Alamos updates projects in Turkey

Alamos Gold (AGI-T) expects to release a resource estimate in March, and a prefeasibility study before July for its projects in Turkey: Agi Dagi and Kirazli.

In a recent progress report on the projects, the gold producer noted it had drilled a total of 22,600 metres in 148 holes at the two projects in an effort to upgrade existing in-pit inferred resources to the measured and indicated category.

Alamos anticipates reporting resources for the first time for its Turkish projects as part of its prefeasibility study.

Alamos drilled 113 holes at Agi Dagi and 29 holes at Kirazli.

Highlights from assay results from Agi Dagi’s Baba and Deli zones include 23.6 metres at 0.89 gram gold per tonne, 80.6 metres at 0.78 gram gold, 25 metres of 1.11 grams gold, 57.9 metres at 0.51 gram gold and 58.5 metres at 0.73 gram gold. 

At the Camyurt zone, which has the potential to be a separate zone of mineralization at Agi Dagi, assay results included 58.9 metres at 1.33 grams gold and 158.3 metres at 0.75 gram gold. 

Notable results from the main zone at Kirazli included assays of 101.9 metres at 1.81 grams gold, 26.8 metres at 3.99 grams gold, 32.7 metres at 2.37 grams gold and 110 metres at 1.55 grams gold.

A mine plan laid out in the scoping study envisioned eight years of production from the Kirazli, Baba and Deli pits, and assumed that Kirazli and Agi Dagi would each have stand-alone crushing, agglomeration, heap-leach and process plant facilities, as well as separate owner-operated mining fleets. 

Kirazli is about 25 km northwest of Agi Dagi, which is about 50 km southeast of Canakkale on the Biga peninsula in northwestern Turkey.

At presstime in Toronto, Alamos was trading at $17.23 per share, within a 52-week range of $11.98 (Feb. 25, 2010) and $21.65 (Dec. 7).

Dan Rollins, an analyst at UBS Investment Research, has a 52-week target price of $21 per share.

Alamos Gold has 116.4 million shares outstanding.

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