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Wednesday, October 08, 2008 2:41AM IDLE (GMT +12hrs)
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Wednesday, October 08, 2008 2:41AM IDLE (GMT +12hrs)
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The report listed below is an example of the Complete Report on the Kisladag Mine that you could have accessed on April 9, 2007, if you were an InfoMine subscriber at the Advanced, Advanced Plus, Professional, Professional Plus, Corporate, or Corporate Plus level (Please note that each company, listed in the Owners section, has its own Complete Report.) For more information on becoming a subscriber, or to subscribe online, please refer to the Subscribe section.
Property Summary The Kisladag project is composed of 15,717 hectares (license # IR 7302) located in Usak province, western central Turkey, 350 km northeast of Ankara. (Dec/06). GOLD deposit. * Technical report (May/04) on document Pa203279.pdf; 152pp. * Property summary (May/04) on document Pa185362.pdf; 14 pp. * Property summary (Dec/03) on document Pa179819.pdf; pp. 24 - 28. * Technical report (Mar/03) on document Pa203280.pdf; 83pp. * Technical report (Mar/03) on document Pa124803.pdf; 70 pp. Geology The deposit is centred in a 5 x 3 km E-W trending alteration zone known as the Kisla complex. The complex consists of a number of overlapping alteration zones associated with successive volcanic and intrusive events. Two main zones have been recognized: The Gökgöz Tepe alteration zone covers approximately 12 sq km. At Gökgöz, gold mineralization with traces of molybdenum, zinc, lead and copper wraps around a microdiorite stock and partially overlaps into an intrusive along the NW margins. Gold is associated with at least four phases of partially overlapping stockwork veining and local hydrothermal breccias. Oxidation in the deposit varies from east to west, extending from a few meters in the west to 40 to 50 m in the east. Limonite is the most abundant oxide mineral, usually occurring along fractures in thin colloform layers and in disseminated patches around weathered pyrite. The Sayacik alteration zone is located 5 km southwest of Gökgöz Tepe and covers approximately 6 sq km. Moderate to strong silicifcation occurs for approximately 1.5 km in andesitic tuffs. Quartz barite veinlets cutting the tuff contain up to 100 ppm silver in grab samples. News Update As of Sep30/06, during the quarter the mine produced 27,477 ounces of gold at a cash operating cost of US$218 per ounce. Total to date gold production amounts to 45,952 oz. On Sept 12/06, the company has successfully resolved initial mechanical problems in the crushing circuit and with a water supply pump resulting to production and costs of production continue to improve as solution inventory increases to steady state levels allowing increased usage of the process plant capacity. As of Jun30/06, as a result of slower-than-expected commissioning of the crushing circuit and mechanical problems with a process water supply pump, the company has revised its estimates of Kisladag's 2006 production from 120,000 ounces to 70,000 ounces at a cash operating cost of $219 per ounce. The company has resolved the issues with the water supply pump and it expects production to increase to the anticipated 240,000 ounces of gold per year in 2007. On Jul 18/06, announced that its mine officially commenced commercial production on Jul 01/06. Mine production continues according to the 2006 plan with approximately 500,000 tonnes of ore being mined monthly. Gold production presently is approximately 350 ounces daily and continues to increase consistent with the buildup of heap inventory and the expansion of area under leach. It is expected that the Kisladag mine with a 14-year mine life will provide direct employment for 350 people. On May 12/06, made its first pouring of gold at the Mine. The start- up of the operation commenced on April 21, 2006. Production at the mine continues to proceed according to the plan, with 1.4 Mt of ore presently placed on the leach pad. On Apr 21/06, commenced ore processing at its Mine. After all the required operating permits to produce gold have been obtained. The process plant has been commissioned and leaching solution is being applied to the leach pad. Currently there are one million tonnes of oxide ore on the leach pad and a total of of 5.5 Mt is planned to be heap-leached within the year. Kisladag is set to produce 120,000 ounces of gold in 2006 at an estimated cash cost of US$215 per gold ounce, with production increasing to 240,000 oz in 2007. On Feb23/06, reported that the construction schedule has been impacted by unseasonably cold temperatures and snow during Jan and Feb06.The mechanical completion of all major components is expected during March 2006. The ADR Plant is complete and is currently being commissioned. Overliner ore has