TORONTO, July 21, 2016 (GLOBE NEWSWIRE) -- Alacer Gold Corp. (“Alacer” or the “Company”) (TSX:ASR) (ASX:AQG) is pleased to announce drilling results through May 31, 2016 from the Company’s 2016 Çöpler District exploration program in Turkey. Drilling results are from an additional 17,361 meters of drilling at the Çakmaktepe North prospect (formerly known as Yakuplu North) approximately 5 km east of the Çöpler Mine. These results are in addition to drill results released on December 9, 20151 and March 31, 20161.
Rod Antal, Alacer’s President & Chief Executive Officer, stated, “We’ve taken a disciplined approach to our exploration program and have focused on the discovery of satellite leachable oxide mineralization that has the potential to provide supplemental feed to the existing Çöpler heap leach pad. This latest round of Çakmaktepe North drill results represent a significant step forward in progressing this objective and the results continue to confirm the potential to add oxide production within the next two years at Çöpler.
The 2016 program includes infill drilling with the aim to validate data to support the resource estimation for a maiden resource later this year. With the mineralization at Çakmaktepe North still open in all directions, the maiden resource will only include the drilling for a portion of the mineralization. We have drilled over 30,000 meters at Çakmaktepe North and still have nine drill rigs on site to progress this highly promising exploration prospect. In expectation of advancing this prospect, the permitting process is underway.”
KEY HIGHLIGHTS
Çakmaktepe North is the largest of six current gold prospects within a 5 km to 7 km proximity of the existing Çöpler Mine infrastructure. Initial and follow-up results from exploration drilling at Çakmaktepe North were provided in press releases dated December 9, 20151 and March 31, 20161. The drilling conducted between January 1 to May 31, 2016 included infill drilling and continues to expand on the initial 2015 discovery. The Çakmaktepe area contains a network of structures allowing for gold mineralization to occur within multiple lithologies. The mineralization style is similar to the Çöpler Deposit and is expected to be processed through the existing crushing and agglomeration circuit and stacked on the existing heap leach pad facility at the Çöpler Mine.
- Based on the results to date, the Çakmaktepe prospect will continue to advance in 2016 with the intention of releasing a maiden mineral resource later this year.
- The mineralized system is currently open in all directions, providing the potential for additional mineralization.
- Initial design work for the proposed haul road to Çöpler has been undertaken.
- The permitting process is underway.
DRILLING HIGHLIGHTS
Drilling from the Çakmaktepe North prospect in the Çöpler District in central eastern Turkey has continued to define near-surface leachable oxide mineralization.
The Çakmaktepe North Prospect Plan accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/ea42de35-67ea-42e8-9aba-3da382335b51
Key Çakmaktepe North drill results from January 1 to May 31, 2016, reporting intervals of >5m @ >1.00g/t Au include:
| o | YNRCD064: | 8.0m @ 1.67g/t Au from 90.0m 11.0m @ 1.00g/t Au from 138.0m | (oxide) (oxide) |
| o o o o o | YNRC075: YNRC084: YNRC085: YNRC090: YNRC091: | 5.0m @ 5.05g/t Au from 88.0m 7.0m @ 1.10g/t Au from 113.0m 5.0m @ 1.00g/t Au from 136.0m 13.0m @ 4.21g/t Au from 76.0m 6.0m @ 3.26g/t Au from 92.0m | (sulfide) (oxide) (sulfide) (oxide) (oxide) |
| 28.0m @ 4.00g/t Au from 113.0m | (oxide) | ||
| o | YNRC093: | 24.0m @ 2.01g/t Au from 47.0m 16.0m @ 1.86g/t Au from 77.0m | (oxide) (oxide) |
| o o o o | YNRC095: YNRC096: YNRC097: YNRC098: | 24.0m @ 1.54g/t Au from 3.0m 20.0m @ 1.42g/t Au from 0.0m 30.0m @ 1.57g/t Au from 0.0m 7.0m @ 2.21g/t Au from 19.0m 5.0m @ 2.23g/t Au from 44.0m | (oxide) (oxide) (oxide) (oxide) (oxide) |
