composite that its twin hole A-87 which was deemed to have better recovery. All other Alamos twin holes returned better core recoveries than their TCAM twin counterpart, and their composites also presented higher gold grades. We suggest that substantial gold occurs in the friable breccia rock matrix and is susceptible to flushing out in the case of poor core recoveries. As a result, Alamos’ drill results, with its higher average core recoveries, are considered more representative of rock gold concentrations. Selected examples of the twin drill results are presented in Figures 12-17 to 12-21.

Figure 12-17 Assay Results of Twin Drill Holes A-87 and 10-AD-357

Figure 12-18 Assay Results of Twin Drill Holes AD-152 and 10-AD-366

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Figure 12-19 Assay Results of Twin Drill Holes AD-206 and 10-AD-358

Figure 12-20 Assay Results of Twin Drill Holes A-91 and 10-AD-361

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Figure 12-21 Assay Results of Twin Drill Holes AD-284 and 10-A-408

12.4 Kirazlı Cyanide Leach Assays from Alamos

A total of 5247 pulps from samples above 0.2 g/t Au from the TCAM drill holes at Kirazlı were retrieved to be analyzed by cyanide leach extraction (AuCN) at the ACME laboratory in Chile. Because of sulphide oxidation in the transition and sulphide zone samples, these pulps were not selected for analysis. From the 2006 and 2007 sample pulps, 2,201 samples were analyzed.

Figure 12-22 Correlation between AuCN Results and Fire Assay – Kirazlı Oxide Zone – Teck Samples

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The graph of the 176 oxide samples (Figure 12-22) shows a correlation of 99% between original fire assays and AuCN results. The regression line is at 0.98 confirms the excellent recovery of gold by direct cyanidation.

Correlation between fire assays and AuCN results of the 1,202 samples in the sulphide zone is at 79%. The flatter regression line with a correlation coefficient of 0.11 reflects the poor recovery of gold by direct cyanidation (Figure 12-23).

Figure 12-23 Correlation between AuCN Results and Fire Assay – Kirazlı Sulphide Zone – Teck Samples

Correlation between fire assays and AuCN results of the 823 samples in the transition zone is at 93%. The regression line at 0.86 reflects a rather good recovery of gold by direct cyanidation than in fire assay (Figure 12-24).

All samples from the Alamos drilling program were analyzed by cyanide leach extraction (AuCN) at the ACME laboratory in Chile. A total of 4,281 samples were analyzed by cyanide leach extraction in 2010-2011. The graph of the 957 oxide samples (Figure 12-25) shows a correlation coefficient of 97% between original fire assays and AuCN results. The regression line with a correlation coefficient of 0.93 confirms the excellent recovery of gold by cyanidation.

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Figure 12-24 Correlation between AuCN Results and Fire Assay – Kirazlı Transition Zone – Teck Samples

Figure 12-25 Correlation between AuCN Results and Fire Assay – Kirazlı Oxide Zone – Alamos 2010-2011 Samples

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Figure 12-26 Correlation between AuCN Results and Fire Assay – Kirazlı Sulfide Zone – Alamos 2010-2011 Samples

Figure 12-27 Correlation between AuCN Results and Fire Assay – Kirazlı Transition Zone Alamos 2010-2011 Samples

Correlation between fire assays and AuCN results for 1,552 samples in the sulphide zone is good at 91%. The flatter regression line at 0.47 reflects a poor recovery of gold by direct cyanidation (Figure 12-26).

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Correlation between fire assays and AuCN results of the 1,758 samples in the transition zone is at 92%. The regression line at 0.67 reflects a recovery of gold by direct cyanidation in the transition zone that is better than in sulphide but not as good as in oxide (Figure 12-27).

12.5 Kirazli Specific Gravity by Alamos

Systematic drill core SG measurements were conducted every 5 meters when possible. A total of 1,381 SG measurements were completed and validated in the 45 drill holes of the program. The average of measurements is 2.5 g/cm³ that included oxide, transition and sulfide zones (Table 12-7). The highest SG value is 3.86 g/cm³ at 138.6m in 10-KD-135 in the sulfide zone (presence of sulfides in abundance). The lowest SG value in the oxide zone is 1.57 g/cm³ (vuggy silica clast).

The average in sulfide zone is 2.58 g/cm³. The average SG value in the transition zone is 2.51 and the average SG value in the oxide zone is 2.31.

Table 12-7 SG Measurements in Drill Core at Kirazlı

Area	Redox zone	Number of  SG measurements	SG average
Kirazlı	All	1,381	2.50
Kirazlı	Oxide	271	2.31
Kirazlı	Transition	572	2.51
Kirazlı	Sulfide	537	2.58

12.6 Ağı Dağı Cyanide Leach Assays from Alamos

A total of 5575 pulps from samples above 0.2 g/t Au from the TCAM drill holes at Ağı Dağı were retrieved to be analyzed by cyanide leach extraction (AuCN) at the ACME laboratory in Chile. Samples which had experienced post-drilling oxidation of sulphides were not included in the analyses.

The graph of the 3,639 oxide samples (Figure 12-28) shows a correlation coefficient of 99% between original fire assays and AuCN results. The regression line is at 0.95 reflects the excellent recovery of gold by direct cyanidation as shown by the high gold recovery obtained by leaching tests presented in this report.

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Figure 12-28 Correlation between AuCN Results and Fire Assay – Ağı Dağı Oxide Zone – Teck Samples

The correlation between fire assays and AuCN results of the 204 samples in the sulphide zone is much poorer than for the oxides, at 57%. The flatter regression line at 0.24 reflects a poor recovery of gold by direct cyanidation (Figure 12-29).

Figure 12-29 Correlation between AuCN Results and Fire Assay – Ağı Dağı Sulphide Zone – Teck Samples

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The transition zone is defined by the first significant intercept of sulphides in core, where it is followed by oxide. The transition zone may contain large sections of oxide and sulphide core as well as intimately mixed oxide and sulphide. Figure 12-30 shows three populations of individual samples in this zone that represent pure oxide, pure sulphide and mixed oxide and sulphide. This is why the oxidation domain of each sample is individually logged besides flagging of the oxide / transition and sulphide zones. The correlation coefficient between fire assays and AuCN results of the 1,711 samples in the transition zone is at 87%. But, the regression line at 0.69 reflects the mixing of sulphide and oxide in the transition zone (Figure 12-29). Recovery of gold by cyanidation is better than in sulphide but lower than in oxide.

Figure 12-30 Correlation between AuCN Results and Fire assay – Ağı Dağı Transition Zone – Teck Samples

All samples from the Alamos drilling program were analyzed by cyanide leach extraction (AuCN) at the ACME laboratory in Chile. A total of 11,428 samples were analyzed by cyanide leach extraction in 2010. The graph of the 6,113 oxide samples (Figure 12-31) shows a correlation coefficient of 98% between original fire assays and AuCN results. The regression line at 0.87 confirms the excellent recovery of gold by direct cyanidation.

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Figure 12-31 Correlation between AuCN Results and Fire Assay – Ağı Dağı Oxide Zone – Alamos 2010 Samples

The correlation between fire assays and AuCN results of the 2,703 samples in the sulphide zone is not as good at 76%. The flatter regression line at 0.19 reflects a poor recovery of gold by direct cyanidation (Figure 12-32).

Figure 12-32 Correlation between AuCN results and fire assay – Ağı Dağı Sulphide zone – Alamos 2010 samples

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13. MINERAL PROCESSING AND METALLURGICAL TESTING

13.1 Summary of Previous Test Results

Scoping level metallurgical testing of material from the Kirazlı deposit was completed by the previous owners in 1991. Preliminary metallurgical tests on material from Ağı Dağı were completed in 2006. All process related work completed by the previous owners is summarized in Table 13-1. Review of the original referenced material indicates the following summary information:

• Oxide mineralization responds very well to cyanide bottle roll and column leaching yielding high gold recovery and low reagent consumption.

• Transition and sulfide mineralization do not respond as well to cyanide leaching as the oxide material. Gold recovery is related to the sulfide sulfur concentration. Reagent consumption is variable and depends on the cyanide soluble copper concentration.

• Scoping level flotation test results on sulfide material were not encouraging.

• Bio-oxidation or autoclave oxidation of the sulfide mineralization improved gold recovery.

• Visible gold is rare. The visible gold that was observed was very fine ranging in size from less than one to nine microns.

• Column tests were conducted on individual core drill hole composites. No large composites were column tested.

• Column test results were very similar from all oxide zones tested and recovery was not strongly dependent on crush size.

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Table 13-1 Summary of Previous Process Test Work on Kirazlı and Ağı Dağı

Date	Owner	Sample Source	Test Work Type	Summary of Results
1989	Newmont	Kirazlı Core / RC Cuttings	Petrography M. B. McComb	Fine Au (9 micron) noted with iron oxide vein
1991	Newmont	Kirazlı Core / RC Cuttings	Bottle Roll Cyanide Leach Simon Laboratories	High Cyanide Consumption (Sulfide) Low Gold Recovery on Sulfide High Gold Recovery on Oxide
1991	Newmont	Kirazlı Core / RC Cuttings	Bio-leach @ Newmont Cyanide Leach Residue	Sulfide Sample 88% Gold Recovery with 80% Sulfide Oxidation
1991	Newmont	Kirazlı Core / RC Cuttings	Autoclave Oxidation @ Newmont Cyanide Leach Residue	Sulfide Sample 81% Gold Recovery with 92.4% Sulfide Oxidation
1991	Newmont	Kirazlı Core / RC Cuttings	Microprobe Stephen L Chryssoulis	Sulfide Sample Framboidal pyrite at 33 g Au/t Massive Pyrite at 1.34 g Au /t
1991	Newmont	Kirazlı Core / RC Cuttings	Petrography E. C. Thatcher	Fine Au (0.5 to 6 micron) noted with iron oxides or silica alteration
2004	Fronteer Development	Eight Ağı Dağı Core Holes	Petrography K. V. Ross	Fine (x<10 micron) Ag-S-Hg-Br noted in vuggy quartz; No gold observed
2005	Fronteer Development	Five Kirazlı Samples from DDH KD-31	Petrography K. V. Ross	Gold, electrum and gold tellurides observed in association with sulfosalts, primarily tennantite. Very fine at less than 5 microns.
2006	Teck Cominco	Baba; Two Core Holes One Surface Sample Deli; Two Core Holes Kirazlı; One Core Hole	Bottle Roll and Column Test Work Kappes Cassiday and Associates	Gold recovery averaged over 90 percent for column tests at minus 31.5 and 9.5 mm. Low reagent consumption.
2007	Teck Cominco	Deli Hole 212	Petrography J. A. McLeod	No gold observed after significant effort. Suggest atomic substitution with sulfides.
2007	Teck Cominco	Thirty Seven Composites from Three Ağı Dağı Holes and Three Kirazlı Holes	Bottle Roll Cyanide Leach at 1 mm G&T Metallurgical Services	Good response in Oxide with 89.4% gold recovery and low cyanide and lime consumption. Transition and sulfide response not as good. Gold recovery correlated to sulfide content. Cyanide consumption correlated to cyanide soluble copper.
2007	Teck Cominco	One Ağı Dağı and One Kirazlı Sulfide Composite	Flotation Tests G&T Metallurgical Services	Sulfide Samples gage poor response. Ağı Dağı Rougher 30 wt% with 48% gold dist. Kirazlı some better with 30% wt and 82.4% gold dist.
2007	Teck Cominco	Seven Kirazlı Drill Samples & Kirazlı Outcrops	Petrography K. V. Ross	Gold not visible with standard microscope. SEM identified gold in two of nine samples. The gold (<1 micron) was located between quartz – clay and in iron oxide lined vug.

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13.2 Alamos 2010 – 2012 Metallurgical Test Result Summary

In 2010 and 2011 Alamos drilled PQ size core holes to obtain samples for metallurgical test purposes to support a pre-feasibility study. The metallurgical test hole locations were targeted based on the available geology and mine planning information to ensure they were in the area of interest and intersected the rock and alteration types of interest. The holes were on widely spaced intervals and the program was designed to obtain representative samples from each area, based on the information available at the time. Seven holes for metallurgical test purposes were drilled in Baba, eight holes for metallurgical test purposes were drilled in Deli and six holes for metallurgical test purposes were drilled in Kirazlı. The test holes provided a total of 425 meters of mineralized oxide material from Baba, 296.3 meters of mineralized oxide material from Deli and 93.5 meters of mineralized oxide material from Kirazlı. At Kirazlı an additional 364.7 meters of mineralized transition material was available for the metallurgical test program.

In addition to the drill hole sampling program, bulk samples from surface trenches and outcrops were obtained from each area. Two trenches were completed in both Baba and Deli and one outcrop was sampled at Kirazlı.

All Alamos metallurgical samples were collected under the supervision of site geologists and were sent to Kappes, Cassiday and Associates (KCA) in Reno Nevada for testing. The KCA laboratory was toured on December 4, 2009 and test methods and equipment to be used for Alamos samples were discussed. Standard KCA test methods were used to determine the Alamos sample characteristics. These methods are considered to be standard and accepted in the industry. Tests conducted at KCA to characterize the material and evaluate heap leach potential included: fire assays, screen analysis, multi-element ICP analysis, sulfur speciation, mercury analysis, cyanide soluble gold, silver and copper analysis, whole rock analysis, Bond work index, bottle roll tests at minus 1.7 and 0.106 mm, agglomeration tests, compacted permeability tests, and column leach tests.

Composites for each area were made based on the sample alteration as logged by geology. The codes used in the test program are shown in Table 13-2. In addition to the alteration composites, twenty two column tests to evaluate deposit variability were conducted on samples from Ağı Dağı.

Table 13-2 Principal Ağı Dağı – Kirazlı Alteration Types and Code

Code	Alteration  Description
OVB	Overburden
AAR	Advanced Argillic
VSA or VSil	Vuggy Silica (>10% vugs)
SIL	Silicification
ARG	Argillic

Physical data for the column tests completed by Alamos are summarized in Table 13-3. Typical summary column test results are presented in Table 13-4 for Ağı Dağı and 13-5 for Kirazlı. Typical column test gold extraction leach rates are shown in Figure 13-1 for Ağı Dağı and Figure 13-2 for Kirazlı.

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Table 13-3 Alamos Column Test Physical Data

Sample Crush Size	Tests no.	Average Column Diameter meters	Average Initial Height meters	Average Sample Weight kg
Baba & Deli Areas
Surface Sample Tests
-300 mm	4	0.45	2.84	614.8
-90 mm	4	0.29	3.03	287.5
-9.5 mm	4	0.20	2.70	119.4
Variability Tests
-9.5 mm	22	0.14	1.8	37.0
Alteration Tests
-50 mm	6	0.19	1.66	73.5
-9.5 mm	6	0.14	1.61	36.8
Revised Alteration Tests
-9.5 mm	6	0.14	1.51	33.4
Kirazlı Area
Surface Sample Tests
-300 mm	1	0.44	3.15	629
-90 mm	1	0.29	3.59	284
-9.5 mm	1	0.20	2.56	117
Alteration Tests
-50 mm	5	0.18	1.66	63
-9.5 mm	7	0.18	1.65	59.4

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Table 13-4 Baba and Deli Area Oxide Alteration Composite Column Test Result Summary

KCA Test No.	Description	100% Crush  Size (mm)	Calculated Head (gms Au/MT)	Weighted Avg Tails (gms Au/MT)	Extracted Gold (%)	Calculated Head (gms Ag/MT)	Extracted Silver (%)	Consumption NaCN (kg/MT)	Addition Ca (OH)2 (kg/MT)	Addition Cement (kg/MT)
46313	Baba AAR Composite	50	0.7	0.06	91.70%	0.5	25%	0.35	2	0
46316	Baba AAR Composite	9.5	0.76	0.07	91.20%	0.6	23%	0.6	0	2.49
46319	Baba Sil Composite	50	0.52	0.07	87.00%	0.5	32%	0.15	2	0
46322	Baba Sil Composite	9.5	0.53	0.05	91.30%	0.6	40%	0.43	0	2.5
46325	Baba Vsil Composite	50	0.97	0.18	81.40%	0.5	26%	0.06	1.99	0
46328	Baba Vsil Composite	9.5	0.97	0.1	89.40%	0.5	32%	0.32	0	2.47
46331	Deli AAR Composite	50	0.88	0.03	96.50%	10.6	17%	0.62	2.02	0
46334	Deli AAR Composite	9.5	0.78	0.04	94.70%	10.3	34%	1.18	0	2.54
46337	Deli Sil Composite	50	0.91	0.11	87.80%	6.3	12%	0.4	1.99	0
46340	Deli Sil Composite	9.5	0.85	0.07	92.30%	5.8	22%	0.58	0	2.49
46343	Deli Vsil Composite	50	2.74	0.21	92.30%	62.8	19%	0.24	1.98	0
46346	Deli Vsil Composite	9.5	3.06	0.19	93.90%	71.5	43%	0.57	0	2.51
Minus 50 mm Crush Test Average					89.40%	13.5	22%	0.3	2	0
Minus 9.5 mm Crush Test Average					92.10%	14.9	32%	0.61	0	2.5

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Table 13-5 Summary of Kirazlı Column Test Results

KCA Sample No.	Sample Name	100% Crush Size, (mm)	Calc. Head (gms Au/MT)	Avg. Tails, (gms Au/MT)	Extracted (% Au)	Tail Calculated P80 Crush Size (mm)	Days of Leach	Calculated Head (gms Ag/MT)	Extracted (% Ag)	Consumption NaCN (kg/MT)	Cement (g/MT)	Lime   (kg/M   T)
2011 Bulk Sample Column Test Results
44649A	KT-2C	ROM	0.91	0.19	79.0%	125.2	136	23.1	6%	1.44	0	2
44649B	KT-2C	90	0.97	0.13	85.0%	71.9	136	23.1	8%	1.03	0	2
44649C	KT-2C	9.5	0.92	0.06	93.0%	7.9	123	21.5	14%	1.25	2.5	0
2011 Core Alteration Composite Column Test Results
46363 A	OX-ARG-AAR	50	2.62	0.079	97.0%	39.9	66	92.5	34%	1.18	0.00	1.57
46363 B	OX-ARG-AAR	9.5	2.21	0.083	96.2%	7.26	66	93.9	42%	1.98	2.56	0.00
46364 A	OX-SIL	50	1.68	0.157	90.7%	37.9	66	181.8	42%	1.18	0.00	1.56
46364 B	OX-SIL	9.5	1.88	0.116	93.8%	6.76	66	184.6	53%	1.11	2.59	0.00
46365 B	OX-VSA	9.5	0.88	0.070	92.0%	7.14	66	20.8	33%	0.49	2.51	0.00
46366 A	TRANS-ARG-AAR	50	1.13	0.245	78.4%	39.7	66	13.6	30%	0.61	0.00	1.52
46366 B	TRANS-ARG-AAR	9.5	1.37	0.257	81.2%	6.84	66	19.2	57%	0.95	2.52	0.00
46367 A	TRANS-SIL	50	1.41	0.297	78.9%	39.2	66	13.9	24%	0.37	0.00	1.52
46367 B	TRANS-SIL	9.5	1.44	0.245	82.9%	6.99	66	13.8	43%	0.51	2.51	0.00
46368 B	TRANS-VSA	9.5	2.46	0.201	91.8%	6.96	66	16.4	29%	0.57	2.52	0.00
46369 A	Sulfide	50	1.09	0.902	17.1%	39.9	66	0.6	11%	0.65	0.00	1.50
46369 B	Sulfide	9.5	1.09	0.666	38.9%	6.95	66	2.0	8%	0.87	2.49	0.00
Oxide Avg. @ > 25mm:		50	2.70	0.131	92.3%	38.4	72	63.1	46%	0.88	0.63	0.00
Oxide Avg. @ 9.5 mm:		9.5	2.30	0.102	94.4%	6.8	69	57.8	41%	0.95	1.25	2.53
Trans. Avg. @ 50 mm:		50	1.27	0.271	78.6%	39.5	66	13.7	27%	0.49	1.52	0.00
Trans. Avg. @ 9.5 mm:		9.5	1.75	0.234	85.3%	6.9	66	16.4	43%	0.68	0.00	2.52

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Figure 13-1 Typical Ağı Dağı Column Test Extraction Rate vs. Liquid to Solid Ratio

Figure 13-2 Kirazlı Column Test Extraction Rate vs. Liquid to Solid Ratio

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The pre-feasibility test programs conducted by Alamos at KCA indicate the material from Ağı Dağı and Kirazlı are suitable for heap leaching with a dilute alkaline cyanide solution. Excellent gold recovery from oxide material for all three areas was demonstrated in the bottle roll and laboratory column tests. Results are relatively consistent with the tests conducted in the past. Close agreement of heads estimated from the drill hole assays, composite assayed heads and calculated test heads for the various bottle roll and column tests provide confidence in the test results. Gold recovery from the oxide was not strongly dependant on crush size. Reagent consumption was low to moderate.