been completed on four of the six leach pad cells and is ongoing on cells five and six. Approximately 130,000mt of oxide ore have been placed on cell one and an additional 500,000mt of oxide ore have been stockpiled prior to loading on the pad. On Jan23/06, reported that the majority of earthworks and foundations have been completed with the emphasis on completing the mechanical and electrical installations. It is expected that the mechanical completion of the crushing, screening and conveying system is in early 2006. Construction of leach pads 1 through 6 has been completed and equipment continues to arrive at site. Mine production is expected to commence on the first quarter of 2006. As of Oct/05, the start date was anticipated to be in Feb/06. In the quarter ended Sept/05, reported that phase I leach pad construction has been reduced from nine cells to six to ensure completion before the return of the rainy season. Bulk earthworks are 90% completed, with the focus now shifting to mechanical and electrical installations. It is expected that the ADR plant and ancillary buildings to be completed in Q4 2005 and the installation of the primary crusher to commence in December. Litigation by certain third parties continues against Tüprag and the Turkish Ministry of the Environment and Forestry (the “Ministry”) seeking to cancel the Environmental Positive Certificate (“Positive Certificate”) for Kisladag on the basis of an alleged threat to the environment. All procedural steps are being undertaken in obtaining the environmental positive certificate. As of Jun/05, the mine was expected to produce 144,000 oz gold for 2006 and an annualized rate of 240,000 ounces in 2007 and beyond. Cash operating costs were anticipated to be $181 per ounce for a planned mine life of 14 years. On Jun 06/05, announced updates to exploration and development activities at the Kisladag gold mine. Since the revision of the feasibility cost update to the Kisladag feasibility study in May, 2004, and commencement of construction, changes in global market conditions have negatively affected both capital and operating cost forecasts for the Kisladag mine. These factors combined with modifications in the engineering design incorporating aspects of the planned phase II expansion have resulted in an increase in overall capital costs of approximately 25% (USD16.7 million) to USD83.4 million and 10% on life-of-mine operating costs (USD16/oz) to USD181/oz. Diesel fuel makes up approximately 18% of the total cash cost, labour 12% and cyanide 9%. Approximately 70% of the costs are based on the strengthening of the Turkish Lira (TL) against the U.S. dollar. A change of USD5/barrel of crude oil will result in a change in operating cost of approximately USD6/oz Au produced. Final commissioning of the completed facility is now forecast for February, 2006. On Sep 08/04, received all the permits and approvals necessary to construct the Kisladag mine. Site activities will be under way in September and includes road construction, mobilizing of contractors to site, water well drilling and electrical power line construction. Eldorado remains on schedule to commence production late in 2005. Kisladag will commence production at an annualized rate of 164,000 ounces for its first year increasing in year two to 240,000 ounces annually at a cash operating cost of $165 per ounce for a planned mine life of 14 years. In Jul/04, Eldorado Gold reported that the Turkish government has passed legislation exempting the production of gold in Turkey from Value Added Tax (VAT) and made amendments to the Mining Law, which according to Eldorado positively impacts the company’s Kisladag gold Project. The initial capital investment for the project will decrease by USD 10.7 million and cash operating cost will decrease by $23.00 per ounce to USD165.00 as stated in the May 20, 2004 press release. Paul Wright, President and CEO, commented the change improves the return on the Kisladag Project to 43% at a USD 350.00/oz gold price. In May/04, the results of the Feasibility Cost Update was announced. The updates were made on the following changes: 18% VAT: increase in fuel price; increase in gold price; changes in forex; changes in inflation rate; updated quotations for for major equipment (including crushers, ADR plant); and an increase in electrical cost. On Apr19/04, the company announced the purchase of all private lands required for development. The proposed mine site boundary encompasses the open pit, heap leach pad and process facilities and the waste rock dump. Included in the area are lands held by the State as Treasury Land or Forestry Land as well as privately owned agricultural land. The total area contained within the site and adjacent health protection zone is approximately 896 ha. The Company has successfully negotiated the purchase and completed the title transfer of 417 parcels of