| 37.0m @ 3.24g/t Au from 145m | (oxide) | ||
| 13.0m @ 6.44g/t Au from 157.0m | (oxide) | ||
| o o o | YNRC100: YNRC101: YNRC102: | 14.0m @ 1.56g/t Au from 196.0m 15.0m @ 1.03g/t Au from 191.0m 12m @ 1.97g/t Au from 59.0m 8.0m @ 1.05g/t Au from 127.0m | (oxide) (oxide) (oxide) (oxide) |
| o o o o | YNRC104: YNRC106: YNRC107: YNRC108: | 19.0m @ 1.73g/t Au from 17.0m 21.0m @ 2.03g/t Au from 187.0m 10.0m @ 1.22g/t Au from 208m 12.0m @ 7.37g/t Au from 30.0m 7.0m @ 1.00g/t Au from 140.0m | (oxide) (oxide) (oxide) (oxide) (oxide) |
| 14.0m @ 1.68g/t Au from 162.0m | (oxide) | ||
| 7.0m @ 1.00g/t Au from 183.0m | (oxide) | ||
| o | YNRC109: | 11.0m @ 1.10g/t Au from 149.0m 28.0m @ 1.00g/t Au from 167.0m | (sulfide) (oxide) |
| o | YNRC110: | 6.0m @ 1.15g/t Au from 162.0m 5.0m @ 4.38g/t Au from 191.0m | (sulfide) (sulfide) |
| o o | YNRC111: YNMT001: | 26.0m @ 2.24g/t Au from 146.0m 43.2m @ 2.61g/t Au from 94.8m 6.0m @ 1.49g/t Au from 138.0m | (oxide) (oxide) (sulfide) |
| 15.0m @ 1.00g/t Au from 152.0m | (oxide) | ||
| o | YNMT002: | 8.0m @ 4.75g/t Au from 68.0m | (oxide) |
| 46.5m @ 1.17g/t Au from 78.5m 5.0m @ 1.00g/t Au from 164.0m | (oxide) (sulfide) |
| o | YNMT003: | 64.0m @ 1.36g/t Au from 97.1m | (oxide) |
| o o o | YNMT004: YNMT005: YNMT006: | 32.6m @ 1.17g/t Au from 123.6m 9.7m @ 3.97g/t Au from 81.1m 75.0m @ 2.34g/t Au from 70.5m 6.50m @ 1.94g/t Au from 145.5m | (oxide) (oxide) (oxide) (sulfide) |
| o o | YNMT007: YNMT008: | 11.3m @ 1.28g/t Au from 55.1m 25.1m @ 2.41g/t Au from 74.3m 5.0m @ 3.15g/t Au from 112.50m | (oxide) (oxide) (oxide) |
| o | YNMT009: | 20.2m @ 1.80g/t Au from 131.3m | (oxide) |
| 10.0m @ 1.14g/t Au from 154.5m | (oxide) | ||
| o o o | YNMT010: YNMT011: YNMT013: | 22.0m @ 2.03g/t Au from 10.0m 5.4m @ 1.90g/t Au from 21.0m 21.7m @ 2.50g/t Au from 72.0m 14.0m @ 2.14g/t Au from 98.7m | (oxide) (oxide) (oxide) (oxide) |
| 11.0m @ 1.98g/t Au from 112.7m | (sulfide) | ||
| 5.0m @ 1.21g/t Au from 124.7m | (sulfide) | ||
| o | YNMT014: YNMT015: | 29.0m @ 1.70g/t Au from 101.0m 15.5m @ 2.28g/t Au from 32m | (oxide) (oxide) |
| o | YNMT016: | 16.0m @ 1.00g/t Au from 134.7m | (oxide) |
| o | YNMT017: | 16.8m @ 3.78g/t Au from 99.4m 11.0m @ 1.34g/t Au from 116.2m | (oxide) (sulfide) |
| 5.0m @ 2.13g/t Au from 127.2m | (oxide) | ||
| 6.0m @ 1.26g/t Au from 146.2m | (sulfide) | ||
| o o o | YNMT018: YNPZ002: YNDD007: | 8.8m @ 1.06g/t Au from 110.5m 6.0m @ 2.58g/t Au from 231.0m 5.8m @ 1.7g/t Au from 76.2m 43.5m @ 1.43g/t Au from 97.2m | (sulfide) (oxide) (oxide) (oxide) |
| o | YNDD008: | 5.0m @ 3.38g/t Au from 102.6m 18.4m @ 1.04g/t Au from 182.6m | (oxide) (oxide) |
| 5.0m @ 1.00g/t Au from 215.3m | (sulfide) | ||
| o o | YNDD009: YNDD010: | 7.0m @ 1.01g/t Au from 172.0m 8.0m @ 1.05g/t Au from 125.0m 5.0m @ 1.23g/t Au from 147.0m | (oxide) (sulfide) (oxide) |
| 6.0m @ 1.42g/t Au from 201.4m | (oxide) | ||
| o o | YNDD011: YNDD012: | 9.0m @ 2.02g/t Au from 156.0m 8.8m @ 1.08g/t Au from 158.4m 8.0m @ 1.03g/t Au from 178.2m | (oxide) (oxide) (oxide) |
| 25.0m @ 1.01g/t Au from 191.2m | (oxide) | ||
| o | YNDD013: | 7.0m @ 1.27g/t Au from 118.1m | (oxide) |
| o o o | YNDD019: YNRCD020: YNRCD046: | 5.0m @ 2.57g/t Au from 63.5m 19.0m @ 1.06g/t Au from 199.5m 5.0m @ 1.35g/t Au from 218.0m 14.1m @1.05g/t Au from 231.9m | (oxide) (oxide) (oxide) (oxide) |
| o o o | YNRCD050: YNRCD054: YNRCD055: | 13.0m @ 1.31g/t Au from 214.0m 10.0m @ 1.00g/t Au from 218.9m 17.0m @ 1.23g/t Au from 212.1m | (oxide) (oxide) (oxide) |
To view the complete drill assay results and further technical information relating to this news release, please visit the following link: http://www.alacergold.com/docs/default-source/press-releases/2016-07-21-exploration-update---cakmaktepe-north---drill-results-final.pdf?sfvrsn=4 or visit the Company’s website at www.alacergold.com.
