The Gediktepe deposit is a skarn type Massive Sulfide or MS type of metal sulfide ore deposit. These deposits are created by volcanic-associated hydrothermal events in submarine environments. They are typically high in copper, zinc, and other sulfide minerals.

Mineralization at Gediktepe is related with schist that is metamorphosed under green schist facies conditions. The mineralization is thought to be deposited syngenetically in sedimentary units and metamorphosed to schist. Green schists generally are comprised of actinolite + chlorite + albite + epidote minerals.

The upper portion of the Gediktepe deposit has been weathered, leached, and oxidized by naturally occurring acidic surface water and ground water. The natural acidity is due to the presence of sulfides, particularly pyrite.

Within the oxidized zone, the sulfide mineralization has been nearly completely leached out leaving the gold and silver relatively intact. Relic “lenses” or zones of high gold mineralization can been seen in the oxide zone. There is some evidence that gold mineralization has been transported downward chemically or mechanically as there is often an increase in gold grade just above the oxide –sulfide contact.

The bottom of oxidation is generally abrupt with rapid changes of metal grade between adjacent assay intervals. Copper and zinc grades are typically less than 0.10% within the oxide zone, but they increase to typical values of 1.4% Zn and 0.80% Cu immediately below the oxide horizon. Gold and silver follow the opposite trend. Gold can be in the range of 3.0 gm/t in the oxide zone and often less than 0.5 gm/t immediately below in the sulfide zone.

The Gediktepe oxide type mineralization is indicated by yellow to red leach zones of intense iron oxide Gossan. Near surface, a leached cap has occurred which is typically low grade in all economic metals. This material often forms a few meters of ferricrete.

The gossan oxide is a hematite rich and highly oxidized unit. It can vary in texture from a breccia with unoxidized clasts to a consistent nearly soil like material where oxidation has obliterated the original texture of the protolith. It hosts locally high values of gold and silver. In general, the upper portion of the gossan zone is low in precious metal grade with abrupt increases from waste to ore grade as one scans down a drill hole. That boundary has been incorporated into the block model as a population boundary between low grade and high grade gossan.

The massive pyrite and massive pyrite magnetite are the primary ore types within the sulfide zone. The MPM+MPY mineralization forms lenses or veins that average 20m wide and contain pyrite, sphalerite, tetrahedrite, tenantite, chalcopyrite, and galena. Magnetite is present in both units but it is particularly evident in the MPM. Other sulfide minerals include pyrite, sphalerite, tetrahedrite, tenantite, chalcopyrite, and galena. Within these unites the mineralization has completely over printed the shistosity of the host units.

Open pit mining is planned to be carried out on 2.5 m flitches using small excavators (3–4 m3 capacity) and trucks. Drilling and blasting will be required. All mining services will be performed by a suitably qualified and experienced Turkish mining contractor. It is currently anticipated that the same mining contractor will provide initial construction services, particularly construction of the tailings storage facility (TSF).

Grade control to determine material types and ore boundaries will be performed based on blasthole sampling and assaying, and under the control of the mine geologists. Feed to the process plants is expected to be a combination of both direct tipping and reclaim from ROM stockpiles to ensure optimal feed to the process plant, particularly for sulphides.

On the eastern side of the pit, if the bench faces are cleanly developed and scaled along the foliation such that the bench face slope is formed by the foliation at an average angle of 40°, rockfall hazards will be mostly removed and a minimum 6 m-wide catch bench would likely provide adequate rockfall protection in most cases. Leaving a 6 m-wide catch bench in the slope at 10 m vertical intervals would result in an inter-ramp slope angle of 29°. In the overburden, it is recommended that 5 m-high production benches with bench faces cut at 45° and a minimum 5.7 m-wide catch bench be developed at 5 m vertical intervals (single benches). This bench configuration results in an inter-ramp slope angle of approximately 25°.

On the west side of the pit, where the structural conditions are more favourable, bench face angles in phase slopes will mostly be limited by rock quality and the mining methods used to develop steep bench faces in highly fractured rock. It is recommended excavating bench faces at 63.5° in this sector. For phase slopes, where trim blasting to a free face is not used and bench faces are formed by cushion blasting in conjunction with standard production blasting, single benching (10 m-high benches) is recommended. Assuming 6.5 m- wide catch benches are left at 10 m vertical intervals results in a 41° inter-ramp slope. For final slopes, where cushion blasting is used in conjunction with trim blasting to a free face and scaling, double benching can be accomplished by stacking two 10 m-high production benches so that an 8.5 m catch bench is left in the slope at 20 m vertical intervals. This results in a 47° inter- ramp slope.

In the overburden, the geotechnical drillhole data indicates that the depth of highly weathered rock conditions on the west side of the pit is less than approximately 10 m. It is recommended to excavate the first bench at a bench face angle of 45° and leave a 6 mwide catch bench on top of sound bedrock at the crest of the pit.

It was assumed that effective depressurisation of all pit slopes will be feasible, and that groundwater will not be a control on stability. Achieving this may require that drainage enhancements such as wells and horizontal drains be installed in less-permeable geotechnical units and where locally perched groundwater occurs in pit slopes.

The configuration of the recommended 47° west wall inter-ramp slope (20 m bench stack height with an 8.5 m catch berm) was reviewed in the context of Turkish practices and regulations regarding maximum bench stack heights. After discussion with relevant parties, and technical assessment of the effectiveness of a narrower catch berm, an alternative west wall inter-ramp slope configuration of a 15 m-high stack height with a 6.5 m catch berm was adopted for both intermediate pit stages and for the ultimate pit. This revised configuration achieves the initial 47° inter-ramp slope target.

After review of the initial pit eastern (footwall) inter-ramp slope design, slight flattening (2° to 3°) was recommended to achieve acceptable factors of safety (FOS) for the rock types intercepted. Additionally, the southern portion of the eastern pit slope incorporates a permanent creek diversion. Review of the risks around this critical infrastructure recommended that:

• The berm the diversion is located on should be wider, and

• The overall local pit slope should be reduced in order to achieve a FOS of 1.5 (1.2 for standard slope design) to ensure longevity of this critical infrastructure.

The oxide processing facility has been designed to treat 1.095 Mtpa of oxide ore for approximately two years and will be followed by processing 2.4 Mtpa of sulphide ore over a total mine life of approximately 11 years. The project will therefore be installed and commissioned in two stages:

• Stage 1 oxide ore – comprising a two-year period for processing gold and silver ore, which will be treated in a single stage semi-autogenous grinding (SAG) mill circuit, followed by sodium cyanide leaching, carbon-in-pulp (CIP) and elution and electrowinning techniques to recover the gold and silver; and,

• Stage 2 sulphide ore – the oxide processing plant will be expanded to process copper and zinc- bearing ore by flotation. A 5.5 MW secondary grinding ball mill will be added to the grinding circuit. Sequential flotation will be employed to produce separate copper and zinc concentrates for export.

During the period when both oxide and sulphide ore are available ........