Çöpler gold mine · 2014. 9. 25. · world‐class mine with significant, consistent low‐cost...

Site Visit Presentation – September 2014

Çöpler Gold Mine

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FORWARD‐LOOKING STATEMENTS Except for statements of historical fact relating to Alacer Gold Corp. (“Alacer”), certain statements contained in this presentation constituteforward‐looking information, future oriented financial information, or financial outlooks (collectively "forward‐looking information") within the meaning of Canadian securitieslaws. Forward‐looking information may be contained in this presentation and Alacer's public filings. Forward‐looking information often relates to Alacer's future outlook andanticipated 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", "targeted", "possible", "continue", "objective" or other similar expressions concerning matters that are not historical facts. Forward‐looking information contained in this presentation and other Alacer filings which may prove to be incorrect, include statements concerning, among other things, the generation offree cash flow and payment of dividends; matters relating to proposed exploration; production guidance and ability to target high grade ore bodies; the study, development andconstruction of proposed mines and process facilities; and the preparation and dissemination of technical studies. Such forward‐looking statements are based on a number ofmaterial factors and assumptions, which Alacer believes are reasonable, including, but not limited in any manner, to those to disclosed in any other of Alacer’s public filings, andinclude the inherent speculative nature of exploration results; the ability to explore; governmental relations; commodity prices; the ultimate determination of and realization ofmineral reserves; existence or realization of mineral resources; the development approach; availability and final receipt of required approvals, titles, licenses and permits; andsupplies; foreign currency exchange rates; interest rates; access to capital markets and associated cost of funds; availability of a qualified work force; ability to negotiate, finalizeand 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 offuture production and ability to meet production targets; timing and ability to produce studies and analyses; capital and operating expenditures; 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, regulatory and political factors that may influence future events or conditions. Actual results may vary from such forward‐looking informationfor a variety of reasons, including but not limited to risks and uncertainties disclosed in other Alacer filings at www.sedar.com. Forward‐looking statements are based uponmanagement’s beliefs, estimate and opinions on the date the statements are made and, other than as required by law, Alacer does not intend, and undertakes no obligation toupdate any forward‐looking information to reflect, among other things, new information or future events.

The exploration results, Mineral Resources and Mineral Reserves disclosure in this presentation have been compiled and approved by Mr. James Francis, BSc (Hons) Geology andMSc Mining Geology, GM ‐ Technical of Alacer. Mr. Francis has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and tothe activity which is being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, MineralResources and Ore Reserves” and a Qualified Person pursuant to NI 43‐101. He consents to the inclusion in this presentation of the matters based on this information in the formand context in which it appears.

This presentation does not represent a solicitation or offer to sell securities. All dollars in this presentation are US$’s.

Cautionary StatementsF

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Çöpler Gold MineWelcome

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Standalone projects

Become multi‐mine producer

High quality targets identified

Additional oxides Low capital cost High margin Significant cash flow Leverage existing

infrastructure

Sulfide project

Positioned to Capitalize on Multi‐Mine Strategy

Attractive Organic Growth Opportunities

2

1

3

Significant and scalable low‐cost, long‐term production

Strong and growing cash position (~$300M) to pursue organic growth

Positioned to Capitalize on Excellent Organic Growth Potential Organic Growth Potential

Çöpler Gold Mine

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Life‐of‐Mine Production Profile

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Çöpler Gold Mine

0

50

100

150

200

250

300

H2 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

Gold Prod

uctio

n ('0

00 oz)

Çöpler Gold Production 2014 ‐ 2034

Oxide Gold Produced Sulfide Gold Produced

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Çöpler Gold Mine

High‐Value, Near‐Term Oxide OpportunitiesÇöpler heap leach pad expansion

Sulfide project DFS mine plan includes 4.2Mt at 1.2 gpt of heap leachable material currently classified as waste

Study well progressed to expand existing heap leach pad capacity beyond current 50Mt Initial results indicate potential to add ~15‐20Mt of additional capacity

Further leachable ore opportunities Reviewing current operating parameters for leachable ore Exploration potential to discover satellite oxide deposit in Çöpler District

Other heap leach pad locations identified

Current 50Mt Heap Leach Facility

Proposed expansion

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World‐Class Mine with Significant, ConsistentLow‐Cost Production and Cash Flow

($1,500)

($750)

$0

$750

$1,500

2013

Glo

bal C

ash

Cos

t Cur

ve(U

S$/o

z)

First Quartile Total Cash Costs (C2$/oz)1

Çöpler Gold Mine $429/oz

Average Cash Costs: $721/oz

1st 2nd

3rd 4th

Quartile

Significant Heap Leach Production (koz Au) (100%)

185 189

271

200

185374

645 845 - 870

2011A 2012A 2013A 2014

Guidance

Annual Production Cumulative Production

225

Consistently Delivering Substantial Cash Flow ($M’s) (100%)

$60

$45 $43

$26

$55

$41$50

$38$30

$12

$47

$28 $27

$11

$36

$11

$29 $31 $25

$7

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2012 2013 2014Operating Cash Flow Free Cash Flow2

3

World‐Class Mine with Significant,Low‐Cost Production and Cash Flow Çöpler Gold Mine

1 Source: SNL Financial.2 Free Cash Flow is defined as Operating Cash Flow less capital expenditures (including capitalized exploration)3 Q2 '14 Free Cash Flow affected by several annual cash outflows occurring in Q2 and will not reoccur again this year

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Life‐of‐Mine Production Profile

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Çöpler Gold Mine

July 2014 to Dec 2017Heap Leach

Only

2018 to 2022

First 5 years of POX

2023 to 2034

Remainder of LOM

Total(100%)

MiningOxide Ore to Heap Leach Pad Mt 21.8 1.5 0 23.2Sulfide Ore Mt 6.31 13.7 8.9 28.9Waste Mt 85.8 51.4 24.1 161.2Total Tonnes Mined Mt 113.8 66.5 33.0 213.3Strip Ratio 3.1 3.4 2.7 3.1ProcessingOxide Ore Mt 21.8 1.5 0 23.2Oxide Head Grade g/t gold 1.30 1.46 0 1.31Oxide Gold Produced ‘000 oz 611 73 0 684Sulfide Ore Mt 0.04 9.0 22.6 31.7Sulfide Head Grade g/t gold 5.20 3.90 2.18 2.67Sulfide Gold Produced ‘000 oz 6 1,071 1,478 2,555Total Gold Production ‘000 oz 616 1,144 1,478 3,239

Rounding differences will occur

1 Sulfide tonnes mined are planned to be stockpiled prior to commissioning of the sulfide processing plant

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Çöpler Gold MineOverview

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Outline of Presentation & Mine Tours• Location & Ownership• People & Administration• Health, Safety & Environment• Community Relations• Pits & Infrastructure• Geology• Resources and Reserves• Mining & Processing• Projects• Costs & Outlook• Sulfide Project

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Çöpler Gold Mine

Welcome to Çöpler Gold Mine!

