Ardich Annual Report 2018

Ardich Gold Prospect
2018 Annual Report
Alacer Gold Exploration

(AEx)
December, 2018
2018 Annual Report
Page 2 of 61
From Seyfettin Genc, Nihat Can Demir

To Volkan Asgin
Copies Devrimer Yavuz, Exploration
Subject Ardich Annual Report 2018
Date 17.12.2018
Number of pages 61
EXECUTIVE SUMMARY
Ardich gold prospect is characterized by gold mineralized listwanite and dolomite formations in
800x600m target area within a northwest-southeast structural zone. The size of the mineralized zone is
identified as 600 m by 500 meters, delineated by 100 drill holes. Alacer drilled 100 diamond holes totaling
15,590.50m between August 2017 and December 2018. Mineralization remains open laterally in all
directions.
Ardich area is covered by dolomitic carbonates and ophiolites that are the products of a Cretaceous
ophiolitic mélange thrusted over Munzur limestones in Cretaceous-Eocene period. Post compressional
period is characterized by a trans-tensional regime which leads to emplacement of intrusive rocks into all
these units along the main shear zones.
Petrographic sampling has been conducted and study was completed as two batches. The purpose of the
petrographic study was to identify the primary rock types, as well as the nature of imposed processes,
including hydrothermal alteration, veining and brecciation, gold mineralization and supergene effects. The
petrographic study showed that; primary rocks are dominated by two rock types that are ultramafic and
fine grained sedimentary carbonate rocks. There are however, other lithologies, including coarse clastic
sedimentary (lithic-dominated breccias and coarse sandstone), finer grained clastic sedimentary
(sandstone-siltstone) and single samples of porphyritic microdiorite and clinopyroxenite.
Given that many of the drill hole intersections at Ardich contain intervals up to tens of meters long with
significant gold grades (e.g. 1-4 ppm), it is assumed that in the hypogene environment, most gold is
probably “invisibly” (chemically) held in pyrite (± marcasite). With the imposition of relatively deep
supergene oxidation effects, the variable destruction of sulfides could cause liberation of gold, so as to be
in particulate form and leading to changes in gold deportment and strategies for optimizing gold recovery
as well.
One limestone, two dolomites and nine cataclastite samples were collected for sedimentary petrography
analysis. Both dolomite samples were transformed from limestone to dolomite at first burial within
magnesium rich environment. Dolomite’s secondary porosity was getting increased by the end of second
deep burial and created suitable environment for mineral precipitation. As a result of paleontology study;
the samples indicate different types of depositional environments which may well suit to a mélange
environment.
Recently potential listwanite targets were identified and mapped by applying Anaconda techniques. Rock
sampling, quartz veins density measurements and structural trend measurements are completed. There
were no significant results received from rock samples.
2018 Annual Report
Page 3 of 61
2018 exploration drilling program designed to test both step out targets and infill holes to support resource
modelling and estimation. This year a total of 14,216.40 meters diamond core (PQ-HQ) drilling completed
100 holes. By the end of 2018 the first and second phase resource drilling program was completed.
External review of data and processes related with the prospect was completed in October 2018 by an
independent QP. The database is regarded as structured, logical, and consistent. The QP reported that
Ardich project drill data collection, management, and reporting protocols are organized and implemented
to a high standard that meets CIM guidelines.
The drill assay data covering August 2017 and December 2018 for Ardich project including AR100
15.482 assay records. The assay database includes diamond drill hole (DDH) data only. Missing assay
values are checked for Au, Ag, Cu and S and no missing assay records were identified. Quality Assurance
and Quality Control (“QA/QC”) processes have been implemented to monitor the reproducibility of the
drilling assay data. The QA/QC programs have been rigorously employed during the drilling programs to
monitor assay sample data for contamination, accuracy, precision, and reproducibility.
The optic televiewer instrument will be activated in February 2019 to support geotechnical modelling.
UCS measurements are conducted both in axial and diametral at every 10 m intervals. Rock Mass Rating
(RMR) and Q system equivalent have been calculated for 41 drill holes in Ardich. By the interpretation of
geotechnical data, there was northwest-southeast poor rock mass quality zone has been defined as
consistent with current fault zone. Also, locally unconnected poor rock mass quality intercepts were
determined.
A three-phase metallurgical testing program is being conducted by McClelland Laboratories, Inc.

(Sparks, NV, USA), under the guidance of Metallurgium. The first and second phases comprising bottle
roll cyanide leaching tests and column leach tests have been finalized with good acceptable recovery
results. The Phase III metallurgical test work continues with column composite bottle roll tests and
column leach tests.
