Turkiye

Halilaga Project

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Categories

Overview

Mine TypeOpen Pit
StagePreliminary Economic Assessment
Commodities
  • Copper
  • Gold
  • Molybdenum
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock

Owners

SourceSource
CompanyInterestOwnership
Cengiz Holdings A.S. 100 % Indirect
On August 12, 2020 Liberty Gold closed the sale of its interest in the Halilaga porphyry copper-gold deposit to Cengiz Holdings A.S. (“Cengiz”) pursuant to a definitive agreement signed on July 12, 2019 (the “Halilaga Agreement’). Liberty Gold interest in Halilaga was held through a 40% shareholding in Truva Bakir Maden Isletmeleri A.S. ("Truva Bakir"). TMST held the remaining 60% of this Turkish entity. Pursuant to the terms of the Halilaga Agreement, the Company and TMST agreed to jointly sell their 100% interest in Truva Bakir to Cengiz for $55 million cash. As a result of the Transaction, Liberty Gold will receive a total of US$22 million.

Deposit type

  • Porphyry
  • Epithermal

Summary:

Halilaga is classified as a copper-gold porphyry system. Advanced argillic alteration and gold mineralization at Kunk Hill and Pirentepe are classified as high sulphidation epithermal mineralization. Copper mineralization in the Bakirlik Tepe area is classified as proximal copper skarn. All three types are related to magmatic-hydrothermal activity associated with intrusion of the Kestane porphyry stock and other intrusions in the area.

The geology of Halilaga is characterized by various lithological associations made up of: (1) Paleozoic and early Mesozoic basement metamorphic rocks; (2) Permian and Mesozoic sedimentary and ophiolitic rocks; (3) Tertiary volcanic and intrusive rocks; and (4) Neogene sedimentary rocks. Older rocks are affected by several collisional orogenic events. Tertiary rocks record mainly brittle extensional and transtensional deformation.

The property is located in a district with significant potential for both porphyry copper-gold and high-sulphidation-style gold deposits. Investigation of geological relationships in the field along with geochemical and geochronological data suggest that magmatic activity began with the intrusion of granitoids, coeval with an early phase of volcanic activity, and was superseded by a second phase of volcanism. The mineralized intrusives are thought to be part of a suite of 26 to 38 million year old (Ma) quartz monzonites and granodiorites.

The Halilaga district is mainly underlain by Oligo-Miocene volcanic and-sedimentary rocks overlying a basement of schist and carbonate rocks which outcrop to the southeast of the Bakirlik area. Granodioritic stocks intrude the basement rocks, giving rise to metasomatism and skarnification. The Kestane porphyry stock, the main host rock to the Halilaga porphyry system, has a pronounced hornfelsed halo.

The Halilaga Project is centered on a large mineralized system containing porphyry copper-gold, skarn and high-sulphidation gold mineralization with related alteration assemblages extending over an area of more than 4 km by 2 km. The Kestane porphyry stock is characterized by potassic alteration (K-feldspar-biotite-magnetite) overprinted by phyllic (quartz-sericite-pyrite) alteration. Most quartz veins are B-type that average 5% of the rock by volume. A-type veinlets are rare but locally present. Chalcopyrite and pyrite are the dominant sulphide minerals. The highest gold and copper grades in drill core are associated with early biotite + magnetite + chalcopyrite associated with dense array of A- and B-type quartz veins, overprinted by phyllic alteration. In places the mineralization has been subject to near surface oxidation and leaching to form supergene chalcocite.

At higher elevations to the south of Kestane, the Kunk-Kumlugedik hilltops are characterized by advanced argillic alteration (quartz-alunite-dickite) surrounded by zones of argillic and propylitic alteration. Skarn-related alteration (magnetite-epidote) is located to the southeast of Kestane in the Bakirlik and Bostanlikbasi areas.

The geology of the Halilaga area is affected by post mineral faults of the North Anatolian Fault System characterized by ENE-WSW strike-slip faults, with subsidiary WNW-ESE striking faults.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityProductUnitsLOM
Copper Payable metal M lbs 779
Copper Concentrate kt 1,228
Gold Payable metal koz 924

Operational metrics

Metrics
Daily mining rate 57,793 t *
Daily processing rate 25,000 t *
Annual processing rate 9,125,000 t *
Stripping / waste ratio 1.3 *
Waste tonnes, LOM 158 Mt *
Ore tonnes mined, LOM 124.3 Mt *
Total tonnes mined, LOM 282 Mt *
Tonnes processed, LOM 124 Mt *
* According to 2015 study.

Production Costs

CommodityUnitsEstimated
Cash costs Copper USD 2.5 / lb *  USD
Cash costs Copper USD 1.08 / lb * **  USD
Total cash costs Copper USD 2.78 / lb *  USD
Total cash costs Copper USD 1.35 / lb * **  USD
Assumed price Molybdenum USD 12.5 / lb *  USD
Pre-tax break-even price Copper USD 1.83 / lb *  USD
Assumed price Copper USD 2.9 / lb *  USD
Assumed price Gold USD 1,200 / oz *  USD
* According to 2015 study / presentation.
** Net of By-Product.

Operating Costs

Currency2024
OP mining costs ($/t mined) USD 1.79 *  USD
OP mining costs ($/t milled) USD  ....  Subscribe
Processing costs ($/t milled) USD  ....  Subscribe
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2015 study.

Project Costs

MetricsUnitsLOM Total
Pre-Production capital costs $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
OP OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 1,038
G&A costs $M USD 86.6
Total OpEx $M USD  ......  Subscribe
Total Taxes $M USD  ......  Subscribe
Royalty payments $M USD  ......  Subscribe
Net Operating Income (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 7% $M USD  ......  Subscribe
After-tax NPV @ 7% $M USD  ......  Subscribe
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Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Heavy Mobile Equipment

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