TORONTO, Dec. 5, 2024
/PRNewswire/ - Allied Gold Corporation (TSX: AAUC) (OTCQX:
AAUCF) ("Allied" or the "Company") is pleased to announce that
it has entered into final documentation for a streaming transaction
(the "Stream Transaction") with Wheaton Precious Metals
International Ltd. ("WPMI"), a wholly-owned subsidiary of Wheaton
Precious Metals Corp., ("Wheaton"). Under the terms of the
streaming agreement, Allied will receive an aggregate $175 million upfront cash payment (the "Advance
Amount") to support the funding of its growth strategy underpinned
by the development of its low-cost, fully permitted, and highly
prolific Kurmuk project in Ethiopia.
The Stream Transaction with WPMI strongly endorses the quality
and significant value of the Kurmuk project, and the ongoing
execution and exploration efforts being carried out by the Company.
This Stream Transaction further advances the Company's financial
strategy during its transformative growth phase at an attractive
cost of capital, contributing to de-risking Kurmuk's execution with
a comprehensive financing package supporting the advancement of
initiatives to unlock further upside potential and maximize
shareholder value.
"We are delighted to partner with Wheaton on this streaming
financing. This began as a multi-party process although it soon
became apparent to us that Wheaton would be our partner of choice.
They conducted detailed and extensive diligence, were supportive of
our efforts, worked with us in evaluating and considering
optimization opportunities and recognized the inherent value of our
Kurmuk project, a value that we believe significantly exceeds the
value implied in our share price. We take our sustainability
programs seriously, and it was a delight to see Wheaton not only
support these programs but provide suggested improvements. We also
welcome Wheaton as a shareholder with a share position acquired in
the Company's recent overnight marketed equity financing."
commented Peter Marrone, Chairman
and CEO. "The stream financing now allows us to complete the gold
prepay which is the final component of our planned comprehensive
financing package for the development of the Kurmuk project. The
gold prepay is expected to be led by the lending syndicate for the
Company's revolving credit facility with proceeds available to
Allied following the completion of the stream financing. We expect
the Kurmuk mine will become one of the more significant precious
metal mines in the world delivering significant production and cash
flow following its construction."
"Wheaton is pleased to announce a streaming agreement with
Allied to advance the construction of the Kurmuk project, which is
set to be the first commercial gold mine in Ethiopia," said Randy
Smallwood, President and CEO of Wheaton Precious Metals.
"This fully permitted, high quality development project offers
significant exploration potential, supported by a team at Allied
with a proven operating track record. We are excited to partner
with Allied to unlock opportunities that empower the local
communities and help drive the growth of Ethiopia's emerging metals and mining
sector."
Key Terms
- Upfront Consideration: WPMI will pay Allied total
upfront cash consideration of $175
million in four equal installment payments during
construction, subject to certain customary conditions.
- Stream Parameters:
- WPMI will have the right to purchase 6.7% of payable gold from
the Company's Kurmuk mine (the "Stream").
- The gold stream rate will step down to 4.8% of payable gold
after the delivery of 220,000 ounces of gold.
- WPMI will make ongoing payments of 15% of the spot gold price
for each ounce delivered under the Stream.
- The Stream will cover the existing Kurmuk mining license and
until 255,000 ounces of gold have been delivered to WPMI, any
mineral interests located within a 50 km radius of the mining
license which are processed at the Kurmuk plant.
- Buyback Option:
- In the event of a change of control of Allied prior to the
earlier of January 1, 2027 and
achievement of completion, Allied has the option to buyback one
third of the Kurmuk Stream.
- Other Considerations:
- WPMI has been granted a right of first refusal on any future
precious metal streams, royalties, prepays or similar transactions
on the Kurmuk project.
- Allied is expected to comply in all material respects with the
International Finance Corporation's Performance Standards on
Environmental and Social Sustainability, the Voluntary Principles
on Security and Human Rights, the Global Industry Standard
on Tailings Management, and WPMI's Partner/Supplier Code of
Conduct, which outlines WPMI's expectations with regard to
environmental, social and governance ("ESG") matters.