Based on Phase I results, expected heap leach gold extractions are in the range of 50-75% (mid-range
~65%) for the samples tested. Expected cyanide and lime consumptions are in the low-moderate range for
these ore types Gold extraction correlates reasonably well with sulfur grade, with gold extraction
decreasing with increasing sulfur content.
Both the listwanite and dolomite ore types have responded quite well to column leach testing. Column
leach testing of the listwanite composites (II-1, II-2 and II-3) at 80% <12.5 mm crush size has yielded
final gold extractions ranging from 72.5% to 82.3% with an average of 76.5% after 89 days of
leaching/rinsing.
There is a strong relationship between gold extraction and sulfur grade in the Ardich deposit. Gold
extractions are generally good when the sulfur grade is less than 1%. However, gold extractions decline
significantly as sulfur grade increases. Gold extractions decline to close to 0% at 3.5-4.0% sulfur. Heap
leaching of material with sulfur content >2% is likely to be uneconomic and material with sulfur content
between 1 and 2% is likely marginal.
Alacer announced drill results of the first five holes on December 18th, 2017 including AR04 with 90.8m
averaging 1.79 g/t gold and including 21.2m averaging 5.56 g/t gold. Results of additional 13 diamond
2018 Annual Report
Page 4 of 61
core holes released on February 26th, 2018 and all holes have intersected predominantly oxide
mineralization with some impressive grades, including hole AR09 with 67.7m averaging 4.08 g/t gold.
In addition to these previously reported 18 holes, Alacer announced results of 25 holes (AR19-AR43) on
July 25th, 2018. Key results include holes AR41 with 50.2m averaging 3.01 g/t gold from 43.4m depth
(including subinterval of 7.9m @ 8.81 g/t gold) and hole AR31 with 68.6m averaging 2.21 g/t Au from
36m depth (including 17m @ 5.5 g/t Au).
Alacer continued drill program in Ardich with two diamond rigs and completed 20 diamond core holes
totaling 2,641.80m between August and October 2018 (AR44-AR63) which was announced on November
08th, 2018, with a majority intersecting predominantly oxide gold mineralization including holes: AR54
with 61.4m averaging 2.22 g/t gold from 5m depth and AR52 with 57.7m averaging 3.84 g/t gold from
121.3m depth.
Alacer announced a maiden mineral resource for the Ardich oxide gold deposit on December 10, 2018.
The Mineral Resource consist of 294 koz of gold at average grade of 1.32 Au g/t. The Mineral Resource is
based on only first 55 holes completed, and an additional 45 holes have been drilled since the cut-off date
for resource modelling. According to the resource numbers, discovery unit cost of Ardich deposit is
around 12 usd/ons which is much lower than the world average (45 usd/ons for gold projects).
In 2019, step-out and infill drilling program will be continued at identified mineralized zone. Drilling
program will be initiated in region between Ardich and Cakmaktepe North to test possible mineralized
zone extensions. Soil programme will be initiated to figure out the relationship between Ardich and
Cakmaktepe deposits and possible southeast extension of the mineralized corridor.
All drilling and other field activities were completed with zero LTI in Ardich within 2018.
Environmental baseline studies and top soil management have been conducted and drill core, soil,
sediment and water samples have been collected. All analysis, and final report writing is inprogress. A
field study (Hydrocensus) was carried out to identify the water points near the work site, most of creeks
are seasonal and dry in summer. There is only one water source was identified at the North East of Ardich
Project. In order to evaluate the position of the water table, piezometer locations have been defined.
Background noise statins have been installed and noise measurements are being recorded.
Flora and Fauna studies have been completed; there were 289 species and taxon have been observed, 47 of
them are regarded as endemic species in Turkey. Oak trees and step plants are the dominant vegetation
species at the project area.
Some species of mammals, aves, reptiles and amphibians were observed in project area. 21 mammals, 15
reptiles and 4 amphibians species are living in Ardich habitat. Aves are not common species in
comparison with others.
All drill location reclamation works were done with using top soil after rig was left from locations.
All beekeeping activities were relocated to outside of the current drilling district. Drill rigs were located to
out of buffer zone that defined for water source.
2018 Annual Report
Page 5 of 61
In 2018, three package of drill location permit applications have been submitted to the ministry, and they
are expected to be approved in the beginning of Q2.
GEOLOGY
Regional Geology
The Çöpler area is located on the northernmost part of the Taurides where Taurides approaches to
Pontides during the closure of the northern branch of the Neotethys, as a result of the northward
subduction (Şengör and Yılmaz 1982). In this tectonically-intensely deformed region, E-W trending
imbricated structures made geology of the area more complicated and these structures were transcutted by
NNE-SSW trending strike slip faults during Late Cretaceous-Paleogene period. On the other hand,
Neotectonically, the area is situated to the south of North Anatolian Fault and east of Malatya Fault
(Figure 1).