privately held agricultural land within the overall site totaling 219 ha. Purchase agreements were reached on each of the 1,131 shareholdings within the total area. The Company has previously purchased all necessary Treasury Land and is moving forward to secure the lease agreements for access to Forestry Land. Successful completion of the private land purchase will enable the Company to proceed with the final stages in the permitting process, specifically the submission of the Zoning Plan and application for the Construction Permit leading to a construction decision in the second quarter of 2004. In 2003, the Turkish government granted the Environmental Positive Certificate and the Establishment Permit. Two permits (Opening Permit and the Construction Permit) remain to be obtained prior to construction and the commencement of production. but are anticipated early in 2004 allowing construction to commence Q2 2004. In Sep/03, an 11% increase in minable reserves at Kisladag Gold Project in western Turkey, increasing the reserves to 5.1 million ounces. The increase of 521,000 ounces of gold is derived from additional drilling subsequent to the completion of the Kisladag Feasibility Study resource estimate. A total of 7,057 meters of reverse circulation drilling has been completed on the Project in 2003, increasing the total drilling to 37,190 meters. This program succeeded in upgrading inferred resources within and peripheral to the Feasibility pit design. The revised resource estimate is 214,803,800 tonnes grading 1.04 g/t Au for 7,192,600 oz in the measured and indicated categories at a cut off of 0.4 g/t Au. In Jul/03, the optimization study was completed which demonstrated the opportunities to for improved financial performance of the project and accelerated expansion to full production levels. In Jun/03, the company received Environmental Positive Certificate by the Turkish Ministry of Environment. On Apr/03, the company announced the results of the feasibility study which reported a 4,532,000 ounces of proven and probable reserves. By the year-end, additional drilling efforts determined a 17% increase in reserves increasing proven and probable reserves to 5,310,900 ounces. In Mar/03, results of the feasibility study for Kisladag Project. The Feasibility Study, prepared by Hatch Associates. The Kisladag Project has been planned as a conventional open pit, heap leach gold mine, constructed and operated in two successive Phases. A mine production rate of 5 million tonnes per annum (“Mtpa”) of ore has been set for the first four years of the mine’s life. Annual ore production will increase to 7.5 Mtpa in year 5, and to 10 Mtpa the following year, remaining at that level until the end of mine life. Flexibility exists within the construction design to accelerate the increase to 10 Mtpa if desired. Contract mining has been planned for Phase I. Eldorado will take over mining operations prior to a production increase planned for Phase II. Total quantities of ore and waste mined will be 115 Mt and 106 Mt respectively, resulting in a life of mine strip ratio of 0.92. The MOE is presently reviewing the Kisladag EIA. The Company anticipates being in receipt of the Environmental Positive Certificate issued by the MOE by mid 2003.(Pa123339.pdf for complete text). In Nov/02, updated resource estimate - will form the basis for the reserve estimation in the Feasibility Study. The revision reflects the completion of an additional 10,700 m of reverse circulation and diamond core drilling completed in 2002. The principal objective of this drill program was to upgrade classification of the resource. In addition, the total resource has been increased from the previously announced 7.3 M oz. (press release ELD 02-13 dated June 21, 2002) to 7.9 M oz. In the quarter ended Sep30/02, a total of 4,600 meters of infill reverse circulation drilling was completed on the property. The results will be used to update the resource and reserve statement for the Kisladag Feasibility Study. Metallurgical test work to provide process design parameters for the Feasibility Study is ongoing and the Environmental Impact Assessment Study is also in progress. Project development continues to be on schedule with the Feasibility Study awarded to Hatch Associates Ltd. The Feasibility Study is expected to be completed in the first quarter of 2003. In Jun/02, an interim resource estimate was completed by independent consultant incorporating the results from this year's 4565 m drill program. Resource calculations are based on the previously developed geological model and include data from the over 23,800 meters of drilling and trenching carried out to date. The revised resource estimate at Kisladag has been estimated at a 0.4 g/t cut-off which is consistent with previous estimates. Measured and Indicated Resource totals 149 million tonnes grading 1.14 g/t from a total of 5.46 