ÇÖPLER DISTRICT EXPLORATION OVERVIEW
Alacer’s exploration licenses surrounding the Çöpler Gold Mine span across a 17 km by 25 km area. The exploration licenses are managed under two separate joint ventures (“JV”). Alacer owns 80% of the licenses adjacent to Çöpler Mine under the Anagold Madencilik Sanayi ve Ticaret A.S. (“Anagold”) JV and 50% of the remaining licenses in the Çöpler District under the Kartaltepe JV, both in partnership with Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya Mining”).
The Çöpler District Prospects & Tenements accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/a7850183-281f-4334-9845-db8af8a97bdb
ÇÖPLER DISTRICT 50/50% (KARTALTEPE JV) EXPLORATION RESULTS
Çakmaktepe North
Çakmaktepe North is a 2015 discovery that was identified from rock chip and soil sampling in early 2014. A drilling program commenced in June 2015 to define mineralized gossan on a 50m x 40m spacing over a strike length of 700m. As of May 31, 2016, a total of 29,744 meters of reverse circulation (“RC”) and diamond core drilling (“DDH”) has been completed from 174 holes. This is the third exploration press release for Çakmaktepe North.
The Çakmaktepe North mineralization is contained within shear and thrust hosted jasperoid, iron rich gossan, brecciated limestone and altered metasediments. There are multiple controls on mineralization with strong epithermal textures and associated structural overprints. The main body of mineralization is associated with a subvertical shear zone referred to as the ‘Main Shear’. The Main Shear varies in width from 5m to 40m, has been defined to a depth of 200m to 250m from surface, and dips at approximately 70 degrees to the east. Surface mapping and sampling have defined the mineralized extent of the shear as being over a kilometer in length, of which 700m has now been drill tested.
Results and outcomes presented in this release are from 17,361 meters of RC drilling and DDH from 107 holes completed between January 1 and May 31, 2016.
Drilling to date has not closed-off the mineralized system. Infill drilling to a spacing required for classification as a mineral resource estimate is in progress. The 2016 resource development strategy has focused on infilling and extending down-dip the northern 450m strike extent of the shear zone. Priority has been placed on validation of grade, mineralization distribution and continuity in the areas of highest gold grades.
Of the 107 holes completed in 2016, 18 were specifically designed as large diameter scissor holes drilled into the mineralization in the opposite direction to the current drill pattern. All 18 holes validated the accuracy of the geological model, replicated mineralization distribution and grade, as well as provided samples for metallurgical test work in Q2 and Q3 of 2016.
Of the 107 holes completed, there were 4 groundwater monitoring boreholes drilled as part of resource development, of which 2 intercepted significant mineralization in new areas peripheral to potential pit designs. All four holes were equipped with piezometers as part of a program to develop a hydrogeological model for permitting.
Since the Press Release issued on March 31, 2016 there has been significant evolution of the geological understanding of Çakmaktepe North through step-out and infill drilling. Although still the major trap for mineralization, the ‘Main Shear’ intersects a shallow thrust on its western footwall which is also mineralized. The structure is referred to as the ‘Footwall Thrust’ and is now recognized as a potential contributor of new gold to the Çakmaktepe North prospect. The Footwall Thrust is still to be fully drill tested, but to date extends over 150m to the west from its intersection with the Main Shear, has a strike of 350m and varies in thickness from 5m to 15m. Mineralization within the Footwall Thrust is hosted within iron rich jasperoid, gossan and underlying brecciated limestone. The Footwall Thrust defines the contact between overlying ophiolite and limestone, occurring within 150m of surface.
In the process of extending the down-dip extent of high grade Main Shear mineralization, drilling in 2016 has identified metasediments forming the hanging wall to the Main Shear to also be mineralized. Grade enhancement occurs where the metasediments are proximal (within 50m) of the Main Shear and intersected by mineralized diorite dykes. The metasediment forms a distinct hanging wall domain with ore type characteristics and grades similar to metasediments within the Ҫöpler Main pit.
Extensive development drilling continues to close the drill spacing in the high grade area of mineralization from 50m x 40m to 25m x 20m to a depth of 250m below surface for mineral resource estimation in 2016. Drilling from June to September 2016 will also focus on extending the mineralized Main Shear and Footwall Thrust 150m to the north.
Drilling after October 2016, will focus southwards along strike of the Çakmaktepe North prospect to test whether shear hosted mineralization at the Çakmaktepe Main target can be connected to the Çakmaktepe North prospect. The Çakmaktepe Main prospect hosts recent small-scale mining where iron rich gossan was previously extracted by another company. Residual Çakmaktepe Main gossan stockpiles report gold values of >1.0g/t Au.
The Çakmaktepe North prospect plan and an example section with significant assays follows.
The Çakmaktepe North Prospect Section NW700 accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/5a6283b7-3084-44b6-aecf-c89afa51b198
About Alacer
Alacer is a leading intermediate gold mining company, with an 80% interest in the world-class Çöpler Gold Mine in Turkey operated by Anagold and the remaining 20% owned by Lidya Mining. The Company’s primary focus is to leverage its cornerstone Çöpler Mine and strong balance sheet to maximize portfolio value, maximize free cash flow, minimize project risk and, therefore, create maximum value for shareholders.
