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Alacer Gold announces further exploration results for the Çőpler District in Turkey

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Canada NewsWire

TORONTO, March 31, 2016 /CNW/ - Alacer Gold Corp. ("Alacer" or the "Company") [TSX: ASR and ASX: AQG] is pleased to announce further drilling results from the Company's fourth quarter 2015 Çöpler District exploration program in Turkey. Drilling results are from an additional 5,063 meters of drilling at the Yakuplu North prospect approximately 5 km east of the Çöpler Mine. This is in addition to the drill results released on December 9, 20151 for Yakuplu Southeast, Yakuplu East, Yakuplu North and Bayramdere.

Rod Antal, Alacer's President & Chief Executive Officer, stated, "Our exploration efforts have been focused on identifying leachable oxide mineralization that is near our existing infrastructure at Çöpler. The positive results of the additional 5,000 meters of drilling at Yakuplu North are increasing the defined mineralization potential and will be the primary target in 2016. The 2016 drilling program has resumed with 9 drill rigs currently operating at Yakuplu North, supporting our objective of reporting a maiden resource on the broader Yakuplu and Bayramdere prospects later this year. The results of the systematic and focused exploration program in the Çöpler District are putting us in the position to potentially add oxide gold production from these prospects within the next two years."

EXECUTIVE SUMMARY

Yakuplu North is the largest of four currently defined prospects within a 5 km to 7 km proximity of the existing Çöpler Mine facilities. Initial results from exploration drilling at Yakuplu North were provided in a press release dated December 9, 2015. Further drilling conducted between November 19 to December 31, 2015 has defined additional oxide mineralization. Based on the results to date, the Yakuplu North prospect is being aggressively advanced through the resource development stage in 2016. The mineralization style is similar to the Çöpler Deposit and may be processed through the existing crushing and agglomeration circuit and stacked on the existing heap leach pad facility at Çöpler Mine.

DRILLING HIGHLIGHTS

Drilling from the Yakuplu North prospect in the Çöpler District in central eastern Turkey has continued to define near-surface leachable oxide mineralization. Key Yakuplu North drill results from November 19 to December 31, 2015, reporting intervals of >5m @ >1.00g/t Au include:

  • YNDD004:          15.2m @ 1.00g/t Au from       199.0m            (oxide)
  • YNRC047:           9.0m @ 1.60g/t Au from           71.0m            (oxide)
  • YNRC047:           14.0m @ 1.02g/t Au from       112.0m            (oxide)
  • YNRC049:           8.0m @ 1.05g/t Au from         131.0m            (oxide)
  • YNRC049:           6.0m @ 1.03g/t Au from         157.0m            (oxide)
  • YNRC050:           5.0m @ 1.07g/t Au from         144.0m            (sulfide)
  • YNRC051:           5.0m @ 1.50g/t Au from           99.0m            (oxide)
  • YNRC051:           5.0m @ 2.24g/t Au from         120.0m            (oxide)
  • YNRC051:           6.0m @ 1.06g/t Au from         153.0m            (oxide)
  • YNRC051:           5.0m @ 1.05g/t Au from         190.0m            (oxide)
  • YNRC054:          45.0m @ 1.81g/t Au from       158.0m            (oxide + sulfide)
  • YNRC055:          9.0m @ 1.18g/t Au from           72.0m            (oxide)

Yakuplu North drilling results continued: 


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Alacer Gold Chart
  • YNRC055:          9.0m @ 2.72g/t Au from           90.0m            (oxide)
  • YNRC058:          9.0m @ 7.74g/t Au from         153.0m            (oxide)
  • YNRC059:           9.0m @ 1.05g/t Au from           13.0m            (oxide)
  • YNRC059:         5.0m @ 20.25g/t Au from       130.0m            (oxide)
  • YNRC060:           11.0m @ 1.05g/t Au from           0.0m            (oxide)
  • YNRC062:           9.0m @ 1.06g/t Au from          35.0m            (oxide)
  • YNRC064:           16.0m @ 1.02g/t Au from         89.0m            (oxide)
  • YNRC064:           11.0m @ 1.00g/t Au from       138.0m            (oxide)
  • YNRC064:         12.0m @ 1.77g/t Au from       200.0m            (oxide)
  • YNRCD020:        20.0m @ 1.02g/t Au from       198.5m            (oxide)
  • YNRCD021:        19.0m @ 7.88g/t Au from       159.0m            (oxide)
  • YNRCD021:        7.0m @ 1.07g/t Au from         221.0m            (oxide)
  • YNRCD022:        20.4m @ 1.37g/t Au from       161.0m            (oxide)
  • YNRCD023:        5.0m @ 1.09g/t Au from         164.0m            (oxide)
  • YNRCD045:        6.8m @ 1.01g/t Au from         222.8m            (oxide)