- Wheaton participated in Allied's equity financing completed on
October 18, 2024 in the amount
of C$20.15 million, with gross proceeds totalling C$221 million.
Transaction Rationale
- Crystallizes Significant Inherent Value in Kurmuk - The
Stream Transaction recognizes the inherent value of the Company's
Kurmuk project and implies a valuation multiple significantly
higher than that at which the Company's shares currently trade in
the market and the price at which the Company went public.
- Attractive Cost of Capital - The Company evaluated
different financing options as part of an exhaustive process,
concluding that this Stream Transaction provides much better cost
of capital than any other alternative. The Stream agreement offers
a competitive cost of capital based on Kurmuk's Proven &
Probable Mineral Reserves and remains favorable when assuming
Mineral Resources conversion and exploration upside within the
mining license.
- Financial Strategy - The Stream Transaction marks
another significant milestone in completing the planned
comprehensive financial package for the Kurmuk project. This
strategy contemplates cash on hand, cash flow from operations, the
Advance Amount and a gold prepay, which is the final component of
our planned comprehensive financing package for the construction of
the mine. The gold prepay is expected to be led by the lending
syndicate for the Company's revolving credit facility with proceeds
available to Allied following the completion of the Stream
Transaction.
- Exploration Upside Retained - Allied's strategic
objective for Kurmuk is to achieve a multi-decade mine life at
production levels equal or above the average life of mine of
240,000 ounces of gold per year, leveraging on the project's highly
prospective land package. As result of the Stream Transaction,
Allied retains full exposure to the significant exploration upside
beyond the mining license, include the Tsenge, Agu and Dull
Mountain targets among others. The Company is advancing a
$7.5 million exploration program at
Kurmuk focused on near mine extensions and regional targets where
Allied sees the best potential to increase mineral
inventories.
- Flexibility in Stream Deliveries – Allied can accelerate
the step-down stream rate by supplementing planned deliveries with
ounces produced from outside the Large-Scale Mining License.
Closing of the Stream Transaction and funding of the Advance
Amount is subject to certain conditions precedent, including
receipt of certain third-party consents and agreements, and
completion of related security documents which are expected to be
completed in short order.
Background on the Kurmuk Project
The Kurmuk project is located in western Ethiopia within the metal prolific
Arabian-Nubian Shield, and approximately 500 kilometers from the
capital Addis Ababa. Allied is
targeting an initial production of approximately 270,000 gold
ounces in the first 5 years and an average life of mine production
of 240,000 gold ounces per annum, at an industry leading All-In
Sustaining Costs(1) ("AISC") below $1,000 per ounce. With initial Proven and
Probable Mineral Reserves of 2.7 million ounces, the Company is
targeting a mine life greater than 15 years driven by an extensive
exploration program.
The Kurmuk project is fully permitted and currently in
construction with first gold planned by the second quarter of 2026.
Earthworks, camp construction along with engineering and
procurement are progressing well with the project remaining on
track and on budget. The Kurmuk project has been designed for a
milling capacity of 6 Mtpa to leverage the large and prospective
land package. Mining is planned as conventional shovel-truck open
pit operations at Dish Mountain and Ashashire. Processing is
designed as conventional CIL circuit and recoveries are expected to
average 92% approximately over the life of mine. Power is planned
to be supplied by the Ethiopian grid, and the Company has secured a
power purchase agreement for 10 years with an average cost of
4 cents per kWh, aligned with the
objective to delivery significant production at industry leading
costs.
Allied is advancing an aggressive exploration program at Kurmuk,
with a 2024 exploration budget of $7.5
million. Notably, the current exploration efforts are
focused on extensions of the known Mineral Resources around the
planned open pits as well as exploring near-mine regional targets
like the newly discovered Tsenge area.
About Allied Gold Corporation
Allied is a Canadian-based gold producer with a significant
growth profile and mineral endowment which operates a portfolio of
three producing assets and development projects located in Côte
d'Ivoire, Mali, and Ethiopia. Led by a team of mining executives
with operational and development experience and proven success in
creating value, Allied is progressing through exploration,
construction and operational enhancements to become a mid-tier next
generation gold producer in Africa
and ultimately a leading senior global gold producer.
