Gediktepe Net Smelter Return
The Gediktepe Project is located in Balıkesir Province, about 370 km west of Ankara and 190 km to the south of Istanbul. Gediktepe is a polymetallic orebody that contains economic values for gold, silver, copper, and zinc.
On July 17, 2019, SSR announced the sale its 50% non-operating interest in the Gediktepe Project to its joint venture partner Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya”). As consideration for the sale of its 50% equity interest, SSR received:
- 10.0% Net Smelter Return (“NSR”) on all oxide ore production;
- 2.0% NSR on all sulfide ore production; and
- Cash consideration of US$10 million as various development and production milestones are met.
In the event Lidya abandons the Gediktepe Project at any stage, SSR will retain an option to regain a 100% equity interest in the Project for no additional consideration. In the event first production at Gediktepe does not occur within 10 years of closing the transaction, SSR retains the right to regain its 50% ownership interest in the asset in exchange for relinquishing its NSR.
An updated Prefeasibility Study was completed in March 2019. Highlights of the Prefeasibility Study include:
- Total recovered metals, to both doré and concentrates: 345,000 ounces of gold, over 8 million ounces of silver, 254 million pounds of copper, and 626 million pounds of zinc for a total of 1.6 million recovered gold equivalent Ounces (AuEq1).
- Mineral Resources: Measured and Indicated Mineral Resource of 878,000 ounces of gold, 30 million ounces of silver, 537 million pounds of copper, and 1.05 billion pounds of zinc. Mineral Resources are as at March 5, 2019.
- Mine life: An estimated life of 11 years that will start with processing oxide ore and transitioning to sulfide ore during the third year of production.
1 Gold Equivalent Ounce (AuEq) is a non-IFRS measure (no standardized definition under IFRS) that converts non-gold production into gold equivalent ounces. Calculation of AuEq converts recoverable metals into revenue using metal prices of $1,315 per ounce for gold, $18.00 per ounce for silver, $3.20 per pound for copper, $1.10 per pound for zinc, and then the total revenue is divided by the gold price of $1,315 per ounce.
This page contains forward-looking statements. Please see the following link: Legal.