To view the complete drill assay results and further technical information relating to this news release, please visit the following link: http://www.alacergold.com/docs/default-source/press-releases/appendix-to-exploration-announcementfbc2d96bd1286d1694b8ff0000b8a5bc.pdf?sfvrsn=4 or visit the Company's website at www.alacergold.com.

ÇÖPLER DISTRICT EXPLORATION RESULTS

Alacer's exploration licenses surrounding the Çöpler Gold Mine span across a 17 km by 25 km area. The exploration licenses are managed under two separate joint ventures ("JV"). Alacer owns 80% of the licenses adjacent to Çöpler Mine under the Anagold Madencilik Sanayi ve Ticaret A.S. ("Anagold") JV and 50% of the remaining licenses in the Çöpler District under the Kartaltepe JV, both in partnership with Lidya Madencilik Sanayi ve Ticaret A.S. ("Lidya Mining").

ÇÖPLER DISTRICT 50/50% (KARTALTEPE) EXPLORATION RESULTS

Yakuplu North

Yakuplu North is a 2015 discovery that was identified from rock chip and soil sampling in early 2014. A drilling program commenced in June 2015 to define mineralized gossan on a 50m x 40m spacing over a potential strike length of 700m. To date, a total of 12,383 meters of reverse circulation ("RC") and diamond core drilling has been completed from 67 holes. The December 9, 2015 release disclosed the results from the first 7,320 meters of drilling from 36 holes.

Results presented in this release are from the ensuing 5,063 meters of RC drilling and diamond core drilling from 31 holes completed between November 19 and December 31, 2015.

There are multiple controls on mineralization with strong epithermal textures and associated structural overprints. As with the other Yakuplu prospects and Bayramdere, there is gossan hosted mineralization occurring along ophiolite and limestone contacts; however significantly, the main body of mineralization is associated with a subvertical shear zone of over 40m width and a potential mineralized extent of over a kilometer.

To date, high grade gold and negligible copper has been defined over a strike length of 700m. The mineralization is contained within shear hosted jasperoid and iron rich gossan. An aggressive development drilling program has begun to further test and extend the mineralized zone up and down dip, as well as along strike, and also to complete geotechnical, metallurgical and hydrogeological holes. Having defined a core high grade area, particular focus is being placed on closing the drill spacing in this area from 50m x 40m to 25m x 20m to a depth of 200m below surface for National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI-43-101") compliant resource estimation in 2016.

Drilling in the latter half of 2016 will also step southward along strike of the Yakuplu North prospect to test whether shear hosted mineralization at the Yakuplu Main prospect can be connected to the Yakuplu North prospect. The Yakuplu Main prospect hosts the historic Yakuplu Main open pit where iron rich gossan was previously mined. Residual Yakuplu Main gossan stockpiles report gold values of >1.0g/t Au.

The Yakuplu North prospect plan and an example section with significant assays follows.

About Alacer 

Alacer is a leading intermediate gold mining company, with an 80% interest in the world-class Çöpler Gold Mine in Turkey operated by Anagold and the remaining 20% owned by Lidya Mining. The Company's primary focus is to leverage its cornerstone Çöpler Mine and strong balance sheet to maximize portfolio value, maximize free cash flow, minimize project risk and, therefore, create maximum value for shareholders.

Alacer is actively pursuing initiatives to enhance value beyond the current mine plan:

  • Çöpler Oxide Production Optimization – expansion of the existing heap leach pad to 58 million tonnes remains on track. Approximately 70% of the heap leach expansion area is within the existing mine permit area and that portion is currently under construction. The remaining 30% of the area necessary for final construction requires an additional land use permit that is currently awaiting final approval. The Company continues to evaluate opportunities to optimize and extend oxide production beyond the current reserves, including a new heap leach pad site to the west of the Çöpler Mine.