Bond work index and abrasion index results indicate the material is typical of gold ores. Based on the agglomeration and compacted permeability test results, agglomeration of the ore with barren solution and 2.5 kilograms per tonne of cement is recommended to facilitate heap stability and leach operations. Tests on the column test tailings indicate the WAD cyanide can be reduce to less than 0.2 ppm WAD CN by rinsing with water or with column eluate treated with hydrogen peroxide.

Variable concentrations of sulfide sulfur and cyanide soluble copper minerals occur in some zones in the deposits and these can affect metal recovery and processing costs. In Ağı Dağı and Kirazlı both sulfide sulfur and cyanide soluble copper can be managed by ore control and reagent addition so these factors are not expected to cause a risk to the operation if properly controlled. Analysis of the available data indicates that the AA to Fire gold ratio, the cyanide soluble copper assay and the sulfur analysis available in the mine model and on future blast holes will provide the information required to facilitate efficient ore control.

Mercury was recovered with the precious metals at both Ağı Dağı and Kirazlı and appropriate plant design will be required to protect human health and the environment.

Laboratory assay QA/QC results for the laboratory and assay methods used by KCA during the period that Alamos Gold test samples were analyzed were reviewed. The review indicated that the laboratory fire assay results for solutions and solids were reliable with a relative standard deviation averaging one percent on samples that averaged 1.29 grams per tonne solid and 1.00 grams per tonne of solution.

Scoping level studies to determine the optimum crush size for Ağı Dağı and Kirazlı were conducted. Incremental recovery at finer crush size was compared to incremental crusher capital and operating costs estimates. For Ağı Dağı, results indicate that the incremental revenue for finer crushing approaches zero at crush sizes below 20 - 25 mm. For Kirazlı, a target crush P80 of 25 to 30 mm is suggested.

13.3 Metal Recovery and Reagent Consumption Projections

Table 13-6 provides projected plant scale gold and silver extraction estimates at a crush P80 of 26mm based on interpretation of the column test results at KCA. Analysis of the detailed test data indicated a relationship between the column test head grade and the column test tailing grade. This relationship was used to calculate the gold recovery as a function of head grade. A process efficiency deduction of two percent was then taken. The resulting gold recovery estimate was capped at 87 percent for all ore types. The production scale recovery estimates provided to mine planning are shown in Table 13-6. Since the gold recovery for the deposit is dependent on the gold grade, the average gold recovery must be calculated

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during the mine planning process. Based on the input in Table 13-6, the overall gold recovery is projected to average approximately 80 percent for all three areas based on the extraction schedules developed for this study.

Table 13-6 reveals that there is a major difference in gold and silver extraction between the oxide, transition and sulfide oxidation zones. A decrease in gold recovery with decreasing gold grade and increased sulfur content is indicated based on analysis of the column test results.

Table 13-6 Recovery Projections by Alteration Type and Area

		Est. % Au Recovery by Alteration In Weathered (Oxide) Zone					Transition	Sulfide
	Gold Grade
Area	Range	4 - VSA	3 - SIL	2 - AAR	1 –  ARG	5 - Deli  HG	All Alt.	All Alt.
Deli	> 0.50 g/t	87%	85%	87%	85%	87%	65%	30%
	0.45 - 0.50	87%	84%	87%	84%	87%	64%	30%
	0.40 - 0.45	87%	83%	87%	83%	87%	64%	30%
	0.35 - 0.40	86%	82%	86%	82%	86%	63%	29%
	0.30 - 0.35	84%	80%	84%	80%	84%	63%	29%
	0.25 - 0.30	82%	78%	82%	78%	82%	60%	28%
	0.20 - 0.25	78%	75%	78%	75%	78%	60%	28%
	0.15 - 0.20	72%	69%	72%	69%	72%	52%	24%
	<= 0.15 g/t (IMC)	62%	59%	62%	59%	62%	44%	20%
	Silver Recovery	35%	20%	25%	20%	35%	20%	20%
Baba	> 0.50 g/t	84%	84%	87%	87%		60%	40%
	0.45 - 0.50	83%	83%	87%	87%		59%	40%
	0.40 - 0.45	82%	82%	87%	87%		59%	40%
	0.35 - 0.40	81%	81%	86%	86%		58%	39%
	0.30 - 0.35	79%	79%	84%	84%		58%	39%
	0.25 - 0.30	77%	77%	82%	82%		55%	37%
	0.20 - 0.25	74%	74%	78%	78%		55%	37%
	0.15 - 0.20	68%	68%	72%	72%		48%	32%
	<= 0.15 g/t (IMC)	58%	58%	62%	62%		41%	27%
	Silver Recovery	20%	25%	15%	15%		20%	5%

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Est. % Au Recovery by Alteration In Oxide and Transition Zones
	Gold					Transition	Sulfide
Area	Grade Range	4 - VSA	3 - SIL	2 - AAR	1 - ARG
Kirazlı	> 0.65 g/t	86% - (2.35 x %S)	89% - (2.35 x %S)	89% - (2.35 x %S)	89% - (2.35 x %S)		20%
	0.60 to 0.65	86% - (2.35 x %S)	89% - (2.35 x %S)	89% - (2.35 x %S)	89% - (2.35 x %S)		20%
	0.55 to 0.60	85% - (2.35 x %S)	88% - (2.35 x %S)	88% - (2.35 x %S)	88% - (2.35 x %S)		20%
	0.50 to 0.55	84% - (2.35 x %S)	87% - (2.35 x %S)	87% - (2.35 x %S)	87% - (2.35 x %S)		20%
	0.45 to 0.50	84% - (2.35 x %S)	87% - (2.35 x %S)	87% - (2.35 x %S)	87% - (2.35 x %S)		20%
	0.40 to 0.45	83% - (2.35 x %S)	86% - (2.35 x %S)	86% - (2.35 x %S)	86% - (2.35 x %S)		20%
	0.35 to 0.40	81% - (2.35 x %S)	84% - (2.35 x %S)	84% - (2.35 x %S)	84% - (2.35 x %S)		20%
	0.30 to 0.35	79% - (2.35 x %S)	82% - (2.35 x %S)	82% - (2.35 x %S)	82% - (2.35 x %S)		19%
	0.25 to 0.30	77% - (2.35 x %S)	80% - (2.35 x %S)	80% - (2.35 x %S)	80% - (2.35 x %S)		19%
	0.20 to 0.25	74% - (2.35 x %S)	77% - (2.35 x %S)	77% - (2.35 x %S)	77% - (2.35 x %S)		19%
	0.15 to 0.20	68% - (2.35 x %S)	71% - (2.35 x %S)	71% - (2.35 x %S)	71% - (2.35 x %S)		19%
	<= 0.15 g/t (IMC)	59% - (2.35 x %S)	62% - (2.35 x %S)	62% - (2.35 x %S)	62% - (2.35 x %S)		18%
	Silver Recovery	25%	35%	30%	30%	20%	10%

Plant scale reagent consumption projections based on the 2010 - 2011 test programs are shown in Table 13-7. The cement consumption estimates are based on the column test results for oxide ore. Review of the column test solution pH indicates this cement addition provides sufficient alkalinity for pH control during the leach cycle. Evaluation of the agglomeration and compacted permeability test results indicates that this cement addition will also facilitate heap stability and leach operations. Transition and sulfide material will require additional lime addition noted Table 13-7.

Plant scale cyanide consumption estimates shown in Table 13-7 are one third of the column test cyanide consumption estimates. When cyanide soluble copper is available in the mine model, a revised cyanide consumption estimate is suggested to better estimate the cost for processing ore with elevated cyanide soluble copper.

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Table 13-7 Reagent Consumption Estimates by Alteration or Oxidation Type and Area

Location	Alteration or    Oxidation   Type	NaCN   kg per tonne	Cement   kg per tonne	Lime   kg per  tonne
Baba	VSA	0.1	2.5	0
Baba	SIL	0.1	2.5	0
Baba	AAR	0.2	2.5	0
Baba	ARG	0.2	2.5	0
Baba	Transition	0.4	2.5	1
Baba	Sulfide	0.6	2.5	3
Deli	VSA	0.15	2.5	0
Deli	SIL	0.2	2.5	0
Deli	AAR	0.3	2.5	0
Deli	ARG	0.2	2.5	0
Deli	Transition	0.4	2.5	1
Deli	Sulfide	0.6	2.5	3
Kirazlı	VSA	0.2	2.5	0
Kirazlı	SIL	0.4	2.5	0
Kirazlı	AAR	0.6	2.5	0
Kirazlı	ARG	0.6	2.5	0
Kirazlı	Transition	0.3	2.5	0
Kirazlı	Sulfide	0.6	2.5	1

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Table 13-7 Reagent Consumption Estimates by Alteration or Oxidation Type and Area

Location	Alteration or   Oxidation	NaCN	Cement	Lime
	Type	kg per tonne	kg per tonne	kg per tonne
Baba	VSA	0.1	2.5	0
Baba	SIL	0.1	2.5	0
Baba	AAR	0.2	2.5	0
Baba	ARG	0.2	2.5	0
Baba	Transition	0.4	2.5	1
Baba	Sulfide	0.6	2.5	3
Deli	VSA	0.15	2.5	0
Deli	SIL	0.2	2.5	0
Deli	AAR	0.3	2.5	0
Deli	ARG	0.2	2.5	0
Deli	Transition	0.4	2.5	1
Deli	Sulfide	0.6	2.5	3
Kirazlı	VSA	0.2	2.5	0
Kirazlı	SIL	0.4	2.5	0
Kirazlı	AAR	0.6	2.5	0
Kirazlı	ARG	0.6	2.5	0
Kirazlı	Transition	0.3	2.5	0
Kirazlı	Sulfide	0.6	2.5	1

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14.0 MINERAL RESOURCE ESTIMATES

14.1 Summary

The estimation of the mineral resources at Kirazlı and Ağı Dağı was performed with the ordinary kriging technique. A total of 243 drill holes from Kirazlı and 516 drill holes from Ağı Dağı (Baba, Fire Tower, Deli) were part of the drill hole database. Gold and silver grades from original samples were composited to a 3 m regular length and higher grade outliers were capped. Variograms were utilized to identify the directions of greater grade continuity and modeled parameters were integrated in the grade estimation process. Alteration and oxidation units, which are controls on gold and silver mineralization, were also part of the grade interpolation strategy. The resulting gold and silver grade estimates were validated by various verification tests. The mineral resources were constrained by an open pit surface optimized at a gold price of $1,250.00/oz and silver price of $22.50/oz within the oxide and transition material.

The mineral resources are presented below for the Kirazlı area and in the following table for the Ağı Dağı area.

Kirazlı Mineral Resource* at Various Gold Grade Cut-Offs

				Oxide + Transition
	Measured					Indicated
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	1,018,000	1.03	33,700	12.16	398,100	37,106,000	0.60	712,700	7.91	9,434,100
0.2**	884,000	1.17	33,400	13.22	375,600	29,864,000	0.70	673,100	8.35	8,016,900
0.4	598,000	1.59	30,600	17.08	328,400	16,132,000	1.05	544,700	10.89	5,650,300
0.6	388,000	2.19	27,300	23.58	294,200	8,058,000	1.62	419,700	15.44	3,999,800
0.8	310,000	2.57	25,600	28.07	279,800	5,027,000	2.18	352,900	18.49	2,988,500
1.0	267,000	2.84	24,400	30.64	263,000	4,213,000	2.44	330,400	20.30	2,749,900
	Measured + Indicated					Inferred
Au Cut-Off g/t	Tonnage tonnes	Au  Grade g/t	Au  Content oz	Ag  Grade g/t	Ag  Content oz	Tonnage tonnes	Au  Grade g/t	Au  Content oz	Ag  Grade g/t	Ag Content oz
0.1	38,124,000	0.61	746,500	8.02	9,832,200	7,040,000	0.45	101,300	9.44	2,137,400
0.2**	30,748,000	0.71	706,400	8.49	8,392,500	5,575,000	0.52	93,300	9.95	1,783,600
0.4	16,730,000	1.07	575,300	11.12	5,978,700	3,061,000	0.71	70,000	12.36	1,216,300
0.6	8,446,000	1.65	447,000	15.81	4,294,000	1,205,000	1.06	41,200	16.84	652,500
0.8	5,337,000	2.21	378,400	19.05	3,268,200	590,000	1.45	27,500	22.65	429,600
1.0	4,480,000	2.46	354,800	20.92	3,012,900	413,000	1.69	22,500	27.66	367,300

* mineral resources’ tonnage and metal content have been rounded to the nearest thousand and hundred, respectively.

** base case

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Ağı Dağı Mineral Resource* at Various Gold Grade Cut-Offs

				Oxide + Transition
	Measured					Indicated
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	28,252,000	0.42	381,400	1.04	944,900	88,138,000	0.46	1,291,200	3.26	9,231,700
0.2**	20,376,000	0.53	344,200	1.17	766,600	58,990,000	0.61	1,165,600	4.07	7,712,100
0.4	9,972,000	0.78	249,100	1.52	487,200	27,981,000	0.97	870,200	5.99	5,393,100
0.6	4,882,000	1.09	170,700	2.03	318,600	14,374,000	1.43	662,800	8.50	3,929,000
0.8	2,797,000	1.39	124,900	2.69	241,500	8,970,000	1.88	543,000	11.19	3,226,800
1.0	1,759,000	1.68	95,100	3.43	194,200	5,953,000	2.38	456,500	14.47	2,768,600
	Measured + Indicated					Inferred
Au Cut-Off g/t	Tonnage tonnes	Au  Grade g/t	Au  Content oz	Ag  Grade g/t	Ag  Content oz	Tonnage tonnes	Au  Grade g/t	Au  Content oz	Ag  Grade g/t	Ag Content oz
0.1	116,390,000	0.45	1,672,600	2.72	10,176,700	30,123,000	0.41	397,300	2.29	2,216,100
0.2**	79,366,000	0.59	1,509,800	3.32	8,478,700	20,861,000	0.53	355,800	2.86	1,920,400
0.4	37,953,000	0.92	1,119,200	4.82	5,880,300	8,105,000	0.90	235,700	5.34	1,390,400
0.6	19,256,000	1.35	833,500	6.86	4,247,600	3,382,000	1.50	162,700	10.19	1,108,100
0.8	11,767,000	1.77	667,800	9.17	3,468,300	1,899,000	2.14	130,500	16.39	1,000,400
1.0	7,712,000	2.22	551,500	11.95	2,962,900	1,319,000	2.69	114,000	22.57	957,000

* mineral resources’ tonnage and metal content have been rounded to the nearest thousand and hundred, respectively

** base case

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14.2 Kirazlı

14.2.1 Introduction

The Kirazlı mineral resource presented in this report is an update of the 2010 year-end mineral resource reported by Alamos in March 2011. It incorporates additional drill holes from the fall 2011 drilling campaign, as well as a new geologic interpretation. The estimation of gold and silver grades was carried out with the ordinary kriging method with a non-rotated block model encompassing the Kirazlı area.

The estimation of the mineral resources was performed by Mr. Marc Jutras; director of mineral resources with Alamos. Mr. Jutras is a qualified person as defined under National Instrument 43-101.

This mineral resource estimation exercise was primarily undertaken with the Vulcan^® software and utilities internally developed in GSLIB-type format. The following sections outline the procedures undertaken to calculate the mineral resource.

14.2.2 Drill Hole Data

The drill hole database is made of 243 holes in the Kirazlı area. The previous mineral resource utilized a drill hole database made of 199 holes in the Kirazlı area, representing an increase of 44 holes (22%) between the database cut-off dates of September 30, 2010 and February 28, 2011. All holes during this period were drilled by Alamos.

From the 243 holes in Kirazlı, 195 holes are diamond drill (DD) and 48 holes are reverse circulation (RC) holes.

14.2.3 Drill Hole Data Statistics

The Kirazlı drill hole database is comprised of 243 drill holes with 28,975 assays for gold (in g/t) and silver (in g/t). A suite of 37 other elements analyzed by ICP (Inductively Coupled Plasma) is also available from the main database. Other geologic information recorded includes lithological units, alteration minerals (Portable Infrared Mineral Analyzer or PIMA), oxidation states, core recoveries, and specific gravities.

Statistics on the drill hole database are presented in Figure 14-1 and in Table 14-1. As seen in Figure 14-1, the average drill hole length at Kirazlı is 152.0 m, with depths varying from 3.6 m (DD hole 11-KD-155A) to 402.1 m (DD hole KD-03). The average sample length is 1.27 m, with samples lengths varying from 0.13 m to 16.7 m, and with the most common sampling length being 1.50 m followed by 1.00 m.

It is also noted that the average gold and silver grades of samples at elevated cut-offs is in general close to or more than twice the cut-off grade, indicating the presence of higher grade samples. Higher average gold and silver grades are observed at Kirazlı when compared to the Baba and Fire Tower areas. The silver to gold grade ratio is approximately 10.6:1.

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Table 14-1 Drill Hole Summary – Kirazlı Area

Summary Statistics - Kirazlı
Diamond Drill Holes
# holes	195
# assays	26,511
# meters	32,237.2
Reverse Circulation Holes
# holes	48
# assays	2,464
# meters	3,796.4
All Holes
# holes	243
# assays	28,975
# meters	36,033.6

Figure 14-1 Statistics on the Drill Hole Database in the Kirazlı Area

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After inspection of the average distances away from the closest hole and the related maximum grades it was concluded that no isolated hole(s) with high-grade values are present, and therefore no related difficulties in the grade estimation process are anticipated.

A final set of gold and silver grade statistics was calculated for the various geologic characteristics recorded: the lithology types, the oxidation state, and the alteration intensity (PIMA). From these statistics it was observed that the main controls on gold and silver mineralization are the oxidation state and the alteration intensity. In general a decreasing pattern of gold and silver average grades from oxide to transition to sulphide is observed in the different areas of interest. A similar decreasing pattern of average gold and silver grades is also observed with a decrease of alteration intensity (from vuggy silica to argillic). Lithologies associated with gold and silver are andesite, breccia, and mafic dike. The breccia unit is the common lithology type associated with mineralization for all areas (including Ağı Dağı).

Location, Orientation, and Spacing of Drill holes

The location of the drill holes is presented in Figure 14-2 for the Kirazlı region (note that north coordinates have been reduced by 4,000,000). As seen in this figure, although most of the drill holes are located within the areas of interest, drill holes in surrounding areas are also observed. The latter are however not part of the current study.

The drill hole density varies within the area of interest with some zones more densely drilled than others. Statistics on drill hole spacing indicate an overall average distance of 37 m and median of 32 m in Kirazlı.

