Engineering & Mining Journal

AUG 2017

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REGIONAL NEWS - ASIA 16 E&MJ • AUGUST 2017 www.e-mj.com Eldorado Provides Update on Ki ladağ Eldorado Gold provided an update on its Ki ladağ gold mine in Turkey. A low- grade, bulk-tonnage, open-pit operation that uses heap leach for gold recovery, Ki ladağ has been in operation since 2006 and is Turkey's largest gold mine. While the mine has placed the expect- ed amount of ore on the leach pad, the gold solution grade and, consequently, gold recovery from the leach pad has recently lagged projections. Recent laboratory and in situ tests where solution chemistry has been adjusted have indicated normal re- covery rates are still expected. More time, however, is now required to adjust the overall pad solution chemistry and allow solution to flow through the current stack height of the leach pad, which is at approx- imately 80 meters (m) at the highest point. "While Ki ladağ's decrease in produc- tion for the year is disappointing, our team has implemented a strategy to return our cornerstone asset to normalized produc- tion levels," said George Burns, president and CEO, Eldorado Gold. "We felt it pru- dent to inform the market of this informa- tion regarding Ki ladağ in view of our cur- rent agreement with Integra Gold Corp." Ki ladağ is now expected to produce approximately 38,400 ounces (oz) of gold in the second quarter of 2017 and approx- imately 90,000 oz of gold for the first half of 2017. As such, Ki ladağ will not meet the Eldorado's original 2017 guidance of 230,000 oz to 245,000 oz. The compa- ny now expects 2017 gold production of 180,000 oz to 210,000 oz from Ki ladağ with cash costs in the new guidance range of $450/oz to 500/oz. The ounces that are not produced in 2017 are expected to be produced in the first half of 2018. Macmahon Approves Batu Hijau Transaction At a general meeting held in Perth on June 9, Macmahon shareholders voted over- whelmingly in favor of a proposed trans- action with Indonesian-based mining com- pany PT Amman Mineral Nusa Tenggara (AMNT). The AMNT transaction will see Macmahon awarded a life-of-mine, alli- ance style contract to provide earthmoving and mining services at AMNT's Batu Hijau copper-gold mine in Indonesia. Macmahon will acquire existing mobile mining equip- ment from AMNT and will, in return, issue new shares to a subsidiary of AMNT. "The Macmahon Board is very pleased with today's result," said Chairman Jim Walker. "Maximizing value for all share- holders is of utmost importance to us and we firmly believe this transaction is a compelling opportunity for Macmahon and its shareholders." "We are extremely grateful for the sup- port and encouragement provided by our ex- isting clients," said Macmahon CEO Michael Finnegan. "We remain absolutely committed to delivering on our promise wherever we are operating, and look forward to building on these excellent working relationships." The completion of the AMNT transaction remains subject to the satisfaction of two remaining conditions precedent. Macma- hon expected those conditions precedent to be satisfied shortly and for the AMNT trans- action to completed before the end of July. Centerra Provides Update on Arbitration An arbitrator has issued an order providing certain interim relief to Centerra Gold in its ongoing arbitration against the Kyrgyz Republic and Kyrgyzaltyn JSC in connec- tion with the Kumtor project. The interim relief, among other things, orders the Kyr- gyz Republic to give 30 days' prior notice to the arbitrator and Centerra in the event of resumption of the claims brought by Kyr- gyz government entities in Kyrgyz courts relating to alleged environmental harm, dividends and land use; directs the Kyrgyz Republic to give immediate notice to the arbitrator and Centerra if any procedural action is taken in the Kyrgyz court proceed- ings; and orders the Kyrgyz Republic to use its best efforts comply with her decision. In addition, the arbitrator found that Centerra had made out both a prima facie case for the arbitrator to take jurisdiction over the arbitration proceeding; and a prima facie case on the merits of the case. Such findings relating to jurisdiction and merits support Centerra's view that the Kyrgyz court proceedings are disputes that should be brought in international arbitration and may not be brought before the courts of the Kyrgyz Republic. Centerra further believes that the court claims are without founda- tion or substance on the merits. Centerra will continue to pursue its claims in its main arbitration proceeding, which was commenced in May 2016 and remains ongoing. Responses to Centerra's statement of claim are expected to be sub- mitted by the Kyrgyz Republic and Kyr- gyzaltyn in September 2017. In the mean- time, Centerra and the government of the Kyrgyz Republic continue discussions with to settle all outstanding matters relating to the Kumtor project. An aerial photo shows the size of the Ki ladağ pit in Turkey.

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