million ounces; Inferred Resource is 61.9 million tonnes grading 0.92 g/t Au for 1.8 million contained ounces. The project will be brought to full feasibility in Q1 2003. Additional metallurgical testwork is ongoing, Environment Impact Assessment is underway and a 4,000 m infill drill program will be commencing before month end. In Nov/01, received results of comprehensive review of May/01 prefeasibility study. The addendum prepared by Kilborn Engineering Pacific reflects changes in economic conditions in Turkey and opportunities identified in the prefeasibility study to reduce both capital and operating costs. The proven and probable reserve base of 1.8 million ounces drawn from a portion of the measured and indicated resource of 4.8 million ounces remains constant as is the production rate of 3.4 million tonnes per year. The addendum principally reflects the effect of the following four factors on the operating and capital costs of the project: devaluation of the Turkish Lire; reduction in power and fuel costs; application of used crushing equipment; contract mining. In Aug/01, completed first reconnaissance drilling program at its Sayacik Prospect located 6 km south west of Kisladag Project. The drilling Sayacik consisted of four widely spaced reverse circulation holes totaling 1,000 meters. The alteration and mineralization at Sayacik strongly resemble the lithocap material at Kisladag where anomalous lead and silver are hosted in advanced argillic alteration flanking the deposit. The holes tested approximately one-third of a three-kilometer long semicircular geophysical and silver soil geochemical anomaly situated near the center of the Beydag stratovolcano. The geophysical and geochemical anomalies are hosted in dacite porphyry and related tuffs that have been subjected to advanced argillic alteration. Rock chip samples containing anomalous silver up to 50 ppm have been collected from outcrops in a 500 meter by 1,000 meter area within the broader silver and lead soil geochemical anomaly. Holes SRC-1 and SRC-2, spaced approximately 100 meters apart on the north side of the target zone cut 250 meters and 330 meters respectively of advanced argillic alteration containing anomalous silver and lead mineralization. Slightly elevated gold values were intersected in restricted zones near the bottom of both holes. Holes SRC-3 and SRC- 4, drilled in a fence on the west side of the target, also intersected sections of advanced argillic alteration containing anomalous silver and lead. Additionally, hole SRC-3 cut high grade copper mineralization from 37.5 meters to 42.5 meters grading 8.2% Cu, followed by 137 meters from 42.5 meters to 180 meters grading 0.1% Cu. The higher grade copper intercept is associated with a 5 meter to 25 meter wide NNE trending silicified structure that outcrops intermittently for approximately 1,200 meters across the west side of the prospect and has a coincident chargeability anomaly. The geophysical and geochemical data at the prospect are being re-evaluated for possible near surface high-grade gold and copper targets. (results at Pa080096.pdf) In May/01, results of positive prefeasibility released for Phase I development of the resource at a rate of 3.4 tonnes per year based on a limited portion of the measured and indicated resources. The estimated mine life is 11.5 years with annual production of 103,600 oz per year. The initial capital cost is US$47.4 million . Anticipated cash cost are US$154 per ounce. As of Feb/01, The company planed to carry out approximately 3,500 meters (44 holes) of Reverse Circulation drilling in 2001 as part of an infill program to reduce the drill spacing in the core of the deposit to approximately 50 meters by 50 meters. In Jan/01, an updated scoping study was completed (Pa061498.PDF), and an Environmentat Impact Assessment was planned. In addition, the Sayacik prospect was going to be drill tested. In Sep/00, the drill program was completed. The drill program extended the higher-grade core zone further to the west and northeast. The zone has a strike length between 200 and 400m, a thickness of 80 m and dips gently to the northeast. Drill assays from the last nine holes ranged from 0.42 to 3.00 g/t Au over 30.0-297.5 m. A new resource estimate was compiled. A pre-feasibility study was planned. A drill hole map is found in Document Pa054243.PDF, p. 1 In Aug/00, results for 20 of the planned 29 drill holes were reported. Drilling had covered the southern limits of the resource or B zone as well as intermediate holes within the higher-grade core and along the northern limit of this zone. The results of the initial drill holes expanded the mineralization to the northeast, south and west, and remains open in these directions. Gold grades ranged from 0.45 g/t Au to 4.74 g/t Au over intervals ranging from 37.5 m to 330 m. As of Jul/00, a 7,500-metre drilling campaign designed