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Corporate Head OfficeDenver, Colorado

Turkey

Corporate Overview Corporate / Asset Location

Sariçayiryayla

Dursunbey (50%)

Yelekkaya

Ïvrindi

Yahyali

Akoluk

KabadüzFol-ken

Kurttepe

GuvemlïKazikbeli

Cevïzlïdere (50%)

Anagold JV(Lidya Mining)

80%

Tunçpınar JV(Lidya Mining)

50%

Polimetal JV

Kartaltepe JV(Lidya Mining)

Certain ÇöplerDistrict Licenses

4 Projects

TurkeyRegional

Exploration

3 Projects

CertainÇöpler District

Licenses

5 Projects

50% 20%1

Çöpler Gold Mine

Tunçpınar JV

Erzincan

Istanbul

1 Alacer has the right to “claw back” up to a 50% interest in individual projects within the Polimetal JV.

TurkeyRegional

Exploration

11 Projects

World-class gold mine, several attractive projects and extensive land package in Turkey

SinMalmisÇöpler District

Polimetal JV(Lidya Mining)

Turkey OfficeAnkara

Çöpler Gold MineCompany Snapshot

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Çöpler Licenses Held in Two Joint Ventures

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Çöpler Gold Mine

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People

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Çöpler Gold MineTurkish Business UnitOrganizational Structure

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Human Resources - Employees

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Çöpler Gold Mine

Skill Levels of Employees in Çöpler Project ‐ as per Recruitment Places as of 31.Aug.2014

Recruitment PlaceUnskilled Semi‐skilled Skilled Total

# % # % # % # %

Çöpler 10 9% 27 6% 18 6% 55 6%

Sabırlı 11 10% 31 7% 5 2% 47 6%

Bağıştaş ‐ Dostal ‐ Bahçe ‐ ‐ 4 1% 2 1% 6 1%

İliç Centre 74 68% 332 81% 88 27% 494 59%

Other Villages of İliç 4 3% 9 2% 4 1% 16 2%

Erzincan 7 6% 2 0% 21 7% 29 3%

Other Cities 4 4% 6 1% 176 55% 186 22%

Other Countries ‐ ‐ ‐ ‐ 9 3% 9 1%

Grand Total 110 410 323 842Note: This table includes both ANAGOLD's and Contractors' employees who work for Copler Project. Numbers are full‐month equivalents.

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Health & Safety Performance

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Çöpler Gold Mine

1. Meeting or exceeding legal requirements and international standards

2. Creating and maintaining a safe, healthy and positive working environment

3. Educating and training employees and contractors in HSE best practice and procedures in the spirit of “Safe Production”

Health & Safety Strategy

CY7 CY8 CY9 CY10 CY11 CY 2012 CY 2013 Q1 2014 Q2 2014

Çöpler LTI 1 2 1 6 3 5 1 0 0

0

1

2

3

4

5

6

7

LTIs

Çöpler Gold Mine LTIs Over 550 Days without LTI &

4.05 million hours since last LTI(end of August)

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Environmental Performance

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Çöpler Gold Mine

1. Meeting or exceeding legal requirements and international environmental standards

2. Maintaining and improving the environmental management system to align with the requirements of ISO 14001

3. Educating and training employees in environmental practices and procedures to develop an environmental sensitive culture

Environmental Strategy

CY7 CY8 CY9 CY10 CY11 CY 2012 CY2013 Q1 2014 Q2 2014

Copler RI's 0 0 0 1 0 1 0 0 1

0

1

2

3

4

5

6

7

Inci

dent

s &

Gov

ernm

ent

Rep

orta

ble

Inci

dent

’s

Çöpler Gold MineReportable Environmental Incidents

Spills contained and remediated

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Community Relations

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Çöpler Gold Mine

• Social policies, procedures and plans implemented in accordance with IFCGuidelines, Company Social Impact Assessment and Relocation Action Plan.

• Communication with the local community and the Governmental officials byholding regular visits.

• Community Development Programs by working with AgriculturalDepartments, Governorship, Universities, Development Agencies, and otherrelated parties.

• “Community Relations, Cultural Sensitivity and Awareness Training” for allcompany and contractor employees.

• Scholarship programs for high school and university students from İliç and allstudents of Mine Technology department of İliç Vocational High School.

• Communication with local media agencies.• Alacer Gold has agreed to donate US$2.8M for the construction of a PrimarySchool in İliç.

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Community Relations

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Çöpler Gold Mine

New Primary SchoolCapacity building & socialprograms for women

Mine site tours for locals, officials, students, etc.

Community awarenessprograms like cyanide

brochures

Some CR activity statistics to date:• 1,444 consultation meetings held• 224 grievances conveyed by the community

have been resolved• 498 community projects (excluding the school)

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Community Relations

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Çöpler Gold Mine• Expansion Project announcements were

made to the Governor, Sub-governor,Mayor, village mukhtars, contractors, &employees.

• Public Hearing, an important part of the EIAprocess, has been successfully completed.