The Çöpler Mine is located in east-central Turkey in the Erzincan Province, approximately 700 miles southeast from Istanbul, Turkey and 340 miles east from Ankara, Turkey’s capital city.
Alacer is actively pursuing initiatives to enhance value beyond the current mine plan:
- Çöpler Oxide Production Optimization – expansion of the existing heap leach pad to 58 million tonnes continues to advance. All required land use permits for the Heap Leach Pad Phase 4 expansion have been received. The Corporation continues to evaluate opportunities to optimize and extend oxide production beyond the current reserves, including a new heap leach pad site to the west of the Çöpler Mine.
- Çöpler Sulfide Project – the Sulfide Project will deliver long-term growth with robust financial returns and adds over 20 years of production at Çöpler. The Sulfide Project will bring Çöpler’s remaining life-of-mine gold production to 4 million ounces2 at All-in Sustaining Costs3 averaging $645 per ounce. The Environmental Impact Assessment and all required land use permits for construction have been approved. Detailed information regarding the Çöpler Sulfide Project can be found in the Press Release dated May 12, 2016 entitled “Alacer Gold Announces Çöpler Sulfide Project Approval” (“The Sulfide Project Update Press Release”) available on SEDAR at www.sedar.com and on the Corporation’s website.
- The Corporation continues to pursue opportunities to further expand its current operating base and to become a sustainable multi-mine producer with a focus on Turkey. The systematic and focused exploration efforts in the Çöpler District, as well as in other regions of Turkey are progressing. Çakmaktepe Southeast, Çakmaktepe East, Çakmaktepe North and Bayramdere are the main focus in the Çöpler District, which are shallow, oxide targets with favorable metallurgy and have the potential for rapid development. In the region, evaluation work is advancing and an update on the Dursunbey Project in western Turkey will be provided in Q3 2016.
Detailed information regarding the Çöpler Sulfide Project can be found in the Technical Report dated March 27, 2015 available on SEDAR at www.sedar.com and on the Company’s website.
Alacer is a Canadian company incorporated in the Yukon Territory with its primary listing on the Toronto Stock Exchange. The Company also has a secondary listing on the Australian Stock Exchange where CDIs trade.
Technical Procedural Information
Exploration drilling and sampling in Turkey utilized dominantly surface HQ and HQ3 triple-tube diamond core and 5 ¼ inch diameter RC drilling methods. Reverse circulation cuttings were sampled on 1.0m intervals and core was sampled systematically in 1.0m lengths as sawn half core in competent ground or hand split if in clay or broken fault zones. All drill sample assaying was performed by the SGS Ankara commercial assay laboratory in Turkey. Samples were analyzed for gold by Fire Assay off a 30 gram charge with an AAS finish, and analyzed for silver, copper, lead and zinc using a four acid digest ICP-AES method. Gold assays over 3g/t Au were automatically re-assayed by Fire Assay with a gravimetric finish. For silver, copper, lead and zinc assay results above the ICP-AES upper detection limits, samples were re-analyzed using a four acid digest with HCI leach and AAS finish. Quality Assurance/Quality Control measures included the insertion and continual monitoring of standards, blanks and duplicates inserted into the sample stream. QA/QC samples represent approximately 10% of all assay results received. Exploration and drilling results are reported as downhole drilled thicknesses. Drill hole significant assay intervals were calculated using a minimum downhole length of 5m @ >1.00g/t Au (body of text) or 2m @ >1.00g/t Au (Appendices). Grades were calculated using length weighted average sample grades for the interval. No top cut was applied.
Qualified Persons
The information in this release which relates to exploration results is based on information compiled by James Francis, BSc (Hons) Geology and MSc Mining Geology, MAusIMM, MAIG, who is a full-time employee of Alacer. Mr. Francis has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and a qualified person pursuant to National Instrument 43-101. Mr. Francis consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.
Cautionary Statements
Except for statements of historical fact relating to Alacer, certain statements contained in this press release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively “forward-looking information”) within the meaning of Canadian securities laws. Forward-looking information may be contained in this document and other public filings of Alacer. Forward-looking information often relates to statements concerning Alacer’s future outlook and anticipated events or results and, in some cases, can be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts.
Forward-looking information includes statements concerning, among other things, preliminary cost reporting in this document; production, cost and capital expenditure guidance; ability to expand the current heap leach pad, development plans for processing sulfide ore at Çöpler; results of any gold reconciliations; ability to discover additional oxide gold ore, the generation of free cash flow and payment of dividends; matters relating to proposed exploration, communications with local stakeholders and community relations; negotiations of joint ventures, negotiation and completion of transactions; commodity prices; mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates; the development approach, the timing and amount of future production, timing of studies, announcements and analysis, the timing of construction and development of proposed mines and process facilities; capital and operating expenditures; ability to draw under the credit facility and satisfy conditions precedent including execution of security and construction documents; economic conditions; availability of sufficient financing; exploration plans; receipt of regulatory approvals and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, geopolitical regulatory and political matters that may influence or be influenced by future events or conditions.
Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other of Alacer’s filings, and include the inherent speculative nature of exploration results; the ability to explore; communications with local stakeholders and community and governmental relations; status of negotiations of joint ventures; weather conditions at Alacer’s operations, commodity prices; the ultimate determination of and realization of mineral reserves; existence or realization of mineral resources; the development approach; availability and receipt of required approvals, titles, licenses and permits; sufficient working capital to develop and operate the mines and implement development plans; access to adequate services and supplies; foreign currency exchange rates; interest rates; access to capital markets and associated cost of funds; availability of a qualified work force; ability to negotiate, finalize and execute relevant agreements; lack of social opposition to the mines or facilities; lack of legal challenges with respect to the property of Alacer; the timing and amount of future production and ability to meet production, cost and capital expenditure targets; timing and ability to produce studies and analysis; capital and operating expenditures; economic conditions; availability of sufficient financing; the ultimate ability to mine, process and sell mineral products on economically favorable terms and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, geopolitical regulatory and political factors that may influence future events or conditions. While we consider these factors and assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.
You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on our current expectations and our projections about future events. Actual results may vary from such forward-looking information for a variety of reasons including, but not limited to, risks and uncertainties disclosed in Alacer’s filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Alacer does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.
1 See Alacer announcements “Alacer Announces Çöpler District Exploration Results”, dated December 9, 2015 and March 31, 2016 on the Company’s website at www.alacergold.com, on SEDAR at www.sedar.com, or on the ASX at www.asx.com.au.
2 Alacer has an 80% controlling interest of the Çöpler Gold Mine.
3 All-in Sustaining Costs is a non-IFRS financial performance measure and has no standardized definitions under IFRS. For further information and detailed reconciliation, please see the “Non-IFRS Measures” section of the MD&A for three months ended March 31, 2016.
Appendix 2 - JORC Code Table 1
The following tables are provided to ensure compliance with the JORC Code (2012) edition requirements for the reporting of exploration results.
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
| Criteria | JORC Code explanation | Commentary |
| Sampling Techniques | Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. | - Diamond drill core was sampled as half core at 1m intervals or to geological contacts. - RC chip samples are collected in calico bags (3-5kg) for analysis and representative sub-samples placed into chip box trays at 1m intervals for logging. Reject samples are collected in PVC bags and stored in a bag farm for 6 months in case need arises for relogging, duplicate sampling, metallurgical sampling and follow-up QAQC. |
| Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. | - To ensure representative sampling, diamond core is marked considering mineralization intensity and veining orientations then sawn and half core sampled. - Where possible all diamond core is oriented using 2IC Ezy-Mark or Reflex ACT II systems and collected in HQ triple tube splits pumped out with water. PVC pipe is inserted into areas of core loss marked with interval of loss. PVC pipe is cut to equivalent length of core loss and placed into core trays. Majority of holes are downhole surveyed using a MEMs Gyro to ensure accurate location of all samples within the bore hole. - RC chip samples are collected at 1m intervals using a side mounted rotary cone splitter. All samples are weighed using digital scales with weights recorded and used to determine sample representivity. The scale is tared before each measurement. All weights are recorded onto paper and transferred to the geological database. |
| Criteria | JORC Code explanation | Commentary |
| Aspects of the determination of mineralization that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be samples from which 3 kg was pulverised to produce a 30 g charge for where there is coarse gold that has inherent sampling problems. Unusual warrant disclosure of detailed information. | - Diamond Core samples are submitted as 1m half core to SGS Ankara laboratory for standard industry analysis i.e. samples crushed and split to 3kg, pulverized and subsampled to 250g and fire assayed using a analysis for 36 elements using a four acid digest and ICP-ME (OES) samples. Over limit precious and base metals are reanalyzed by AAS. applicable, Cyanide leachable gold is determined using a hot ‘Shaker analysis is completed where samples return total sulphur values >2%. All samples are weighed on receipt, dried, reweighed and moisture content determined. Crushing and Grind size checks are completed at all stages of sample reduction. - RC samples go through the same assay process at SGS Ankara, with initial samples submitted being 3-5kg RC chip samples that are crushed and then split to 3kg before pulverizing. | |
| Drilling Techniques | Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). | - Diamond drilling was mainly carried out with HQ and HQ3 triple tube. Precollars, metallurgical and difficult holes were completed with PQ and PQ3 triple tube. NQ was used in situations where, due to difficult ground conditions, the best option was a reduction in core size to NQ. Majority of holes were downhole surveyed by MEMs Gyro provided and maintained by Wellforce International. At times when MEMs Gyro was not available a Reflex Multi-Shot tool was used in place of Gyro. Core orientation was completed using the 2IC Ezy-Mark orientation system, with use of the Reflex ACT II tool for orientation when Ezy-Mark kits not available. - Çöpler District: RC drilling was completed with a nominal 5.25 inch face sampling hammer. Majority of holes were downhole surveyed by MEMs Gyro provided and maintained by Wellforce International. A Reflex Multi-Shot tool was used when the MEMs Gyro was not available. |
