Alamos Gold Provides Clarification on Development Activities at Kirazlı
December 13 2018 - 3:41PM
Alamos Gold Inc. (
TSX:AGI;
NYSE:AGI) (“Alamos” or the “Company”) today is providing
clarification in response to local media reports in Turkey with
respect to development activities at its Kirazlı project, located
in the Çanakkale Province of Turkey.
The Turkish press reported Alamos has slowed development
activities on its Kirazlı project which has included reducing its
workforce by six employees and certain contractors. This slowdown
in part reflects the completion of the road construction, a
seasonal slowdown reflecting the onset of winter, and delays in
receipt of an Operating License required prior to commencing
earthworks on the ground related to the future open pit.
As previously reported, Alamos has received approval for the
three major permits required for the start of construction of the
Kirazlı project. These include the Environmental Impact Study and
the Forestry Permits, which were granted by the Federal government,
and the GSM (Business Opening and Operation) permit which was
granted by the Çanakkale Governorship in July 2018.
The Company has invested approximately $18 million thus far in
2018 focused on power line construction, road construction, and
construction of a water reservoir. Road construction is now
complete and the water reservoir and power line are 50% and 85%
complete, respectively.
There are several additional permits required prior to the start
of gold production at Kirazlı, including the above noted Operating
License, which is not required for the start of construction.
However, the Operating License is required prior to commencing
mining activities on the open pit area of the project only. As the
project design for Kirazlı utilizes overburden material from the
open pit for cut and fill purposes, this has delayed the start of
some construction activities.
The Operating License was expected to have been granted in the
ordinary course following the receipt of the GSM permit in July of
this year. This process had been confirmed in writing by the
Turkish Department of Energy and Natural Resources, the government
body responsible for issuing the Operating License.
The Company has slowed down development activities and spending
until the Operating Licence is granted. In discussions with the
Department of Energy and Natural Resources over the delay, the
Company has been assured that the Operating License review is
following the normal bureaucratic process. Pending receipt of
the Operating License, the Company expects to ramp up major
construction and earthworks activities in the spring of 2019,
putting initial production from Kirazlı on track for the second
half of 2020, consistent with previous guidance.
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 |
|
Vice President, Investor Relations |
|
(416)
368-9932 x 5439 |
|
All amounts are in United States dollars, unless otherwise
stated.
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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