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Çöpler Gold Mine

Çöpler Oxide Pits & Infrastructure – 2014F

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Overview of Çöpler Mine

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SE Waste Dump

Manganese Pit

Marble Pit

Main Pit

Crusher & Clay‐Handling

SART ADR

Leach Pad

PondsAgglomeration & Conveying

Çöpler Gold Mine

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Çöpler Gold MineGeology

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Exceptional Exploration Potential

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Çöpler Gold Mine

18 years in Turkey gives Alacer early mover advantage Tethyan Belt is historically under‐explored and has excellent mineral potentialF

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Çöpler Geology – Regional Setting

Located in Tethyan Metallogenic Belt

Çöpler

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Çöpler Gold Mine

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Çöpler District Geology & Licenses

25 km

15 k

m

Mining License (942 hectares)

is surrounded by Exploration Licenses

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Çöpler Gold Mine

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Çöpler Geology – Key Rock Types

Limestone

Marble

Metasediments Intrusive

Old workingson contacts

Looking west across Çöpler deposit Slide 26

Çöpler Gold Mine

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Çöpler Geology – Plan of Deposit

3 km long ore zone Slide 27

Çöpler Gold Mine

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Çöpler Geology – Mineralization Styles

Çöpler is an intermediate sulfidation epithermal deposit

Sulfide mineralization exhibits three principal styles:• Disseminated sulfides in stock work quartz‐veined metasediments and diorite (Main Zone, Marble Zone)

• Disseminated sulfides in clay altered, brecciated and carbonitized diorite (Manganese Zone)

• Massive sulfide replacement bodies along the marble contacts (Main Zone contacts, Marble Zone, Manganese Zone)

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Çöpler Gold Mine

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Çöpler District – Priorities for 2014

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Çöpler Gold Mine

Identify supplementary oxide ore within trucking distance of Çöpler infrastructure

Discover standalone projects in the extensive mineralized system

Continue target generation and prioritization

$11.1M 2014 Budget (100%)

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Çöpler District – 2013 Target Generation

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Çöpler Gold Mine

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Strong Targets Identified in Highly Prospective Çöpler District

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Çöpler Gold Mine

Bayramdere (50%)21m at 1.5g/t Au from 27m5m at 1.7g/t Au from 37m5m at 1.7g/t Au from 28m

Yakuplu (50%)7m at 4.6g/t Au from surface10m at 1.0g/t Au from 6m14m at 1.1g/t Au from 42m12m at 1.2g/t Au from 48m

Anagold Yakuplu (80%)17m at 1.7g/t Au from 55m6m at 4.7g/t Au from 55m14m at 1.6g/t Au from 1m17m at 2.7g/t Au from 73m

Dursunbey

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Çöpler Gold MineMineral Resources and Reserves

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Çöpler Resource Continues to Grow

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Çöpler Gold Mine

‐

2

4

6

8

10

12

14Feb 10

Dec 11

June

12

June

13

Dec 13

Million ou

nces of gold

Çöpler Resource + Mined Ounces (100%)

Inferred

Measured + Indicated

Contained Ounces Mined

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Ongoing Resource Reconciliation Study

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Çöpler Gold Mine

• Resource reconciliation work has significantly upgraded the quality of the reserve

• Changed modelling method from Ordinary Kriging to Probability Assigned Constrained Kriging (PACK), utilized because it allows better calibration of the resource model to historical mining results

• Completed exploration database audit:

– Ensured integrity of data, confirmed error rate of <1% on assay results

• Completed discreet 1,000m twin hole drilling program using triple wall PQ core tubing:

– Original drilling had some poor core recovery in some high‐grade zones

– New triple wall PQ drilling provided consistent high core recoveries

• Completed blast hole data audit and confirmed historical data is accurate

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Block Model ComparisonManganese Pit – Section 4,364,360N

2014 Resource Model• Probability Assisted Constrained Kriging (PACK) calibrated to historical mining

results provides better definition of mineralization

2013 Resource Model• Previous modelling by geology

restricted ore definitions

Block Color Legend

2013

2014

2010

2013 Pit

2013 Pit

2013 Pit2010 Resource Model

• Ordinary Kriging & no historical comparisons

Çöpler Gold Mine

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Manganese Pit Geology

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Çöpler Gold Mine

Manganese Pit “Ring of Fire”

Diorite intrusion contact zone (white ring around intrusion)

Poor drilling recoveries along contact

High-grade ore mined along contact

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Resource Domains

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Çöpler Gold Mine

Source: Figure 14-3 of Çöpler NI 43-101 Technical Report dated July 29, 2014.

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Summary of the Two Pass PACK Method

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Çöpler Gold Mine


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Resource Classification

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Çöpler Gold Mine

Plan of Resource Classification Showing Indicated (Green) with Inferred (Blue) Material Forming a Ring around the Indicated Material


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Whittle Pit Optimizations

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Çöpler Gold Mine


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Çöpler Mineral Resource

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Çöpler Gold Mine

Updated Mineral Resources for the Ҫӧpler Deposit (As of December 31, 2013)

Gold Cut‐off Grade (g/t) Material Type

Resource Category Material

Tonnes (x1000) Au (g/t) Ag (g/t) Cu (%) Contained Au

(oz x 1000)

Variable Oxide

Measured ‐ ‐ ‐ ‐ ‐Indicated 69,512 1.08 2.78 0.15 2,421Stockpile ‐ Indicated 18 3.19 ‐ ‐ 2Measured + Indicated 69,530 1.08 2.78 0.15 2,422Inferred 28,893 0.97 4.58 0.11 904

1.0 Sulfide

Measured ‐ ‐ ‐ ‐ ‐Indicated 81,854 1.95 5.64 0.11 5,135 Stockpile ‐ Indicated 1,536 4.84 9.81 0.11 239Measured + Indicated 83,390 2.00 5.71 0.11 5,374 Inferred 22,884 1.92 10.85 0.15 1,411

Variable Stockpiles Indicated 1,554 4.82 ‐ ‐ 241

Variable Total

Measured ‐ ‐ ‐ ‐ ‐Indicated 152,920 1.59 4.38 0.13 7,796 Measured + Indicated 152,920 1.59 4.38 0.13 7,796 Inferred 51,778 1.39 7.35 0.13 2,315

M+I Resources total 7.8M contained ounces of gold

Note: Resources are quoted after mining depletion and are inclusive of reserves. Resources are shown on a 100% basis, of which Alacer Gold owns 80%. Rounding errors will occur. Further information on this resource estimate is in the NI43-101 Technical Report dated July 29, 2014.