END NOTES
(1)
|
This is a non-GAAP
financial performance measure for which the most directly
comparable IFRS measure is cost of sales. Refer to the Non-GAAP
Financial Performance Measures section at the end of this news
release.
|
Qualified Persons
Except as otherwise disclosed, all scientific and technical
information contained in this press release has been reviewed and
approved by Sébastien Bernier, P.Geo (Vice President, Technical
Services). Mr. Bernier is an employee of Allied and a "Qualified
Person" as defined by Canadian Securities Administrators' National
Instrument 43-101 - Standards of Disclosure for Mineral
Projects.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
AND STATEMENTS
This press release contains "forward-looking information" under
applicable Canadian securities legislation. Except for statements
of historical fact relating to the Company, information contained
herein constitutes forward-looking information, including, but not
limited to, any information as to the Company's strategy,
objectives, plans or future financial or operating performance.
Forward-looking statements are characterized by words such as
"plan", "expect", "budget", "target", "project", "intend",
"believe", "anticipate", "estimate" and other similar words or
negative versions thereof, or statements that certain events or
conditions "may", "will", "should", "would" or "could" occur. In
particular, forward-looking information included in this press
release includes, without limitation, statements with respect to
information concerning the Stream Transaction and the gold prepay,
conditions precedent and the closing thereof, expectations to be
fully financed, expected production, exploration, development and
expansion plans discussed herein being met. Forward-looking
information is based on the opinions, assumptions and estimates of
management considered reasonable at the date the statements are
made, and is inherently subject to a variety of risks and
uncertainties and other known and unknown factors that could cause
actual events or results to differ materially from those projected
in the forward-looking information. These factors include the
Company's ability to satisfy all conditions precedent to the
completion of the transactions discussed herein; ability to
successfully execute on its development, optimization and expansion
plans; expected life of mine extension being achieved as
anticipated; dependence on products produced from its key mining
assets; fluctuating price of gold; risks relating to the
exploration, development and operation of mineral properties,
including but not limited to adverse environmental and climatic
conditions, unusual and unexpected geologic conditions and
equipment failures; risks relating to operating in emerging
markets, particularly Africa,
including risk of government expropriation or nationalization of
mining operations; health, safety and environmental risks and
hazards to which the Company's operations are subject; the
Company's ability to maintain or increase present level of gold
production; the Company's ability to execute on its expansion and
optimization plans; nature and climatic condition risks;
counterparty, credit, liquidity and interest rate risks and access
to financing; the Company's success in executing non-dilutive
financing alternatives; cost and availability of commodities;
increases in costs of production, such as fuel, steel, power,
labour and other consumables; risks associated with infectious
diseases; uncertainty in the estimation of Mineral Reserves and
Mineral Resources; the Company's ability to replace and expand
Mineral Resources and Mineral Reserves, as applicable, at its
mines; factors that may affect the Company's future production
estimates, including but not limited to the quality of ore,
production costs, infrastructure and availability of workforce and
equipment; risks relating to partial ownerships and/or joint
ventures at the Company's operations; reliance on the Company's
existing infrastructure and supply chains at the Company's
operating mines; risks relating to the acquisition, holding and
renewal of title to mining rights and permits, and changes to the
mining legislative and regulatory regimes in the Company's
operating jurisdictions; limitations on insurance coverage; risks
relating to illegal and artisanal mining; the Company's compliance
with anti-corruption laws; risks relating to the development,
construction and start-up of new mines, including but not limited
to the availability and performance of contractors and suppliers,
the receipt of required governmental approvals and permits, and
cost overruns; risks relating to acquisitions and divestures; title
disputes or claims; risks relating to the termination of mining
rights; risks relating to security and human rights; risks
associated with processing and metallurgical recoveries; risks
related to enforcing legal rights in foreign jurisdictions;
competition in the precious metals mining industry; risks related
to the Company's ability to service its debt obligations;
fluctuating currency exchange rates (including the US Dollar, Euro,
West African CFA Franc and Ethiopian Birr exchange rates); risks
related to the Company's investments and use of derivatives;
taxation risks; scrutiny from non-governmental organizations;
labour and employment relations; risks related to third-party
contractor arrangements; repatriation of funds from foreign
subsidiaries; community relations; risks related to relying on
local advisors and consultants in foreign jurisdictions; the impact
of global financial, economic and political conditions, global
liquidity, interest rates, inflation and other factors on the
Company's results of operations and market price of common shares;
risks associated with financial projections; force majeure events;
transactions that may result in dilution to common shares; future
sales of common shares by existing shareholders; the Company's
dependence on key management personnel and executives;
vulnerability of information systems including cyber attacks; as
well as those risk factors discussed or referred to herein.