  • Çöpler Sulfide Project – the Sulfide Project will deliver medium-term growth with robust financial returns and adds 22 years of production at Çöpler. The Sulfide Project will bring Çöpler's remaining Life-of-Mine gold production to 3.7 million ounces at industry low All-in Sustaining Costs2 averaging $637 per ounce. An Environmental Impact Assessment was approved in December 2014 and land use permits have progressed through the regulatory process and are awaiting final approval. Receipt of land use permits and a final Board of Directors' approval is required to advance the Sulfide Project construction. The Company continues detailed engineering and procurement of long-lead time items and a Project update will be provided in the coming months.

  • The Company continues to pursue opportunities to further expand its current operating base to become a sustainable multi-mine producer with a focus on Turkey. The systematic and focused exploration efforts in the Çöpler District to locate additional oxide deposits, as well as in other regions of Turkey are progressing. Drilling and metallurgy work has been completed and is being evaluated on the Dursunbey project in western Turkey.

Detailed information regarding the Çöpler Sulfide Project can be found in the Technical Report dated March 27, 2015 available on SEDAR at www.sedar.com and on the Company's website.

Alacer is a Canadian company incorporated in the Yukon Territory with its primary listing on the Toronto Stock Exchange. The Company also has a secondary listing on the Australian Securities Exchange where CDIs trade.

Technical Procedural Information

Exploration drilling and sampling in Turkey utilized dominantly surface HQ and HQ3 triple-tube diamond core and 5 ¼ inch diameter RC drilling methods. Reverse circulation cuttings were sampled on 1.0m intervals and core was sampled systematically in 1.0m lengths as sawn half core in competent ground or hand split if in clay or broken fault zones. All drill sample assaying was performed by the SGS Ankara commercial assay laboratory in Turkey. Samples were analyzed for gold by Fire Assay off a 30 gram charge with an AAS finish, and analyzed for silver, copper, lead and zinc using a four acid digest ICP-AES method. Gold assays over 3g/t Au were automatically re-assayed by Fire Assay with a gravimetric finish. For silver, copper, lead and zinc assay results above the ICP-AES upper detection limits, samples were re-analyzed using a four acid digest with HCI leach and AAS finish. Quality Assurance/Quality Control measures included the insertion and continual monitoring of standards, blanks and duplicates inserted into the sample stream. QA/QC samples represent approximately 10% of all assay results received. Exploration and drilling results are reported as downhole drilled thicknesses. Drill hole significant assay intervals were calculated using a minimum downhole length of 5m @ >1.00g/t Au (body of text) or 2m @ >1.00g/t Au (Appendices). Grades were calculated using length weighted average sample grades for the interval. No top cut was applied.

Qualified Persons

The information in this release which relates to exploration results is based on information compiled by James Francis, BSc (Hons) Geology and MSc Mining Geology, MAusIMM, MAIG, who is a full-time employee of Alacer. Mr. Francis has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and a qualified person pursuant to NI-43-101. Mr. Francis consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.

Cautionary Statements

Except for statements of historical fact relating to Alacer, certain statements contained in this press release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may be contained in this document and other public filings of Alacer. Forward-looking information often relates to statements concerning Alacer's future outlook and anticipated 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", "continue" or other similar expressions concerning matters that are not historical facts.

Forward-looking information includes statements concerning, among other things, preliminary cost reporting in this press release, production, cost and capital expenditure guidance; ability to expand the current heap leach pad, development plans for processing sulfide ore at Çöpler; results of any gold reconciliations; ability to discover additional oxide gold ore, the generation of free cash flow and payment of dividends; matters relating to proposed exploration, communications with local stakeholders and community relations; negotiations of joint ventures, negotiation and completion of transactions; commodity prices; mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates; the development approach, the timing and amount of future production, timing of studies, announcements and analysis, the timing of construction and development of proposed mines and process facilities; capital and operating expenditures; economic conditions; availability of sufficient financing; exploration plans; receipt of regulatory approvals and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, regulatory and political matters that may influence or be influenced by future events or conditions.

Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other of Alacer's filings, and include the inherent speculative nature of exploration results; the ability to explore; communications with local stakeholders and community and governmental relations; status of negotiations of joint ventures; weather conditions at Alacer's operations, commodity prices; the ultimate determination of and realization of mineral reserves; existence or realization of mineral resources; the development approach; availability and final receipt of required approvals, titles, licenses and permits; sufficient working capital to develop and operate the mines and implement development plans; access to adequate services and supplies; foreign currency exchange rates; interest rates; access to capital markets and associated cost of funds; availability of a qualified work force; ability to negotiate, finalize and 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 of future production and ability to meet production, cost and capital expenditure targets; timing and ability to produce studies and analysis; capital and operating expenditures; economic conditions; 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. While we consider these factors and assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.

You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on our current expectations and our projections about future events. Actual results may vary from such forward-looking information for a variety of reasons including, but not limited to, risks and uncertainties disclosed in Alacer's filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Alacer does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.

Appendix 2 - JORC Code Table 1

The following tables are provided to ensure compliance with the JORC Code (2012) edition requirements for the reporting of exploration results.

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)




Criteria

JORC Code explanation

Commentary

Sampling Techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

  • Diamond drill core was sampled as half core at 1m intervals or to geological contacts.
  • RC chip samples are collected in calico bags (3-5kg) for analysis and representative sub-samples placed into chip box trays at 1m intervals for logging. Reject samples are collected in PVC bags and stored in a bag farm for 6 months in case need arises for relogging, duplicate sampling, metallurgical sampling and follow-up QAQC.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

  • To ensure representative sampling, diamond core is marked considering mineralization intensity and veining orientations then sawn and half core sampled.
  • Where possible all diamond core is oriented using 2IC Ezy-Mark or Reflex ACT II systems and collected in HQ triple tube splits pumped out with water. PVC pipe is inserted into areas of core loss marked with interval of loss. PVC pipe is cut to equivalent length of core loss and placed into core trays. Majority of holes are downhole surveyed using a MEMs Gyro to ensure accurate location of all samples within the bore hole.
  • RC chip samples are collected at 1m intervals using a side mounted rotary cone splitter. All samples are weighed using digital scales with weights recorded and used to determine sample representivity. The scale is tared before each measurement. All weights are recorded onto paper and transferred to the geological database.

Aspects of the determination of mineralization that are Material to the Public Report.

In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralization types (eg submarine nodules) may warrant disclosure of detailed information.

  • Diamond Core samples are submitted as 1m half core to SGS Ankara laboratory for standard industry analysis i.e. samples crushed and split to 3kg, pulverized and subsampled to 250g and fire assayed using a 30g charge, with gravimetric finish on all gold values >3g/t. Whole rock analysis for 36 elements using a four acid digest and ICP-ME (OES) finish is completed for all exploration and resource development samples. Over limit precious and base metals are reanalyzed by AAS. All samples are analysed for Total Carbon and Sulphur. Where applicable, Cyanide leachable gold is determined using a hot 'Shaker Test' modified BLEG method. All samples are weighed on receipt, dried, reweighed and moisture content determined. Crushing and Grind size checks are completed at all stages of sample reduction.
  • RC samples go through the same assay process at SGS Ankara, with initial samples submitted being 3-5kg RC chip samples that are crushed and then split to 3kg before pulverizing.

Drilling Techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

  • Diamond drilling was mainly carried out with HQ and HQ3 triple tube. Precollars, metallurgical and difficult holes were completed with PQ and PQ3 triple tube. NQ was used in situations where, due to difficult ground conditions, the best option was a reduction in core size to NQ. Majority of holes were downhole surveyed by MEMs Gyro provided and maintained by Wellforce International. At times when MEMs Gyro was not available a Reflex Multi-Shot tool was used in place of Gyro. Core orientation was completed using the 2IC Ezy-Mark orientation system, with use of the Reflex ACT II tool for orientation when Ezy-Mark kits not available.
  • Çöpler District: RC drilling was completed with a nominal 5.25 inch face sampling hammer. Majority of holes were downhole surveyed by MEMs Gyro provided and maintained by Wellforce International.A Reflex Multi-Shot tool was used when the MEMs Gyro was not available.

