Alamos Gold Inc (AGI)

[blackcat]

Alamos Gold Announces Positive Feasibility Study for Kirazli Project
[Marketwired]
MarketwiredFebruary 15, 2017

TORONTO, ONTARIO--(Marketwired - Feb 15, 2017) - Alamos Gold Inc. (AGI)(AGI) ("Alamos" or the "Company") today reported results from the positive feasibility study conducted on its Kirazli gold project, located in the Canakkale Province in northwestern Turkey. The study is a continuation of the pre-feasibility study completed on the project in 2012.

Feasibility Study Highlights

Declaration of an initial Proven and Probable mineral reserve of 26.1 million tonnes grading 0.79 grams per tonne of gold ("g/t Au") and 12.0 grams per tonne of silver ("g/t Ag"), containing 0.67 million ounces of gold and 10.1 million ounces of silver
Average annual gold production of 104,000 ounces over five years with life of mine production of 540,000 ounces
Life of mine total cash costs of $339 per ounce of gold and mine-site all-in sustaining costs of $373 per ounce, among the lowest in the industry
Initial capital estimate of $152 million and total life of mine capital, including sustaining capital and closure costs, of $180 million
After-tax net present value ("NPV") of $187 million at an 8% discount rate ($223 million at a 5% discount rate) and an after-tax internal rate of return ("IRR") of 44%, representing a 1.4 year payback using base case gold and silver price assumptions of $1,250 and $16.00 per ounce, respectively
Applying the same base case gold and silver price assumptions to the 2012 pre- feasibility study, the after-tax NPV (8%) more than doubles from $82 million to $187 million and the after-tax IRR improves from 26% to 44%, highlighting a significant improvement in the project economics

"This further validates the overall attractiveness of the Kirazli project. Despite using a lower gold and silver price, Kirazli's economics have improved substantially. With its low capital and operating costs and quick payback, Kirazli is one of the highest return, undeveloped gold projects in any price environment. Kirazli represents our next phase of growth and will be a significant source of free cash flow in the coming years," said John A. McCluskey, President and Chief Executive Officer.

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http://finance.yahoo.com/news/alamos-gold-announces-positive-feasibility-110000427.html