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Alamos Gold Announces 'Positive' Kirazli Feasibility Study

Alamos Gold Inc. (TSX, NYSE: AGI) saysresults from a feasibility study on its Kirazli gold project in Turkey were “positive.” Highlights included an initial proven and probable mineral reserve of 26.1 million tonnes grading 0.79 grams per tonne of gold and 12 grams per tonne of silver, containing 670,000 ounces of gold and 10.1 million ounces of silver, the company says. The study shows average annual gold production of 104,000 ounces over five years, with life-of-mine production of 540,000 ounces. Life-of-mine cash costs were put at $339 per ounce of gold, and mine-site all-in sustaining costs were listed at $373, which the company says is among the lowest in the industry. Alamos reports an initial capital estimate of $152 million and total life-of-mine capital, including sustaining capital and closure costs, of $180 million. "This further validates the overall attractiveness of the Kirazli project,” says said John A. McCluskey, president and chief executive officer. “Despite using a lower gold and silver price, Kirazli's economics have improved substantially. With its low capital and operating costs and quick payback, Kirazli is one of the highest-return, undeveloped gold projects in any price environment. Kirazli represents our next phase of growth and will be a significant source of free cash flow in the coming years." With the environmental impact study and forestry permits for Kirazli approved by the federal government, the company now is pursuing the GSM (business opening and operation) permit, which is granted by the Çanakkale governorship. Following a construction decision, the company expects a 24-month development timeline for Kirazli, including approximately three months of pre-commercial production.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Sierra Metals Announces 4Q Profit For Peruvian Subsidiary

Wednesday February 15, 2016 09:15

Sierra Metals Inc. (TSX,BVL: SMT) reports that its Sociedad Minera Corona subsidiary in Peru posted net income of $8 million, or 22 cents per share, in the fourth quarter. This was a reversal from a net loss of $4.4 million, or 12 cents, in the same period a year earlier. Sierra holds an 81.8% interest in Corona.  "I am extremely pleased with the very successful operational improvements program completed at the Yauricocha Mine and how that has translated into near-record production levels in the fourth quarter …,” says Mark Brennan, president and chief executive officer Sierra Metals. "Corona's operating margins and cash flows have been positively impacted by the company's focus on the processing of higher value ore.” All-in sustaining cost per silver-equivalent payable ounce fell 25% to $12.51. The company reports silver-equivalent production of 2.2 million ounces, up from 1.3 million ounces a year earlier. Copper-equivalent production was 14.4 million pounds, compared to 8.8 million pounds in the fourth quarter of 2015.

By Allen Sykora of Kitco News; asykora@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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