With regard to the orientation of the drill holes, holes drilled in a multitude of orientations are found at Kirazlı. Vertical holes are found along with angled holes at dips varying between –50° and –80° and various azimuths: 0°, 20°, 40°, 50°, 90°, 130°, 180°, 200°, 220°, 270°, and 310°.

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Figure 14-2 Drill Hole Location Map at Kirazlı

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14.2.4 Geologic Modeling

The controls on mineralization were modeled into 3-D solids prior to grade interpolation. The lithology, alteration, and oxidation state units were interpreted on sections by Alamos’s geologic team. Sections were spaced at 50 m intervals and were oriented E-W in Kirazlı. The geologic interpretations were completely re-built from first principals. The lithologic units were modeled for geologic representation and understanding, while the oxidation state and alteration units were modeled as controls on mineralization to be utilized later on in the estimation of gold and silver grades. Table 14-2 shows the different geologic units modeled in the Kirazlı area.

Table 14-2 Geologic Units Modeled for the Kirazlı Area

Geologic Feature	Modeled Units
Lithology	andesite, dacite, breccia, overburden
Alteration	argillic, advanced argillic, silicified
Oxidation State	oxide, transition, sulphide
Other	high-grade zone

The sectional interpretations were digitized by snapping in 3-D to the drill hole intercepts in the Gemcom^® software and were then linked in 3-D in the Leapfrog^® software. The resulting solids were later utilized in the compositing process of the drill hole samples and to tag the blocks with a specific rock code in the block model.

High-grade gold mineralized zones found at Kirazlı were included in the modeling process. These areas outline a difference in the distribution of gold mineralization that can be observed on several sections. At Kirazlı, several higher grade zones are observed along a north-south orientation with some vertical continuity associated to these units. Further understanding of the geologic controls associated with these high-grade zones is needed to provide additional confidence in their interpretation.

Examples of the lithology, alteration, and oxidation models are shown in Figures 14-3, 14-4, and 14-5.

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Figure 14-3 Lithology Solids at Kirazlı – Looking to the Northeast

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Figure 14-4 Alteration Solids at Kirazlı – Looking to the Northeast

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Figure 14-5 Oxidation Solids at Kirazlı – Looking to the Northeast

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Geologic Rock Codes

A set of rock codes was defined from the modeling of the various geologic controls on mineralization. These codes are from the combination of the various alteration and oxidation units, and are listed in Table 14-3.

Table 14-3 Rock Codes for the Kirazlı Area

Rock Code	Description
01	argillic-oxide
02	argillic-transition
03	argillic-sulphide
04	advanced argillic-oxide
05	adv. argillic-transition
06	adv. argillic-sulphide
07	silicified-oxide
08	silicified-transition
09	silicified-sulphide
10	high-grade zone-oxide
11	high-grd zone-transition
12	high-grd zone-sulphide
13	overburden

The topographic surface at Kirazlı was obtained from recently flown photogrammetric surveys giving local precision in the 1 m range. This surface is of greater precision than the previously utilized large-scale government topographic surface.

14.2.5 Compositing

The gold and silver assays from the original sample lengths were composited to regular 3.0 m intervals for each hole. The selection of this compositing length was based on the fact that many of the original samples were assayed on 1.0 m and 1.5 m lengths, with 3.0 m representing a common multiple. The 3.0 m composite length also provides a good fit with the envisioned size of the blocks. The procedure consisted in starting the compositing at the top edge of each rock type with continuous 3.0 m composite intervals down to the bottom edge of the rock unit. A total of 12,474 composites were generated, with 11,262 composites from 188 diamond drill holes (82.1%), and 1,212 composites from 41 reverse circulation holes (17.9%). A summary of statistics on the composites from the Kirazlı area is presented in Table 14-4.

From this table it can be observed that the Kirazlı area has the highest average gold and silver grades, when compared to the other areas (Baba, Fire Tower, and Deli). It is also noted that more DD holes are present than RC holes.

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Table 14-4 Drill Hole Composites Summary at Baba, Fire Tower, Deli, and Kirazlı

Company	# of Holes	%	# of Composites	%	# of Meters	%	Average Au Grade g/t	Average   Ag Grade g/t
All	229	100.0	12,474	100.0	34,362.9	100.0	0.37	3.87
Diamond Drill Holes	188	82.1	11,262	90.3	30,986.0	90.2	0.35	4.08
Reverse Circulation Holes	41	17.9	1,212	9.7	3,376.9	9.8	0.51	1.93

14.2.6 Exploratory Data Analysis (EDA)

A set of various statistical applications was utilized to provide a better understanding of the gold and silver grade populations within the mineralized zone.

Bivariate Statistics

A first step consisted in investigating the possible relationship of gold with other measured variables such as silver and core recovery.

Gold versus Silver

A set of scatterplots was generated to examine the possible relationship of gold with silver within the area of interest at Kirazlı. From this analysis it was observed that there are no correlations between gold and silver at Kirazlı, with a correlation coefficient 0.05. These results could possibly be indicative of the level of the epithermal system at Kirazlı.

Gold versus Core Recovery

Lower core recoveries were recorded in Kirazlı. The possibility of a link with gold grades was examined with scatterplots of paired gold and core recovery values. It was noted that gold grades are not correlated to core recoveries, with a correlation coefficient of –0.03 in Kirazlı. It is also observed that although this correlation coefficient is extremely low, there appears to be a very slight trend to have better recoveries associated with higher grades.

Core recovery averages were also compared to the various geologic characteristics recorded, such as alteration, oxidation, and lithology units. It was observed that core recovery is consistently related to the oxidation state throughout the different zones, with increasing recoveries from oxide to sulphide material. For the alteration units, decreasing core recoveries are consistently observed with increasing alteration intensities. For the lithology units, lower core recoveries were observed for dacite, overburden, and rhyolite.

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Univariate Statistics

Basic statistics were performed on the gold and silver grades of the 3.0 m composites grouped by alteration/redox units for the Kirazlı area. Histograms and probability plots indicated that the gold and silver grade distributions resemble positively skewed lognormal populations.

The gold grade populations are in general well behaved on a per rock type basis, with reasonably low coefficients of variation (CV < 3.0) at Kirazlı. The argillic-sulphide unit is the only rock type displaying a more heterogeneous behavior with a coefficient of variation greater than 3.0. It is quite interesting to notice the consistent pattern of increasing grades with increasing alteration intensity within each oxidation state.

The silver grade populations are slightly more heterogeneous with 4 units displaying higher coefficients of variation (CV > 3.0). The pattern of increasing grade with increasing alteration intensity per oxidation state can also be seen for the silver grades at Kirazlı, where higher overall silver grades are noted.

A CV greater than 3.0 for gold or silver would in general be considered as high and would indicate a less homogeneous distribution. Often the higher CV value stems from higher grade outliers and the application of a grade capping strategy will reduce the coefficient of variation to levels of a more homogeneous grade distribution.

It is also observed that the Kirazlı area has the highest average gold and silver grades. The overall average ratio of silver to gold is 10.6:1 at Kirazlı.

Capping of High-Grade Outliers

It is common practice to statistically examine the higher grades within a population and to trim them to a lower grade value based on the results from specific statistical utilities. This procedure is performed on high grade values that are considered outliers and that cannot be related to any geologic feature. In the case at Kirazlı, the gold and silver higher grades were examined with three different tools: the probability plot, decile analysis, and cutting statistics. The usage of various investigating methods allows for a selection of the capping threshold in a more objective and justified manner. The resulting compilation of the capping thresholds is listed in Table14-5 for gold and silver.

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Table 14-5 List of Capping Thresholds of Higher Gold and Silver Grade Outliers at Kirazlı

	Gold				Silver
Rock Type	Capping Threshold g/t	Metal Affected %	# Comps Cut	Rock Type	Capping Threshold g/t	Metal Affected %	# Comps Cut
arg-ox	1.5	4.0	1	arg-ox	30.0	12.0	2
arg-mx	-	-	-	arg-mx	60.0	9.0	1
arg-su	1.6	3.0	4	arg-su	30.0	7.0	2
adv-ox	4.0	1.0	1	adv-ox	-	-	-
adv-mx	3.0	0.5	1	adv-mx	160.0	32.0	4
adv-su	5.0	1.0	1	adv-su	30.0	2.0	1
sil-ox	2.3	2.0	2	sil-ox	300.0	2.0	1
sil-mx	1.8	2.0	6	sil-mx	100.0	7.0	3
sil-su	1.5	4.0	2	sil-su	-	-	-
hgz-ox	-	-	-	hgz-ox	-	-	-
hgz-mx	15.0	2.0	4	hgz-mx	150.0	4.0	3
hgz-su	40.0	3.0	2	hgz-su	30.0	7.0	2
ovb	5.0	2.0	1	ovb	65.0	4.0	2

Basic statistics were re-computed with the gold and silver grades capped to the thresholds listed in Table 14-5. Boxplots of Figures 14-6 and 14-7 display the basic statistics resulting from the capping of the higher gold and silver grade outliers, respectively. It can be observed from Figure 14-6 that the coefficients of variation are all below 3.0 for the different gold populations. From Figure 14-7, similar observations are made for silver with overall low coefficients of variation, except for the argillic-transition unit (CV=3.83), the argillic-sulphide unit (CV=3.15), and the advanced argillic-transition unit (CV=3.33) unit. The effect of the higher gold grade capping had a minimal effect on the average grades, with a reduction of 1.0% at Kirazlı. Stronger reductions of the overall average silver grades were noted, with a reduction 8.4% at Kirazlı. These larger decreases of average silver grades are indications that few samples carry larger portions of the metal content in the Kirazlı region.

Because of the generally low coefficients of variation for gold and silver, displaying good grade homogeneity, it can be concluded that there is no need to treat the higher grade composites differently than the lower grade composites during the estimation process.

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Figure 14-6 Basic Statistics of Capped Gold by Rock Type at Kirazlı

Figure 14-7 Basic Statistics of Capped Silver by Rock Type at Kirazlı

Declustering

In general there is a tendency to drill more holes in higher grade areas than in lower grade areas when delimiting an orebody. As a result, the higher grade portion of a deposit will be overly represented and would translate into a bias towards the higher grades when calculating statistical parameters of the population. Thus, a declustering method is utilized to generate a more representative set of statistical results within the zone of interest. In this case, a polygonal declustering technique was applied to the composites of the Kirazlı area. This approach consists of assigning the volume of a polygon, defined by

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the halfway distance between a sample and its surrounding neighbors, as a weight for each sample within the mineralized zone. Therefore a sample that is isolated will have a larger weight than a sample located in a densely sampled area.

Comparison of average gold and silver capped and declustered grades with the capped and non-declustered gold and silver averages shows an overall reduction of the grade averages resulting from the declustering process. Greater reductions in average gold and silver grades are noted at Kirazlı. Stronger reductions are observed with decreases of 39.5% and 40.6% of average gold and silver grades.

The average grade from the declustered statistics provides an excellent comparison with the average grade of the interpolated blocks, as a way to assess any overall bias of the estimates.

14.2.7 Variography

A variographic analysis was carried out on the gold and silver composites within the different rock types at Kirazlı. The objective of this analysis was to spatially establish the preferred directions of gold and silver grade continuity. In turn, the variograms modeled along those directions would be later utilized to select and weigh the composites during the block grade interpolation process. For this exercise, all experimental variograms were of the type relative lag pairwise, which is considered robust for the assessment of grade continuity.

Variogram maps were first calculated to examine general gold and silver grade continuities in the XY, XZ, and YZ planes. The next step undertaken was to compute omni-directional variograms and down-hole variograms. The omni-directional variograms are calculated without any directional restrictions and provide a good assessment of the sill of the variogram. As for the down-hole variogram, it is calculated with the composites of each hole along the trace of the hole. The objective of these calculations is to provide information about the short scale structure of the variogram, as the composites are more closely spaced down the hole. Thus the modeling of the nugget effect is usually better derived from the down-hole variograms.

Directional variograms were then computed to identify more specifically the three main directions of continuity. A first set of variograms was produced in the horizontal plane at increments of 10 degrees. In the same way, a second set of variograms was computed at 10° increments in the vertical plane of the horizontal direction of continuity (plunge direction). A final set of variograms at 10° increments was calculated in the vertical plane perpendicular to the horizontal direction of continuity (dip direction). The final variograms were then modeled with a 2-structure spherical variogram, and resulting parameters presented in Table 14-6 for gold and Table 14-7 for silver. The structure parameters were normalized to a sill of 1.0.

The directions of gold and silver grade continuity are in general agreement with the orientation of the mineralized zone, which is trending to the north-northeast at Kirazlı. The ranges of gold grade continuity along the principal direction vary from 58 m to 90 m, and from 36 m to 53 m along the minor direction, and from 18 m to 54 m along the vertical direction. For the silver grade continuity, the ranges vary from 42 m to 88 m along the principal direction of continuity, from 28 m to 77 m along the minor direction, and from 20 m to 68 m along the vertical direction. The modeled variograms have relatively low nugget effects with values for gold varying from 5% to 28% of the sill, and from 4% to 22% of the sill for silver.

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The experimental variograms are considered of acceptable quality overall. In the cases where too few samples were available, variogram models of similar or neighboring units were assigned. In a few instances, the units were grouped as one mineralized zone when similar or surrounding units didn’t have enough samples to calculate experimental variograms. Such cases are the high-grade zones, and the silica mixed and sulphide units. The experimental variograms were noted to be of sufficient quality in general.

Table 14-6 Modeled Variogram Parameters for Gold Composites at Kirazlı

	Argillic-mixed (argillic-oxide)			argillic-sulphide			advanced argillic-oxide
Parameters	Principal	Minor	Vertical	Principal	Minor	Vertical	Principal	Minor	Vertical
Azimuth1	25°	115°	25°	10°	100°	10°	30°	120°	30°
Dip2	0°	0°	-90°	0°	0°	-90°	0°	0°	-90°
Nugget Effect3	0.232			0.104			0.21
1st  Structure3	0.326			0.43			0.22
2nd  Structure3	0.442			0.466			0.57
1st Range	26.4m	26.4m	8.1m	34.0m	23.2m	23.2m	57.6m	18.9m	13.5m
2nd Range	76.9m	47.9m	23.2m	76.0m	46.9m	53.4m	89.8m	53.3m	30.7m
	advanced argilic-mixed			advanced argilic-sulphide			silicified-oxide
Parameters	Principal	Minor	Vertical	Principal	Minor	Vertical	Principal	Minor	Vertical
Azimuth1	15°	105°	15°	10°	100°	10°	0°	90°	0°
Dip2	0°	0°	-90°	0°	0°	-90°	0°	0°	-90°
Nugget Effect3	0.227			0.161			0.048
1st Structure3	0.257			0.383			0.613
2nd Structure3	0.515			0.456			0.339
1st Range	26.4m	17.8m	17.8m	23.2m	14.6m	14.6m	15.6m	11.3m	11.3m
2nd Range	82.3m	43.6m	54.4m	60.8m	39.3m	46.8m	74.6m	37.1m	23.1m
	silicified-mixed+sulphide			high-grade-oxide+mixed+sulphide			overburden
Parameters	Principal	Minor	Vertical	Principal	Minor	Vertical	Principal	Minor	Vertical
Azimuth1	0°	90°	0°	120°	210°	120°	10°	100°	10°
Dip2	0°	0°	-90°	0°	0°	-90°	0°	0°	-90°
Nugget Effect3	0.275			0.139			0.15
1st Structure3	0.421			0.42			0.545
2nd Structure3	0.304			0.441			0.305
1st Range	9.2m	9.2m	9.2m	26.4m	22.1m	32.9m	17.8m	8.1m	6.0m
2nd Range	70.4m	38.2m	27.4m	71.6m	46.9m	54.4m	57.6m	36.1m	17.8m

¹  positive clockwise from north

²  negative below horizontal

³  normalized to a sill of 1.0

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Table 14-7 Modeled Variogram Parameters for Silver Composites at Kirazlı

	argillic-mixed (argillic-oxide)			argillic-sulphide			advanced argillic-oxide
Parameters	Principal	Minor	Vertical	Principal	Minor	Vertical	Principal	Minor	Vertical
Azimuth1	25°	115°	25°	0°	90°	0°	20°	110°	20°
Dip2	0°	0°	-90°	0°	0°	-90°	0°	0°	-90°
Nugget Effect3	0.178			0.178			0.215
1st  Structure3	0.400			0.201			0.314
2nd  Structure3	0.422			0.621			0.471
1st Range	30.7m	28.5m	7.1m	21.0m	22.1m	10.3m	30.7m	19.9m	14.6m
2nd Range	71.5m	57.5m	27.5m	87.6m	76.9m	49.0m	87.6m	54.3m	42.5m
	advanced argilic-mixed			advanced argilic-sulphide			silicified-oxide
Parameters	Principal	Minor	Vertical	Principal	Minor	Vertical	Principal	Minor	Vertical
Azimuth1	25°	115°	25°	175°	265°	175°	0°	90°	0°
Dip2	0°	0°	-90°	0°	0°	-90°	0°	0°	-90°
Nugget Effect3	0.107			0.046			0.147
1st Structure3	0.380			0.449			0.571
2nd Structure3	0.513			0.505			0.282
1st Range	16.8m	17.8m	17.8m	40.3m	17.8m	27.4m	21.0m	18.9m	18.9m
2nd Range	84.5m	46.9m	68.4m	75.7m	48.9m	56.4m	75.7m	46.8m	61.8m
	silicified-mixed+sulphide			high-grade- oxide+mixed+sulphide			overburden
Parameters	Principal	Minor	Vertical	Principal	Minor	Vertical	Principal	Minor	Vertical
Azimuth1	170°	260°	170°	60°	150°	60°	5°	95°	5°
Dip2	0°	0°	-90°	0°	0°	-90°	0°	0°	-90°
Nugget Effect3	0.179			0.162			0.042
1st Structure3	0.392			0.504			0.735
2nd Structure3	0.429			0.334			0.223
1st Range	25.5m	11.5m	17.9m	24.2m	16.7m	27.5m	12.5m	6.0m	6.0m
2nd Range	63.4m	32.0m	41.8m	66.1m	30.7m	43.6m	41.6m	27.6m	20.0m

¹  positive clockwise from north

²  negative below horizontal

³  normalized to a sill of 1.0

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14.2.8 Gold and Silver Grade Estimation

The estimation of gold and silver grades into a block model was carried out with the ordinary kriging technique. An orthogonal (no rotation) single block model was generated encompassing the Kirazlı area. Grade estimates were independently generated for gold and silver. The estimation strategy and parameters were tailored to account for the various geometrical, geological, and geostatistical characteristics previously identified. The database of 3.0 m capped gold and silver grade composites was utilized as input for the grade interpolation process.

The grid definition of the two block models is presented in Table 14-8. It should be noted that the origin of the block model corresponds to the lower left corner, the point of origin being the exterior edges of the first block. A block size of 10 m (easting) × 10 m (northing) × 5 m (elevation) was selected to better reflect the orebody’s geometrical configuration and anticipated open pit production rate.

Table 14-8 Block Grid Definition at Kirazlı

Coordinates	Origin m	Rotation (azimuth)	Distance m	Block Size m	Number of Blocks
Easting (X)	474,650.0	0°	1,750.0	10.0	175
Northing (Y)	4,429,300.0		1,750.0	10.0	175
Elevation(Z)	175.0		705.0	5.0	141
Number of Blocks			4,318,125

The size and orientation of the search ellipsoid for the estimation process were based on the variogram parameters modeled for gold. Thus the data searching parameters for the estimation of silver were made the same as the ones selected for gold to ensure that every estimated block would have a gold and silver grade estimate and to avoid having gold estimates without silver estimates and vice versa. However, the modeled variogram parameters for silver were utilized for the weighing of the selected silver grade composites during the silver grade interpolation process. No other restrictions, such as a minimum number of informed octants, a minimum number of holes, a maximum number of samples per hole, etc., were applied to the estimation process. Further details of the estimation parameters are presented in Table 14-9.