Although the Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking information,
there may be other factors that could cause actions, events or
results to not be as anticipated, estimated or intended. There can
be no assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. The Company
undertakes no obligation to update forward-looking information if
circumstances or management's estimates, assumptions or opinions
should change, except as required by applicable law. The reader is
cautioned not to place undue reliance on forward-looking
information. The forward-looking information contained herein is
presented for the purpose of assisting investors in understanding
the Company's strategic financing package and the Company's
operational performance and the Company's plans and objectives and
may not be appropriate for other purposes.
CAUTIONARY STATEMENT REGARDING NON-GAAP MEASURES
The Company has included certain non-GAAP financial performance
measures in this press release, which supplement its Consolidated
Financial Statements that are presented in accordance with IFRS,
including the following:
- Cash costs per gold ounce sold (which is included in AISC);
and
- AISC per gold ounce sold
The Company believes that these measures, together with measures
determined in accordance with IFRS, provide investors with an
improved ability to evaluate the underlying performance of the
Company.
Non-GAAP financial performance measures do not have any
standardized meaning prescribed under IFRS, and therefore may not
be comparable to similar measures employed by other companies.
Non-GAAP financial performance measures are intended to provide
additional information, and should not be considered in isolation
or as a substitute for measures of performance prepared in
accordance with IFRS and are not necessarily indicative of
operating costs, operating earnings or cash flows presented under
IFRS.
Management's determination of the components of non-GAAP
financial performance measures and other financial measures are
evaluated on a periodic basis, influenced by new items and
transactions, a review of investor uses and new regulations as
applicable. Any changes to the measures are duly noted and
retrospectively applied, as applicable. Subtotals and per unit
measures may not calculate based on amounts presented in the
following tables due to rounding.
The measures of cash costs and AISC, along with revenue from
sales, are considered to be key indicators of a company's ability
to generate operating earnings and cash flows from its mining
operations.
CASH COSTS PER GOLD OUNCE SOLD
Cash costs include mine site operating costs such as mining,
processing, administration, production taxes and royalties which
are not based on sales or taxable income calculations. Cash costs
exclude DA, exploration costs, accretion and amortization of
reclamation and remediation, and capital, development and
exploration spend. Cash costs include only items directly related
to each mine site, and do not include any cost associated with the
general corporate overhead structure.
The Company discloses cash costs because it understands that
certain investors use this information to determine the Company's
ability to generate earnings and cash flows for use in investing
and other activities. The Company believes that conventional
measures of performance prepared in accordance with IFRS do not
fully illustrate the ability of its operating mines to generate
cash flows. The most directly comparable IFRS measure is cost of
sales, excluding DA. As aforementioned, this non-GAAP measure does
not have any standardized meaning prescribed under IFRS, and
therefore may not be comparable to similar measures employed by
other companies, should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS, and is not necessarily indicative of operating costs,
operating earnings or cash flows presented under IFRS.
Cash costs are computed on a weighted average basis, with the
aforementioned costs, net of by-product revenue credits from sales
of silver, being the numerator in the calculation, divided by gold
ounces sold.
