EX-99.128 52 d452783dex99128.htm EX-99.128 EX-99.128

EXHIBIT 99.128

Report to:

 

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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

 

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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.

 

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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 31st day of July, 2012

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Dennis Peter Ferrigno


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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 31st day of July, 2012
 

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  Michal Dobr
  Golder Associates Ltd.
  500 – 4260 Still Creek Drive
  Burnaby, BC V5C 6C6

 

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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 31st day of July 2012.

 

GOLDER ASSOCIATES LTD.
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Mike Dobr, P. Geo.,
Senior Hydrogeologist

 

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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

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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 30th day of July, 2012

 

 

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  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 31st day of July, 2012

 

 

signed “Herbert E. Welhener”

 

Herbert E. Welhener, SME-RM

Independent Mining Consultants, Inc.

3560 E. Gas Road, Tucson, Arizona 85714


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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.

 

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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 31st day of July, 2012

 

 

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  Russell A. Browne, P.E.
  Golder Associates Inc
  595 Double Eagle Court, Suite 1000
  Reno, Nevada 89521

 

 

 

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2


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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 31st day of July 2012

 

 

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  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  

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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   

 

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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   

 

July 31, 2012     vi


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   

 

July 31, 2012     vii


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   

 

July 31, 2012     viii


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   

 

July 31, 2012     ix


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   

 

July 31, 2012     xi


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

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   

 

July 31, 2012     xiii


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   

 

July 31, 2012     xv


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   

 

July 31, 2012     xvi


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   

 

July 31, 2012     xvii


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   

 

July 31, 2012     xviii


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

 

July 31, 2012     xix


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

 

LOGO

30 JUNE 2012

 

July 31, 2012     Page 1


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

 

LOGO

 

July 31, 2012     Page 2


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

Figure 1-3 Kirazlı General Arrangement

 

LOGO

 

July 31, 2012     Page 3


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

 

 
LOGO

 

July 31, 2012     Page 4


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

Figure 1-5 Ağı Dağı General Arrangement

 

LOGO

 

July 31, 2012     Page 5


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.

 

 

July 31, 2012     Page 6


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

 

July 31, 2012     Page 7


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

 

       

ı 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.

 

July 31, 2012     Page 8


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

Figure 1-6 Kirazlı Lithology Interpretation – Section N 30350

 

LOGO

Figure 1-7 Kirazlı Alteration Interpretation – Section N 30350

 

LOGO

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

 

July 31, 2012     Page 9


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

 

LOGO

 

July 31, 2012     Page 10


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

Figure 1-9 Baba Alteration Interpretation – Section N 2200

 

LOGO

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

 

 

July 31, 2012     Page 11


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

 

July 31, 2012     Page 12


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

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.

 

July 31, 2012     Page 13


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

   

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

 

July 31, 2012     Page 14


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

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).

 

July 31, 2012     Page 15


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

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

 

LOGO

 

July 31, 2012     Page 16


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

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  (%)

 

  

ı 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.

 

July 31, 2012     Page 17


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.

 

July 31, 2012     Page 18


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

 

July 31, 2012     Page 19


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

 

       

ı 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.

 

July 31, 2012     Page 20


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.

 

July 31, 2012     Page 21


Kirazlı and Ağı Dağı Gold Project     NI 43-101

 

 

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.

 

July 31, 2012     Page 22


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

  

 

July 31, 2012     Page 23


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

 

July 31, 2012     Page 24


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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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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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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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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Figure 4-2 Kirazlı Concession Boundary

 

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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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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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Figure 4-3 Ağı Dağı Concession Boundaries

 

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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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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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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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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

 

LOGO

   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

 

LOGO

 

 

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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

 

LOGO

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

 

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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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