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Kışladağ is a low-grade, bulk-tonnage, open pit operation that uses heap leaching for gold recovery. Kışladağ is the largest gold mine in Turkey.

Key Facts

Location Usak Province, Turkey
Mine type Open pit, heap leach
Metals mined Gold
Employees/contractors 1,254
Deposit type Gold porphyry
Ownership 100%
Resources & Reserves

2018 Outlook

In response to the lower expected gold recoveries from heap leaching reported on 23 October 2017, work is progressing on advancing a milling option. A pre-feasibility study, filed by the Company on March 29, 2018, and the results of which are highlighted in the Technical Studies Press Release dated March 21, 2018, indicates that the construction of a conventional carbon in pulp mill at Kışladağ is technically and economically feasible. The mill supports a 3.1 million ounce reserve with expected metallurgical recoveries of approximately 80%, to produce an average of 270,000 ounces of gold per year over nine years.

As the margin per ounce under a milling scenario is considerably better than heap leaching, the Company has decided to defer ore mining until the mill feasibility is complete and a final investment decision has been made. The Kışladağ team will continue stripping waste from the pit in preparation for ore mining to recommence and will continue to extract gold from existing leach pad inventories.

2018 production at Kışladağ is forecast to be 120,000-130,000 ounces of gold from the leach pad at a cash cost of $600-$700 per ounce including roughly $150 per ounce of non-cash inventory changes.

Operating Data

In response to the lower expected gold recoveries from heap leaching reported on 23 October 2017, work is progressing on advancing a milling option.  A pre-feasibility study, filed by the Company on March 29, 2018, and the results of which are highlighted in the Technical Studies Press Release dated March 21, 2018, indicates that the construction of a conventional carbon in pulp mill at Kışladağ is technically and economically feasible. The mill supports a 3.1 million ounce reserve with expected metallurgical recoveries of approximately 80%, to produce an average of 270,000 ounces of gold per year over nine years. 


Q1 2018E 2017A 2016A
Gold produced (oz) 120,000-130,000 171,358 211,161
Gold sold (oz)
171,505 211,284
Ore mined/processed (Mt)
13.1 16.6
Gold grade (g/t) 0.82* 1.03 0.80
Cash operating costs ($/oz) 600-700 500 474
Sustaining capex ($M) 22.0
39.8

*Based on P+P Reserves as at December 31, 2017


Economics for Kışladağ Mill based on Pre-Feasibility filed on March 29, 2018
Milling capacity 13 Mtpa
Mine life 9 years
Average annual gold production 270,000 oz
Average cash costs $666/oz
Average AISC $778/oz
Average recovery rate 80.1%
Average gold grade 0.81 g/t Au
Strip ratio (w:o) 1.3
Initial capital (US$ millions) $490M ($378M construction, $112M pre-production waste & ore)
Sustaining Capital (US$) $213 M (including $103M capitalized Waste)
Gold price $1,300/oz
NPV-5% (after tax, US$) $434M
IRR (after tax) 22.1%
Payback period 3.7 years

For more information, please see our Kışladağ presentation.

Geology and Mineralization

Kışladağ is a porphyry gold deposit that formed beneath a coeval Miocene volcanic complex in Western Anatolia, Turkey. At least four latite intrusive phases are recognized in the deposit. Alteration consists of a potassic core with K-feldspar, biotite, quartz and locally magnetite, outwardly overprinted by illite, kaolinite, quartz, and tourmaline. Remnants of a quartz-alunite lithocap are found near surface. Gold mineralization occurs within zones of quartz-pyrite stockwork and disseminations. Oxidation extends to a depth of 20 to 80 metres but there is no supergene enrichment. The mineralized intrusions at Kışladağ are enclosed within volcanic and volcaniclastic strata that overlie basement schist and gneiss of the Menderes Massif Core Complex. These strata dip outward from the deposit core, and display rapid facies changes from massive lavas and coarse poorly stratified units proximal to the porphyry centre, to finer well-stratified volcaniclastic strata that interfinger with lacustrine sedimentary rocks in surrounding sedimentary basins.

Exploration

The Kışladağ deposit was an original discovery made by Eldorado in the late 1990's during a regional grassroots exploration program. Our current exploration in the Kışladağ district is focused on defining and testing potential nearby satellite deposits, and identifying other porphyry centers in the surrounding region.

History

2018 March 2018 Pre-Feasibility Study for the Kışladağ Mill published
2014 Poured 2 millionth ounce of gold.
2014 Received approval of supplementary EIA
2012 Applied for supplementary EIA to increase yearly ore extraction to 35 Mtpa of ore
2011 Received approval of supplementary EIA for the expansion to 12.5 Mtpa; completed Phase III expansion
2009 Completed Phase II level pad expansion
2007 Completed Phase II plant construction
2006 Produced first doré in May; commercial production began in July
2005 Began construction
2003 Completed feasibility study; received EIA approval
1997 Identified ore body and began in-depth exploration

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