AISC PER GOLD OUNCE SOLD
AISC figures are calculated generally in accordance with a
standard developed by the World Gold Council ("WGC"), a
non-regulatory, market development organization for the gold
industry. Adoption of the standard is voluntary, and the standard
is an attempt to create uniformity and a standard amongst the
industry and those that adopt it. Nonetheless, the cost measures
presented herein may not be comparable to other similarly titled
measures of other companies. The Company is not a member of the WGC
at this time.
AISC include cash costs (as defined above), mine sustaining
capital expenditures (including stripping), sustaining mine-site
exploration and evaluation expensed and capitalized, and accretion
and amortization of reclamation and remediation. AISC exclude
capital expenditures attributable to projects or mine expansions,
exploration and evaluation costs attributable to growth projects,
DA, income tax payments, borrowing costs and dividend payments.
AISC include only items directly related to each mine site, and do
not include any cost associated with the general corporate overhead
structure. As a result, Total AISC represent the weighted average
of the three operating mines, and not a consolidated total for the
Company. Consequently, this measure is not representative of all of
the Company's cash expenditures.
Sustaining capital expenditures are expenditures that do not
increase annual gold ounce production at a mine site and exclude
all expenditures at the Company's development projects as well as
certain expenditures at the Company's operating sites that are
deemed expansionary in nature, such as the Sadiola Phased
Expansion, the construction and development of Kurmuk and the PB5
pushback at Bonikro. Exploration capital expenditures represent
exploration spend that has met criteria for capitalization under
IFRS.
The Company discloses AISC as it believes that the measure
provides useful information and assists investors in understanding
total sustaining expenditures of producing and selling gold from
current operations, and evaluating the Company's operating
performance and its ability to generate cash flow. The most
directly comparable IFRS measure is cost of sales, excluding DA. As
aforementioned, this non-GAAP measure does not have any
standardized meaning prescribed under IFRS, and therefore may not
be comparable to similar measures employed by other companies,
should not be considered in isolation as a substitute for measures
of performance prepared in accordance with IFRS, and is not
necessarily indicative of operating costs, operating earnings or
cash flows presented under IFRS.
AISC are computed on a weighted average basis, with the
aforementioned costs, net of by-product revenue credits from sales
of silver, being the numerator in the calculation, divided by gold
ounces sold.
CAUTIONARY NOTE TO U.S. INVESTORS REGARDING ESTIMATES OF
MEASURED, INDICATED AND INFERRED RESOURCES
This press release uses the terms "Measured", "Indicated" and
"Inferred" Mineral Resources as defined in accordance with NI
43-101. United States readers are
advised that while such terms are recognized and required by
Canadian securities laws, the United States Securities and Exchange
Commission does not recognize them. Under United States standards, mineralisation may
not be classified as a "reserve" unless the determination has been
made that the mineralisation could be economically and legally
produced or extracted at the time the reserve calculation is made.
United States readers are
cautioned not to assume that all or any part of the mineral
deposits in these categories will ever be converted into reserves.
In addition, "Inferred Resources" have a great amount of
uncertainty as to their existence, and as to their economic and
legal feasibility. It cannot be assumed that all or any part of an
Inferred Resource will ever be upgraded to a higher category.
United States readers are also
cautioned not to assume that all or any part of an Inferred Mineral
Resource exists or is economically or legally mineable.
NOTES ON MINERAL RESERVES AND MINERAL RESOURCES
Mineral Resources are stated effective as at December 31, 2023, reported at a 0.5 g/t cut-off
grade, constrained within an $1,800/ounce pit shell and estimated in
accordance with the 2014 Canadian Institute of Mining, Metallurgy
and Petroleum Definition Standards for Mineral Resources and
Mineral Reserves ("CIM Standards") and NI 43-101. Where Mineral
Resources are stated alongside Mineral Reserves, those Mineral
Resources are inclusive of, and not in addition to, the stated
Mineral Reserves. Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability.
