Alamos Gold Receives GSM Permit for Kirazlı Project
July 25 2018 - 2:20PM
Alamos Gold Inc. (TSX:AGI) (NYSE:AGI) (“Alamos” or
the “Company”) today reported it has been granted the GSM (Business
Opening and Operation) permit required for the development of its
Kirazlı project, by the Çanakkale Governorship in Turkey.
“We are very pleased to have achieved this key milestone. With
the Environmental Impact Study and Forestry Permits having been
previously approved, we have all the required permits to ramp up
full scale construction activities. As one of the lowest-cost
and highest return gold projects in the world, Kirazlı will be a
significant driver of free cash flow growth with initial production
expected in 2020,” said John A. McCluskey, President and Chief
Executive Officer.
As outlined in the 2017 feasibility study, Kirazlı has a 44%
after-tax internal rate of return and 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. This is expected to bring consolidated production to
over 600,000 ounces per year, while significantly lowering the
Company’s cost profile.
The Company will be mobilizing for full scale construction
activities over the next two months. The initial capital
estimate for Kirazlı is $152 million of which $50 to $60 million is
expected to be spent in 2018, inclusive of $10 million spent
through the first half of 2018. The bulk of the remaining initial
capital will be spent in 2019 and the first half of 2020. Based on
the current timelines, the Company expects initial production from
Kirazlı in the second half of 2020.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos Gold’s Vice President, Technical
Services, has reviewed and approved the scientific and technical
information contained in this news release. Chris Bostwick is a
Qualified Person within the meaning of Canadian Securities
Administrator’s National Instrument 43-101. For further information
pertaining to the 2017 feasibility study, please see press release
titled “Alamos Gold Announces Positive Feasibility Study for
Kirazlı Project”, dated February 15, 2017, and the corresponding
technical report, both available under the Company's profile on
SEDAR at www.sedar.com and on the Alamos website at
www.alamosgold.com.
About Alamos
Alamos is a Canadian-based intermediate gold producer with
diversified production from four operating mines in North America.
This includes the Young-Davidson and Island Gold mines in northern
Ontario, Canada and the Mulatos and El Chanate mines in Sonora
State, Mexico. Additionally, the Company has a significant
portfolio of development stage projects in Canada, Mexico, Turkey,
and the United States. Alamos employs more than 1,700 people and is
committed to the highest standards of sustainable development. The
Company’s shares are traded on the TSX and NYSE under the symbol
“AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott
K. Parsons |
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Vice President,
Investor Relations |
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(416) 368-9932 x
5439 |
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The TSX and NYSE have not reviewed and do not accept
responsibility for the adequacy or accuracy of this release.
Cautionary Note
This news release contains statements that constitute
forward-looking information within the meaning of applicable
Canadian and U.S. securities laws, “forward-looking
statement(s)”. All statements in this news release, other
than statements of historical fact, which address events, results,
outcomes or developments that Alamos expects to occur are, or may
be deemed to be, forward-looking statements. Forward-looking
statements are generally, but not always, identified by the use of
forward-looking terminology such as "expect", “is expected”
"believes", "anticipates", "will", "intends", "estimates",
"forecast", "budget" or variations of such words and phrases and
similar expressions or statements that certain actions, events or
results ”may", "could", "would", "might" or "will" be taken, occur
or be achieved.
Forward-looking statements are necessarily based upon a number
of factors and assumptions that, while considered reasonable by
management at the time of making such statements, are inherently
subject to significant business, economic, legal, political and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements.
Such factors and assumptions underlying the forward-looking
statements in this document include, but are not limited to:
development delays at the Kirazlı project, the speculative nature
of mineral exploration and development, including the risks of
obtaining and maintaining necessary licenses, permits and
authorizations for the Company’s development stage and operating
assets; changes to current estimates of mineral reserves and
resources; changes to production estimates (which assume accuracy
of projected ore grade, mining rates, recovery timing and recovery
rate estimates and may be impacted by unscheduled maintenance;
labour and contractor availability and other operating or technical
difficulties); fluctuations in the price of gold; changes in
foreign exchange rates (particularly the Canadian dollar, Turkish
Lira and U.S. dollar); the impact of inflation; any decision to
declare a dividend; community relations; project specific
litigation; disruptions affecting our Turkish operations;
availability of and increased costs associated with mining inputs
and labour; contests over title to properties; changes in national
and local government legislation (including tax legislation); risk
of loss due to sabotage and civil disturbances; the impact of
global liquidity and credit availability and the values of assets
and liabilities based on projected future cash flows; and, risks
arising from holding derivative instruments.
Additional risk factors and details with respect to risk factors
affecting the Company are set out in the Company’s latest Form
40-F/ Annual Information Form and MD&A, each under the heading
“Risk Factors”, available on file with the SEC and Canadian
provincial securities regulatory authorities. The foregoing should
be reviewed in conjunction with the information found in this news
release. The Company disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
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