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Table 14-9 Estimation Parameters for Gold and Silver at Kirazlı

Rock Type	minimum # of samples	maximum # of samples	search ellipsoid  – long axis - azimuth/dip	search ellipsoid – long axis - size	search ellipsoid – short axis - azimuth/dip	search ellipsoid – short axis - size	search ellipsoid – vertical axis - azimuth/dip	search ellipsoid – vertical axis - size
ar-ox	2	12	25°/0°	77.0	115°/0°	48.0	25°/-90°	23.0
ar-mx	2	12	25°/0°	77.0	115°/0°	48.0	25°/-90°	23.0
ar-su	2	12	10°/0°	76.0	100°/0°	47.0	10°/-90°	53.0
ad-ar-ox	2	12	30°/0°	90.0	120°/0°	53.0	30°/-90°	31.0
ad-ar-mx	2	12	15°/0°	82.0	105°/0°	44.0	15°/-90°	54.0
ad-ar-su	2	12	10°/0°	61.0	100°/0°	39.0	10°/-90°	47.0
si-ox	2	12	0°/0°	75.0	90°/0°	37.0	0°/-90°	23.0
si-mx	2	12	0°/0°	70.0	90°/0°	38.0	0°/-90°	27.0
si-su	2	12	0°/0°	70.0	90°/0°	38.0	0°/-90°	27.0
hg-ox	2	12	120°/0°	72.0	210°/0°	47.0	120°/-90°	54.0
hg-mx	2	12	120°/0°	72.0	210°/0°	47.0	120°/-90°	54.0
hg-su	2	12	120°/0°	72.0	210°/0°	47.0	120°/-90°	54.0
ovb	2	12	10°/0°	58.0	100°/0°	36.0	10°/-90°	18.0

Hard boundaries were utilized between the different units, as suggested by an analysis of the gold and silver grade behavior at the vicinity of the different boundaries (contact plots).

14.2.9 Validation of Grade Estimates

Validation tests were carried out on the estimates to examine the possible presence of a bias and to quantify the level of smoothing/variability.

Visual Inspection

A visual inspection of the block estimates with the drill hole grades on plans, east-west and north-south cross-sections was performed as a first check of the estimates. Observations from stepping through the estimates along the different planes indicated that overall there was a good agreement between the drill hole grades and the estimates. The orientations of the estimated grades were also according to the projection angles defined by the search ellipsoid. An example of a longitudinal cross-section for gold grade estimates is presented in Figure 14-8.

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Figure 14-8 North-South Cross-Section 475640E – Looking to the West. Gold Block Grade Estimates and Drill Hole Grades at Kirazlı

Global Bias Test

The comparison of the average gold and silver grades from the declustered composites and the estimated block grades examines the possibility of a global bias of the estimates. As a guideline, a difference between the average gold and silver grades of more than ± 10% would indicate a significant over- or under-estimation of the block grades and the possible presence of a bias. It would be a sign of difficulties encountered in the estimation process and would require further investigation.

Results of this average gold and silver grade comparison are presented in Table 14-10 for the Kirazlı area.

As seen in Table 14-10, the average gold and silver grades between the declustered composites and the block estimates are similar and within the tolerance levels of acceptability. It is thus concluded that no global bias is present in the gold and silver grade estimates.

Table 14-10 Average Gold and Silver Grade Comparison – Polygonal-Declustered Composites with Block Estimates – Kirazlı

Kirazlı
	Gold		Silver
Stats	Declustered Composites	Block Estimates	Declustered Composites	Block Estimates
Avg Grade g/t	0.222	0.225	2.143	2.031
Difference	+1.4%		-5.2%

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Grade Profile Reproducibility

The comparison of the grade profiles of the declustered composites with that of the estimates allows for a visual verification of an over- or under-estimation of the block estimates at the global and local scales. A qualitative assessment of the smoothing/variability of the estimates can also be observed from the plots. Grade profiles are presented in Figure 14-9 for gold and silver.

From the plots of Figure 14-9, it can be seen that the grade profiles of the declustered composites are well reproduced by those of the block estimates and consequently that no global or local bias is observed. As anticipated, some smoothing of the block estimates can be seen in the profiles, where estimated grades are higher in lower grade areas and lower in higher grade areas. To assess the level of smoothing of the estimates, further investigation is required (section on “Level of Smoothing/Variability”).

Figure 14-9 Grade Profiles of Declustered Composites and Block Estimates for Gold and Silver at Kirazlı

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Naive Cross-Validation Test

A comparison of the grade from composites within a block with the estimated grade of that block provides an assessment of the estimation process close to measured data. Pairing of these grades on a scatterplot gives a statistical valuation of the estimates. It is anticipated that the estimated block grades should be similar to the composited grades within the block, however without being of exactly the same value. Thus a high correlation coefficient will indicate satisfactory results in the interpolation process, while a medium to low correlation coefficient will be indicative of larger differences in the estimates and would suggest a further review of the interpolation process. Results from the pairing of composited and estimated grades within blocks pierced by a drill hole are presented in Table 14-11 for gold and silver at Kirazlı.

Table 14-11 Gold and Silver Grade Comparison for Blocks Pierced by a Drill Hole – Paired Composites Grades with Block Grade Estimates – Kirazlı

	Gold		Silver
Data	Average Gold Grade g/t	Correlation Coefficient	Average Silver Grade g/t	Correlation Coefficient
Composites	0.340	0.820	3.57	0.910
Block Estimates	0.344		3.55

As seen in Table 14-11 for both gold and silver, the block grade estimates are very similar to the composite grades within blocks pierced by a drill hole, with high correlation coefficients, indicating satisfactory results from the estimation process.

Level of Smoothing/Variability

The level of smoothing/variability of the estimates can be measured by comparing a theoretical distribution of block grades with that of the actual estimates. The theoretical distribution of block grades is derived from that of the 3.0 m declustered composites, where a change of support algorithm is utilized for the transformation (Indirect Lognormal Correction). In this case, the variance of the composites’ grade population is corrected (reduced) with the help of the variogram model, to reflect a distribution of block grades (10 m × 10 m × 5 m). The comparison of the coefficient of variation (CV) of this population with that of the actual block estimates provides a measure of smoothing. Ideally a lower CV from the estimates of 5 to 15% is targeted as a proper amount of smoothing. This smoothing of the estimates is desired as it allows for the following factors: the imperfect selection of ore blocks at the mining stage (misclassification), the block grades relate to much larger volumes than the volume of core (support effect), and the block grades are not perfectly known (information effect).

Results of the level of smoothing/variability analysis are presented in Table 14-12 for gold and silver. As observed in this table, the CVs of the estimates for both gold and silver are in general slightly higher or slightly lower than the target difference range of –5 to –15%. Thus the gold grade estimates display a slightly higher level of smoothing, while the silver grade estimates display a slightly higher level of variability. A possible measure to reduce this observed smoothing and variability would be to include less samples and more samples, respectively, at the grade estimation stage. However, based on the fact that these levels variability are not severe, they were considered as acceptable.

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Table 14-12 Level of Smoothing/Variability of Gold and Silver Estimates

Element	CV – Theoretical Block Grade Distribution	CV – Actual Block Grade Distribution	Difference
Gold	3.112	2.604	-16.3%
Silver	3.766	3.602	-4.4%

14.2.10 Resource Classification

The mineral resource was classified as measured, indicated, and inferred based on the average distance of the drill hole composites from the center of the estimated blocks. For each rock unit a specific classification distance was determined based on the first and second ranges of the variograms, as well as the understanding acquired by the geologic team.

The resulting classification distances are presented in Table 14-13 for each alteration unit at Kirazlı.

Table 14-13 Classification Distances at Kirazlı

Alteration Code	Measured Distance m	Indicated Distance  m	Inferred Distance m
01 - Argillic	£ 10.0	£ 50.0	>50.0
02 – Advanced Argillic	£ 10.0	£ 50.0	>50.0
03 - Silicified	£ 10.0	£ 45.0	>45.0
04 – High-Grade Zones	£ 10.0	£ 50.0	>50.0
05 - Overburden	£ 10.0	£ 40.0	>40.0

14.2.11 Mineral Resource Calculation

The mineral resource was calculated for 10 m (X) × 10 m (Y) × 5 m (Z) blocks with variable specific gravity (SG) values. The SG values were based on averages by alteration and oxidation types from 1,326 density measurements by Alamos. SG average values are summarized in Table 14-14.

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Table 14-14 Average Specific Gravity Values by Alteration and Oxidation Types at Kirazlı

Rock Type	Average SG  Value	Number
arg-ox	2.15	3
arg-mx	2.48	71
arg-su	2.56	154
adv-ox	2.29	54
adv-mx	2.52	38
adv-su	2.59	301
sil-ox	2.34	78
sil-mx	2.53	123
sil-su	2.65	141
hgz-ox	2.35	280
hgz-mx	2.52	15
hgz-su	2.67	35
ovb	2.33	33

The geologic wireframes (alteration and oxidation states) were extended above topography in the modeling process to ensure that all blocks near the topography surface would be estimated. Following the gold and silver grade estimation, the block models were edited to the topography surface. In this procedure the percentage of rock within each block was kept in a separate variable in the grade model, which was then used for the tonnage calculations.

To ensure that the mineral resource has a reasonable expectation of economic extraction, as required by the NI 43-101 regulations, an “optimistic” open pit was optimized on the block model. A price of $1,250.00/oz for gold and $22.50/oz for silver, an overall pit slope of 38°, with the February 2012 operating costs and recoveries, without silver credits, were utilized for this procedure.

The Kirazlı mineral resource of gold and silver is reported at various gold grade cut-offs for oxide+transition material in Table 14-15. At a 0.2 g/t gold cut-off, the measured and indicated mineral resource at Kirazlı is 30,748,000 tonnes at 0.71 g/t gold and 8.49 g/t silver for a total of 706,400 oz of gold and 8,392,500 oz of silver. The inferred resource at a 0.20 g/t gold cut-off is 5,575,000 tonnes at 0.52 g/t gold and 9.95 g/t silver for a total of 93,300 oz of gold and 1,783,600 oz of silver.

It should be noted that the mineral resources presented in this section include minable resources.

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Table 14-15 Oxide + Transition Mineral Resource* at Various Gold Grade Cut-Offs at Kirazlı

Oxide + Transition
	Measured					Indicated
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content Oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	1,018,000	1.03	33,700	12.16	398,100	37,106,000	0.60	712,700	7.91	9,434,100
0.2	884,000	1.17	33,400	13.22	375,600	29,864,000	0.70	673,100	8.35	8,016,900
0.4	598,000	1.59	30,600	17.08	328,400	16,132,000	1.05	544,700	10.89	5,650,300
0.6	388,000	2.19	27,300	23.58	294,200	8,058,000	1.62	419,700	15.44	3,999,800
0.8	310,000	2.57	25,600	28.07	279,800	5,027,000	2.18	352,900	18.49	2,988,500
1.0	267,000	2.84	24,400	30.64	263,000	4,213,000	2.44	330,400	20.30	2,749,900
	Measured  + Indicated					Inferred
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content Oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	38,124,000	0.61	746,500	8.02	9,832,200	7,040,000	0.45	101,300	9.44	2,137,400
0.2	30,748,000	0.71	706,400	8.49	8,392,500	5,575,000	0.52	93,300	9.95	1,783,600
0.4	16,730,000	1.07	575,300	11.12	5,978,700	3,061,000	0.71	70,000	12.36	1,216,300
0.6	8,446,000	1.65	447,000	15.81	4,294,000	1,205,000	1.06	41,200	16.84	652,500
0.8	5,337,000	2.21	378,400	19.05	3,268,200	590,000	1.45	27,500	22.65	429,600
1.0	4,480,000	2.46	354,800	20.92	3,012,900	413,000	1.69	22,500	27.66	367,300

* mineral resources’ tonnage and metal content have been rounded to the nearest thousand and hundred, respectively

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14.2.12 Mineral Resources Comparison

The Kirazlı pre-feasibility mineral resource estimate was compared to the 2010 year-end mineral resources, which was the latest previously reported resources. Corresponding results for the two mineral resources are presented at a 0.2 g/t Au cut-off in Table 14-16. In both cases the mineral resources are pit constrained and include only oxide and transition material. The 2012 pre-feasibility resource is contained within an optimized pit at $1,250/oz Au and $22.50/oz Ag metal prices, while the December 31, 2010 resource is contained within an optimized pit at $1,025/oz Au and $16.25/oz Ag metal prices. Considering the difference in metal prices and the additional drilling at Kirazlı, it can be seen that from this comparison, the metal content of the measured and indicated resource has increased by a factor of 2.55 for gold and 2.50 for silver. Conversely, the metal content of the inferred resource was reduced by a factor of 0.63 for gold and 0.59 for silver. This is most likely due to the infilling nature of the past drilling campaign.

Table 14-16 Mineral Resources* Comparison at a 0.2 g/t Gold Cut-Off – Kirazlı

	2012 Pre- Feasibility					December  31, 2010
Mineral Resources	Tonnage K  tonnes	Au grade g/t	Ag grade g/t	Au content M oz	Ag content M oz	Tonnage K  tonnes	Au gradeg/t	Ag grade g/t	Au content M oz	Ag content M oz
Measured	884	1.17	13.22	0.033	0.376	-	-	-	-	-
Indicated	29,864	0.70	8.35	0.673	8,016	9,982	0.86	10.43	0.276	3.347
M+I	30,748	0.71	8.49	0.706	8,392	9,982	0.86	10.43	0.276	3.347
Inferred	5,575	0.52	9.95	0.093	1,784	6,589	0.70	14.21	0.148	3.010

* mineral resources’ tonnage, grade, and metal content have been rounded

14.3 Ağı Dağı

14.3.1 Introduction

The Ağı Dağı mineral resource presented in this report is an update of the 2010 year-end mineral resource reported by Alamos in March 2011. The area covered by the Ağı Dağı mineral resource encompasses the Baba, Fire Tower, and Deli areas. This mineral resource incorporates additional drill holes from the fall 2011 drilling campaign, new geologic interpretations at Baba and Deli, and a first mineral resource estimate for the Fire Tower area, located between Baba and Deli. The estimation of gold and silver grades was carried out with the ordinary kriging method within a block model inclusive of the Baba, Fire Tower, and Deli areas.

The estimation of the mineral resources at Deli was performed by Mr. Marc Jutras, director of mineral resources with Alamos, while the estimation of the mineral resources at Baba and Fire Tower was performed by Mr. Tom Stubens, senior geologist with Micon International Ltd. Messrs. Jutras and Stubens are qualified persons as defined under National Instrument 43-101.

This mineral resource estimation exercise was primarily undertaken with the Vulcan^® software and utilities internally developed in GSLIB-type format at Deli, and with the Gemcom^® software and internally developed utilities at Baba and Fire Tower. The following sections outline the procedures undertaken to calculate the mineral resource.

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14.3.2 Drill Hole Data

The drill hole database is made of 538 holes with 516 holes in the Baba, Fire Tower, and Deli (BFTD) areas of interest. The previous mineral resource utilized a drill hole database made of 436 holes in the BFTD areas, representing an increase of 80 holes (or 18%) between the database cut-off dates of September 30, 2010, and February 28, 2011 for Deli, and September 30, 2011 for Baba and Fire Tower. All holes during these periods were drilled by Alamos.

From the 516 holes in the BFTD areas, 353 holes are DD holes and 163 holes are RC holes.

A total of 207 drill holes were located within the area of interest at Baba with 137 DD and 70 RC holes, 69 drill holes located within the area of interest at Fire Tower with 46 DD and 23 RC holes, and 211 drill holes located within the area of interest at Deli with 153 DD and 58 RC holes.

14.3.3 Drill Hole Data Statistics

The BFTD drill hole database is comprised of 516 holes with 60,947 assays for gold (Au in g/t) and silver (Ag in g/t). In the area of interest at Baba there are 207 drill holes with 25,144 assays for gold and silver. At Fire Tower there are 69 holes with 10,178 gold and silver assays in the modeled area. At Deli, there are 211 drill holes with 24,763 gold and silver assays in the interpreted area. A suite of 37 other elements analyzed by ICP is also available from the main database. Other geologic information recorded includes lithological units, alteration minerals (PIMA), oxidation states, core recoveries, and specific gravities.

Statistics on the drill hole database are presented in Figure 14-10, and on the drill holes utilized for the estimation of the mineral resources in Table 14-17. As seen in Figure 14-10, the average drill hole depth is 159.1 m in the BFTD area, with depths varying from 6.0 m (RC holes A-96 and A-97) to 430.0 m (DD hole AD-136). Sample lengths are also observed to be 1.31 m on average at Baba, Fire Tower, and Deli, with lengths varying from 0.05 m to 9.00 m. The most common sample length is 1.50 m followed by 1.00 m.

It is also noted that the average gold and silver grades of samples at elevated cut-offs is in general close to or more than twice the cut-off grade, indicating the presence of higher grade samples. Higher average gold and silver grades are observed at Deli, with lower gold and silver average grades observed at Baba, and lower gold grades and higher silver grades observed at Fire Tower. The silver to gold grade ratio is approximately 3.3:1 at Baba, 12.8:1 at Fire Tower, and 11.6:1 at Deli.

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Table 14-17 Drill Hole Summary Statistics – Baba, Fire Tower, and Deli Areas

	Baba	Fire  Tower	Deli	BFTD
Diamond Drill Holes
# holes	137	46	153	336
# assays	21,280	8,605	21,519	51,404
# meters	26,674.1	9,935.7	25,206.1	61,815.9
Reverse Circulation Holes
# holes	70	23	58	151
# assays	3,864	1,573	3,244	8,681
# meters	8,506.5	2,915.2	5,083.2	16,504.9
All Holes
# holes	207	69	211	487
# assays	25,144	10,178	24,763	60,085
# meters	35,180.6	12,850.9	30,289.3	78,320.8

Figure 14-10 Statistics on the Drill Hole Database in the Baba, Fire Tower and Deli Areas

After inspection of the average distances away from the closest hole and the related maximum grades it was concluded that no isolated hole(s) with high-grade values are present, and for such no related difficulties in the grade estimation process are anticipated.

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A final set of gold and silver grade statistics was calculated for the various geologic characteristics recorded: the lithology types, the oxidation state, and the alteration intensity (PIMA). From these statistics it is observed that the main controls on gold and silver mineralization are the oxidation state and the alteration intensity. In general a decreasing pattern of gold and silver average grades from oxide to transition to sulphide is observed in the different areas of interest. A similar decreasing pattern of average gold and silver grades is also observed with a decrease of alteration intensity (from vuggy silica to argillic). Lithologies associated with gold and silver mineralization appear to vary by area: breccia and rhyolite in Baba; dacite, breccia, and rhyolite in Fire Tower; dacite, breccia, and rhyolite in Deli. The breccia unit is the common lithology type associated with mineralization for all areas.

Location, Orientation, and Spacing of Drill Holes

The location of the drill holes is presented in Figure 14-11 for the Baba, Fire Tower, and Deli regions (note that north coordinates have been reduced by 4,000,000). As seen in this figure, although most of the drill holes are located within the areas of interest, drill holes in surrounding areas are also observed. The latter are however not part of the current study.

The drill hole density varies within the areas of interest with some zones more densely drilled than others. Statistics on drill hole spacing indicate an overall average distance of 47 m and median of 43 m in Baba, a mean distance of 92 m and median of 72 m in Fire Tower, a mean distance of 45 m and median of 40 m in Deli.