| Drill Sample Recovery | Method of recording and assessing core and chip sample recoveries and results assessed. | - Diamond Core - o All diamond core is measured and reconciled against core blocks, end of hole depth and drillers run-sheets. o Intervals of visual and calculated missing core are recorded in the sampling spreadsheet and geological database. PVC of equivalent length to missing core interval is inserted as a visual marker of core loss. |
| Criteria | JORC Code explanation | Commentary |
| o Core recovery is calculated on a per metre basis of recovered core and entered into the database as a percentage. In general, core recoveries are between 80 – 90%, reflecting strongly sheared, brecciated, altered and in areas of limestone, karstic ground being drilled (cavities). - RC Samples - o Both primary and residual samples are weighed to document sample recovery and determine recovery percentages against nominal expected sample weights. o The rotary cone sampling unit is adjusted as required to maintain a representative sample volume being collected by a 5.25 inch face sampling hammer. o All weighing is completed in the field using a digital scale with tare function. o Duplicate samples, standards and blanks are inserted into sample stream to achieve 10% QAQC coverage of sampled material. | ||
| Measures taken to maximize sample recovery and ensure representative nature of the samples. | - Diamond Core - o Use of HQ3 and PQ3 triple tube with splits to collect maximum intact core. o Inner tubes pumped out with water to prevent core loss and breakage. o Use of bentonite commenced with Çakmaktepe North drilling to improve core recovery through ‘caking’ of more porous and poorly consolidated lithologies. o Drilling of short core runs (1.5m). - RC Sample - o Monitoring of sample weights and adjusting rotary cone sampling system accordingly to ensure correct weight of primary sample split. o Monitoring of reject sample weight versus expected nominal achievable 20kg reject. Advising driller to modify drilling speed and or hammer rate to produce coarser sample and less fines. o Monitoring of outside return to flag excessive fines loss. o No wet sampling. o Clearing of sample equipment by air burst every metre drilled before progressing to next metre sampled. o Manual cleaning of sampling cyclone and rotary cone splitter at end of every hole and during drilling as required to prevent contamination. |
| Criteria | JORC Code explanation | Commentary |
| Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. | - No relationship has been identified between sample recovery and grade. - Comparisons completed between RC and Diamond sample outcomes from Çöpler District detected no significant assay bias due to sampling / material type bias. | |
| Logging | Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. | - Diamond Drill core was logged in detail for lithology, alteration, mineralization, structure and veining. Data collection is considered to a standard appropriate for Mineral Resource estimation. - Diamond Core – o Core samples were tested by immersion method at a frequency of 1 determination every 3m for insitu density for all material types for every hole drilled. o Point load testing was completed at a frequency of 1 determination in every 3m for all intact core. o Detailed geotechnical logging completed on Çakmaktepe North cored holes capturing data for Fracture Index, RQD and GSI calculation. o Samples collected for external metallurgical testwork for Çakmaktepe North prospects. o Samples collected for external transmitted, reflected and SEM petrological determinations of mineralization and waste lithology, textures and alteration. o All core photographed wet and dry for reference. - RC Chip Samples - o RC cuttings were logged for rock type by the mineral composition, mineralization by sulphide and oxide mineral species, alteration and vein mineralogy in sufficient detail to interpret distribution of lithology and mineralization distribution and relative subjective mineral abundances. o All RC chip samples analysed on site by ASD XRD PIMA analyser for determination of non-ore mineral species e.g. clays, carbonates, phyllosilicates. Data used for determination of alteration assemblages, lithology distributions based on geochemistry and location of regolith / transitional boundaries such as BOT, BOCO, TOFR and REDOX. |
| Criteria | JORC Code explanation | Commentary |
| Whether logging is qualitative or quantitative in nature. Core (or costean, channel etc) photography. | - Logging is qualitative in nature. Pima analyser is quantitative. - Diamond core was photographed both wet and dry. - RC chips were photographed for future reference. | |
| The total length and percentage of the relevant intersections logged. | - All drill holes and RC chips were logged in full. | |
| Sub- Sampling Techniques and Sample Preparation | If core, whether cut or sawn and whether quarter, half or all core taken. | - Diamond Core – o Exploration and Resource diamond core is half core sampled using a manual drop saw to cut to one side of the bottom of core line (where present in competent ground). o Half-core with bottom of hole line is retained in the tray. o PQ core is used for metallurgical sampling. ¼ core is used for initial assay. ½ core is dispatched in 1m intervals for metallurgical compositing and testing, ¼ core is retained in tray. o HQ triple tube core is used for geotechnical drilling, 10cm complete core segments are extracted for external laboratory testing (UCS, DS). Core block with sample details is left in core tray. o As with geotechnical core, select sampling for petrology is collected from ½ core and a core block with details of sample is inserted into core tray. o Soft (clay), poorly consolidated (regolith, oxide) and fragmental samples (fault, shear, breccia materials) are hand split into 1m ½ core samples. |
| If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. | RC samples are drilled using a face sampling hammer with samples collected via a rig side-mounted cyclone and rotary cone splitter. Samples are collected dry. Occasional moist samples are collected at top of sample intervals following 3m rod changes. Samples remain dry during metre by metre blow-out of contaminants in cyclone and cone splitter. Duplicate samples are collected using a 50/50 Jones riffle splitter at the drill rig. | |
| For all sample types, the nature, quality and appropriateness of the sample preparation technique. | - Industry standard diamond and RC drilling techniques are used (as described above) and are considered appropriate. | |
| Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. | - For RC drilling, contamination and sample representivity were managed through – o Full end of hole clean-out of cyclone and cone splitter. o During drilling clean-out of cyclone and splitter when in oxides and clays to prevent caking contamination. o Blow-out of all sampling equipment following sampling of each metre and before start of drilling of next metre. |
| Criteria | JORC Code explanation | Commentary |
| o Adjustment of rotary cone splitter to maximize sample collected. o Weighing of primary and reject samples to measure sample recovery. o Varying drill hammer penetration rate to maximize particle size and reduce fine sample loss through outside return. o Maintaining a dry sample. | ||
| Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. | - RC and diamond sampling have 5% of total submitted samples as field duplicates. With RC samples, a field duplicate is collected through use of a Jones riffle splitter to achieve a 50% primary sample split. With diamond core, quarter core repeats are selected and submitted post-primary sample submission. A further 5% of samples submitted are “blanks” and “standards” designed to check on laboratory performance during assay (accuracy & precision). Laboratory QAQC and field duplicates combined represent 10% of material assayed and analysed. - Results to date are within expected industry tolerances for duplicate and laboratory performance. There is no material bias to report. | |
| Whether sample sizes are appropriate to the grain size of the material being sampled. | - Sample sizes are considered appropriate to correctly represent the gold mineralization based on: the style of mineralization, the thickness and consistency of the intersections, the sampling methodology and assay value ranges for gold. | |
| Quality of Assay Data and Laboratory Tests | The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. | - The fire assay gold analyses undertaken are considered a total assay method. Fire assay gold analysis is an appropriate assay method for this type of deposit. - Multi-element analyses of silver, copper, lead and zinc undertaken by four acid digestion via ICP-AES are considered total assay methods except where they exceed the upper detection limit. - In cases where samples are overlimit they are re-assayed using a four acid digest with HCI leach, and AAS finish. These assay methods are considered to be total. - For gold assays greater than 3g/t, the fire assay process is repeated with a gravimetric finish for coarse gold. This is a total assay method. - Cyanide leach analysis is completed to determine potential gold leach recoveries when compared against total contained gold. The cyanide leach analysis is a partial analysis method. |
| For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. | - TerraSpec 4 desktop ASD PIMA (Portable Infrared Mineral Analyser) spectrometer for detection of alteration (clay mineralogies) was used. The machine is serviced and calibrated annually and used in conjunction with TSG software for conversion of spectral data to mineral data. PIMA is used on all RC chip samples to create clay and mineralogy models for correlation against alteration logging and geochemically determined lithologies. |
| Criteria JORC Code explanation | Commentary | |
| Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. | - Industry standard certified reference materials and blanks were utilized in order to check laboratory assay quality control. Standards and blanks represent 5% of sample submissions (1 in 20 samples, alternating blank and standard). - Laboratory visits to SGS Ankara and ACME Labs Ankara are conducted on a quarterly basis. - Field duplicates and laboratory coarse crush duplicates (prior to pulverizing) are part of standard process. - Sizing checks (dry sieve) on crushed and pulverized samples are reported for all holes at 1 check in every 20 samples. - SGS and ACME laboratories report all internal laboratory QAQC outcomes for each hole. - Laboratory submits monthly QAQC Report to client. | |
| Verification of Sampling and Assaying | The verification of significant intersections by either independent or alternative company personnel. | - Intersections were reviewed by the Chief and Senior Exploration Geologists following receipt of the assay results. - All assay results are processed and validated by the Senior Data Administrator prior to loading into the database. This includes plotting standard and blank performances, review of duplicate results. - Original assay certificates are issued as PDF for all results and compared against digital CSV files as part of data loading procedure into the database. - Geology Manager reviews all tabulated assay data as MAIG RPGeo. |
| The use of twinned holes. | - No twin holes were drilled. | |
| Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. | - All primary data is sent electronically as both PDF and CSV files to a dedicated assay email cabinet with restricted access. - Email assay dropbox only receives data. - Data within the dropbox is registered and uploaded to DataShed Data Management Software and Geological Database for validation. - Data is validated through a series of queries and protocols. - All geological data related to drilling, logging and testwork is saved within the Geological database (downhole surveys, collar surveys, collar metadata, logging data, geotechnical data, all assay data). - Database is annually audited by external consultants. - Database is audited prior to resource estimates. | |
| Criteria | JORC Code explanation | Commentary |
| - Database is backed up daily and monthly on network and on remote hard drives. - Database is copied monthly and sent to Alacer’s head office in Denver. | ||
| Discuss any adjustment to assay data. | - Assay adjustments are only made when associated drill hole data cannot be validated e.g. unverified collar locations, identified data entry errors. All deletions and changes are logged within the database and reported on a monthly basis. | |
| Location of Data Points | Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. | - Drillhole collar locations were surveyed by both in-house mine surveyors and contract surveyors as part of collar survey validation process. 10% of historic collars are field verified. - Diamond and RC drill holes are downhole surveyed by MEMs Gyro, Reflex Multishot and North Seeking Gyro. |
| Specification of the grid system used. | - All drill hole collars surveyed in Universal Transverse Mercator (UTM) system, European Datum 1950 grid using differential GPS. | |