Figure 1. Regional Conceptual Columnar Section
NW-SE trending right lateral Sabırlı fault zone at the east of Çöpler mine constitutes the principal
displacement zone. Riedel Shears and coherent block rotations controlled the basin formation,
mineralization and intrusion in the region. In such a system, bends are ideal to produce horst structures
which may be either subsided (Ardich region) or uplifted (Çakmaktepe).
Field work around Ardich and Çakmaktepe revealed that the major compression direction is N-S and
extension direction is E-W (Kaymakçı 2017). The structure that would develop in N-S strike have open
mode fractures or pure normal faults. The Yakuplu fault controls the mineralization and block rotations in
both Ardich prospect and Çakmaktepe deposit. Absence of any significant dikes from the pluton east of
the fault implies the fault is contemporaneous, or slightly predates the emplacement of the pluton. The
vertical displacement along the fault increases from north to south. This is indicated by preserved roof
pendants of ophiolites and listwanites in the northern part of the fault around Çakmaktepe. Around
Bayramdere, limestone-ophiolite contact is observed at deeper levels than in the north.
2018 Annual Report
Page 6 of 61
Plutonic igneous rocks are cropped out around Divrigi (76-74Ma, Campanian) and Ovacık (Eocene) areas.
In Ilic area, it is named Yakuplu pluton (Özer 1994) made up of granodiorites and diorites being in Middle
Eocene age (by Özer 1994) or 44Ma (Middle Eocene) (by İmer et al 2013). Plutonics are the syn-post-
collisional granitoids (high K-alkaline plutonic rocks) related to collision between Pontide and Tauride,
emplaced in time, from Cretaceous until the end of Eocene. Widely cropped out carbonated ultramafics
(listwanites) are closely linked with dioritic intrusion (Figure 2).
Figure 2. Geological map of the Munzur region (modified from 1: 500 000 scale MTA geological map) showing the
Pontides to the north and Taurides to the south, and the North Anatolian Fault to the north, Malatya Fault to the
west, and the Munzur mountain tectonic
Prospect Geology
There are dominantly four rock packages that have strong input in the Ardich area. These are; Mesozoic
Ultramafics, Triassic-Cretaceous Carbonates, Cretaceous Ophiolitic Mélanges and Paleogene plutonic
2018 Annual Report
Page 7 of 61
rocks. Lithological byproducts of the geological processes on the sequences are jasperoids, cataclasites,
listwanites and silica cap. The Mesozoic (Triassic-Cretaceous) comprehensive carbonates (TrJK – Triassic
Jura Cretaceous Limestone) (Munzur Limestone, Özgül et al 1981) are gray to dark gray, thick to medium
bedded limestones of Tauride platform (Blumenthal, 1963; Özgül et al 1981). This is a thick sequence of
Upper Triassic to Cenomanian neritic carbonates of limestones and dolostones with Cenomanian Rudistic
reefal buildups to Turonian-Campanian pelagic limestones in northern Tauride platform, Munzur Mountains
(Özgül et al 1981; Özer 1994). The platform carbonates that were overthrusted by ultramafics exhumed
beneath ultramafic mass from a tectonic window (Munzur mountain tectonic window). The compressive
limestone sequence is well-bedded and deformed regularly and do not have any cataclastites cropped out on
surface as manifested in
borehole logs or along the highway to Kemaliye (Figure 3, Figure 4, Figure 5, Figure 6, Figure 7, Figure 8).
Figure 3. Tectonostratigraphic columnar section of the Iliç area.
The ultramafics (Uluyamac ophiolite, Özgül et al 1981) are intensely sheared, serpentinized peridotite,
dunite and gabbro tectonic slices that are thrusted onto Triassic-Cretaceous carbonates and overthrusted by
them. Manganese veins are evolved within serpentized zones. Cretaceous ophiolitic mélanges (Eric
ophiolitic mélange, Özgül et al 1981) are made up of pillow basalt, Upper Cretaceous pelagic limestone,
Scythian-Anisian stromatolitic limestone, radiolarite, TrJK limestone, ultramafic and low grade
metamorphic blocks with no lateral continuity. The mélange has no matrix in Ilic area. The blocks are
intensely fractured, sheared and serpentinized. Na-bearing schists (blue schists) are cropped out as a part of
ophiolitic mélanges.