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Çöpler Mineral Reserve

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Çöpler Gold Mine

Updated Mineral Reserves for the Ҫӧpler Deposit (As of December 31, 2013)

Reserve Category Material Tonnes (x1000)

Au (g/t)

Ag(g/t)

Cu(%)

Contained Au Ounces

Recoverable Au Ounces

Proven ‐ Oxide In‐Situ ‐ ‐ ‐ ‐ ‐ ‐Probable ‐ Oxide In‐Situ 26,207 1.32 2.88 0.13 1,114,700 770,900Probable ‐ Oxide Stockpile 18 3.19 ‐ ‐ 1,800 1,200Total ‐ Oxide 26,224 1.32 2.88 0.13 1,116,500 772,100Proven ‐ Sulfide In‐Situ ‐ ‐ ‐ ‐ ‐ ‐Probable ‐ Sulfide In‐Situ 30,139 2.56 6.88 0.12 2,482,500 2,330,200Probable ‐ Sulfide Stockpile 1,536 4.84 9.81 0.11 239,000 225,100Total ‐ Sulfide 31,675 2.67 7.02 0.12 2,721,500 2,555,300Proven ‐ Oxide + Sulfide + Stockpile ‐ ‐ ‐ ‐ ‐ ‐

Probable ‐ Oxide + Sulfide 57,899 2.06 5.14 0.12 3,838,000 3,327,400Total ‐ Oxide + Sulfide 57,899 2.06 5.14 0.12 3,838,000 3,327,400

Mineral Reserves total 3.8M contained ounces of gold

Note: Reserves are shown on a 100% basis, of which Alacer Gold owns 80%. Rounding differences will occur. Further information on this resource estimate is in the NI 43‐101 Technical Report dated July 29, 2014.

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Reserve Comparison

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Çöpler Gold Mine

Ҫӧpler ‐Mineral Reserve Comparison (100% Basis)Previous Reserve

(as at December 31, 2013)New (updated) Reserve

(as at December 31, 2013) Change

Reserve Category Material Tonnes (x1000) Au (g/t) Contained Au

OuncesTonnes (x1000) Au (g/t) Contained Au

OuncesTonnes (%) Au (%) Contained Au

Ounces (%)

Proven ‐ Oxide In‐Situ 28,155 0.97 876,400 ‐ ‐ ‐ ‐100% ‐100% ‐100%Probable ‐ Oxide In‐Situ 9,571 1.03 316,600 26,207 1.32 1,114,700 174% 29% 252%Probable ‐ Oxide Stockpile 18 3.19 1,800 18 3.19 1,800 0% 0% 0%Total ‐ Oxide 37,743 0.98 1,194,800 26,224 1.32 1,116,500 ‐31% 34% ‐7%Proven ‐ Sulfide In‐Situ 22,690 2.15 1,570,800 ‐ ‐ ‐ ‐100% ‐100% ‐100%Probable ‐ Sulfide In‐Situ 8,111 2.39 623,900 30,139 2.56 2,482,500 272% 7% 298%Probable ‐ Sulfide Stockpile 1,536 4.84 239,000 1,536 4.84 239,000 0% 0% 0%Total ‐ Sulfide 32,337 2.34 2,433,700 31,675 2.67 2,721,500 ‐2% 14% 12%Proven ‐ Oxide + Sulfide + Stockpile 52,399 1.60 2,688,000 ‐ ‐ ‐ ‐100% ‐100% ‐100%Probable ‐ Oxide + Sulfide 17,682 1.65 940,500 57,899 2.06 3,838,000 227% 25% 308%Total ‐ Oxide + Sulfide 70,081 1.61 3,628,500 57,899 2.06 3,838,000 ‐17% 28% 6%

• M+I Resources have increased by 0.62Moz (+9%) to 7.80Moz of contained gold• Mineral Reserves increased by 0.21Moz (+6%) to 3.84Moz of contained gold• Oxide grade has increased by 34% to 1.32g/t gold • Sulfide grade has increased by 14% to 2.67g/t gold

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Çöpler Gold MineMining

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Mining ‐ Overview

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Çöpler Gold Mine

• Mine plans and designs are prepared by Anagold Engineering.• Staged open‐pit development• 4 oxide pits within large sulfide pit

• Drilling & blasting and loading & hauling is by a contractor.• Bench height = 5m• Blast hole pattern = 3.50m x 3.50m• Blast hole diameter = 102mm• Explosives factor = 0.16 kg/t• Explosives – ANFO

• Samples are taken from each hole to be assayed for Au. Ore tonnage and grade is determined from computer analysis. Boundaries are provided to surveyors.

• Assays from the blast holes are reconciled against the geological block model.• Mining activities are directed by Anagold Mine shift engineers to ensure compliance

with all company policies and government regulations.

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Mining – Contractor Mining FleetÇöpler Gold Mine

• 72 Mercedes Haul Trucks (38 tonne capacity)• 2 Volvo Articulated Haul Truck (35 tonne capacity)• 11 CAT Excavators (5m³)• 1 CAT Excavator (3.5m³)• 1 CAT Excavator (2.5m³)• 2 CAT Excavators (2.25m³)

(Rock Breakers)• 7 Atlas Copco Drills• 6 Cat Wheel Loaders• 3 CAT Graders• 7 CAT Bulldozers• 2 CAT Compactors• 5 Mercedes Water Trucks• 2 Motorin Delivery Trucks• 2 Maintenance Trucks

Mining Contractor ‐ Çiftay İnşaat Taahhüt Tic AŞ

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Mining – Pit Design ParametersÇöpler Gold Mine

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Source: Table 16-11 of Çöpler NI 43-101 Technical Report dated July 29, 2014.