Mineral Reserves are stated effective as at December 31, 2023 and estimated in accordance
with CIM Standards and NI 43-101. The Mineral Reserves:
- are inclusive of the Mineral Resources which were converted in
line with the material classifications based on the level of
confidence within the Mineral Resource estimate;
- reflect that portion of the Mineral Resources which can be
economically extracted by open pit methods;
- consider the modifying factors and other parameters, including
but not limited to the mining, metallurgical, social,
environmental, statutory and financial aspects of the project;
- include an allowance for mining dilution and ore loss; and
- were reported using cut-off grades that vary by ore type due to
variations in recoveries and operating costs. The cut-off grades
and pit shells were based on a $1,500/ounce gold price, except for the Agbalé
pit, which was based on a $1,800/ounce gold price.
Mineral Reserve and Mineral Resource estimates are shown on a
100% basis. Designated government entities and national minority
shareholders hold the following interests in each of the mines: 20%
of Sadiola, 10.11% of Bonikro and 15% of Agbaou. Only a portion of
the government interests are carried. The Government of
Ethiopia is entitled to a 7%
equity participation in Kurmuk once the mine enters into commercial
production.
The Mineral Resource and Mineral Reserve estimates for each of
the Company's mineral properties have been approved by the
qualified persons (within the meaning of NI 43-101) as set forth
below:
Qualified Person of
Mineral Reserves
|
Qualified Person of
Mineral Resources
|
John Cooke of Allied
Gold Corporation
|
Steve Craig of Orelogy
Consulting Pty Ltd.
|
Mineral Reserves (Proven and Probable)
The following table sets forth the Mineral Reserve estimates for
the Company's mineral properties as at December 31, 2023.
Mineral
Property
|
Proven Mineral
Reserves
|
Probable Mineral
Reserves
|
Total Mineral
Reserves
|
Tonnes
(kt)
|
Grade
(g/t)
|
Content
(koz)
|
Tonnes
(kt)
|
Grade
(g/t)
|
Content
(koz)
|
Tonnes
(kt)
|
Grade
(g/t)
|
Content
(koz)
|
Sadiola Mine
|
18,612
|
0.82
|
492
|
137,174
|
1.57
|
6,907
|
155,786
|
1.48
|
7,399
|
Kurmuk
Project
|
21,864
|
1.51
|
1,063
|
38,670
|
1.35
|
1,678
|
60,534
|
1.41
|
2,742
|
Bonikro Mine
|
4,771
|
0.71
|
108
|
8,900
|
1.62
|
462
|
13,671
|
1.30
|
571
|
Agbaou Mine
|
1,815
|
2.01
|
117
|
6,092
|
1.79
|
351
|
7,907
|
1.84
|
469
|
Total Mineral
Reserves
|
47,061
|
1.18
|
1,782
|
190,836
|
1.53
|
9,399
|
237,897
|
1.46
|
11,180
|
Notes:
- Mineral Reserves are stated effective as at December 31, 2023 and estimated in accordance
with CIM Standards and NI 43-101.
- Shown on a 100% basis.
- Reflects that portion of the Mineral Resource which can be
economically extracted by open pit methods.
- Considers the modifying factors and other parameters, including
but not limited to the mining, metallurgical, social,
environmental, statutory and financial aspects of the project.
Sadiola Mine:
- Includes an allowance for mining dilution at 8% and ore loss at
3%
- A base gold price of $1500/oz was
used for the pit optimization, with the selected pit shells using
values of $1320/oz (revenue factor
0.88) for Sadiola Main and $1500/oz
(revenue factor 1.00) for FE3, FE4, Diba, Tambali and
Sekekoto.
- The cut-off grades used for Mineral Reserves reporting were
informed by a $1500/oz gold price and
vary from 0.31 g/t to 0.73 g/t for different ore types due to
differences in recoveries, costs for ore processing and ore
haulage.
Kurmuk Project:
- Includes an allowance for mining dilution at 18% and ore loss
at 2%
- A base gold price of $1500/oz was
used for the pit optimization, with the selected pit shells using
values of $1320/oz (revenue factor
0.88) for Ashashire and $1440/oz
(revenue factor 0.96) for Dish Mountain.