2018 Annual Report
Page 8 of 61
Figure 4. General view of the Triassic-Cretaceous Carbonate sequence (TrJK Lst, Munzur Limestone) thrusting
onto ophiolite and pelagic carbonate components of the Cretaceous ophiolitic mélange (Location: 0462472E,
4366175N, 1151m).
2018 Annual Report
Page 9 of 61
Figure 5. General view of the Cretaceous ophiolitic mélange and the components of the Cretaceous ophiolitic
mélange which are overthrusted by ultramafics and listwanites. Recrystallized stylolitic limestone is in Scythian to
Anisian age. (Location: 0463889E, 4366399N,1386m)
2018 Annual Report
Page 10 of 61
Figure 6. Diorites intruded into the Listwanites.

2018 Annual Report
Page 11 of 61
Figure 7. Geological map of the Ardich area.

2018 Annual Report
Page 12 of 61
Figure 8. Geological cross sections from the northern edge (Ilic town) to southern edge (Yakuplu)
2018 Annual Report
Page 13 of 61
Structure
The Ardich area is subdivided into four sectors to have better understanding of the structural control in the
area. These are: 1. Eastern Ardich, 2. Northern Ardich, 3. Western Ardich and 4. Southern Ardich.
1. Eastern Ardich; The shear planes measured from ultramafics manifest top to the SE vergence.
The faults and shear planes measured from mineralized zone manifests top to the W. The
reverse faults also support top to the SW vergence. The dextral strike slip fault with normal
component crosses the zone causing mineralization and forming more structurally complex
domain. To the far east of the area, Cakmaklı hill, a silica cap is situated to the top of the
mineralized zone. Nearly N-S striking, east dipping silica cap states ENE to WSW
emplacement (Figure 9 and Figure 10).
Figure 9. Tectonostratigraphic section of four Ardich domains. W and S Ardıch sections are prepared based on field
observations, the other two, N and E sections are prepared from Anagold-Alacer borehole logs.
2. Northern Ardich; The shear planes measured from ultramafics manifest top to the SE vergence.
The TrJK limestones thrusted over ultramafics and Cretaceous ophiolitic mélange stating top to
the NNE and lately intruded by diorites. Complexity of the northern Ardich is resulted from poor
lateral continuity of the units and extensive distribution of the listwanites in the area.
2018 Annual Report
Page 14 of 61
3. Western Ardich; The TrJK limestone overthrusted onto Cretaceous ophiolitic mélange from SE
to NW. The attitude of the thrust is N46°E, 31°SE, 75°S. This is the point where overthrust plane
is cropped out. The carbonates form a “snake head” structure.
4. Southern Ardich; This is the other point where the Cretaceous ophiolitic mélange overthrusted
onto TrJK limestone from SE to NW. The combined section of the western and southern Ardich
areas forms a perfect “sandwich” structure of TrJK limestone and Cretaceous ophiolitic
mélange.
Figure 10. General view of the silica cap on top of ultramafics and mineralized zone (Çakmaktepe hill) stating ENE
to WSW emplacement.
Only two shears with rakes can be measured in Ardich area. However, there are more than 20 measured
shears/shear zones without rakes, where depict a top to the SW sense by use of microfabrics. The shear
zones evolved under a NE-SW compression. N20°-35°W trending reverse to thrust faults in ultramafics and
ophiolitic mélanges are recorded. Only eight faults with rake measurements are analyzed along the fault
trending parallel to the main zone. The main zone is developed along a fracture manifesting dextral strike
slip faulting with normal components developed under NNE-SSW compression with WNW-ESE extension.
The mineralized zone is the result of almost E-W extension where warm fluids find a way to a much cooler
2018 Annual Report
Page 15 of 61
and less pressurized area under NNE-SSW contraction where the system is capped by N-S trending-
eastward dipping-westward emplaced silica cap.
Addition to above mentioned observations of paleo structures, there are long-continuous strike slip faults
and short-small scale normal faults crossing the Oligo-Miocene clastics. Post-Oligo-Miocene structures are
the product of the latest deformation, post-Miocene (Neotectonic) period evolved with the activity of the
dextral strike slip North Anatolian Fault (NAF) in north and the sinistral strike slip East Anatolian Fault
(EAF) in south (Figure 11 and Figure 12).
Figure 11. Dextral strike slip faulting with normal Figure 12. Shear planes depicting NE-SW
components developed Compression.
Petrography
Primary rock types
Primary rocks are dominated by two types: ultramafic and fine grained sedimentary carbonate. There are
however, other lithologies, including coarse clastic sedimentary (lithic-dominated breccias and coarse
sandstone), finer grained clastic sedimentary (sandstone-siltstone) and single samples of porphyritic
microdiorite and clinopyroxenite.