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Mining – Production to Q2 2014Çöpler Gold Mine

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Mined Material Units 2011 2012 2013 2014 Q1 2014 Q2 TOTALOxide Ore

Tonnes t 7,482,545 7,077,728 6,673,520 1,418,391 1,558,392 24,210,575 Gold Grade g/t 1.55 1.65 1.90 1.50 1.43 1.66 Cont.Ozs. oz 371,729 374,430 407,361 68,336 71,656 1,293,512

Sulfide OreTonnes t - 148,517 1,345,882 508,131 329,187 2,331,717 Gold Grade g/t - 2.86 4.94 4.98 3.56 4.62 Cont.Ozs. oz - 13,661 213,591 81,368 37,690 346,309

Total OreTonnes t 7,482,545 7,226,245 8,019,402 1,926,521 1,887,579 26,542,292 Gold Grade g/t 1.55 1.67 2.41 2.42 1.80 1.92 Cont.Ozs. oz 371,729 388,091 620,951 149,704 109,346 1,639,821

WasteTonnes t 11,371,208 18,071,313 20,683,285 5,471,484 6,365,596 61,962,886

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Çöpler Gold MineProcessing

Slide 49

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Processing ‐ Overview

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Çöpler Gold Mine

Nominal plant throughput = 6.2Mtpa or 17,000tpd:• Primary gyratory & secondary/tertiary cone crushing circuit for rock ore supply.• Sizer circuit for clay ore supply.• Approximately equal split of clay to rock ore supply (nominal crush size to minus 12mm/25mm).

• Cement added for alkalinity & agglomeration.• Conveyed to heap leach pads via ‘grasshopper’ stackers.• Nominal 8m lifts on heap leach pads.• Dilute sodium cyanide solution distributed via drip system.

Adsorption, Desorption & Refinery (“ADR”) Plant:• Pregnant solution flows to two trains of 6 carbon‐in‐column (“CIC”) tanks.• Loaded carbon then stripped & regenerated.• Electro‐winning circuit removes gold from solution onto steel cathodes.• Induction furnace produces gold dore (average 60‐65% Au, 15‐20% Ag).

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Processing – Flow Sheet

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Çöpler Gold Mine

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Processing – Production Performance

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Çöpler Gold Mine

2011 2012 2013

Q (average) Q (average) Q (average) Q1 Q2

Stacked Ore ton 471,527 1,074,257 1,447,149 1,384,123 1,524,013

Grade g/t 2.50 1.97 2.08 1.48 1.46

ROM ton 1,350,520 694,690 227,052 ‐ ‐

Grade g/t 1.16 0.94 0.81 ‐ ‐

Total Ore to HL ton 1,822,046 1,768,946 1,674,120 1,384,123 1,524,013

Grade g/t 1.49 1.65 1.91 1.48 1.46

Gold Poured oz 46,398 47,189 68,338 52,919 49,795

2014

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Processing – Initiatives and Projects

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Çöpler Gold Mine

Recently completed:• Clay Handling Circuit – commissioned and operating Q4 2013• New agglomerator – commissioned Q2 2014• Grasshopper conveyor upgrade phase 1• HLP barren solution flow rate increased up to 1,200m3/hr

Current improvement projects:• CIC tanks – second train of 6 new tanks commissioned Q3 2014• SART plant – full chemical commissioning completed Q3 2014• Grasshopper conveyor upgrade phase 2• Carbon filter project• New assay laboratory

Further improvement projects:• HLP Phase 4 – scheduled to start Q1 2015 with design in progress• Counter‐current leaching (2015) and differential cyanide dosing (2014)• Fire and water reticulation upgradeF

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Çöpler Gold MineProjects

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$6M spent Increases capacity of circuit to handle

ore with high clay content Construction and commissioning

completed during Q2 2014 Transferred to operations end Q2 2014

$4M spent Provides ability to contain potential

high rain or snow fall events, due to larger heap leach pads

Construction completed in July 2014 and transferred to operations

$31M spent Produces a saleable copper product

and cyanide is recycled to gold recovery process

Completed dry commissioning during Q4 2013 with wet commissioning and operation planned in Q3 2014 when copper threshold is met

Clay‐Handling Circuit

SART Plant

Agglomerator Upgrade

Over $60 million invested in optimization and process improvement projects

Explosives Magazine

HL Pad Phase 3 Expansion $13M spent Designed to improve processing of ore

with high clay content Work completed in October 2013 and

commissioned for immediate operation in November 2013

$7M spent Increased total leach pad capacity to

42 Mt of ore Overliner completed in 2013 and

stacking commenced in Q4 2013 Phase 4 Expansion to commence in

2014 and finish in 2015

$3M spent State‐of‐the‐art underground

explosives storage magazine with a designed life of 50 years

75 tonne explosive storage capacity Transferred to operations in Q1 2014

New Storm Pond

Substantial Capital Invested to Optimize Operations Over Past Three Years Çöpler Gold Mine

Slide 55

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SART PlantÇöpler Gold Mine

SART Plant ‐ Process Design Criteria

Design Throughput 380 m3/hour (PLS or BLS)

Plant Availability 92%

Feed Solution Copper 383 mg/L (average)

Copper Recovery 93.7% (average)

Discharge Solution Copper 24 mg/L (average)

Copper Production 3.3 tpd Cu (average)

Precipitate Production 4.8 tpd dry (average)

Gypsum Production 22.4 tpd dry (average)

Slide 56

Full Chemical commissioning of SART Plant completed in August 2014 as copper‐in‐solution levels increased towards 250 ppm Cu thresholdF

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New CIC Circuit – Overview and Design CriteriaÇöpler Gold Mine

Slide 57

New CIC Circuit Design CriteriaDesigned Capacity 582m³/hour

Maximum Capacity 600m³/hour

Capacity Increase with Introduction of New CIC Circuit 400m³/hour

Total CIC Capacity After Upgrade 1000 m³/hourFor

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Çöpler Gold MineCosts and Outlook

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Summary – Operating Costs

Slide 59

Çöpler Gold Mine

2011 2012 2013 Q1 2014 Q2 2014

Operating Statistics ‐ 100%:

Waste tonnes mined 11,371,206 18,071,316 20,683,286 5,471,484 6,365,596

Oxide ore mined ‐ tonnes 7,443,854 7,036,221 6,673,520 1,418,391 1,558,392

Oxide ore mined ‐ grade (g/t) 1.54 1.61 1.90 1.50 1.43

Oxide ore mined ‐ ounces 368,319 364,000 407,390 68,336 71,656

Sulfide ore mined ‐ tonnes ‐ 190,024 1,345,882 508,131 329,187

Sulfide ore mined ‐ grade (g/t) ‐ 4.16 4.94 4.98 3.56

Sulfide ore stockpiled ‐ ounces ‐ 25,413 213,592 81,368 37,689

Oxide ore treated ‐ tonnes 7,568,380 7,077,727 6,697,209 1,384,124 1,524,013

Oxide ore treated ‐ head grade (g/t) 1.54 1.65 1.91 1.48 1.46

Ratio between gold produced and contained gold in ore stacked 49% 50% 66% 80% 70%

Gold ounces produced 185,418 188,756 271,063 52,919 49,795

Gold ounces sold 166,777 202,851 273,352 55,128 49,455

Attributable Production: (2011 ‐ 5% ownership, all other periods 80% )

Gold ounces produced 176,147 151,005 216,850 42,335 39,836

Gold ounces sold 158,438 162,281 218,682 44,102 39,564

Cash Operating Costs/ounce sold $ 322 $ 335 $ 414 $ 515 $ 552

Total Cash Costs/ounce sold $ 369 $ 375 $ 429 $ 541 $ 568

All‐in Sustaining Costs/ounce sold, N/A N/A $ 820 $ 680 $ 714

All‐in Costs/ounce sold, N/A N/A $ 864 $ 739 $ 806

Average realized gold price $ 1,644 $ 1,664 $ 1,379 $ 1,302 $ 1,288 For

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Costs will remain near the lowest in the industry

Capex includes $9M of non-recurring sustaining Capex

2014 Guidance

1 Attributable gold ounces and attributable capital expenditures are reduced by the 20% non-controlling interest at Çöpler.2 All-in Costs are non-IFRS financial performance measures with no standardized definition under IFRS and does not include post-43-101 sulfide growth capital.

For further information, see the “Non-IFRS Measures” section of the MD&A for the three month period ended June 30, 2014.

Çöpler Mine 2014 GuidanceWaste tonnes mined (100%) (millions) 25Oxide ore tonnes treated (millions) 6.2Oxide ore grade (g/t gold) 1.6Heap-leach gold ounces produced (100%) (‘000’s) 200,000 to 225,000Heap-leach gold ounces produced (attributable1) (‘000’s) 160,000 to 180,000

Capital expenditure (attributable1) (millions) 17General and Administrative (millions) 15All-in Costs2 ($/oz) 730 to 780

Çöpler Gold Mine

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Çöpler Gold MineSulfide Project

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Sulfide Project Demonstrates Robust Economics

Slide 62

Çöpler Gold Mine

Oxide ‐ HL Sulfide ‐ POX

Total Ore Mined Kt 23,249 28,868

Au Grade g/t 1.31 2.67

Au Recovery % 69.2% 93.9%

Modelled Mine Life years 6 18

Total Au Production koz 684 2,555

Annual Avg. Au Production koz 114 142

Operating Costs $/t $35.46

Total Cash Costs2 (net of by‐prod) $/oz $540

AiSC2 (net of by‐prod) $/oz $597

Annual Avg. Ag Production koz 40

Annual Avg. Cu Production klbs 3,700

Development Capex $ mm $633

LOM Sustaining Capex3 $ mm $182

NPV0% $ mm $1,600

NPV5% $ mm $921

LOM OperatingParameters

By‐products

NPV

Capex

LOM Key Assumptions1 (100%) Free Cash Flow1 (millions) (100%)

$21

($227)

($162)

$197 $227 $227

$163 $104

$77 $21

($206)

($367)

($170)

$57

$283

$447 $550

2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E LOMAverage

Free Cash Flow Cumulative Free Cash Flow From 2015

LOM $1.6BFreeCashFlow

1 Does not include current cash position of ~$300 million or free cash flow for the remainder of H2 2014.2 Total Cash Costs and AiSC costs are non-IFRS financial performance measures with no standardized definitions under IFRS. For further information and detailed reconciliations, see the “Non-IFRS

Measures” section of the MD&A for the three months ended June 30, 2014. The above AiSC does not include non-Çöpler costs (eg, G&A and JV exploration) or accounting entries related to the balance sheet (eg changes in inventory)

3 Excludes reclamation costs of $56 million.

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Procurement – Equipment: Q1 2015 to Q3 2016

Procurement – Bulk Materials: Q4 2015 to Q3 2017

Sulfide Project Development Timeline

Supplemental Environmental Impact Assessment: application submitted April 2014; approval expected in late 2014 Builds on current Çöpler approved EIA – minimal need for

additional baseline studiesSocio‐Economic Impact Assessment: expected to be finalized in December 2014Land Permit Approvals: expected Q1 2015

Basic & Detailed Engineering: Q3 2014 to Q2 2016 Key items include the tailings storage facility and POX plant

2014 2015 2016 2017 2018

Çöpler Sulfides 43‐101

Permitting

Board Construction Decision

Engineering

Procurement

Construction

Commissioning

Commercial Production

Project Schedule

Build Project Team

Build Project Team: July 2014 to March 2015 Project Director position filled Recruit Owner’s Construction Team Project Operations Manager position filled Continue to build Operations Team through life of project

Sulfide Project Development TimelineÇöpler Gold Mine

Slide 63

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Overview of Sulfide Processing Facility Proven technology

Slide 64

Çöpler Gold Mine

• Proven technology used for 38% of global gold production• Autoclave circuit comprised of seven individual pressure vessels• Temperature of 220o C (430o F), Pressure of 2,900 kPag (420 psi)• Sulfur grade averages 4.2%, providing the heat required to maintain the chemical reaction • Achieves near‐complete oxidation of fine‐grained, gold‐bearing sulfides• Overall gold recoveries of 94% from sulfide ore confirmed by pilot plant testingF