- The cut-off grades used for Mineral Reserves reporting were
informed by a US$1500/oz gold price
and vary from 0.30 g/t to 0.45 g/t for different ore types due to
differences in recoveries, costs for ore processing and ore
haulage.
Bonikro Mine:
- Includes an allowance for mining dilution at 8% and ore loss at
5%
- A base gold price of $1500/oz was
used for the Mineral Reserves for the Bonikro pit:
- With the selected pit shell using a value of $1388/oz (revenue factor 0.925).
- Cut-off grades vary from 0.68 to 0.74 g/t Au for different ore
types due to differences in recoveries, costs for ore processing
and ore haulage.
- A base gold price of $1800/oz was
used for the Mineral Reserves for the Agbalé pit:
- With the selected pit shell using a value of $1800/oz (revenue factor 1.00).
- Cut-off grades vary from 0.58 to 1.00 g/t Au for different ore
types to the Agbaou processing plant due to differences in
recoveries, costs for ore processing and ore haulage
Agbaou Mine:
- Includes an allowance for mining dilution at 26% and ore loss
at 1%
- A base gold price of $1500/oz was
used for the Mineral Reserves for the:
- Pit designs (revenue factor 1.00) apart from North Gate (Stage
41) and South Sat (Stage 215) pit designs which used a higher short
term gold price of $1800/oz and
account for 49 koz or 10% of the Mineral Reserves.
- Cut-off grades which range from 0.49 to 0.74 g/t for different
ore types due to differences in recoveries, costs for ore
processing and ore haulage.
Mineral Resources (Measured, Indicated, Inferred)
The following table set forth the Measured and Indicated Mineral
Resource estimates (inclusive of Mineral Reserves) and for the
Company's mineral properties at December 31,
2023.
Mineral
Property
|
Measured Mineral
Resources
|
Indicated Mineral
Resources
|
Total Measured and
Indicated Mineral Resources
|
Tonnes
(kt)
|
Grade
(g/t)
|
Content
(koz)
|
Tonnes
(kt)
|
Grade
(g/t)
|
Content
(koz)
|
Tonnes
(kt)
|
Grade
(g/t)
|
Content
(koz)
|
Sadiola Mine
|
20,079
|
0.86
|
557
|
205,952
|
1.53
|
10,101
|
226,031
|
1.47
|
10,659
|
Kurmuk
Project
|
20,472
|
1.74
|
1,148
|
37,439
|
1.64
|
1,972
|
57,912
|
1.68
|
3,120
|
Bonikro Mine
|
7,033
|
0.98
|
222
|
25,793
|
1.41
|
1,171
|
32,826
|
1.32
|
1,393
|
Agbaou Mine
|
2,219
|
2.15
|
154
|
11,130
|
1.96
|
701
|
13,349
|
1.99
|
855
|
Total Mineral
Resources
|
49,804
|
1.30
|
2,081
|
280,315
|
1.55
|
13,945
|
330,118
|
1.51
|
16,027
|
The following table set forth the Inferred Mineral Resource
estimates and for the Company's mineral properties as at
December 31, 2023.
Mineral
Property
|
Inferred Mineral
Resources
|
Tonnes
(kt)
|
Grade
(g/t)
|
Content
(koz)
|
Sadiola Mine
|
16,177
|
1.12
|
581
|
Kurmuk
Project
|
5,980
|
1.62
|
311
|
Bonikro Mine
|
19,588
|
1.30
|
816
|
Agbaou Mine
|
959
|
1.84
|
57
|
Total Mineral
Resources
|
42,704
|
1.29
|
1,765
|
Notes:
- Mineral Resources are estimated in accordance with CIM
Standards and NI 43-101.
- Shown on a 100% basis.
- Are inclusive of Mineral Reserves. Mineral Resources that are
not Mineral Reserves do not have demonstrated economic
viability.
- Are listed at 0.5 g/t Au cut-off grade, constrained within an
US$1800/oz pit shell and depleted to
31 December 2023.
- Rounding of numbers may lead to discrepancies when summing
columns.
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SOURCE Allied Gold Corporation