Primary carbonate sedimentary rocks are fine grained (commonly micritic) and locally display textures
such as thin bedding laminations, small bioclasts and pellets, although considerable fine recrystallization
has occurred. Ultimately, it is likely that these rocks were limestones, but a majority probably underwent
diagenetic dolomitization. Fine grained (micritic) limestone, is recognized, however in few samples being
a breccia containing fragments of limestone and dolomite. Some are coarse sedimentary breccias, but not
as coarse grained and is classified as a coarse sandstone. Each of these samples has abundant large lithic
fragments/grains that include limestone, calcareous siltstone, radiolarian chert, basalt, dolerite and gabbro,
as well as individual mineral grains including plagioclase, quartz, amphibole, epidote, muscovite, biotite,
magnetite and chromite. These rocks appear to be proximal to source which could have included the upper
sections of an ophiolitic sequence and associated sedimentary rocks. There is no evidence that these
coarse clastic rocks are the product of tectonic cataclastites. Two other sedimentary rocks in the suite are,
a lithic-dominated fine grained sandstone grading to siltstone (with a similar provenance as the coarser
sedimentary rocks described above), one of theme is interpreted as a fine-grained quartz-feldspar-lithic
2018 Annual Report
Page 16 of 61
sandstone, with minor detrital muscovite and biotite. It appears to have been derived from a different
provenance.
Ophiolite(Serpentinite):
Massive serpentinite, derived from a peridotite (e.g. harzburgite) protolith, and with later imposed
abundant network veining and replacement by carbonate (mostly calcite). Original texture from the
peridotite is partly preserved in the serpentinite (i.e. mesh texture and bastite pseudomorphs) as well as a
little relict chromite, with the serpentinite being dominated by serpentine minerals (lizardite > chrysotile)
and a little magnetite. Veining and replacement zones contain fine to medium grained carbonate. Later
imposed mild supergene alteration led to some replacement of magnetite by hematite, and development of
a little goethite impregnation (Figure 13).
Figure 13. Unaltered ophiolite is cut by stockwork carbonate veins

Dolomite:
Fine grained dolomite, representing an altered fine grained, perhaps originally micritic sedimentary
carbonate rock, and with overprinting recrystallization, variable replacement by fine grained quartz and
traces of barite and pyrite. The rock is also cut by a few sub-planar veins, rich in fine to medium grained
quartz, with local barite prisms and a trace of pyrite, and by a few later, narrow dolomite veins. Slight
supergene alteration effects led to replacement of most pyrite by goethite (Figure 14).
2018 Annual Report
Page 17 of 61
Figure 14. Massive to locally brecciated dolomite

Listwanite:
Hydrothermal breccia with a clast to matrix-supported texture, containing angular to sub-rounded

fragments of intensely hydrothermally altered ultramafic rock (listwanite) that are veined and enclosed by
fine to medium grained “epithermal texture” quartz. These quartz infill zones also host a few crystal-lined
voids. The ultramafic protolith was completely replaced, except for a few sparse relict chromite grains, by
fine to medium grained aggregates ranging from quartz-rich to carbonate-rich (e.g. ferroan magnesite) and
which contained irregularly and sparsely distributed pyrite. Following replacement of the protolith the
rock was hydrothermally brecciated, and later, it was affected by mild supergene alteration, leading to
replacement of most of pyrite by goethite, and development of goethite impregnations, mainly from
replacement of carbonate (Figure 15).
Figure 15. Grey color jasperoid clasts bearing Listwanite, fracture filling crystalline quartz
2018 Annual Report
Page 18 of 61
Jasperoid:
Quartz-carbonate (-pyrite)-replaced ultramafic rock (listwanite-Jasperoid) containing several, commonly

intersecting veins. There is little recognized character preserved from protolith material, except for a few
grains of chromite. In places, a possible relict foliation occurs, suggesting that a schistose serpentinite
might have been replaced. The dominant replacement assemblage is of fine grained quartz, with
subordinate disseminated and veinlet carbonate (e.g. ferroan magnesite), minor disseminated pyrite and a
trace of fuchsite. A major vein occurs, containing varying proportions of rather coarse prismatic barite,
medium grained carbonate and fine to medium grained quartz. Other narrow veins tend to be quartz-rich,
although carbonate and barite are locally present. Slight supergene alteration effects were imposed,
leading to minor replacement of pyrite by goethite. No particulate gold was observed (Figure 16).
