Alamos Gold Inc (AGI)

[blackcat]

Keep your shares, folks.

Alamos Announces Positive Feasibility Study for Agi Dagi Project and Preliminary Economic Assessment for Camyurt Project
[Marketwired]
MarketwiredFebruary 22, 2017

TORONTO, ONTARIO--(Marketwired - Feb 22, 2017) - Alamos Gold Inc. (AGI)(AGI) ("Alamos" or the "Company") today reported results from the positive feasibility study conducted on its Agi Dagi 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. The Company also reported results from a positive preliminary economic assessment ("PEA") completed on its Camyurt gold project, located approximately 4 kilometres ("km") from Agi Dagi.

Agi Dagi Feasibility Study Highlights

Declaration of an initial Proven and Probable mineral reserve of 54.4 million tonnes grading 0.67 grams per tonne of gold ("g/t Au") and 5.4 grams per tonne of silver ("g/t Ag"), containing 1.17 million ounces of gold and 9.5 million ounces of silver
Average annual gold production of 177,600 ounces over five years with total life of mine production of 937,300 ounces
Life of mine total cash costs of $374 per ounce of gold and mine-site all-in sustaining costs of $411 per ounce, among the lowest in the industry
Initial capital estimate of $250 million and total life of mine capital, including sustaining capital and closure costs, of $313 million
After-tax net present value ("NPV") of $298 million at an 8% discount rate ($360 million at a 5% discount rate) and an after-tax internal rate of return ("IRR") of 39%, representing a 1.9 year payback using base case gold and silver price assumptions of $1,250 and $16.00 per ounce, respectively
After-tax NPV (8%) has increased 240% to $298 million and after-tax IRR has more than doubled to 39%, from $88 million and 15%, respectively in the 2012 prefeasibility study when applying the same base case gold and silver price assumptions, highlighting the significant improvement in project economics

Camyurt Preliminary Economic Assessment Highlights

Average annual production of 93,200 ounces of gold and 403,000 ounces of silver over four years with total life of mine production of 373,200 ounces of gold and 1,612,600 ounces of silver
Initial capital estimate of $10 million and total life of mine capital, including sustaining capital and closure costs, of $26 million. The low capital reflects no infrastructure requirements with ore from Camyurt to be trucked and processed through the nearby Agi Dagi infrastructure
Life of mine total cash costs of $604 per ounce of gold and mine-site all-in sustaining costs of $645 per ounce, reflecting longer haul distances to the Agi Dagi processing facilities
After-tax net present value ("NPV") of $86 million at an 8% discount rate ($111 million at a 5% discount rate) and an after-tax IRR of 253%, representing a 1.4 year payback using base case gold and silver price assumptions of $1,250 and $16.00 per ounce, respectively
The PEA assumes ore from Camyurt is sequenced after Agi Dagi has been depleted in order to utilize the infrastructure at Agi Dagi, resulting in a combined mine life of nearly 10 years between the two projects

"With the step-change improvement in Agi Dagi's economics, we now have three of the highest return, undeveloped gold projects in the world. With Kirazli, followed by Agi Dagi and Camyurt, we own a pipeline in Turkey that can provide low cost production and free cash flow growth for more than a decade," said John A. McCluskey, President and Chief Executive Officer.

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http://finance.yahoo.com/news/alamos-announces-positive-feasibility-study-110000079.html