Drill Sample Recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

  • Diamond Core -
    • All diamond core is measured and reconciled against core blocks, end of hole depth and drillers run-sheets.
    • Intervals of visual and calculated missing core are recorded in the sampling spreadsheet and geological database. PVC of equivalent length to missing core interval is inserted as a visual marker of core loss.
    • Core recovery is calculated on a per metre basis of recovered core and entered into the database as a percentage. In general, core recoveries are between 80 – 90%, reflecting strongly sheared, brecciated, altered and in areas of limestone, karstic ground being drilled (cavities).
  • RC Samples -
    • Both primary and residual samples are weighed to document sample recovery and determine recovery percentages against nominal expected sample weights.
    • The rotary cone sampling unit is adjusted as required to maintain a representative sample volume being collected by a 5.25 inch face sampling hammer.
    • All weighing is completed in the field using a digital scale with tare function.
    • Duplicate samples, standards and blanks are inserted into sample stream to achieve 10% QAQC coverage of sampled material.

Measures taken to maximize sample recovery and ensure representative nature of the samples.

  • Diamond Core -
    • Use of HQ3 and PQ3 triple tube with splits to collect maximum intact core.
    • Inner tubes pumped out with water to prevent core loss and breakage.
    • Use of bentonite commenced with Yakuplu North drilling to improve core recovery through 'caking' of more porous and poorly consolidated lithologies.
    • Drilling of short core runs (1.5m).
  • RC Sample -
    • Monitoring of sample weights and adjusting rotary cone sampling system accordingly to ensure correct weight of primary sample split.
    • Monitoring of reject sample weight versus expected nominal achievable 20kg reject. Advising driller to modify drilling speed and or hammer rate to produce coarser sample and less fines.
    • Monitoring of outside return to flag excessive fines loss.
    • No wet sampling.
    • Clearing of sample equipment by air burst every metre drilled before progressing to next metre sampled.
    • Manual cleaning of sampling cyclone and rotary cone splitter at end of every hole and during drilling as required to prevent contamination.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

  • No relationship has been identified between sample recovery and grade.
  • Comparisons completed between RC and Diamond sample outcomes from Çöpler District detected no significant assay bias due to sampling / material type bias.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

  • Diamond Drill core was logged in detail for lithology, alteration, mineralization, structure and veining. Data collection is considered to a standard appropriate for Mineral Resource estimation.
  • Diamond Core –
    • Core samples were tested by immersion method at a frequency of 1 determination every 3m for insitu density for all material types for every hole drilled.
    • Point load testing was completed at a frequency of 1 determination in every 3m for all intact core.
    • Detailed geotechnical logging completed on Yakuplu North cored holes capturing data for Fracture Index, RQD and GSI calculation.
    • Samples collected for external metallurgical testwork for Yakuplu North prospects.
    • Samples collected for external transmitted, reflected and SEM petrological determinations of mineralization and waste lithology, textures and alteration.All core photographed wet and dry for reference.
  • RC Chip Samples -
    • RC cuttings were logged for rock type by the mineral composition, mineralization by sulphide and oxide mineral species, alteration and vein mineralogy in sufficient detail to interpret distribution of lithology and mineralization distribution and relative subjective mineral abundances.
  • RC Chip Samples –
    • All RC chip samples analysed on site by ASD XRD PIMA analyser for determination of non-ore mineral species e.g. clays, carbonates, phyllosilicates. Data used for determination of alteration assemblages, lithology distributions based on geochemistry and location of regolith / transitional boundaries such as BOT, BOCO, TOFR and REDOX.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel etc) photography.

  • Logging is qualitative in nature.
  • Diamond core was photographed both wet and dry.
  • RC chips were photographed for future reference.

The total length and percentage of the relevant intersections logged.

  • All drill holes and RC chips were logged in full.