Figure 16. Pyrite rich, grey colored jasperoid
Microdiorite:
Strongly altered porphyritic hornblende-quartz microdiorite. The rock has moderately well preserved relict
texture and there is some preservation of plagioclase phenocrysts as well as in the groundmass. The rock
also retains a few quartz phenocrysts and scattered small grains of magnetite in the groundmass.
Originally, phenocrysts and groundmass ferromagnesian components were abundant, and included
hornblende and possible clinopyroxene, but these phases are now completely altered. Pervasive alteration
is of propylitic type, with replacement by abundant chlorite and carbonate (calcite), subordinate sericite
and albite, and development of a little leucoxene (at ferromagnesian sites). A single carbonate vein cuts
the altered rock (Figure 17).
2018 Annual Report
Page 19 of 61
Figure 17. Fine grain biotite and hornblende bearing, minor magnetite content, weakly silicified and prophylitic
altered microdiorite
Cataclastite:
Deformed sedimentary breccia with a matrix-supported texture. The rock hosts scattered lithic fragments
in a fine-grained matrix, showing deformed veining and shearing phenomena. Lithic fragments include
finely recrystallized limestone (some being originally micritic as well as bioclastic), calcareous siltstone
and silty limestone. Apart from abundant calcite, there are minor detrital components in the fragments
including quartz and lesser amounts of muscovite and biotite. Limestone fragments were evidently veined
by calcite prior to being incorporated into the breccia. The matrix of the breccia was originally of silty-
muddy and carbonate-bearing character (i.e. carbonate-bearing shale-siltstone) and it is rather darkly
pigmented by finely dispersed carbonaceous material. It also contains scattered small detrital lithic, quartz,
muscovite and biotite grains. Low grade metamorphism and deformation were imposed on the
sedimentary breccia, leading to variable recrystallization of the fragments and development of a foliated,
fine grained assemblage with varying proportions of sericite and calcite, subordinate quartz and traces of
rutile and pyrite. Carbonaceous material could have been converted to a graphitic substance. Numerous
syn-tectonic veins were emplaced during development of the foliation that wraps around sedimentary
fragments. Veins are disrupted, folded and locally show an echelon arrays. It is apparent that during
deformation, strain was preferentially partitioned into the matrix Subsequently, late- to post-tectonic thin,
irregular veins of fine grained pyrite were emplaced (Figure 18).
Figure 18. Sediment clasts bearing brecciated cataclastite

2018 Annual Report
Page 20 of 61
Limestone:
Fine grained micritic limestone showing development of abundant small sparry carbonate porphyroblasts
and thin carbonaceous stylolites, probably because of imposed diagenesis. The rock was also cut by
abundant network veining of fine to medium grained carbonate, suggesting a hydrothermal overprint has
occurred (Figure 19).
Figure 19. Dark grey color massive limestone
Sedimentary Petrography and Diagenesis
One limestone, two dolomites and nine cataclastite samples were collected for sedimentary petrography
analysis. According to thin section studies, age determination, diagenesis and sedimentation environment
were obtained.
Dolostone(dolomite) sample from Ardich, shows medium-coarse grain size and zonation in dolomite
crystals and including pelecypod fossil ghost and shows environment of shallow marine.
Dolostone(dolomite) sample from Cakmaktepe, shows coarse grain size and zonation in dolomite crystals
and high secondary porosity. Containing pyrite, manganese-iron oxides. Both dolomite samples were
transformed from limestone to dolomite at first burial within magnesium rich environment. Dolomite’s
secondary porosity was getting increase by the end of second deep burial and occurred suitable
environment for mineral precipitation.
A few samples which were shows polygenetic origin could be indicate of tectonic feature.
Due to compression in most of the cataclastite textured rock samples intense deformation, claying and
chloritization were observed. In addition to burying it can be mentioned about physical deformation and
heat effected transformation. It could be footprint of hydrothermal activity at the area.
It is observed that less deformation, chloritization and clay amount in fine grained clastic facies.
2018 Annual Report
Page 21 of 61
Coarse grained facies show predominantly clastic texture and polygenic composition. According to
mineral content, it can be deposited in the active tectonic region or transported by surface water.
According to paleontological study, different type fossils and diagenetic environment has been observed.
According to fossil types samples has been aged as Late Jura-Cretaceous or younger.
As a result of paleontology sampling; the fact that the samples indicate different types of deposition
environment may show a mélange environment.
MINERALIZATION AND ALTERATION
1/1,000 scale outcrop mapping completed in 2017 on alteration and mineralization revealed the mineral
potential in the prospect. The system seems to be controlled by the NW-SE directional faults. Mineralized
listwanite is located along the main fault zones. Distribution of gold mineralization broadly corresponds
with stockwork and sheeted crystalline and chalcedonic quartz veins, as well as NW-SE trending
hydrothermal brecciated listwanite that was the priority target for the initial drill program. Based on the
results of first phase drilling, it is determined that the listwanite-dolomite contacts are traps for higher-grade
gold bearing oxidized mineralization. These traps are the focused for the Ardich drilling programs with
mineralized thrust zones.