| Quality and adequacy of topographic control. | - Topographic surfaces are prepared from detailed ground surveys and ortho-corrected satellite imagery. Satellite imagery accurate to <1m contouring. Satellite imagery is current as of 9th August, 2015. | |
| Data Spacing and Distribution | Data spacing for reporting of Exploration Results. | - Çakmaktepe North is being drilled to a nominal 50 x 40m spacing, with infill drilling at a nominal 25 x 20m spacing. |
| Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. | - The reported drilling has not been used to prepare Mineral Resource estimates. Drill hole spacing for Çakmaktepe North is sufficient to define grade continuity, geological continuity, depth and lateral extents of mineralization. | |
| Whether sample compositing has been applied. | - Sample compositing has not been applied. | |
| Orientation of Data in Relation to Geological Structure | Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. | - At Çakmaktepe North drill holes are at a near right angle to the main mineralized NW-SE trending shear with holes drilled from NE to SW at 60 degrees. No bias in sampling is anticipated. |
| If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. | - No orientation based sampling bias has been identified in the data. | |
| Sample Security | The measures taken to ensure sample security. | - Chain of custody is managed by Alacer Gold for Çakmaktepe North through its JV company Kartaltepe. - Samples are stored on site until collected for transport to SGS laboratory in Ankara, Turkey by an independent cartage contractor. |
| Criteria | JORC Code explanation | Commentary |
| - Alacer Gold personnel have no contact with the samples once they are picked up for transport to the laboratory. - Samples for Umpire testwork are transferred directly from SGS Ankara to ACME Labs Ankara using an independent freight carrier. - Tracking sheets have been set up to track the progress of samples. - All samples are placed into calico bags with sample tickets and clear sample ID numbering on the outside. Samples are placed inside of labelled polyweave bags holding a maximum 4 samples a bag. | ||
| Audits or Reviews | The results of any audits or reviews of sampling techniques and data. | - External reviews of data and processes relating to these prospects have been completed by independent Resource Consultant Paul Gribble, Cube Consulting and Data Revolution between late 2014 and June 2016. There were no adverse material results of the audits. |
Section 2 Reporting of Exploration Results
| Criteria | JORC Code explanation | Commentary |
| Mineral Tenement and Land Tenure Status | Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. | - Çakmaktepe North mineralization is located within mining leases which are owned by Kartaltepe Madencilik (a subsidiary of Alacer Gold) and Lidya Madencilik in joint venture. Both companies have a 50% interest in the license areas. |
| The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. | - The licenses are in good standing with no known impediment to future grant of a mining permit. | |
| Exploration Done by Other Parties | Acknowledgment and appraisal of exploration by other parties. | - At Çakmaktepe, small scale open pit mining has occurred in the past for iron ore which is also an indicator for gold mineralization. |
| Geology | Deposit type, geological setting and style of mineralization. | - The Çöpler District hosts various styles of mineralization, mainly epithermal, skarn and porphyry style gold and gold-copper mineralization. - The Çakmaktepe North deposit is strongly shear zone constrained with strong epithermal characteristics and grade association with intrusive diorite dykes. As with the other prospects the mineral association is dominantly Fe-Au-Cu-Ag. |
| Criteria | JORC Code explanation | Commentary |
| Drill hole Information | A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. | - The locations and mineralized intersections for all holes completed are reported in Appendix 1 of this release. |
| Data Aggregation Methods | In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. | - Exploration results are reported as length weighted averages of the individual sample intervals. - No high-grade cuts have been applied to the reporting of exploration results. |
| Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. | - Zones of particularly high-grade gold mineralization have been separately reported in Appendix 1. | |
| The assumptions used for any reporting of metal equivalent values should be clearly stated. | - No metal equivalent values have been used. | |
| Relationship between Mineralization Widths and Intercept Lengths | These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralization with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). | - At Çakmaktepe North the mineralization strikes ~NW-SE with a dip of ~80 degrees to the NE. Drilling is to the SW at 90 degrees to strike with drilling intercepts representing 40 to 60% of true width. |
| Diagrams | Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. | - Relevant diagrams have been included within the main body of text. |
| Criteria | JORC Code explanation | Commentary |
| Balanced Reporting | Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. | - All exploration results from these drilling programs have been reported, inclusive of drill holes having no significant results. |
| Other Substantive Exploration Data | Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. | - Metallurgical testing is still to be completed for Çakmaktepe North but based on similarity of ore to adjacent Çakmaktepe East and Southeast deposits, the oxide mineralization is anticipated to have similar recovery characteristics to Çöpler Deposit ores and could be processed through the Çöpler processing plant (heap leach). |
| Further Work | The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. | - Çakmaktepe North is an active growth project with scale of mineralized system, strike and depth extent, and grade continuity currently being defined. Multiple diamond drill rigs and an RC rig worked through 2015 to complete an initial 50 x 40m pattern of drilling across a 700m strike extent of mineralized shear. - Current drilling in 2016 is progressing to reduce the initial 50 x 40m pattern of drilling to 25 x 20m for resource estimation using 8 diamond and 1 RC drill rig. - Current drilling at Çakmaktepe North is also stepping-out to the north and down-dip of existing mineralization to test for mineralization extension. - Geotechnical drilling is planned in the next phase of 2016 drilling as part of the resource development process to progress the deposit to a resource and reserve. |