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Çöpler Sulfide Process Schematic

Slide 65

Çöpler Gold Mine

Source: Figure17-11 of Çöpler NI 43-101 Technical Report dated July 29, 2014

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Sulfide Project Site Layout

EXISTING CRUSHING

EXISTING AGGLOMERATOR

Çöpler Gold Mine

Slide 66

Designed with room for a

staged approach

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Sulfide Project Capital Cost & Risk Management

Slide 67

Çöpler Gold Mine

• Project Management– Recruitment of the owner’s team– Leverage local knowledge and experience– Set clear and achievable milestones

• Disciplined Cost and Capital Management– Pursue EPC strategy– Explore cost price protection– Funding flexibility– Continue to de‐risk the project

Crushing and Grinding Equipment $70

Autoclaves and Ancillary Equipment $170

Metal Recovery (incl. ADR) $74

Tailings Storage Facility $102

Reagent Handling $21

Facilities and Infrastructure $108

Owner’s Costs & Other $25

Contingency $63

Total Pre-Production Capital $633

LOM Sustaining Capital Costs (oxide + sulfide) $182

Capital Cost Summary1 (millions)

1 43-101 – Çöpler Sulfide Project + Heap Leach.

Initial Capital Costs Funded by Existing Cash and Future Cash Flow Generation from Çöpler

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Sulfide Project Capital Schedules

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Çöpler Gold Mine

$Millions Total 2014 2015 2016 2017 2018

Plant 571.1 15.1 82.2 236.7 203.5 33.7

Tailing Facility 49.3 0.0 10.4 25.9 13.0 0.0

Social and Permitting 12.3 0.8 1.2 4.5 5.7 0.0

Total Pre‐Production Capital 632.8 15.9 93.8 267.2 222.2 33.7

$ Millions Total '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34

TSF Phased Construction 147.7 16.6 16.6 0.7 5.4 25.8 9.2 0.0 0.0 4.4 18.8 11.9 0.0 0.0 11.0 25.4 1.9 0.0

Plant Related 16.1 0.6 0.6 0.6 0.7 0.6 3.5 0.6 0.6 0.7 0.6 3.5 0.6 0.6 0.8 0.6 0.6 0.6

Total Sustaining 163.8 17.2 17.2 1.3 6.1 26.4 12.6 0.6 0.6 5.1 19.4 15.4 0.6 0.6 11.8 26.0 2.4 0.6

Rounding differences will occur.

Pre‐Production Capital Expenditure

Sustaining Capital Expenditure

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3.3

6.4 6.45.7

0.9 0.6

3.9

1.8 1.4 1.0 1.2 1.3 1.7 1.3

2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E LOMAverage

Oxide Throughput Oxide Grade

H22014

Average annual gold production of >150 koz at Total Cash Costs1 of $540/oz

Tonnes Processed and Grade (100%) Production and Total Cash Costs1 (C2) (100%)

0.0

1.51.8 1.9 1.9 1.9 1.8

5.24.9

4.2 4.23.5 3.0 2.7


Sulfide Throughput Sulfide Grade

H2 2014

1 Total Cash Costs is a non-IFRS financial performance measures with no standardized definition under IFRS. For further information and detailed reconciliation, see the “Non-IFRS Measures” section of the MD&A for the three months ended June 30, 2014.

119

191

150 157

257269

241

203

174

154

$540


Production (koz) C2 Cash Costs (US$/oz)$

Sulfide Project to Deliver Significant GrowthÇöpler Gold Mine

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Sulfide Ore Mined by Year

Slide 70

Çöpler Gold Mine

*in 2026 low-grade ore mined will be 37,600 tonnes; mid-grade ore mined will be 12,800 tonnes and high-grade ore mined will be 1,700 tonnes.This table does not include sulfide ore stockpiled prior to 2014. As of December 31, 2013, 1,536,000 tonnes at 4.84 gpt gold grade had been mined to stockpile.Rounding differences will occur;

1 Sulfide tonnes mined are planned to be stockpiled prior to commissioning of the sulfide processing plant in 2017.

Sulfide Ore Total 20141 20151 20161 20171 2018 2019 2020 2021 2022 2023 2024 2025 2026

Low‐Grade (1.4‐2.3 g/t) Mined (Mt) 15.7 0.9 0.9 1.0 0.8 1.3 2.4 1.6 0.8 0.6 1.6 1.4 2.4 0.0*

Low‐Grade Gold Grade (g/t) 1.86 1.82 1.85 1.88 1.84 1.85 1.89 1.88 1.88 1.87 1.85 1.80 1.88 1.89

Low‐Grade Sulfur Grade (%) 4.36 4.37 4.15 3.73 4.36 4.62 4.51 4.38 4.61 4.30 4.42 4.49 4.20 3.72

Mid‐Grade (2.3‐3.1 g/t) Mined (Mt) 7.9 0.6 0.5 0.8 0.3 0.5 1.5 0.5 0.6 0.3 0.7 0.3 1.1 0.0*

Mid‐Grade Gold Grade (g/t) 2.65 2.65 2.65 2.68 2.65 2.66 2.67 2.63 2.65 2.63 2.65 2.60 2.63 2.79

Mid‐Grade Sulfur Grade (%) 4.50 4.46 4.59 3.90 4.73 4.55 4.73 4.62 4.65 4.86 4.53 4.58 4.22 3.54

High‐Grade (>3.1 g/t) Mined (Mt) 6.5 0.6 0.4 0.6 0.3 0.3 1.7 0.6 0.4 0.3 0.5 0.1 0.7 0.0*

High‐Grade Gold Grade (g/t) 4.15 4.44 3.89 3.91 4.47 3.68 4.23 4.70 3.90 4.31 4.16 3.91 3.81 3.27

High‐Grade Sulfur Grade (%) 4.93 4.95 4.52 4.16 5.35 4.64 5.30 5.38 5.09 4.61 4.62 4.75 4.78 3.25

Total Sulfide Ore Mined (Mt) 30.1 2.1 1.7 2.4 1.4 2.2 5.7 2.9 1.8 1.2 2.8 1.8 4.2 0.0*