The Ardich gold property is regarded as listwanite-dolomite hosted gold replacement deposit with
mineralization occurring along thrust zones between listwanite, ophiolites, hornfels and limestones.
Mineralization and alteration extending in NW-SE direction, parallel to major structures controlling both
mineralization and block rotations. Gold grades increase at dolomite-listwanite contacts and within quartz
vein rich listwanites. The mineralization is predominantly oxide with sulfide mineralization confined to
limited pyrite rich jasperoid bodies. Based on the drill data, the main mineralization zone appears to be
tabular and almost flat lying.
It is apparent that a hydrothermal alteration-mineralization system was imposed on a variety of primary

rock types at Ardich, but only the reactive carbonate sedimentary and ultramafic rocks were intensely
replaced and commonly veined and hydrothermally brecciated. Gold mineralization is apparently focused
on the intensely altered and brecciated rocks, but also on those zones where it is evident that supergene
alteration was subsequently imposed. The dominant hydrothermal alteration type is silicification
(listwanite alteration in ultramafic) and hydrothermal infill is dominated by quartz, in places with
carbonate and barite. Quartz textures, are consistent with the hydrothermal process occurring in the
crustally-shallow, epithermal environment. It is interpreted that the hydrothermal system was probably
intrusion-driven, although the nature of the intrusive remains obscure. The only likely intrusive rock
encountered in the sample suite is a porphyritic hornblende-quartz microdiorite, with this having strong
propylitic alteration. Whether it is related to the hydrothermal system is unknown.
Given that many of the drill hole intersections at Ardich contain intervals up to tens of meters long with
significant gold grades (e.g. 1-4 ppm), it is assumed that in the hypogene environment, most gold is
probably “invisibly” (chemically) held in pyrite (± marcasite). With the imposition of relatively deep
supergene oxidation effects, the variable destruction of sulfides could cause liberation of gold, so as to be
in particulate form and leading to changes in gold deportment and strategies for optimizing gold recovery.
2018 Annual Report
Page 22 of 61
Alteration, veining and hydrothermal brecciation
Many original ultramafic and carbonate sedimentary protoliths in the sample suite show effects of
moderate to intense hydrothermal replacement, in places accompanied by veining and/or hydrothermal
brecciation. On the other hand, some carbonate sedimentary rocks show only minor effects, e.g. variable
recrystallization and carbonate veining. Sandstone sample and porphyritic microdiorite each have strong
pervasive alteration, and clinopyroxenite sample has evident pervasive effects of low grade metamorphism
and hydrothermal flux. The course clastic sedimentary rocks and sandstone-siltstone that are dominated by
lithic material, each only show effects of low grade metamorphism. Ultramafic rocks show effects of part
to complete serpentinization, also having indications and carbonate replacement and veining. In these
samples, replacement by serpentine (e.g. lizardite) was accompanied by a little magnetite and trace
chlorite, pentlandite and rare tiny grains of phases that include copper (metal), awaruite and a possible
NiAs mineral.
All other ultramafic rocks in the suite have been converted into different types of listwanite, varying from
quartz-rich to carbonate-rich (maybe ferroan magnesite and/or dolomite). Many of these samples also
contain traces to relatively common barite, typically as bladed prisms and aggregates, as well as minor
pyrite and uncommon marcasite. Traces of fuchsite are noted in two samples and a little apparently
hypogene, fine grained hematite occurs in a few samples. In the clinopyroxenite, there was considerable
replacement of primary clinopyroxene by actinolite, with minor chlorite and calcite, and a trace of pyrite.
The intensely altered carbonate-rich sedimentary rocks were also largely replaced by quartz, with local
carbonate (e.g. dolomite), barite and a little pyrite and locally, hematite. Less-replaced carbonate rocks
commonly retain considerable recrystallized carbonate. The porphyritic microdiorite was subject to strong
propylitic alteration, with replacement of most of the igneous phases by an assemblage of chlorite-calcite-
sericite-albite, plus trace leucoxene. Sandstone sample experienced strong phyllic alteration with former
detrital grains of lithics and feldspar being replaced by sericite, with minor pyrite, marcasite and trace
rutile. In the clastic, lithic-dominated sedimentary rocks, there has been moderate development of low
grade assemblages containing chlorite, calcite, albite, sericite, actinolite, epidote and traces of leucoxene,
pyrite and hematite. Although consistent with propylitic alteration, it is probable that these phases are
largely the result of low grade metamorphism, e.g. at chlorite grade (lower greenschist facies), in places
associated with development of shearing.