to both further define and test the limits of the existing resource was underway. In Jul/00, a scoping study was completed. The study considers a seven million tonne per year heap leach operation incorporating existing measured, indicated and inferred resources. Mine life is 11.3 years. With average annual production of 186,000 ounces (5,785,232 grams). In 2000, the company will focus on defining the scope of the project. A prefeasibility study is expected to be prepared towards the end of 2000. In early June/00, a 7,400 m infill RC drill program was planned on the Gökgöz zone. Core drilling will also be carried out, primarily to recover additional sample material for metallurgical testing. In the 1st quarter/00, trenching and an 11-hole, 575 m percussion drilling program were completed. The target zone for an upcoming RC drilling program was expanded. Trench results on section 7125 E indicated stronger than expected extension of the A zone to the west and a further extension of the B zone also to the west. Holes drilled along the A zone and southern extension of the B zone returned values confirming previous grades in the oxide zones. Drilling to the northeast of the defined resource intersected mineralization at depth. Three holes drilled east of the ArapTepe fault did not intersect mineralization however, oxidation continued at depth. In Dec/99, a Site Selection Permit was approved and issued by the Province of Usak. Environmental baseline studies, leading to an environmental impact study were planned. In Oct/99, a resource estimate was reported for the property. The total contained ounces of gold were reported to be 3.4 million. Preliminary metallurgical testwork was also conducted. In Aug/99, results of the first 13 holes of a 26 hole HQ drill program were announced. Drilling to date outlined a large, elliptical shaped, porphyry gold deposit 600 x 400 m with a weakly mineralized central core. The eastern part of the deposit contains a crescent-shaped, higher-grade zone 40 - 120 m wide x 300 m long with assays in excess of 3.0 g/t Au. In June/99, activities resumed and were to include trenching, drilling and metallurgical testing. As of Jan/99, a phase one, 6-hole drilling program had been completed. Drilling outlined gold mineralization averaging in excess of 1 g/t Au over a 600 x 600 m area within which was a central zone averaging 1.6 g/t Au over a 400 x 200 m area extending to 250 m depth. The average of all significant diamond drill intercepts was 1.4 g/t Au over 954 m of the total 1,060 m of drilling. All 6 core holes showed strong, pervasive gold mineralization commencing at surface and the discovery remained open to the west, the east and to depth. The area tested lied within a 1,000 x 600 m geochemical anomaly. In 1998 an HQ core drilling program was carried out to further probe the main anomaly. Drilling extended the gold values found in the trenching to depths of approximately 250 meters and effectively confirmed the potential for a low grade bulk tonnage gold deposit. An additional 6,065 meter HQ core drilling program carried out in 1999 extended the strike length and depth of the deposit. Based on the trenching, percussion drilling and core drilling data, Micon International and the Company prepared a geological resource estimate identifying a measured and indicated resource of 42.8 million tonnes of 1.49 g/t plus an inferred resource of 31.1 million tonnes @ 1.35 g/t which resulted in total contained gold of 3.4 million ounces. The cut-off grade on which Micon based the resource estimate for the Kisladag Project was 0.8 g/t. In 1997, the Gökgöz Tepe alteration zone was investigated through an extensive program of mapping, soil sampling and trenching. 32 shallow percussion drillholes were completed to a depth of 50 m. No exploration activity was planned for 1998. Property Reserves All reserves are sorted by Commodity in alphabetical order.
Property Production All production data are sorted first by Commodity and then by Year into reverse chronological order(the last date on the top).
Reported Ownership A reported interest of 0% typically implies the existence of an option agreement. All shareholders are sorted by name in alphabetical order. * CLICK ON THE COMPANY NAME FOR A COMPLETE REPORT.
(Please scroll down to view the complete list of documents for this property) All Documents: Please Note: Access to PDF documents is limited to subscribers with a "Plus" level subscription (i.e. Advanced Plus, Professional Plus & Corporate Plus). Documents cataloged earlier than May 1998 are in our old microfiche format and not available online. However as a service to our subscribers copies of these documents can be ordered by emailing info@infomine.com (please include full details on the document - all orders are custom quotes with a minimum fee of Can$125.00  ).
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