Located close to the Black Sea coast of northern Turkey, the Altıntepe high- to intermediate-sulphidation epithermal gold deposit has an in-house resource of 593,131 oz gold and 3,184,508 oz silver. Under the terms of a joint-venture agreement private Turkish contract gold mining company Bahar Madencilik has recently funded all pre-production capital costs at the project, including US$39 M construction costs, to earn a 55% interest. First gold pour was achieved in November 2015.
The Stage 1 operation, focusing on exploitation of the Camlik East zone, is expected to deliver a minimum of 30,000 oz gold per annum over 34 months for a total 110,000 oz recovered gold. Full production is likely to take a few months to achieve. In the meantime, technical and economic assessment will be completed on the Extension Ridge and Camlik zones in anticipation of these being exploited during the later stages of mining of the Camlik East resource.
Bahar has agreed a minimum production target of 30,000 oz gold per annum and will recover their costs from 80% of net free cash flow; thereafter net proceeds will be distributed 55% Bahar, 45% Stratex.