With regard to the orientation of the drill holes, the Baba, Fire Tower, and Deli regions were drilled with holes in few similar orientations. Vertical holes and holes oriented at azimuths of 130° and 310°, and dips between –55° and –75° are observed at Baba, Fire Tower, and Deli. Holes drilled at azimuths of 80° are also found at Baba, as well as at azimuths of 0°, 30°, 90°, 110°, 155°, 180°, 210°, 270°, and 335° at Deli.

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Figure 14-11 Drill Hole Location Map at Baba, Fire Tower, and Deli

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14.3.4 Geologic Modeling

The controls on mineralization were modeled into 3-D solids prior to grade interpolation. The lithology, alteration, and oxidation state units were interpreted on sections by Alamos’ geologic team. Sections were spaced at 50 m in Baba, Fire Tower, and Deli, and were oriented NW-SE at azimuths of 310°-130° for these areas. The geologic interpretations were completely re-built from first principals in Baba and Deli regions, while the Fire Tower area saw its first geologic interpretations. The lithologic units were modeled for geologic representation and understanding, while the oxidation state and alteration units were modeled as controls on mineralization to be utilized later on in the estimation of gold and silver grades. Table 14-18 shows the different geologic units modeled for each of the areas.

Table 14-18 Geologic Units Modeled for the Baba, Fire Tower, and Deli Areas

Geologic Features	Baba	Fire Tower	Deli
Lithology	andesite, dacite, breccia, schists, overburden	andesite, dacite, breccia, schists, overburden	andesite, dacite, breccia, mafic dykes, overburden
Alteration	argillic, advanced argillic, silicified, vuggy silica	argillic, advanced argillic, silicified, vuggy silica	argillic, advanced argillic, silicified, vuggy silica
Oxidation State	oxide, transition, sulphide	oxide, transition, sulphide	oxide, transition, sulphide
Other			high-grade zone

Each unit of the geologic features was modeled continuously from the southwestern end of Baba to the northeastern end of Deli in the Ağı Dağı area. The sectional interpretations were digitized by snapping in 3-D to the drill hole intercepts in the Gemcom^® software and were then linked in 3-D in the Vulcan^® and Leapfrog^® software. The resulting solids were later utilized in the compositing process of the drill hole samples and to tag the blocks with a specific rock code in the block model.

The high-grade gold mineralized zone found at Deli was included in the modeling process. This area outlines a difference in the distribution of gold mineralization that can be observed on several sections. At Deli, this higher grade zone is oriented along an east-west direction and departs from the main north-east trend. This mineralized zone appears to be related to a feeder structure identified in hole AD-212. In this case, further understanding of the geologic controls associated with this high-grade zone, is needed. No higher gold grade zones were observed at Baba or Fire Tower.

Examples of the lithology, alteration, and oxidation models at Baba, Fire Tower, and Deli, are shown in Figures 14-12, 14-13, and 14-14.

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Figure 14-12 Lithology Solids at Baba, Fire Tower and Deli – Looking to the North East

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Figure 14-13 Alteration Solids at Baba, Fire Tower and Deli

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Figure 14-14 Oxidation Solids at Baba, Fire Tower and Deli – Looking to the Northeast

Geologic Rock Codes

A set of rock codes were defined for each of the zones from the modeling of the various geologic controls on mineralization. These codes are from the combination of the various alteration and oxidation units by zone. Table 14-19 is a list of those codes for the Baba, Fire Tower, and Deli regions.

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Table 14-19 Rock Codes for the Baba, Fire Tower, and Deli Areas

Rock  Code	Description	Rock  Code	Description	Rock  Code	Description
Baba		Fire Tower		Deli
01	argillic-oxide	14	argillic-oxide	27	argillic-oxide
02	argillic-transition	15	argillic-transition	28	argillic-transition
03	argillic-sulphide	16	argillic-sulphide	29	argillic-sulphide
04	advanced argillic-oxide	17	advanced argillic-oxide	30	advanced argillic-oxide
05	adv. argillic-transition	18	adv. argillic-transition	31	adv. argillic-transition
06	adv. argillic-sulphide	19	adv. argillic-sulphide	32	adv. argillic-sulphide
07	silicified-oxide	20	silicified-oxide	33	silicified-oxide
08	silicified-transition	21	silicified-transition	34	silicified-transition
09	silicified-sulphide	22	silicified-sulphide	35	silicified-sulphide
10	vuggy silica-oxide	23	vuggy silica-oxide	36	vuggy silica-oxide
11	vuggy silica-transition	24	vuggy silica-transition	37	vuggy silica-transition
12	vuggy silica-sulphide	25	vuggy silica-sulphide	38	vuggy silica-sulphide
13	Overburden	26	overburden	39	high-grade zone-oxide
				40	high-grd zone-transition
				41	high-grd zone-sulphide
				42	overburden

The rock codes are in sequence from the Baba, Fire Tower, and Deli regions as they are part of one block model for the entire Ağı Dağı area

The topographic surfaces at Baba, Fire Tower, and Deli, were obtained from recently flown photogrammetric surveys. These surfaces are of greater precision than the previously utilized large-scale government topographic surfaces.

14.3.5 Compositing

The gold and silver assays from the original sample lengths were composited to regular 3.0 m intervals for each hole. The selection of this compositing length was based on the fact that many of the original samples were assayed on 1.0 m and 1.5 m lengths, with 3.0 m representing a common multiple. The 3.0 m composite length would also provide a good fit with the envisioned size of the blocks. The procedure consists of starting the compositing at the top edge of each rock type with continuous 3.0 m composite intervals down to the bottom edge of the rock unit. A total of 12,247 composites were generated in Baba, with 9,332 composites from 140 diamond drill holes (66.4%), and 2,915 composites from 71 reverse circulation holes (33.6%). At Fire Tower, a total of 4,310 composites were generated, with 3,356 composites from 44 diamond drill holes (66.7%), and 954 composites from 22 reverse circulation holes (33.3%). At Deli, a total of 11,020 composites were generated, with 9,080 composites from 146 diamond drill holes (71.2%), and 1,940 composites from 59 reverse circulation holes (28.8%). A summary of statistics on the composites from the Baba, Fire Tower, and Deli areas is presented in Table 14-20.

From this table it can be observed that the Deli area has the highest average gold grades, followed by Baba and Fire Tower (the lowest). The Deli area also has the highest silver grades, followed by Fire Tower and Baba (the lowest). It is also noted that all areas have more DDH holes than RC holes.

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Table 14-20 Drill Hole Composites Summary at Baba, Fire Tower, and Deli

Company	# of Holes	%	# of Composites	%	# of Meters	%	Average Au Grade g/t	Average Ag Grade g/t
Baba Area
All	211	100.0	12,247	100.0	36,406.5	100.0	0.20	0.60
Diamond Drill Holes	140	66.4	9,332	76.2	27,733.6	76.2	0.19	0.70
Reverse Circulation Holes	71	33.6	2,915	23.8	8,672.9	23.8	0.24	0.29
Fire Tower Area
All	66	100.0	4,310	100.0	12,801.5	100.0	0.11	0.83
Diamond Drill Holes	44	66.7	3,356	77.9	9,968.8	77.9	0.11	0.88
Reverse Circulation Holes	22	33.3	954	22.1	2,832.7	22.1	0.12	0.65
Deli Area
All	205	100.0	11,020	100.0	29,760.2	100.0	0.25	2.87
Diamond Drill Holes	146	71.2	9,080	82.4	24,532.5	82.4	0.24	2.81
Reverse Circulation Holes	59	28.8	1,940	17.6	5,227.7	17.6	0.33	3.15

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14.3.6 Exploratory Data Analysis (EDA)

A set of various statistical applications was utilized to provide a better understanding of the gold and silver grade populations within the mineralized zone.

Bivariate Statistics

A first step consisted in investigating the possible relationship of gold with other measured variables such as silver and core recovery.

Gold versus Silver

A set of scatterplots was generated to examine the possible relationship of gold with silver within the areas of interests at Baba, Fire Tower, and Deli. From this analysis it was noted that there are no correlations between gold and silver at Baba, with a correlation coefficient of 0.02. There is however a weak correlation noted between gold and silver at Fire Tower and Deli, with correlation coefficients of 0.14 and 0.32. These results could possibly be indicative of each area being at different levels of the epithermal system.

Gold versus Core Recovery

Lower core recoveries were recorded in Baba, Fire Tower, and Deli. The possibility of a link with gold grades was examined with scatterplots of paired gold and core recovery values in these four areas of interest. It was observed that gold grades are not correlated to core recoveries, with correlation coefficients of –0.04 in Baba, –0.05 in Fire Tower, and –0.01 in Deli. It is also observed that although these correlation coefficients are extremely low, there appears to be a very slight trend to have better recoveries associated with higher grades.

Core recovery averages for each area were also compared to the various geologic characteristics recorded, such as alteration, oxidation, and lithology units. It was observed that the core recovery is consistently related to the oxidation state throughout the different zones, with increasing recoveries from oxide to sulphide material. For the alteration units, decreasing core recoveries are consistently observed with increasing alteration intensities. For the lithology units, lower core recoveries were observed for dacite, overburden, and rhyolite.

Univariate Statistics

Basic statistics were performed on the gold and silver grades of the 3.0 m composites grouped by alteration/redox units for the Baba, Fire Tower, and Deli areas. Histograms and probability plots indicated that the gold and silver grade distributions resemble positively skewed lognormal populations in all areas.

The gold grade populations are in general well behaved on a per rock type basis, with reasonably low coefficients of variation (CV < 3.0) at Baba, Fire Tower, and Deli. The argillic-sulphide unit in Deli is the only rock type displaying a more heterogeneous behavior with a coefficient of variation greater than 3.0. It is quite interesting to notice the consistent pattern of increasing grades with increasing alteration intensity within each oxidation state throughout the three deposits.

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The silver grade populations are slightly more heterogeneous with a range of 1 to 4 units per area displaying higher coefficients of variation (CV > 3.0). The pattern of increasing grade with increasing alteration intensity per oxidation state can also be seen for the silver grades of the Deli area, where higher overall silver grades are noted.

A CV greater than 3.0 for gold or silver would be in general considered as high and would indicate a less homogeneous distribution. Often the higher CV value stems from higher grade outliers and the application of a grade capping strategy will reduce the coefficient of variation to levels of a more homogeneous grade distribution.

It is also observed that overall, the Deli area has the highest average gold grade followed by Baba, and Fire Tower. For silver the highest average grade is found at Deli followed by Fire Tower, and Baba. The silver averages at Baba are very low. The overall average ratios of silver to gold are: 3.4:1 at Baba, 8.4:1 at Fire Tower, and 11.5:1 at Deli.

Capping of High-Grade Outliers

It is common practice to statistically examine the higher grades within a population and to trim them to a lower grade value based on the results from specific statistical utilities. This procedure is performed on high grade values that are considered outliers and that cannot be related to any geologic feature. In the case at Baba, Fire Tower, and Deli, the gold and silver higher grades were examined with three different tools: the probability plot, decile analysis, and cutting statistics. Using various investigating methods allows a selection of the capping threshold in a more objective and justified manner. The resulting compilation of the capping thresholds is listed in Table 14-21 for gold and Table 14-22 for silver.

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Table 14-21 List of Capping Thresholds of Higher Gold Grade Outliers at Baba, Fire Tower, and Deli

	Baba				Fire Tower				Deli
Rock Type	Capping Threshold g/t	Metal Affected%	# Comps Capped	Rock Type	Capping Threshold g/t	Metal Affected %	# Comps Capped	Rock Type	Capping Threshold g/t	Metal Affected %	# Comps Capped
arg-ox	0.7	8.0	3	arg-ox	-	-	-	arg-ox	-	-	-
arg- mx	0.35	1.0	1	arg- mx	-	-	-	arg-mx	-	-	-
arg-su	-	-	-	arg-su	-	-	-	arg-su	0.9	2.0	2
adv- ox	6.0	2.0	2	adv-ox	-	-	-	adv-ox	1.5	2.0	2
adv- mx	3.0	3.0	2	adv- mx	1.1	2.0	2	adv-mx	5.0	1.0	1
adv- su	0.5	4.0	6	adv-su	-	-	-	adv-su	1.0	5.0	2
sil-ox	-	-	-	sil-ox	2.2	1.0	4	sil-ox	4.0	3.0	3
sil-mx	-	-	-	sil-mx	-	-	-	sil-mx	1.5	2.0	4
sil-su	-	-	-	sil-su	-	-	-	sil-su	-	-	-
vug- ox	-	-	-	vug-ox	2.5	0.5	1	vug-ox	3.5	1.0	3
vug- mx	2.0	4.0	6	vug- mx	1.5	3.0	1	vug-mx	-	-	-
vug- su	-	-	-	vug-su	-	-	-	vug-su	1.8	4.0	1
ovb	1.5	2.0	3	ovb	-	-	-	ovb	1.5	2.0	1
								hgz-ox	-	-	-
								hgz-mx	-	-	-

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Table 14-22 List of Capping Thresholds of Higher Silver Grade Outliers at Baba, Fire Tower, and Deli

	Baba				Fire Tower				Deli
Rock    Type	Capping Threshold g/t	Metal Affected %	# Comps Capped	Rock Type	Capping Threshold g/t	Metal Affected %	# Comps Capped	Rock Type	Capping Threshold g/t	Metal Affected %	# Comps Capped
arg-ox	-	-	-	arg-ox	-	-	-	arg-ox	-	-	-
arg- mx	-	-	-	arg- mx	-	-	-	arg-mx	20.0	20.0	4
arg-su	10.0	14.0	6	arg-su	-	-	-	arg-su	8.0	1.0	1
adv-ox	12.0	20.0	9	adv-ox	5.0	2.0	1	adv-ox	30.0	3.0	1
adv- mx	12.0	0.5	2	adv- mx	15.0	3.0	2	adv- mx	50.0	4.0	1
adv-su	12.0	1.0	2	adv-su	3.0	5.0	1	adv-su	25.0	4.0	1
sil-ox	12.0	0.5	1	sil-ox	30.0	55.0	5	sil-ox	50.0	4.0	2
sil-mx	12.0	0.5	1	sil-mx	-	-	-	sil-mx	-	-	-
sil-su	2.0	12.0	2	sil-su	3.0	25.0	2	sil-su	30.0	3.0	1
vug-ox	20.0	15.0	7	vug-ox	-	-	-	vug-ox	100.0	6.0	1
vug- mx	6.0	1.0	1	vug- mx	7.0	1.0	2	vug- mx	70.0	2.0	1
vug-su	5.0	22.0	1	vug-su	-	-	-	vug-su	-	-	-
ovb	10.0	25.0	1	ovb	-	-	-	ovb	7.0	3.0	1
								hgz-ox	-	-	-
								hgz- mx	-	-	-

Basic statistics were re-computed with the gold and silver grades capped to the thresholds listed in Tables 14-21 and 14-22. Boxplots of Figures 14-15 to 14-17 display the basic statistics resulting from the capping of the higher gold grade outliers, while Figures 14-18 to 14-20 display the basic statistics of the capped silver grades. It can be observed from those figures that the coefficients of variation are all below 3.0 for the different gold populations, except for the argillic-sulphide unit at Deli (CV=3.43). Similar observations are made for silver with overall low coefficients of variation, except for the overburden unit at Baba (CV=3.11), and the argillic-transition units at Deli (CV=3.11). The effect of the higher gold grade capping had a minimal effect on the average grades by area. At Baba, the overall mean gold grades were reduced by 1.1%, by 0.7% at Fire Tower, and by 1.1% at Deli. Stronger reductions of the overall average silver grades were noted by areas, with reductions of 10.2% at Baba, 43.8% at Fire Tower, and 3.0% at Deli. These larger decreases of average silver grades at Baba and Fire Tower are indications that few samples carry larger portions of the metal content in those regions.

Because of the generally low coefficients of variation for gold and silver, displaying good grade homogeneity, it can be concluded that there is no need to treat the higher grade composites differently for the lower grade composites during the estimate process.

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Figure 14-15 Basic Statistics of Capped Gold by Rock Type at Baba

Figure 14-16 Basic Statistics of Capped Gold by Rock Type at Fire Tower

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Figure 14-17 Basic Statistics of Capped Gold by Rock Type at Deli

Figure 14-18 Basic Statistics of Capped Silver by Rock Type at Baba

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Figure 14-19 Basic Statistics of Capped Silver by Rock Type at Fire Tower

Figure 14-20 Basic Statistics of Capped Silver by Rock Type at Deli

Declustering

In general there is a tendency to drill more holes in higher grade areas than in lower grade areas when delimiting an orebody. As a result, the higher grade portion of a deposit will be overly represented and would translate into a bias towards the higher grades when calculating statistical parameters of the

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population. Thus, a declustering method is utilized to generate a more representative set of statistical results within the zone of interest. In this case, a polygonal declustering technique was applied to the composites of the Baba, Fire Tower, and Deli areas. This approach consists of assigning the volume of a polygon, defined by the halfway distance between a sample and its surrounding neighbors, as a weight for each sample within the mineralized zone. Therefore, a sample that is isolated will have a larger weight than a sample located in a densely sampled area.

Comparison of average gold and silver capped and declustered grades with the capped and un-declustered gold and silver averages shows an overall reduction of the grade averages resulting from the declustering process. The average gold grades were reduced or kept similar from the declustering process, while the average silver grades were either increased or reduced by the same process. Greater reductions in average gold and silver grades are noted for the higher grade area of Deli. At Baba, a reduction of 22.1% of the mean gold grade and an increase of 15.1% of the mean silver grade are noted. At Fire Tower, very little or no clustering is observed for the gold grades with a slight increase of 1.6% of the mean gold grade, while the average silver grade increased by 27.8%. Stronger reductions are observed at Deli with decreases of 36.6% and 23.1% of average gold and silver grades.

The average grade from the declustered statistics provides an excellent comparison with the average grade of the interpolated blocks, as a way to assess any overall bias of the estimates.

14.3.7 Variography

A variographic analysis was carried out on the gold and silver composites within the different rock types at Baba, Fire Tower, and Deli. A similar approach, as described for the Kirazlı deposit in section 14.2.7, was adopted for the variographic analysis of the deposits in the Ağı Dağı area. For this exercise, all experimental variograms were of the type relative lag pairwise, which is considered robust for the assessment of grade continuity.

The resulting parameters of the modeled variograms are presented in Tables 14-23 and 14-24 for gold and Tables 14-25 and 14-26 for silver in the mineralized zones. The structure parameters were normalized to a sill of 1.0.

The directions of gold and silver grade continuity are in general agreement with the orientation of the mineralized zone. At Baba, Fire Tower and Deli, the orientations of greater continuity are trending to the northeast. It is noted that the better grade continuity in the high-grade zone at Deli is trending east-west, at an oblique angle to the main trend. The modeled variograms have relatively low nugget effects with values for gold varying from 4% to 43% of the sill, and from 5% to 29% of the sill for silver.

The experimental variograms are considered of acceptable quality overall. In the cases where too few samples were available, variogram models of similar or neighboring units were assigned. In a few instances, the units were grouped as one mineralized zone when similar or surrounding units didn’t have enough samples to calculate experimental variograms. Due to the lesser number of samples available at Fire Tower, samples from the same units at Baba and Fire Tower were grouped for the variographic analysis. The experimental variograms at Baba/Fire Tower, and Deli, were noted to be of sufficient quality in general; however it was noted that additional drilling at Fire Tower is needed to generate conclusive experimental variograms for each unit of this area.

