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REGIONAL NEWS - ASIA 16 E&MJ; • APRIL 2017 www.e-mj.com Alamos Sees Potential in Turkey Alamos Gold has reported positive results from feasibility studies of its Kirazli and A ği Da ği gold projects and from a preliminary - ince in northwest Turkey. The Kirazli and A ği Daği projects are separated by a dis- tance of about 25 km and will be developed sequentially as stand-alone projects, with Kirazli to be developed first. The project is located approximately 4 km from A ği Daği, and its ore will be processed at the A ği Daği processing facilities after the A ği Daği deposits have been mined out. All three projects will be open-pit, heap- leach operations. "We now have three of the highest-return, undeveloped gold projects in the world," said John A. McCluskey, pres- ident and CEO, Alamos Gold. "With Kirazli, followed by A ği Dağ a pipeline in Turkey that can provide low- cost production and free cash flow growth for more than a decade. Kirazli is one of the highest-return, undeveloped gold projects in the world in any price environment and it represents our next phase of growth." Kirazli development is based on an initial proven and probable mineral reserve of 26.1 million metric tons (mt) grading 0.79 grams (g)/mt gold and 12 g/mt silver, containing 670,000 ounces (oz) of gold and 10.1 mil- lion oz of silver. Production over a five-year mine life is projected at 540,000 oz of gold and 3.1 million oz of silver. Mine-site all-in sustaining costs are estimated at $373/oz. Plant throughput at Kirazli is planned at 15,000 metric tons per day (mt/d). Preg- nant solution from the leach pad will be pro- cessed through an adsorption-desorption-re- covery (ADR) plant, where gold and silver doré bars will be produced. Initial capital to develop Kirazli is estimated at $152 mil- lion. Following a construction decision, Ala- mos anticipates that the project will require a 24-month development The three pro- jects in northwestern Turkey will be low cost, open-pit, heap-leach operations. Planning for A ği Daği development is based on an initial proven and probable mineral reserve of 54.4 million mt, grad- ing 0.67 g/mt gold and 5.4 g/mt silver, containing 1.17 million oz of gold and 9.5 million oz of silver. Production over a mine life of six years is projected at 937,000 oz of gold and 2.4 million oz of silver. Mine-site all-in sustaining costs are estimated at $411/oz. Processing plant throughput is planned at 30,000 mt/d. The processing flow sheet is similar to the Kirazli flow sheet. The ini- tial capital to develop Aği Daği is estimated at $250 million. Following a construction decision, Alamos expects a 36-month de- velopment timeline for A ği Daği. on the basis that the project will have minimal stand-alone infrastructure. Ore will be trucked to A ği Daği and processed through A ği Daği infrastructure. The mine plan in the PEA incorporates measured and indicated mineral resources of 16.6 million mt grading 0.92 g/mt gold and 6.3 g/mt silver, containing 490,000 oz of gold and 3.4 million oz of silver. 15,000-mt/d mining operation. Produc- tion over a mine life of four years would total 373,200 oz of gold and 1.6 million oz of silver. Mine-site all-in sustaining costs are estimated at $645/oz. Initial capital is estimated at $10 million. Kumtor Receives Permit to Raise Tailings Dam Centerra Gold reported that the Kumtor op- eration, located in the Kyrgyz Republic, has received the necessary permits from the state authorities to raise the tailings dam to the 3,674-meter (m) elevation. The con- struction permits enable the mine to com- mence the 3-year construction program to provide adequate tailings storage capacity for Kumtor's mill tailings deposition from 2021 through the end of 2024. The tail- ings dam construction in 2017 is the first such construction required to contain the additional 3.6 million oz of gold reserves that resulted from the KS-13 pit expansion. The tailings dam approval process at Kumtor requires the mine to permit each of the 3-m tailings dam raises. After the initial raise is completed in 2020, the mine would then submit a design to raise the dam to the final elevation of 3,677.5 starting in 2021. Indian Iron Ore Production to Hit 5-year High India's iron ore production is expected hit a five-year high at 180 million mt by the close of the current fiscal year (March 31), riding on gains in international pric- es, a favorable legislative environment and more mines coming back into pro- duction. In FY 2010-2011 India pro- duced 207 million mt. Reports from the Odisha government early this month, showed that iron ore production in the region had already touched the 80-million-mt mark during the period of April-January 2016-2017 and would reach the 100-million-mt level by close of the fiscal year on March 31, an increase of 50% over the previous fis- cal year. According to an official in the Odisha government, the incremental pro- duction in the province was largely due to a number of mines being brought back into production during the year. The three projects in northwestern Turkey will be low cost, open-pit, heap-leach operations.