Sub-Sampling Techniques and Sample Preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

  • Diamond Core –
    • Exploration and Resource diamond core is half core sampled using a manual drop saw to cut to one side of the bottom of core line (where present in competent ground).
    • Half-core with bottom of hole line is retained in the tray.
    • PQ core is used for metallurgical sampling. ¼ core is used for initial assay. ½ core is dispatched in 1m intervals for metallurgical compositing and testing, ¼ core is retained in tray.
    • HQ triple tube core is used for geotechnical drilling, 10cm complete core segments are extracted for external laboratory testing (UCS, DS). Core block with sample details is left in core tray.
    • As with geotechnical core, select sampling for petrology is collected from ½ core and a core block with details of sample is inserted into core tray.
    • Soft (clay), poorly consolidated (regolith, oxide) and fragmental samples (fault, shear, breccia materials) are hand split into 1m ½ core samples.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

RC samples are drilled using a face sampling hammer with samples collected via a rig side-mounted cyclone and rotary cone splitter. Samples are collected dry. Occasional moist samples are collected at top of sample intervals following 3m rod changes. Samples remain dry during metre by metre blow-out of contaminants in cyclone and cone splitter. Duplicate samples are collected using a 50/50 Jones riffle splitter at the drill rig.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

  • Industry standard diamond and RC drilling techniques are used (as described above) and are considered appropriate.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

  • For RC drilling, contamination and sample representivity were managed through –
    • Full end of hole clean-out of cyclone and cone splitter.
    • During drilling clean-out of cyclone and splitter when in oxides and clays to prevent caking contamination.
    • Blow-out of all sampling equipment following sampling of each metre and before start of drilling of next metre.
    • Adjustment of rotary cone splitter to maximize sample collected.
    • Weighing of primary and reject samples to measure sample recovery.
    • Varying drill hammer penetration rate to maximize particle size and reduce fine sample loss through outside return.
    • Maintaining a dry sample.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

  • RC and diamond sampling have 5% of total submitted samples as field duplicates. With RC samples, a field duplicate is collected through use of a Jones riffle splitter to achieve a 50% primary sample split. With diamond core, quarter core repeats are selected and submitted post- primary sample submission. A further 5% of samples submitted are "blanks" and "standards" designed to check on laboratory performance during assay (accuracy & precision). Laboratory QAQC and field duplicates combined represent 10% of material assayed and analysed.
  • Results to date are within expected industry tolerances for duplicate and laboratory performance. There is no material bias to report.

Whether sample sizes are appropriate to the grain size of the material being sampled.

  • Sample sizes are considered appropriate to correctly represent the gold mineralization based on: the style of mineralization, the thickness and consistency of the intersections, the sampling methodology and assay value ranges for gold.

 

Quality of Assay Data and Laboratory Tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

  • The fire assay gold analyses undertaken are considered a total assay method. Fire assay gold analysis is an appropriate assay method for this type of deposit.
  • Multi-element analyses of silver, copper, lead and zinc undertaken by four acid digestion via ICP-AES are considered total assay methods except where they exceed the upper detection limit.
  • In cases where samples are overlimit they are re-assayed using a four acid digest with HCI leach, and AAS finish. These assay methods are considered to be total.
  • For gold assays greater than 3g/t, the fire assay process is repeated with a gravimetric finish for coarse gold. This is a total assay method.
  • Cyanide leach analysis is completed to determine potential gold leach recoveries when compared against total contained gold. The cyanide leach analysis is a partial analysis method.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

  • TerraSpec 4 desktop ASD PIMA (Portable Infrared Mineral Analyser) spectrometer for detection of alteration (clay mineralogies) was used. The machine is serviced and calibrated annually and used in conjunction with TSG software for conversion of spectral data to mineral data. PIMA is used on all RC chip samples to create clay and mineralogy models for correlation against alteration logging and geochemically determined lithologies.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

  • Industry standard certified reference materials and blanks were utilized in order to check laboratory assay quality control. Standards and blanks represent 5% of sample submissions (1 in 20 samples, alternating blank and standard).
  • Laboratory visits to SGS Ankara and ACME Labs Ankara are conducted on a quarterly basis.
  • Field duplicates and laboratory coarse crush duplicates (prior to pulverizing) are part of standard process.
  • Sizing checks (dry sieve) on crushed and pulverized samples are reported for all holes at 1 check in every 20 samples.
  • SGS and ACME laboratories report all internal laboratory QAQC outcomes for each hole.
  • Laboratory submits monthly QAQC Report to client.

Verification of Sampling and Assaying

The verification of significant intersections by either independent or alternative company personnel.