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Table 14-23 Modeled Variogram Parameters for Gold at Baba/Fire Tower

argillic (oxide+transition+sulphide)

advanced argillic-oxide

advanced argillic-mixed

advanced argillic-sulphide

Parameters

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Azimuth1

40°

130°

40°

45°

135°

45°

50°

140°

50°

50°

140°

50°

Dip2

0°

0°

-90°

0°

0°

-90°

0°

10°

-90°

0°

0°

-90°

Nugget Effect3

0.16

0.24

0.12

0.21

1st Structure3

0.05

0.27

0.16

0.17

2nd Structure3

0.41

0.25

0.44

0.39

3rd Structure3

0.38

0.24

0.29

0.23

1st Range

41m

36m

11m

28m

9m

9m

20m

42m

5m

26m

11m

7m

2nd Range

79m

102m

37m

148m

56m

68m

99m

65m

20m

60m

23m

36m

3rd Range

217m

187m

338m

322m

315m

142m

226m

90m

587m

270m

87m

289m

silicified-oxide

silicified- transition+sulphide

vuggy-oxide

vuggy-transition+sulphide

Parameters

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Azimuth1

135°

225°

135°

45°

135°

45°

45°

135°

45°

40°

130°

40°

Dip2

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

Nugget  Effect3

0.25

0.19

0.43

0.32

1st Structure3

0.52

0.46

0.17

0.22

2nd Structure3

0.24

0.35

0.34

0.46

3rd Structure3

-

-

0.06

-

1st Range

19m

41m

25m

74m

20m

19m

30m

8m

21m

103m

28m

25m

2nd Range

142m

101m

181m

151m

74m

75m

83m

30m

68m

225m

156m

152m

3rd Range

-

-

-

-

-

-

179m

103m

163m

-

-

-

Overburden

Parameters

Principal

Minor

Vertical

Azimuth1

45°

135°

45°

Dip2

0°

0°

-90°

Nugget  Effect3

0.43

1st Structure3

0.11

2nd Structure3

0.24

3rd Structure3

0.22

1st Range

8m

7m

17m

2nd Range

66m

52m

58m

3rd Range

193m

77m

125m

July 31, 2012 Page 219

Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-24 Modeled Variogram Parameters for Gold Composites at Deli

argillic-sulphide (argillic-oxide / argillic- mixed)

advanced argillic-mixed (advanced argillic-oxide)

advanced argillic-sulphide

silicified-oxide

Parameters

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Azimuth1

30°

120°

30°

35°

125°

35°

35°

125°

125°

10°

100°

10°

Dip2

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

Nugget  Effect3

0.081

0.190

0.154

0.255

1st Structure3

0.407

0.511

0.489

0.335

2nd Structure3

0.513

0.299

0.357

0.410

1st Range

61.8m

15.6m

31.7m

40.5m

27.6m

16.8m

27.6m

17.9m

33.0m

23.8m

7.7m

17.4m

2nd Range

85.4m

43.6m

60.7m

68.5m

51.3m

28.6m

53.5m

34.1m

56.8m

68.2m

37.5m

54.5m

silicified-mixed (silica-sulphide)

vuggy silica-oxide

vuggy silica-mixed (vuggy silica-sulphide)

high-grade-oxide+mixed

Parameters

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Azimuth1

30°

120°

120°

15°

105°

15°

25°

115°

25°

100°

190°

100°

Dip2

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

Nugget  Effect3

0.265

0.167

0.186

0.098

1st Structure3

0.356

0.470

0.304

0.459

2nd Structure3

0.379

0.362

0.510

0.443

1st Range

22.2m

19.0m

11.4m

10.1m

8.5m

12.5m

24.4m

16.9m

16.9m

17.8m

10.3m

4.9m

2nd Range

81.7m

46.0m

32.0m

65.7m

30.3m

38.3m

68.8m

46.1m

39.6m

46.8m

25.3m

14.6m

Overburden

Parameters

Principal

Minor

Vertical

Azimuth1

20°

110°

20°

Dip2

0°

0°

-90°

Nugget  Effect3

0.038

1st Structure3

0.357

2nd Structure3

0.605

1st Range

19.9m

22.1m

4.3m

2nd Range

69.3m

47.9m

10.3m

¹  positive clockwise from north

²  negative below horizontal

³  normalized to a sill of 1.0

July 31, 2012 Page 220

Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-25 Modeled Variogram Parameters for Silver at Baba/Fire Tower

argillic (oxide+transition+sulphide)

advanced argillic-oxide

advanced argillic-mixed

advanced argillic-sulphide

Parameters

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Azimuth1

40°

130°

40°

45°

135°

45°

50°

140°

50°

35°

125°

35°

Dip2

0°

0°

-90°

0°

0°

-90°

0°

10°

-90°

0°

0°

-90°

Nugget  Effect3

0.22

0.21

0.13

0.25

1st Structure3

0.19

0.05

0.10

0.13

2nd Structure3

0.17

0.43

0.49

0.26

3rd Structure3

0.42

0.31

0.29

0.36

1st Range

11m

7m

17m

5m

9m

5m

15m

9m

15m

24m

12m

7m

2nd Range

48m

41m

111m

52m

44m

78m

52m

38m

126m

66m

33m

46m

3rd Range

93m

77m

249m

89m

73m

228m

93m

74m

268m

147m

75m

250m

silicified-oxide

silicified-transition+sulphide

vuggy-oxide

vuggy-transition+sulphide

Parameters

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Azimuth1

135°

225°

135°

45°

135°

45°

45°

135°

45°

40°

130°

40°

Dip2

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

Nugget  Effect3

0.27

0.21

0.19

0.29

1st Structure3

0.09

0.11

0.16

0.19

2nd Structure3

0.51

0.45

0.48

0.37

3rd Structure3

0.12

0.23

0.17

0.15

1st Range

30m

12m

21m

25m

17m

8m

11m

11m

24m

33m

13m

33m

2nd Range

103m

44m

201m

99m

72m

188m

40m

28m

127m

102m

48m

168m

3rd Range

156m

106m

264m

146m

117m

500m

97m

70m

491m

168m

95m

257m

Overburden

Parameters

Principal

Minor

Vertical

Azimuth1

45°

135°

45°

Dip2

0°

0°

-90°

Nugget  Effect3

0.24

1st Structure3

0.12

2nd Structure3

0.43

3rd Structure3

0.22

1st Range

6m

7m

7m

2nd Range

65m

49m

68m

3rd Range

93m

75m

89m

July 31, 2012 Page 221

Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-26 Modeled Variogram Parameters for Silver Composites at Deli

argillic-sulphide (argillic-oxide / argillic- mixed)

advanced argillic-mixed (advanced argillic-oxide)

advanced argillic-sulphide

silicified-oxide

Parameters

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Azimuth1

20°

110°

20°

20°

110°

20°

35°

125°

35°

45°

135°

135°

Dip2

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

Nugget Effect3

0.139

0.133

0.103

0.049

1st Structure3

0.302

0.381

0.442

0.161

2nd Structure3

0.559

0.486

0.455

0.790

1st Range

20.0m

16.8m

16.8m

44.8m

12.5m

5.4m

14.7m

12.5m

19.0m

14.1m

11.7m

14.5m

2nd Range

77.0m

42.6m

64.1m

79.2m

45.8m

38.8m

70.8m

43.8m

53.5m

64.8m

43.9m

54.7m

silicified-mixed (silica-sulphide)

vuggy silica-oxide

vuggy silica-mixed (vuggy silica-sulphide)

high-grade-oxide+mixed

Parameters

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Principal

Minor

Vertical

Azimuth1

50°

140°

140°

30°

120°

30°

55°

145°

55°

70°

160°

70°

Dip2

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

0°

0°

-90°

Nugget  Effect3

0.233

0.227

0.234

0.118

1st Structure3

0.333

0.164

0.312

0.265

2nd Structure3

0.434

0.609

0.454

0.617

1st Range

32.9m

25.4m

18.9m

20.6m

4.5m

14.1m

36.1m

18.9m

25.4m

23.0m

32.7m

4.9m

2nd Range

76.1m

47.0m

32.9m

64.9m

40.7m

27.0m

70.6m

38.3m

63.0m

69.0m

34.8m

16.6m

Overburden

Parameters

Principal

Minor

Vertical

Azimuth1

30°

120°

30°

Dip2

0°

0°

-90°

Nugget Effect3

0.033

1st Structure3

0.458

2nd Structure3

0.509

1st Range

23.2m

7.1m

2.8m

2nd Range

70.4m

33.9m

10.3m

¹  positive clockwise from north

²  negative below horizontal

³  normalized to a sill of 1.0

July 31, 2012 Page 222

Kirazlı and Ağı Dağı Gold Project Form 43-101

14.3.8 Gold and Silver Grade Estimate

The estimate of gold and silver grades into a block model was carried out with the ordinary kriging technique. A single block model encompassing the Baba, Fire Tower, and Deli areas was generated for those regions. Separate estimates were carried out for each of these deposits and grade estimates were independently generated for gold and silver. The estimate strategy and parameters were tailored to account for the various geometrical, geological, and geostatistical characteristics previously identified. The database of 3.0m capped gold and silver grade composites was utilized as input for the grade interpolation process.

The grid definition of the block model is presented in Table 14-27. It should be noted that the origin of the block model corresponds to the lower left corner, the point of origin being the exterior edge of the first block. A block size of 10 m (easting) x 10 m (northing) x 5 m (elevation) was selected to better reflect the geometrical configuration of the orebody and anticipated open pit production rate. The block model at Baba, Fire Tower, and Deli was rotated clockwise at an azimuth of 40°.

Table 14-27 Block Grid Definition at Baba, Fire Tower, and Deli

	Baba – Fire Tower - Deli
Coordinates	Origin     M	Rotation -         clockwise         (azimuth)	Distance     m	Block Size     m	Number of     Blocks
Easting (X)	493,605.0	40°	2,300.0	10.0	230
Northing (Y)	4,414,008.0		4,200.0	10.0	420
Elevation(Z)	200.0		900.0	5.0	180
Number of Blocks			17,388,000

The size and orientation of the search ellipsoid for the estimate process were based on the variogram parameters modeled for gold. Thus the data searching parameters for the estimation of silver were made the same as the ones selected for gold to ensure that every estimated block would have a gold and silver grade estimate and to avoid having gold estimates without silver estimates and vice versa. However, the modeled variogram parameters for silver were utilized for the weighing of the selected silver grade composites during the silver grade interpolation process.

At Baba and Fire Tower, a 3-pass approach was selected for grade estimation. The search distances of the first pass were based on the variogram ranges corresponding to approximately 50% of the sills (2/3 x 80% of sill), while the search distances of the second and third passes were increased by 1.5 times in each case. A minimum of 2 informed octants was required for the estimate. Details of the estimate parameters at Baba and Fire Tower are presented in Table 14-28.

At Deli, a 2-pass approach was selected for grade estimation. The search distances for the first pass were based on the second range of the variograms, while the search distances of the second pass were multiplied by 1.5. No other restrictions, such as a minimum number of informed octants, a minimum number of holes, a maximum number of samples per hole, etc., were applied to the estimate process. Details of the estimate parameters at Deli are presented in Table 14-29.

July 31, 2012 Page 223

Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-28 Estimation Parameters for Gold and Silver at Baba and Fire Tower

Rock Type	minimum # of samples	maximum # of samples	search ellipsoid – long axis - azimuth/dip	search ellipsoid – long axis - size	search ellipsoid – short axis - azimuth/dip	search ellipsoid – short axis - size	search ellipsoid – vertical axis - azimuth/dip	search ellipsoid –  vertical axis - size
1st pass
arg ox+mx+su	4	15	40°/0°	53.3	130°/0°	52.4	40°/-90°	53.3
aar-ox	4	15	45°/0°	53.3	135°/0°	30.2	45°/-90°	24.2
aar-mx	4	15	50°/0°	53.3	140°/0°	28.2	50°/-90°	53.3
aar-su	4	15	35°/0°	53.3	125°/0°	19.2	35°/-90°	41.6
si-ox	4	15	135°/0°	25.0	225°/0°	33.4	135°/-90°	32.4
si-mx+su	4	15	45°/0°	53.3	135°/0°	21.5	45°/-90°	21.4
vu-ox	4	15	45°/0°	40.9	135°/0°	14.0	45°/-90°	32.6
vu-mx+su	4	15	40°/0°	53.3	130°/0°	31.2	40°/-90°	30.1
ovb	4	15	45°/0°	52.4	135°/0°	36.3	45°/-90°	6.7
2nd pass
arg ox+mx+su	3	15	40°/0°	80.0	130°/0°	78.7	40°/-90°	80.0
aar-ox	3	15	45°/0°	80.0	135°/0°	45.3	45°/-90°	36.3
aar-mx	3	15	50°/0°	80.0	140°/0°	42.3	50°/-90°	80.0
aar-su	3	15	35°/0°	80.0	125°/0°	28.8	35°/-90°	62.4
si-ox	3	15	135°/0°	37.5	225°/0°	50.0	135°/-90°	48.5
si-mx+su	3	15	45°/0°	80.0	135°/0°	32.2	45°/-90°	32.1
vu-ox	3	15	45°/0°	61.4	135°/0°	21.0	45°/-90°	48.8
vu-mx+su	3	15	40°/0°	80.0	130°/0°	46.7	40°/-90°	45.1
ovb	3	15	45°/0°	78.6	135°/0°	54.5	45°/-90°	10.0
3rd pass
arg ox+mx+su	2	15	40°/0°	120.0	130°/0°	118.0	40°/-90°	120.0
aar-ox	2	15	45°/0°	120.0	135°/0°	67.9	45°/-90°	54.4
aar-mx	2	15	50°/0°	120.0	140°/0°	63.5	50°/-90°	120.0
aar-su	2	15	35°/0°	120.0	125°/0°	43.2	35°/-90°	93.6
si-ox	2	15	135°/0°	56.3	225°/0°	75.1	135°/-90°	72.8
si-mx+su	2	15	45°/0°	120.0	135°/0°	48.3	45°/-90°	48.1
vu-ox	2	15	45°/0°	92.1	135°/0°	31.5	45°/-90°	73.3
vu-mx+su	2	15	40°/0°	120.0	130°/0°	70.1	40°/-90°	67.6
ovb	2	15	45°/0°	117.9	135°/0°	81.7	45°/-90°	15.1

July 31, 2012 Page 224

Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-29 Estimation Parameters for Gold and Silver at Deli

Rock Type	minimum # of samples	maximum # of samples	search ellipsoid – long axis - azimuth/dip	search ellipsoid – long axis - size	search ellipsoid – short axis - azimuth/dip	search ellipsoid – short axis - size	search ellipsoid – vertical axis - azimuth/dip	search ellipsoid – vertical axis - size
ar-ox	2	12	25°/0°	77.0	115°/0°	48.0	25°/-90°	23.0
ar-mx	2	12	25°/0°	77.0	115°/0°	48.0	25°/-90°	23.0
ar-su	2	12	10°/0°	76.0	100°/0°	47.0	10°/-90°	53.0
ad-ar-ox	2	12	30°/0°	90.0	120°/0°	53.0	30°/-90°	31.0
ad-ar-mx	2	12	15°/0°	82.0	105°/0°	44.0	15°/-90°	54.0
ad-ar-su	2	12	10°/0°	61.0	100°/0°	39.0	10°/-90°	47.0
si-ox	2	12	0°/0°	75.0	90°/0°	37.0	0°/-90°	23.0
si-mx	2	12	0°/0°	70.0	90°/0°	38.0	0°/-90°	27.0
si-su	2	12	0°/0°	70.0	90°/0°	38.0	0°/-90°	27.0
hg-ox	2	12	120°/0°	72.0	210°/0°	47.0	120°/-90°	54.0
hg-mx	2	12	120°/0°	72.0	210°/0°	47.0	120°/-90°	54.0
hg-su	2	12	120°/0°	72.0	210°/0°	47.0	120°/-90°	54.0
ovb	2	12	10°/0°	58.0	100°/0°	36.0	10°/-90°	18.0

Hard boundaries were utilized between the different units, as suggested by an analysis of the gold and silver grade behavior at the vicinity of the different boundaries (contact plots). A soft boundary was kept between the same units across the area boundaries at Ağı Dağı (Baba-Fire Tower, Fire Tower-Deli), since these limits are somewhat arbitrary.

14.3.9 Validation of Grade Estimates

Validation tests were carried out on the estimates to examine the possible presence of a bias and to quantify the level of smoothing/variability.

Visual Inspection

A visual inspection of the block estimates with the drill hole grades on plans, northwest-southeast and southwest-northeast cross-sections was performed as a first check of the estimates. Observations from stepping through the estimates along the different planes indicated that there was overall a good agreement between the drill hole grades and the estimates. The orientations of the estimated grades were also according to the projection angles defined by the search ellipsoid. Examples of longitudinal cross-sections for gold grade estimates are presented in Figures 14-21 to 14-23, for the Baba, Fire Tower, and Deli deposits.

July 31, 2012 Page 225

Kirazlı and Ağı Dağı Gold Project Form 43-101

Figure 14-21 Northeast-Southwest Cross-Section – Looking to the Northwest

Gold Block Grade Estimates and Drill Hole Grades at Baba

July 31, 2012 Page 226

Kirazlı and Ağı Dağı Gold Project Form 43-101

Figure 14-22 Northeast-Southwest Cross-Section – Looking to the Northwest

Gold Block Grade Estimates and Drill Hole Grades at Fire Tower

July 31, 2012 Page 227

Kirazlı and Ağı Dağı Gold Project Form 43-101

Figure 14-23 Northeast-Southwest Cross-Section – Looking to the Northwest

Gold Block Grade Estimates and Drill Hole Grades at Deli

Global Bias Test

The comparison of the average gold and silver grades from the declustered composites and the estimated block grades examines the possibility of a global bias of the estimates. As a guideline, a difference between the average gold and silver grades of more than ± 10% would indicate a significant over- or under-estimation of the block grades and the possible presence of a bias. It would be a sign of difficulties encountered in the estimation process and would require further investigation.

Results of this average gold and silver grade comparison are presented in Table 14-30 for the Baba, Fire Tower, and Deli areas.

As seen in Table 14-30, the average gold and silver grades between the declustered composites and the block estimates are similar and within the tolerance levels of acceptability. It is thus concluded that no global bias is present in the gold and silver grade estimates.

July 31, 2012 Page 228

Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-30 Average Gold and Silver Grade Comparison – Polygonal-Declustered Composites with

Block Estimates – Baba, Fire Tower, and Deli

Baba
	Gold		Silver
Stats	Declustered Composites	Block Estimates	Declustered Composites	Block Estimates
Avg Grade g/t	0.156	0.143	0.705	0.774
Difference	-8.3%		+9.7%
Fire Tower
	Gold		Silver
Stats	Declustered Composites	Block Estimates	Declustered Composites	Block Estimates
Avg Grade g/t	0.117	0.112	1.092	1.084
Difference	-4.3%		-0.7%
Deli
	Gold		Silver
Stats	Declustered Composites	Block Estimates	Declustered Composites	Block Estimates
Avg Grade g/t	0.158	0.153	2.108	2.046
Difference	-3.2%		-2.9%

Grade Profile Reproducibility

The comparison of the grade profiles of the declustered composites with that of the estimates allows for a visual verification of an over- or under-estimation of the block estimates at the global and local scales. A qualitative assessment of the smoothing/variability of the estimates can also be observed from the plots. Grade profiles are presented in Figures 14-24 to 14-26 for gold and silver at Baba, Fire Tower, and Deli.

From the plots of Figures 14-24, 14-25, and 14-26, it can be seen that the grade profiles of the declustered composites are well reproduced by those of the block estimates and consequently that no global or local bias is observed. As anticipated, some smoothing of the block estimates can be seen in the profiles, where estimated grades are higher in lower grade areas and lower in higher grade areas. To assess the level of smoothing of the estimates, further investigation is required (section on “Level of Smoothing/Variability”).

