(TSX: AGI; NYSE: AGI) has made its precious metals portfolio in Turkey more attractive by publishing positive feasibility studies on the standalone Kirazli and Agi Dagi open pit heap leach projects, along with a preliminary economic assessment (PEA) on the Camyurt project. All three are in the Canakkale province of northwestern Turkey.
“With Kirazli, followed by Agi Dagi and Camyurt, we own a pipeline in Turkey that can provide low cost production and free cash flow for more than a decade,” Alamos’ president and CEO John McCluskey said in a release.
Building on the previous 2012 prefeasibility studies, the February 2017 feasibility studies indicate improved economics, despite incorporating lower metal price assumptions of US$1,250 per oz. for gold and US$16 per oz. for silver and a higher discount rate of 8% versus 5%.
BMO analyst Brian Quast writes unit mining costs and operating costs for both Kirazli and Agi Dagi improved over 2012 due to three main factors. Those include improved pit slope design resulting in lower waste-to-ore ratios, better foreign exchange assumptions, reflecting the depreciation of the Turkish lira, and lower mining contractor rates.
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