  • Intersections were reviewed by the Chief and Senior Exploration Geologists following receipt of the assay results.
  • All assay results are processed and validated by the Senior Data Administrator prior to loading into the database. This includes plotting standard and blank performances, review of duplicate results.
  • Original assay certificates are issued as PDF for all results and compared against digital CSV files as part of data loading procedure into the database.
  • Geology Manager reviews all tabulated assay data as MAIG QP.

The use of twinned holes.

  • No twin holes were drilled.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

  • All primary data is sent electronically as both PDF and CSV files to a dedicated assay email cabinet with restricted access.
  • Email assay dropbox only receives data.
  • Data within the dropbox is registered and uploaded to DataShed Data Management Software and Geological Database for validation.
  • Data is validated through a series of queries and protocols.
  • All geological data related to drilling, logging and testwork is saved within the Geological database (downhole surveys, collar surveys, collar metadata, logging data, geotechnical data, all assay data).
  • Database is annually audited by external consultants.
  • Database is audited prior to resource estimates.
  • Database is backed up daily and monthly on network and on remote hard drives.
  • Database is copied monthly and sent to Alacer's head office in Denver.

Discuss any adjustment to assay data.

  • Assay adjustments are only made when associated drill hole data cannot be validated e.g. unverified collar locations, identified data entry errors. All deletions and changes are logged within the database and reported on a monthly basis.

Location of Data Points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

  • Drillhole collar locations were surveyed by both in-house mine surveyors and contract surveyors as part of collar survey validation process. 10% of historic collars are field verified.
  • Diamond and RC drill holes are downhole surveyed by MEMs Gyro, Reflex Multishot and North Seeking Gyro.

Specification of the grid system used.

  • All drill hole collars surveyed in ED 50 grid using differential GPS.

Quality and adequacy of topographic control.

  • Topographic surfaces are prepared from detailed ground surveys and ortho-corrected satellite imagery. Satellite imagery accurate to <1m contouring. Satellite imagery is current as of 9th August, 2015.

Data Spacing and Distribution

Data spacing for reporting of Exploration Results.

  • Yakuplu North is being drilled to a nominal 50 x 40m spacing.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

  • The reported drilling has not been used to prepare Mineral Resource estimates.
  • Drill hole spacing for Yakuplu North is sufficient to define grade continuity, geological continuity, depth and lateral extents of mineralization.

Whether sample compositing has been applied.

  • Sample compositing has not been applied.

Orientation of Data in Relation to Geological Structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

  • At Yakuplu North drill holes are at a near right angle to the main mineralized NW-SE trending shear with holes drilled from NE -> SW at 60 degrees. No bias in sampling is anticipated.

 

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

  • No orientation based sampling bias has been identified in the data.

Sample Security

The measures taken to ensure sample security.

  • Chain of custody is managed by Alacer Gold for Yakuplu North through its JV company Kartaltepe.
  • Samples are stored on site until collected for transport to SGS laboratory in Ankara, Turkey by an independent cartage contractor.
  • Alacer Gold personnel have no contact with the samples once they are picked up for transport to the laboratory.
  • Samples for Umpire testwork are transferred directly from SGS Ankara to ACME Labs Ankara using an independent freight carrier.
  • Tracking sheets have been set up to track the progress of samples.
  • All samples are placed into calico bags with sample tickets and clear sample ID numbering on the outside. Samples are placed inside of labelled polyweave bags holding a maximum 4 samples a bag.

Audits or Reviews

The results of any audits or reviews of sampling techniques and data.

  • External reviews of data and processes relating to these prospects have been completed by independent Resource Consultant Paul Gribble, Cube Consulting and Data Revolution. There were no adverse material results of the audits.

 

Section 2 Reporting of Exploration Results




Criteria

JORC Code explanation

Commentary

Mineral Tenement and Land Tenure Status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

  • Yakuplu North mineralization is located within mining leases which are owned by Kartaltepe Madencilik (a subsidiary of Alacer Gold) and Lidya Madencilik in joint venture. Both companies have a 50% interest in the license areas.

 

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

  • The licenses are in good standing with no known impediment to future grant of a mining permit.

Exploration Done by Other Parties

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