The Çamyurt project is located approximately three kilometres (“km”) southeast of the Company’s development-stage Ağı Dağı project which is situated about 50 kilometres southeast of Çanakkale, Turkey. Alamos acquired Çamyurt along with the Ağı Dağı and Kirazlı projects on January 6, 2010 from Teck and Fronteer Development for total consideration of approximately $90m.
Alamos announced an initial Inferred resource of 640,000 oz gold, grading 0.81 g/t at Çamyurt in June 2012, concurrent with the results of the positive Pre-feasibility study for Ağı Dağı and Kirazlı. Since then, the Company has successfully upgraded the majority of this Inferred resource into the Measured and Indicated categories while also improving the grade. The Çamyurt resource was not incorporated into the Pre-feasibility; however, represents a major opportunity to further enhance the economic potential of the Company’s Turkish projects. Given the proximity of Çamyurt, the Pre-feasibility for Ağı Dağı and Kirazlı incorporates significant capital spending on infrastructure that will benefit the economics of the Çamyurt project. In addition, the average grade of the resources at Çamyurt is substantially higher than at the Ağı Dağı and Kirazlı projects. As a result, once Çamyurt is factored into the Company’s development plan, it is expected to have a significant impact on our future production profile in Turkey, reduce cash costs1 per ounce on a combined project basis, as well as enhance combined project economics.