July 31, 2012 Page 229

Kirazlı and Ağı Dağı Gold Project Form 43-101

Figure 14-24 Grade Profiles of Declustered Composites and Block Estimates for Gold and Silver at Baba

July 31, 2012 Page 230

Kirazlı and Ağı Dağı Gold Project Form 43-101

Figure 14-25 Grade Profiles of Declustered Composites and Block Estimates for Gold and Silver at Fire Tower

July 31, 2012 Page 231

Kirazlı and Ağı Dağı Gold Project Form 43-101

Figure 14-26 Grade Profiles of Declustered Composites and Block Estimates for Gold and Silver at Deli

July 31, 2012 Page 232

Kirazlı and Ağı Dağı Gold Project Form 43-101

Naive Cross-Validation Test

A comparison of the grade from composites within a block with the estimated grade of that block provides an assessment of the estimation process close to measured data. Pairing of these grades on a scatterplot gives a statistical valuation of the estimates. It is anticipated that the estimated block grades should be similar to the composited grades within the block, however, without being of exactly the same value. Thus a high correlation coefficient will indicate satisfactory results in the interpolation process, while a medium to low correlation coefficient will be indicative of larger differences in the estimates and would suggest a further review of the interpolation process. Results from the pairing of composited and estimated grades within blocks pierced by a drill hole are presented in Table 14-31 for gold and silver at Baba, Fire Tower, and Deli.

As seen in Table 14-31 for both gold and silver, the block grade estimates are very similar to the composite grades within blocks pierced by a drill hole, with high correlation coefficients, indicating satisfactory results from the estimate process.

Table 14-31 Gold and Silver Grade Comparison for Blocks Pierced by a Drill Hole – Paired Composites Grades with Block Grade Estimates – Baba, Fire Tower, and Deli

		Baba
Data	Gold		Silver
	Average Gold Grade       g/t	Correlation     Coefficient	Average Gold Grade       g/t	Correlation     Coefficient
Composites	0.213	0.880	0.785	0.899
Block Estimates	0.210		0.795
Fire Tower
Data	Gold		Silver
	Average Gold Grade       g/t	Correlation     Coefficient	Average Gold Grade       g/t	Correlation     Coefficient
Composites	0.138	0.849	1.166	0.825
Block Estimates	0.141		1.187
		Deli
Data	Gold		Silver
	Average Gold Grade       g/t	Correlation     Coefficient	Average Gold Grade       g/t	Correlation     Coefficient
Composites	0.255	0.929	2.853	0.941
Block Estimates	0.254		2.866

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Kirazlı and Ağı Dağı Gold Project Form 43-101

Level of Smoothing/Variability

The level of smoothing/variability of the estimates can be measured by comparing a theoretical distribution of block grades with that of the actual estimates. A description of the methodology is provided in the corresponding section of the Kirazlı deposit.

Results of the level of smoothing/variability analysis are presented in Table 14-32 for gold and silver. As observed in this table, the CVs of the estimates for both gold and silver are in general slightly less or within the target difference range of -5 to -15%. The gold and silver estimates in Fire Tower and the gold estimate in Deli display slightly higher CVs and are indications of a slightly higher level of variability of the estimates. A possible measure to reduce this observed variability would be to include more samples at the grade estimation stage. However, based on the fact that these levels of variability are not severe, they are considered acceptable. The gold and silver estimates at Baba and the silver estimates in Deli are within the range of acceptability and thus indicate a satisfactory level of smoothing.

Table 14-32 Level of Smoothing/Variability of Gold and Silver Estimates – Baba, Fire Tower, and Deli

Baba
Element	CV – Theoretical Block Grade Distribution	CV – Actual Block Grade Distribution	Difference
Gold	1.878	1.641	-12.6%
Silver	1.055	0.967	-8.3%
Fire Tower
Element	CV – Theoretical Block Grade Distribution	CV – Actual Block Grade Distribution	Difference
Gold	1.172	1.193	+1.8%
Silver	0.919	0.967	+5.2%
Deli
Element	CV – Theoretical Block Grade Distribution	CV – Actual Block Grade Distribution	Difference
Gold	2.471	2.535	+2.6%
Silver	2.333	2.191	-6.1%

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Kirazlı and Ağı Dağı Gold Project Form 43-101

14.3.10 Resource Classification

The mineral resource was classified as measured, indicated, and inferred. Different classification criteria were utilized for the Baba/Fire Tower estimates and the Deli estimates.

At Baba and Fire Tower, the delineation of measured, indicated, and inferred resources was based on a distance of the block center to the nearest samples used in the estimating the block grade. This distance is expressed as a fraction of the first pass search radius (Table 14-33) and based on the variogram models. As well the measured and indicated portion of the resource was identified by generating wireframes of contiguous masses from more densely drilled areas. The classification conditions were also dependent on the oxidation state (redox model). No measured estimates were outlined at Fire Tower and in the sulphide zone at Baba.

Table 14-33 Classification Distances at Baba and Fire Tower

Oxidation State	Classification	Baba	Fire Tower
	Measured	£ 0.75 × 1st pass search	-
Oxide	Indicated	> 0.75 × 1st pass search and £ 1.5 × 1st pass search	< 1.5 × 1st pass search
	Inferred	> 1.5 × 1st pass search	> 1.5 × 1st pass search
	Measured	£ 0.75 × 1st pass search	-
Transition	Indicated	> 0.75 x 1st pass search and £ 1.5 × 1st pass search	< 1.5 × 1st pass search
	Inferred	> 1.5 × 1st pass search	> 1.5 × 1st pass search
	Measured	-	-
Sulphide	Indicated	< 1.5 × 1st pass search	< 1.5 × 1st pass search
	Inferred	> 1.5 × 1st pass search	> 1.5 × 1st pass search

At Deli, the selection of measured, indicated, and inferred estimates was based on the average distance of the drill hole composites from the center of the estimated blocks. For each rock unit a specific classification distance was determined based on the first and second ranges of the variograms, as well as the understanding acquired by the geologic team. The resulting classification distances are presented in Table 14-34 for each Deli’s alteration unit.

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Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-34 Classification Distances at Deli

Alteration Code	Measured Distance m	Indicated Distance  m	Inferred Distance m
01 - Argillic	£  10.0	£  50.0	>50.0
02 – Advanced Argillic	£ 10.0	£ 50.0	>50.0
03 - Silicified	£ 10.0	£ 45.0	>45.0
04 – High-Grade Zones	£ 10.0	£ 50.0	>50.0
05 - Overburden	£ 10.0	£ 40.0	>40.0

14.3.11 Mineral Resource Calculation

The mineral resource was calculated for 10 m (X) × 10 m (Y) × 5 m (Z) blocks with variable specific gravity (SG) values.

At Baba and Fire Tower, an SG model was estimated utilizing the search parameters corresponding to the 2nd pass of the gold estimates. In areas where no SG estimate was calculated, the average SG value per alteration/oxidation domain was assigned. A total of 3,505 density measurements were made by Alamos in the Baba and Fire Tower areas.

At Deli, the average SG value by alteration/oxidation unit was allocated to each block in the model. These averages were derived from 880 density measurements by Alamos.

The average SG values by alteration/oxidation unit at Baba, Fire Tower, and Deli utilized for the resource’s tonnage calculation are presented in Table 14-35.

Table 14-35 Average Specific Gravity Values by Alteration and Oxidation Types at Baba, Fire Tower, and Deli

Rock Type	Baba  / Fire Tower	Deli	Rock  Type	Baba  / Fire Tower	Deli
arg-ox	2.18	2.05	sil-su	2.68	2.42
arg-mx	2.42	2.45	vug-ox	2.31	2.40
arg-su	2.54	2.55	vug-mx	2.34	2.35
adv-ox	2.34	2.35	vug-su	2.48	2.52
adv-mx	2.44	2.53	hgz-ox	-	2.45
adv-su	2.60	2.54	hgz-mx	-	2.51
sil-ox	2.33	2.41	hgz-su	-	2.51
sil-mx	2.41	2.39	ovb	2.30	2.44

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Kirazlı and Ağı Dağı Gold Project Form 43-101

The geologic wireframes (alteration and oxidation states) were extended above topography in the modeling process to ensure that all blocks near the topography surface would be estimated. Following the gold and silver grade estimation, the block models were edited to the topography surface. In this procedure the percentage of rock within each block was kept in a separate variable in the grade model, which was then used for the tonnage calculations.

To ensure that the mineral resource has a reasonable expectation of economic extraction, as required by the NI 43-101 regulations, an “optimistic” open pit was optimized on the block model. A price of $1250.00/oz for gold and $22.50/oz for silver, an overall pit slope of 38°, with the February 2012 operating costs and recoveries, without sulphide credits, were utilized for this procedure.

The mineral resource of gold and silver is reported at various gold grade cut-offs for oxide+transition material in Table 14-36 at Baba, Table 14-37 at Fire Tower, in Table 14-38 at Deli, and in Table 14-39 for the Ağı Dağı area (Baba + Fire Tower + Deli). At a 0.2 g/t gold cut-off, the measured and indicated mineral resource at Ağı Dağı is 79,366,000 tonnes at 0.59 g/t gold and 3.32 g/t silver for a total of 1,509,800 oz of gold and 8,478,700 oz of silver. The inferred resource at a 0.20 g/t gold cut-off is 20,861,000 tonnes at 0.53 g/t gold and 2.86 g/t silver for a total of 355,800 oz of gold and 1,920,400 oz of silver.

It should be noted that the mineral resources presented in this section are inclusive of resources within the mine plan.

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Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-36 Oxide + Transition Mineral Resource* at Various Gold Grade Cut-Offs at Baba

				Oxide + Transition
	Measured					Indicated
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content Oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	26,917,000	0.41	353,100	0.78	672,100	34,333,000	0.39	434,700	0.67	740,200
0.2	19,453,000	0.51	317,500	0.84	527,600	22,540,000	0.53	385,700	0.79	571,500
0.4	9,448,000	0.74	226,100	0.95	288,300	10,621,000	0.79	270,300	0.97	332,400
0.6	4,528,000	1.03	150,400	1.01	146,500	5,536,000	1.08	191,800	1.03	183,800
0.8	2,524,000	1.31	106,400	1.08	87,300	3,122,000	1.38	138,400	1.10	110,100
1.0	1,555,000	1.57	78,600	1.08	53,800	1,891,000	1.70	103,300	1.10	66,800
	Measured + Indicated					Inferred
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content Oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	61,250,000	0.40	787,700	0.72	1,412,200	11,999,000	0.32	123,100	0.51	198,200
0.2	41,993,000	0.52	703,300	0.81	1,099,100	7,808,000	0.42	104,800	0.61	151,900
0.4	20,069,000	0.77	496,400	0.96	620,700	2,806,000	0.64	57,400	0.90	81,200
0.6	10,064,000	1.06	342,200	1.02	330,300	1,121,000	0.87	31,300	1.30	47,000
0.8	5,646,000	1.35	244,800	1.09	197,500	470,000	1.11	16,700	1.82	27,500
1.0	3,446,000	1.64	181,900	1.09	120,600	234,000	1.34	10,100	2.28	17,200

* mineral resources’ tonnage and metal content have been rounded to the nearest thousand and hundred, respectively

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Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-37 Oxide + Transition Mineral Resource* at Various Gold Grade Cut-Offs at Fire Tower

				Oxide + Transition
	Measured					Indicated
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	-	-	-	-	-	4,136,000	0.33	44,500	2.11	280,000
0.2	-	-	-	-	-	2,524,000	0.45	36,300	2.27	184,100
0.4	-	-	-	-	-	1,067,000	0.67	23,000	2.82	96,700
0.6	-	-	-	-	-	489,000	0.88	13,800	3.33	52,300
0.8	-	-	-	-	-	240,000	1.08	8,400	3.69	28,500
1.0	-	-	-	-	-	131,000	1.25	5,300	3.83	16,100
	Measured + Indicated					Inferred
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	4,136,000	0.33	44,500	2.11	280,000	7,899,000	0.34	86,000	0.46	116,800
0.2	2,524,000	0.45	36,300	2.27	184,100	5,897,000	0.41	77,600	0.41	77,500
0.4	1,067,000	0.67	23,000	2.82	96,700	2,088,000	0.62	41,500	0.41	27,600
0.6	489,000	0.88	13,800	3.33	52,300	716,000	0.87	20,000	0.71	16,300
0.8	240,000	1.08	8,400	3.69	28,500	391,000	1.05	13,200	0.52	6,500
1.0	131,000	1.25	5,300	3.83	16,100	212,000	1.22	8,300	0.65	4,400

* mineral resources’ tonnage and metal content have been rounded to the nearest thousand and hundred, respectively

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Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-38 Oxide + Transition Mineral Resource* at Various Gold Grade Cut-Offs at Deli

				Oxide + Transition
	Measured					Indicated
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	1,335,000	0.66	28,400	6.36	272,900	49,669,000	0.51	812,000	5.14	8,211,600
0.2	923,000	0.90	26,700	8.05	239,000	33,926,000	0.68	743,600	6.38	6,956,500
0.4	524,000	1.36	23,000	11.80	198,800	16,293,000	1.10	576,900	9.48	4,964,100
0.6	354,000	1.78	20,300	15.11	172,000	8,349,000	1.70	457,200	13.76	3,693,000
0.8	273,000	2.11	18,500	17.56	154,200	5,608,000	2.20	396,100	17.13	3,088,300
1.0	204,000	2.51	16,500	21.41	140,400	3,931,000	2.75	347,900	21.25	2,685,700
	Measured + Indicated					Inferred
Au Cut-Off g/t	Tonnage tonnes	Au  Grade g/t	Au  Content oz	Ag  Grade g/t	Ag  Content oz	Tonnage tonnes	Au  Grade g/t	Au  Content oz	Ag  Grade g/t	Ag Content oz
0.1	51,004,000	0.51	840,400	5.17	8,484,400	10,225,000	0.57	188,300	5.78	1,901,100
0.2	34,849,000	0.69	770,300	6.42	7,195,500	7,156,000	0.75	173,400	7.35	1,690,900
0.4	16,817,000	1.11	599,900	9.55	5,162,900	3,211,000	1.32	136,800	12.41	1,281,600
0.6	8,703,000	1.71	477,500	13.81	3,865,000	1,545,000	2.24	111,400	21.03	1,044,800
0.8	5,881,000	2.19	414,700	17.15	3,242,400	1,038,000	3.01	100,500	28.96	966,400
1.0	4,135,000	2.74	364,400	21.26	2,826,100	873,000	3.41	95,600	33.33	935,400

* mineral resources’ tonnage and metal content have been rounded to the nearest thousand and hundred, respectively

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Kirazlı and Ağı Dağı Gold Project Form 43-101

Table 14-39 Oxide + Transition Mineral Resource* at Various Gold Grade Cut-Offs at Baba + Fire Tower + Deli

				Oxide + Transition
			Measured					Indicated
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content Oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	28,252,000	0.42	381,400	1.04	944,900	88,138,000	0.46	1,291,200	3.26	9,231,700
0.2	20,376,000	0.53	344,200	1.17	766,600	58,990,000	0.61	1,165,600	4.07	7,712,100
0.4	9,972,000	0.78	249,100	1.52	487,200	27,981,000	0.97	870,200	5.99	5,393,100
0.6	4,882,000	1.09	170,700	2.03	318,600	14,374,000	1.43	662,800	8.50	3,929,000
0.8	2,797,000	1.39	124,900	2.69	241,500	8,970,000	1.88	543,000	11.19	3,226,800
1.0	1,759,000	1.68	95,100	3.43	194,200	5,953,000	2.38	456,500	14.47	2,768,600
	Measured + Indicated							Inferred
Au Cut-Off g/t	Tonnage tonnes	Au Grade g/t	Au Content Oz	Ag Grade g/t	Ag Content oz	Tonnage tonnes	Au Grade g/t	Au Content oz	Ag Grade g/t	Ag Content oz
0.1	116,390,000	0.45	1,672,600	2.72	10,176,700	30,123,000	0.41	397,300	2.29	2,216,100
0.2	79,366,000	0.59	1,509,800	3.32	8,478,700	20,861,000	0.53	355,800	2.86	1,920,400
0.4	37,953,000	0.92	1,119,200	4.82	5,880,300	8,105,000	0.90	235,700	5.34	1,390,400
0.6	19,256,000	1.35	833,500	6.86	4,247,600	3,382,000	1.50	162,700	10.19	1,108,100
0.8	11,767,000	1.77	667,800	9.17	3,468,300	1,899,000	2.14	130,500	16.39	1,000,400
1.0	7,712,000	2.22	551,500	11.95	2,962,900	1,319,000	2.69	114,000	22.57	957,000

* mineral resources’ tonnage and metal content have been rounded to the nearest thousand and hundred, respectively

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Kirazlı and Ağı Dağı Gold Project Form 43-101

14.3.12 Mineral Resource Comparison

The Ağı Dağı pre-feasibility mineral resource estimate was compared to the 2010 year-end mineral resources, which was the latest previously reported resources. Corresponding results for the two mineral resources are presented at a 0.2 g/t Au cut-off in Table 14-40. In both cases, the mineral resources are pit constrained and include only oxide and transition material. The 2012 pre-feasibility resource is contained within an optimized pit at $1,250/oz Au and $22.50/oz Ag metal prices, while the December 31, 2010 resource is contained within an optimized pit at $1,025/oz Au and $16.25/oz Ag metal prices. Considering the difference in metal prices and the additional drilling at Ağı Dağı, it can be seen that from this comparison, the metal content of the measured and indicated resource has increased by a factor of 1.10 for gold and 1.15 for silver. Similarly, the metal content of the inferred resource was increased by a factor of 1.34 for gold and 1.74 for silver.

Table 14-40 Mineral Resources* Comparison at a 0.2 g/t Gold Cut-Off – Ağı Dağı

		2012 Pre- Feasibility					December 31, 2010
Mineral Resources	Tonnage K tonnes	Au grade g/t	Ag grade g/t	Au content M oz	Ag content M oz	Tonnage K tonnes	Au grade g/t	Ag grade g/t	Au content M oz	Ag content M oz
Measured	20,376	0.53	1.17	0.344	0.767	-	-	-	-	-
Indicated	58,990	0.61	4.07	1.166	7.712	68,783	0.62	3.32	1.374	7.352
M+I	79,366	0.59	3.32	1.510	8.479	68,783	0.62	3.32	1.374	7.352
Inferred	20,861	0.53	2.86	0.356	1.920	16,576	0.50	2.07	0.266	1.102

* mineral resources’ tonnage, grade, and metal content have been rounded

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Kirazlı and Ağı Dağı Gold Project NI 43-101

15. MINERAL RESERVE ESTIMATE

No mineral reserve is declared at this time for the Kirazli and Agi Dagi Projects based on the Alamos Gold’s corporate policy. A statement from corporate management to this effect is presented below.

While the Company expects to ultimately receive all permits and other regulatory approvals required in association with the projects, given the Company’s limited exposure to the permitting process and regulatory regimes for mining projects in Turkey, as well as the Company’s lack of an operating history in the jurisdiction, the Company has elected at this stage to classify these ounces as Resources for purposes of NI 43-101, rather than Reserves. The Company fully expects to convert the appropriate portion of the Resources to NI 43-101 compliant Reserves promptly following receipt of key operational permits for the projects.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

16. MINING METHODS

The mining activity for the project is in two unique locations with Kirazlı located approximately 19 kilometers northwest of Ağı Dağı. Mining of the Kirazlı and Ağı Dağı (Baba and Deli pits) deposits will be done by open pit methods utilizing a traditional drill, blast, load and haul sequence to deliver ore to the primary crusher and the waste to waste dumps, for pit backfill and / or as Heap Leach Facility foundation fill.