Average Gold Grade (All) (g/t) 2.56 2.76 2.54 2.65 2.62 2.34 2.81 2.63 2.57 2.68 2.45 2.09 2.40 2.15

Average Sulfur Grade (%) 4.52 4.55 4.35 3.89 4.67 4.61 4.81 4.64 4.72 4.52 4.48 4.52 4.30 3.66

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Sulfide Ore Processed by Year

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Çöpler Gold Mine

*38,000 tonnes processed in 2017 during commissioning.Rounding differences will occur

Total ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 ‘26 ‘27 ‘28 ‘29 ‘30 ‘31 ‘32 ‘33 ‘34

Sulfide Ore Processed (Mt) 31.7 0.0* 1.5 1.8 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.6

Sulfide Au Grade Processed (g/t) 2.7 5.2 4.9 4.2 4.2 3.5 3.0 3.0 2.7 3.1 2.4 1.9 1.8 1.9 1.9 1.9 1.9 1.9 1.8

Sulfide Ag Grade Processed (g/t) 7.0 14.7 10.7 13.1 10.0 9.2 7.4 6.1 6.4 5.2 5.6 5.2 4.6 2.8 7.9 10.2 6.7 4.1 4.9

Sulfide Cu Grade Processed (%) 0.12 0.28 0.14 0.18 0.19 0.11 0.14 0.12 0.13 0.10 0.09 0.07 0.08 0.11 0.11 0.11 0.14 0.11 0.11

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Sulfide Project Operating Costs

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Çöpler Gold MineLOM Cash Operating Costs1 Summary

Unit Cost Mining Per tonne mined $1.85Rehandle Per tonne rehandled $1.16Heap Leach Processing Per tonne heap leach

processed$9.79

POX Processing Per tonne POX processed $34.55Site Support and Offsite Per tonne processed $3.54

Cash Operating Costs1 Per ounce $601By‐product Credits Per ounce ($85)Cash Operating Costs1 net of By‐products Per ounce $516Royalties Per ounce $23Total Cash Costs1 Per ounce $540Sustaining Capex Per ounce $58All‐in Sustaining Costs1 Per ounce $597Sulfide Project Pre‐Production Capital Per ounce $195Reclamation Costs Per ounce $17All‐in Costs1 Per ounce $810

LOM Cash Costs Remain In Line With Low Historical Cash Costs Achieved

Source: Table 21-5 of Çöpler NI 43-101 Technical Report dated July 29, 2014.1 Cash Operating Costs, Total Cash Costs, All-in Sustaining Costs and All-in Costs are non-IFRS financial performance measures with no standardized definitions under

IFRS. For further information and detailed reconciliation, see the “Non-IFRS Measures” section of the MD&A for the three months ended June 30, 2014. The above AiSCdoes not include non-Çöpler costs (eg, G&A and JV exploration) or accounting entries related to the balance sheet (eg changes in inventory)

Rounding differences will occur

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Total Crushing & Milling$65/oz15%

Total Pressure Oxidation$170/oz

40%

Total CCD/Leach/CIP/Cu Precip/ADR

$115/oz27%

Total CN Detox, Neutralization &

Tailings$34/oz

8%

Total Utilities$44/oz10%

LOM($/t ore

processed) ($/oz)

Mining Contract / Support $7.18 $121.85

Rehandle

Heap Leach $0.06 $0.96

Sulfide Ore $0.61 $10.39

Processing

Heap Leach $4.14 $70.24

POX $19.93 $337.86

Site Support $2.67 $45.34

Offsite $0.86 $14.67

Total $35.46 $601.30

By-Product Credit ($85.11)

Total Net of By-Products $516.19

LOM Cash Costs Summary

Source: Section 21.8 of Çöpler NI 43-101 Technical Report dated July 29, 2014. - Tables 21-4, 21-6 and 21-7.

POX Processing Costs by Component

POX Processing Costs by Area

Labour$53/oz12%

Wear Materials$20/oz

5%

Grinding Media$15/oz

3%

Reagents$178/oz

42%

Repair Supplies$18/oz

4%

G&A Supplies$14/oz

3%

Electric Power$109/oz

26%

Fuel Oil$15/oz

3%

Mobile Equipment Fuel

$7/oz2%

Sulfide Project Operating CostsÇöpler Gold Mine

Slide 73

Forecast reagent usage:Average hydrated lime consumption = 25.4 kg/tonne of ore Average limestone consumption = 5.9 kg/tonne of oreAverage cyanide consumption = 1.25 kg /tonne of oreAssumed cyanide cost = $2.73/kgF

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Base Case Financial Metrics – An Incremental Analysis

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Çöpler Gold Mine

Financial Metrics (as of July 1, 2014)

Base Case(Oxide Only)A

DFS Case(Heap Leach +

POX)B

IncrementalB – A

LOM cash flow (millions) $323 $1,600 $1,250NPV at 5% (millions) $299 $921 $622IRR % N/A N/A 20.5Payback from start of sulfide gold production

Years N/A 1.7

• Gold price of $1,300 per ounce based on bank and industry consensus• Copper price of $3.29 per pound• Silver price of $22 per ounce• US$/Turkish Lira exchange rate: 2.2• Electricity ($/kWh): 0.09• Diesel cost: $2.12/litreF

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Reduced Execution Risk

Slide 75

Çöpler Gold Mine

Brownfield project with well understood orebody: Mined Çöpler orebody for over 3 years Stockpiled >2.3 Mt of sulfide ore at 4.62g/t Existing infrastructure

Exhaustive studies and reviews completed: Extensive metallurgical peer reviews 4 pilot plant tests confirming 94% recovery

Strong local base and relationships: 18 years in Turkey successfully exploring, permitting, constructing and

operating Long-standing local JV partner Permitting process already underway – Supplemental EIA submission

process commenced in April 2014For

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September 2014

Thank you for your interest

Çöpler Gold Mine

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Çöpler gold mine · 2014. 9. 25. · world‐class mine with significant, consistent low‐cost...

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