In January 2019, the company disclosed that it expects to spend $75m in 2019 on completing work on the water reservoir and ramping up major construction activities and earthworks.
Out of Kirazlı Prokect’s total initial capital budget of $152m, the remaining $60m will be spent in 2020 with initial production expected by the end of 2020.
In 2012, a pre-feasibility study was completed at the mine and the final environmental approval was received in August 2013.
According to the 2017 feasibility study, Kirazlı is expected to produce over 100,000 ounces of gold during its first full year of production at mine-site all-in sustaining costs of less than $400 per ounce.
The new permit is expected to bring consolidated production to over 600,000 ounces per year, while significantly lowering the company’s cost profile.
In January 2010, Alamos purchased the Kirazli and Aği Daği mines from Teck and Fronteer Development for approximately $90m. The Kirazli property is located approximately 25km north-west of Ağı Dağı mine and comprises of 1,541ha.
Power supply for the project is provided from the existing power line that feeds the Kirazli village. The company plans to construct a metering and switching substation on-site near the primary crusher.
Alamos was also expected to construct a reservoir in partnership with State Hydraulic Works, the local government agency, to provide process water for the mining operations.
The Kirazli project includes two contiguous licenses, one operating license and another exploration license, managed by Alamos’ Turkish subsidiaries Kuzey Biga and Doğu Biga.
The company said that the mine is classified as high-sulphidation, disseminated gold system and most of the mineralization hosted within the heterolithic phreatomagmatic or phreatic breccia bodies.
Mineralization at the mine comprises low-grade gold zone occurring above and below the supergene oxidation zone, while the deposit also contains high-grade gold mineralization.