IMC developed the mine plan and production schedule for the PFS and has estimated the mine equipment fleet requirements to mine and deliver the ore and waste tonnages to the appropriate locations. The owner owned and operated mining equipment fleet capital and operating costs have been calculated and are included in Appendix 10-1 to the PFS report. Alamos elected to use contract mining instead of owner-operated for the financial analysis in the PFS Report (Section 21.4). Alamos estimated the contract mining costs, based on preliminary cost estimates from Turkish contractors. IMC has briefly reviewed the estimates which bracket the IMC mining cost estimate and believes it is reasonable to incorporate contract mining in the PFS.

The Kirazli and Agi Dagi mine plans and production schedules are based on measured and indicated mineral resources within designed open pits. In this report section, the terms ‘ore’ and ‘waste’ are used to distinguish materials that will be delivered to the primary crusher for processing (ore) and material that does not have economic value based on the input assumptions used in this report (waste). The use of these terms does not imply that a mineral reserve has been defined within the context of the CIM definitions or NI 43-101.

16.1 Geotechnical Considerations

Call & Nicholas, Inc. provided slope angles for the Baba, Deli and Kirazlı Pits. The recommended slope angles and step out requirements were provided to IMC for the pre-feasibility pit designs. Slope angles range from 18 to 42 degrees (from horizontal) and the step outs required in some areas range from 25 m to 45 m. The step outs are needed for stability purposes in areas where the clay geotechnical material type is in the lower half of the pit slope. The basis for this work is presented in CNI’s report Prefeasibility Slope Angles and Fragmentation Distributions for the Baba, Deli, and Kirazlı Pits. The slope angles are based on a 1 in 100 year seismic event from Golder Associates 2010 seismic hazard report Seismic Hazard Analysis, Ağı Dağı and Kirazlı Prospect Sites, and Golder Associates phreatic interpretation (Hydrogeological Model of Ağı Dağı Gold Mine Project, 2012). Golder Associates has updated the seismic risk hazard which has been reduced after CNI completed the slope analysis; when the pit slope are reanalyzed during final designs using Golder’s 2012 updated seismic hazard study, then slope angles could be steepened by 1 to 3 degrees and/or the step-outs could be reduced.

After mining is complete and the bottom of the pits are filled to prevent a lake from forming, the exposed slopes for the Baba and Deli pits will require either additional backfill or barricading to prevent access. The Kirazlı pit has adequate factors of safety for a 1 in 475 year seismic event; therefore no additional work is necessary at closure.

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Kirazlı and Ağı Dağı Gold Project NI 43-101

16.2 Dilution Modeling and Factors

The mine plan tonnage and grade are based on the resource model described in Section 14 and the production schedule is the sum of the resource within the mine plans presented in Section 15. At this time, no additional dilution factors or mining losses have been applied to the resource within the mine plan to develop the mine production schedule.

16.3 Open Pit Definition

The resources within pit designs are based on 5 m bench height to match the mineral resource model bench height. The resource tonnages included in this section are a sub-set of the mineral resource presented in Section 14. Table 16-1 is a summary of the resources within the mine plan for Kirazlı and Ağı Dağı and Figures 16-1 through 16-4 illustrate the final pit designs.

Table 16-1 Open Pit Mine Plan Mineral Resource

		Tonnage & Grade > + $0.10/t Net Value Cutoff
				Net Value		Gold		Silver		Recov Au		Recov Ag		Contained Oz.			Recoverable Oz.
Deposit	Class		ktonnes		$/t		g/t		g/t		g/t		g/t		Gold	Silver		Gold	Silver
Kirazli	Measured		738		37.62		1.30		15.86		1.08		4.41		30,763	376,395		25,545	104,594
Agi Dagi	Measured		17,518		12.00		0.52		1.16		0.42		0.26		290,957	651,119		238,778	147,958
Total	Measured		18,256		13.04		0.55		1.75		0.45		0.43		321,720	1,027,514		264,323	252,552
Kirazli	Indicated		24,861		18.98		0.73		11.63		0.59		3.63		583,248	9,295,713		468,604	2,901,857
Agi Dagi	Indicated		51,622		13.67		0.57		4.03		0.46		1.05		942,312	6,687,543		770,263	1,746,526
Total	Indicated		76,483		15.40		0.62		6.50		0.50		1.89		1,525,560	15,983,256		1,238,867	4,648,383
Kirazli	Sum M&I		25,599		19.52		0.75		11.75		0.60		3.65		614,011	9,672,108		494,149	3,006,451
Agi Dagi	Sum M&I		69,140		13.25		0.55		3.30		0.45		0.85		1,233,269	7,338,662		1,009,041	1,894,484
Total	Sum M&I		94,739		14.94		0.61		5.58		0.49		1.61		1,847,280	17,010,770		1,503,190	4,900,935

The open pits for Kirazlı and Ağı Dağı are based on the resource block models described in Section 14 (Mineral Resource) and floating cone geometries with the cone economics having these inputs:

• The process costs and recoveries are based on data and information as summarized in Section 13 (Mineral Processing and Metallurgical Testing),

• The pit slope recommendations are provided by Call & Nicholas, Inc. (CNI) and are summarized in Section 16.2 with the detail included in Section 9A of the PFS report,

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• An estimate of the mine operating costs updated from an earlier PEA report on the project.

• Gold price of $1150/oz and silver price of $22.50/oz.

• Measured & indicated mineral resources that are oxide or transitional materials.

The process recoveries and cost parameters for Kirazlı are included in Table 16-2 and for Ağı Dağı in Table 16-3. The process and G&A costs presented in these tables are early estimates and may not match the final costs developed by the PFS. The process costs and recoveries vary by material type defined by oxidization and alteration types, and deposit. The result is a net value per tonne after recovery for gold and silver, process costs and deduction for dore’ charges are applied. The final net value result is determined on a block by block basis (in each of the resource models) based on gold and silver price inputs and the block model metal grades. During the course of the project, various recovery and cost alternatives were evaluated along with various metal prices. The final inputs for pit definition are shown on Tables 16-2 and 16-3. The private royalty for Ağı Dağı is included in the net value calculation, but no government royalties or taxes are included. The net value calculation is:

Net value = (gold grade x heap recovery x price + silver grade x heap recovery x price) –

(sum of process plus G&A costs)

• Price = (metal price – dore charge) x % payable x (1-royalty)

• Royalties: 2.0% NSR for Baba/Deli only

• Dore’ charge includes transport, Insurance, refining:

• Gold: $5.00/oz Au, payable at 99.5%

• Silver: $0.70/oz Ag, payable at 90%

Mining costs are not included in the calculation of the net value. The mining cost used for the pit definition floating cone runs is $2.15/t of material as the base cost. A lift cost for material below the estimate of pit exit is added to the base cost of $0.02/t per bench below the pit exit. Pit exit elevations used are 830 for Ağı Dağı and 630 for Kirazlı.

The tabulation of resources and the mine production schedule is based on a net value cutoff of $0.10/t as a reflection of a small profit margin.

The geotechnical recommendations for pit slope angles are summarized below. The recommended inter-ramp (between haul roads within the pit walls) range

• Kirazlı Pit 18 degrees to a maximum of 42 degrees

• Deli Pit 21 degrees to a maximum and 42 degrees

• Baba Pit 29 degrees to a maximum of 42 degrees

The resource within the mine plan is contained within open pits designed from floating cone geometries which were smoothed for irregular pit walls in the cone geometries and the addition of haulage ramps. The

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resource includes oxide and transition material types only and measured or indicated classifications in the resource model. Tonnage with gold grades less than 0.15 g/t has no gold or silver recovery applied to it and is considered waste for this NI 43-101 and therefore not part of the mineral resource. Sulphide material, whether it includes gold or silver grades or not is considered waste.

Table 16-2 Kirazlı – Inputs to Net Value Calculation

Gold Recovery by Alteration In Oxide & Transition Zones Based on Sulphur Grade (S)
	Gold Grade Range	4 - VSA	3 - SIL	2 – AAR	1 - ARG
Kirazli	> 0.60 g/t	86% - (2.35% x S)	89% - (2.35% x S)	89% - (2.35% x S)	89% - (2.35% x S)
	0.55 - 0.60	85% - (2.35% x S)	88% - (2.35% x S)	88% - (2.35% x S)	88% - (2.35% x S)
	0.45 - 0.55	84% - (2.35% x S)	87% - (2.35% x S)	87% - (2.35% x S)	87% - (2.35% x S)
	0.40 - 0.45	83% - (2.35% x S)	86% - (2.35% x S)	86% - (2.35% x S)	86% - (2.35% x S)
	0.35 - 0.40	81% - (2.35% x S)	84% - (2.35% x S)	84% - (2.35% x S)	84% - (2.35% x S)
	0.30 - 0.35	79% - (2.35% x S)	82% - (2.35% x S)	82% - (2.35% x S)	82% - (2.35% x S)
	0.25 - 0.30	77% - (2.35% x S)	80% - (2.35% x S)	80% - (2.35% x S)	80% - (2.35% x S)
	0.20 - 0.25	74% - (2.35% x S)	77% - (2.35% x S)	77% - (2.35% x S)	77% - (2.35% x S)
	0.15 - 0.20	68% - (2.35% x S)	71% - (2.35% x S)	71% - (2.35% x S)	71% - (2.35% x S)
	<= 0.15 g/t	0%	0%	0%	0%
	Silver Recovery	25%	35%	30%	30%
	If Au < 0.15 g/t	0%	0%	0%	0%
Operating Costs, US$/t		4 - VSA	3 - SIL	2 - AAR	1 - ARG
Kirazli	Process
	Oxide	$3.40	$4.14	$4.87	$4.87
	Transition	$4.57	$4.57	$4.57	$4.57
	G&A	$0.45	$0.45	$0.45	$0.45
	TOTALS, US$/t*
	Oxide	$3.85	$4.59	$5.32	$5.32
	Transition	$5.02	$5.02	$5.02	$5.02

Mining cost not included

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Table 16-3 Ağı Dağı – Inputs to Net Value Calculation

Gold Recovery by Alteration In Oxide & Transition Zones Based on Sulphur Grade (S)
	Gold Grade Range	4 - VSA	3 - SIL	2 - AAR	1 - ARG
Kirazli	> 0.60 g/t	86% - (2.35% x S)	89% - (2.35% x S)	89% - (2.35% x S)	89% - (2.35% x S)
	0.55 - 0.60	85% - (2.35% x S)	88% - (2.35% x S)	88% - (2.35% x S)	88% - (2.35% x S)
	0.45 - 0.55	84% - (2.35% x S)	87% - (2.35% x S)	87% - (2.35% x S)	87% - (2.35% x S)
	0.40 - 0.45	83% - (2.35% x S)	86% - (2.35% x S)	86% - (2.35% x S)	86% - (2.35% x S)
	0.35 - 0.40	81% - (2.35% x S)	84% - (2.35% x S)	84% - (2.35% x S)	84% - (2.35% x S)
	0.30 - 0.35	79% - (2.35% x S)	82% - (2.35% x S)	82% - (2.35% x S)	82% - (2.35% x S)
	0.25 - 0.30	77% - (2.35% x S)	80% - (2.35% x S)	80% - (2.35% x S)	80% - (2.35% x S)
	0.20 - 0.25	74% - (2.35% x S)	77% - (2.35% x S)	77% - (2.35% x S)	77% - (2.35% x S)
	0.15 - 0.20	68% - (2.35% x S)	71% - (2.35% x S)	71% - (2.35% x S)	71% - (2.35% x S)
	<= 0.15 g/t	0%	0%	0%	0%
	Silver Recovery	25%	35%	30%	30%
	If Au < 0.15 g/t	0%	0%	0%	0%
Operating Costs, US$/t		4 - VSA	3 - SIL	2 - AAR	1 - ARG
Kirazli	Process
	Oxide	$3.40	$4.14	$4.87	$4.87
	Transition	$4.57	$4.57	$4.57	$4.57
	G&A	$0.45	$0.45	$0.45	$0.45
	TOTALS, US$/t*
	Oxide	$3.85	$4.59	$5.32	$5.32
	Transition	$5.02	$5.02	$5.02	$5.02

Mining cost not included

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Figure 16-1 Kirazlı Final Pit

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Figure 16-2 Ağı Dağı Area (Baba and Deli Final Pits)

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Figure 16-3 Deli Final Pit

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Figure 16-4 Baba Final Pit

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16.4 Mine Plan

The pit designs are based on 5 m bench height to match the mineral resource model bench height. The mine plan calls for the delivery of 15,000 tonnes per day (tpd) of ore to the crusher at Kirazlı and 30,000 tpd of ore to the crusher at Ağı Dağı. Ore production will commence at Kirazlı with Gold Pour estimated by 4^th Qtr 2014 and Ağı Dağı with Gold Pour 4^th Qtr 2016. There are two quarters of heap base liner placement between the pre-production mining period (when material is provided from the mine for the heap foundation construction) and the placement of ore on the liner. Mining activity after the pre-production periods will be about five years at Kirazlı and seven years at Ağı Dağı. A summary of the combined mine production schedules of Kirazlı and Ağı Dağı is shown on Table 16-4. Ore from stockpile will augment the pit production in the time periods when the crusher feed requirement is not met by the pit mining at Ağı Dağı. The mine production schedule shown on Table 16-4 is the sum of the measured and indicated mine plan resource given in Table 16-1.

Table 16-4 Kirazlı – Ağı Dağı Mine Production Schedule

		KIRAZLI						AGI DAGI
Year	Qtr	ORE Ktonne	Net Value $/t	au g/t	Ag g/t	WASTE Ktonne	TOTAL Ktonne	ORE Ktonne	Net Value $/t	au g/t	ag g/t	WASTE Ktonne	TOTAL Ktonne
2013		488	6.55	0.01	50.46	6,512	7,000	0				0	0
2014	1	0					0	135	8.37	0.38	1.48	865	1,000
	2	0					0	151	5.46	0.30	1.41	1,849	2,000
2014	3	412	10.29	0.23	37.80	4,776	5,188	108	5.04	0.29	0.39	2,892	3,000
	4	1,200	33.91	1.07	26.09	5,183	6,383	706	7.22	0.35	1.67	4,294	5,000
2015	1	1,313	39.31	1.27	26.22	4,389	5,702	1,361	8.54	0.39	2.28	3,639	5,000
	2	1,312	25.98	0.90	18.64	3,279	4,591	1,603	9.30	0.41	2.58	3,397	5,000
	3	1,312	21.55	0.79	9.73	2,540	3,852	748	8.09	0.39	0.77	2,252	3,000
	4	1,313	21.85	0.82	10.04	1,926	3,239	740	12.15	0.52	0.77	1,760	2,500
2016	1	1,313	21.28	0.82	12.02	1,583	2,896	0				0	0
	2	1,312	19.70	0.76	7.49	1,673	2,985	0				0	0
	3	1,312	17.70	0.71	8.38	1,438	2,750	1,837	12.52	0.52	3.08	3,163	5,000
	4	1,313	16.87	0.69	8.18	1,445	2,758	1,678	12.77	0.53	3.51	3,322	5,000
2017	1	1,313	17.60	0.70	9.79	1,430	2,743	1,992	16.11	0.65	0.75	3,008	5,000
	2	1,312	15.70	0.67	6.94	1,281	2,593	2,335	16.52	0.66	0.95	2,665	5,000
	3	1,312	17.23	0.70	9.00	1,806	3,118	2,496	14.49	0.59	0.83	2,504	5,000
	4	1,313	18.52	0.74	8.71	1,412	2,725	2,409	13.72	0.57	1.40	2,591	5,000
2018	1	1,313	19.02	0.76	9.18	1,341	2,654	2,587	13.38	0.56	1.29	2,413	5,000
	2	1,312	17.63	0.71	9.75	1,145	2,457	2,586	10.79	0.47	1.52	2,414	5,000
	3	1,312	15.49	0.66	7.79	1,064	2,376	2,325	9.37	0.43	2.29	2,675	5,000
	4	1,313	15.43	0.66	6.91	1,072	2,385	2,578	8.71	0.41	1.91	2,422	5,000
2019	1	1,313	12.46	0.59	3.76	873	2,186	2,625	9.12	0.42	1.96	2,354	4,979
	2	851	12.84	0.61	2.78	531	1,382	2,625	9.67	0.44	1.09	1,447	4,072
	3	336	9.17	0.50	1.55	181	517	2,625	11.85	0.51	1.34	1,513	4,138
	4							2,625	11.11	0.48	1.85	1,987	4,612

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			KIRAZLI												AGI DAGI
Year	Qtr	ORE Ktonne		Net Value $/t		au g/t		Ag g/t		WASTE Ktonne		TOTAL Ktonne		ORE Ktonne		Net Value $/t		au g/t		ag g/t		WASTE Ktonne		TOTAL Ktonne
2020	1														2,625		10.74		0.47		2.21		2,489	5,114
	2														2,625		9.44		0.43		2.34		2,514	5,139
	3														2,625		8.38		0.39		2.54		2,697	5,322
	4														2,625		8.16		0.39		2.75		2,658	5,283
2021	1														2,625		9.34		0.42		3.00		2,456	5,081
	2														2,625		16.11		0.63		4.36		2,402	5,027
	3														2,625		23.38		0.86		6.15		2,087	4,712
	4														2,625		24.90		0.89		8.45		1,813	4,438
2022	1														2,625		21.10		0.78		7.93		1,557	4,182
	2														2,100		14.82		0.60		6.48		1,096	3,196
	3														1,752		13.77		0.58		5.94		961	2,713
	4														1,726		14.64		0.65		6.32		1,072	2,798
2023	1														835		23.98		1.06		13.76		690	1,525
	2														225		91.20		3.78		55.91		236	461
	3
	4
			25,600		19.52		0.74		11.75		46,880		72,480		69,138		13.25		0.55		3.30		80,154	149,292

16.4.1 Final Pit and Phase Designs

The final pit geometries and internal phases are based on floating cone geometries which were run on the pit definition parameters presented earlier. The final floating cones incorporated the pit slope angle sectors noted earlier as part of the input to the cone runs, versus early cone runs which used single, overall slope angles as input to the cone run. The floating cone geometries require the smoothing of pit walls and the inclusion of haulage ramps to access the lower benches. The haul ramps and exterior haul roads are designed at a maximum percent of grade of 10% and a design width of 26 m (3.5 times the truck width (6.49 m for a Cat 777) plus 3.25 m allowance for berms and ditches).

The final designs include the Kirazlı main pit (which is split into 2 mining phases) plus three small satellite pits, one pit at Deli and one pit plus a small satellite pit at Baba. Table 16-5 is a summary of the tonnages within the final pit designs and the sum of the mining phase designs.

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Table 16-5 Final Pit Design Tonnages

	Ore Tonnage & Grade >= 0.10/t Net Value Cutoff
Mine Phase	Ktonnes	Net Value $/t	Gold, g/t	Silver, g/t	Rec Au, g/t	Rec Ag, g/t	Waste Ktonnes	Total Ktonnes
Kirazlı:
Phase 1	16,359	17.69	.69	9.82	.56	3.05	28,239	44,598
Phase 2	8,806	23.01	.84	15.85	.67	4.94	17,744	26,550
Satellite 1	116	17.32	.71	.99	.61	.30	322	438
Satellite 2	58	28.77	1.09	.82	.93	.25	93	151
Satellite 3	261	15.34	.64	1.94	.55	.58	482	743
Total	25,600	19.52	.74	11.75	.60	3.66	46,880	72,480
Ağı Dağı
Baba Pit	32,490	11.83	.51	.79	.42	.16	33,093	65,583
Baba Sat.	218	7.75	.37	.07	.31	.01	336	554
Deli Pit	36,430	14.56	.59	5.55	.48	1.48	46,725	83,155
Total	69,138	13.26	.55	3.30	.45	.86	80,154	149,292

16.4.2 Mine Production Schedule – General Approach

Mine production schedules were developed for Kirazlı and the combined Baba plus Deli tonnages. Production schedules have