PIMA reading has been done from all holes by software TSG v7.1.0.071, most of samples read as
serpentinite, calcite-dolomite mostly. Substantially results graphics are noisy and peaks are not clear,
Ardich project completely silicified and Fe-oxidized such as hematite and goethite, there aren’t any light
colored clays like alunite, kaolinite, dickite, etc. According to the assay results and PIMA readings
mineralization seems to be related with barium and arsenic. Barium can occur as a main gang mineral in
medium and low temperature hydrothermal veins associated with lead, silver and antimony sulfides and
in replacements veins and cavities in limestone and dolomite. This can be evidence of epithermal system.
Chromite values could also be useful to define listwanite and jasperoid sequences.
Supergene alteration
Many samples in the suite display overprinting effects of supergene alteration. This is despite the fact that
many of such samples were derived from downhole depths of up to 120 m. Indications of supergene
alteration include the apparent leaching out of sulfides (e.g. pyrite) and in some samples, possibly
carbonate, leaving voids, pseudomorphic replacement of sulfides (probably mostly pyrite) by goethite,
2018 Annual Report
Page 23 of 61
and minor to complete replacement of carbonate and impregnation of carbonate and quartz, but fine
grained goethite and hematite.
It is likely that supergene alteration may have a significant role in controlling the deportment of gold in
mineralized zones. The only sample in which particulate gold was definitely observed (a hydrothermally
brecciated and strongly altered dolomite) has been affected by supergene alteration and original
disseminated pyrite was largely destroyed, with some being replaced by goethite. Many other strongly
altered samples in the suite come from drill hole intervals containing significant gold grades (e.g. 1-4
ppm) over tens of meters, with these rocks originally containing minor pyrite ± marcasite, and many also
showing effects of imposed supergene alteration, with sulfides being partly to completely replaced by
goethite. It is possible that originally cryptically-held gold in sulfides (“invisible gold”) could be liberated
to form particulate gold during supergene alteration.
Mineralization
According to polished and standard thin sections, relict chromite occurs up to ~1% in all ultramafic rocks,
irrespective of imposed alterations. Minor igneous magnetite occurs as a relict phase in the microdiorite,
in igneous fragments in the sedimentary breccias and as individual detrital grains. Magnetite is also
present in small amounts as a product of serpentinisation in some samples, and in these samples is
accompanied by tiny traces of pentlandite, awaruite, copper (metal) and a possible NiAs phase, all of
which are interpreted as being serpentinisation products. Trace amounts of pyrite are observed in some of
the low grade altered sedimentary breccias and clinopyroxenite as part of the alteration assemblages, and
in sandstone sample, there is a minor amount of disseminated pyrite and trace marcasite as part of the
pervasive phyllic alteration.
Most of the intensely altered carbonate sedimentary and ultramafic rocks contain, or formerly contained,
trace to minor amounts of disseminated sulfides, largely in the altered host rocks, with only a minority
occurring as part of the hydrothermal infill of veins and breccias. Fine through to rather coarse-grained
pyrite is generally the only sulphide mineral identified, occurring as a finely disseminated phase and in
some samples as coarser aggregates up to several millimeters across. Marcasite is closely associated with
pyrite in listwanite but could have occurred in other samples but was destroyed during supergene
alteration. The only other sulfides observed include a tiny trace of chalcopyrite in one sample and possible
trace overgrowths on pyrite of a Ni sulphide phase (e.g. polydymite) in one sample. No gold was observed
in direct association with sulfides and it is considered that if there are significant gold grades (e.g. 1-4
ppm) in rocks unaffected by supergene alteration, then gold is present in either chemically-held
(“invisible”) form or in sub-microscopic form (e.g. particles <1-2 µm).
As mentioned above, many of the strongly altered/veined/hydrothermally brecciated rocks are overprinted
by supergene alteration, with replacement of sulfides by goethite. This oxidation process could have
liberated enclosed gold from sulfides, forming particulate gold. In one sample, at least three grains of
gold, up to 20 µm across are observed, associated with goethite pseudomorphs after pyrite.
The Ardich gold property can be classified as listwanite-dolomite hosted gold replacement mineralization
along the thrust zones between listwanite, ophiolites and sediments. Mineralization and alteration open in
all direction, parallel to major structures controlling both mineralization and block rotations. Gold grades
increase at dolomite-listwanite contacts and brecciated-quartz vein rich listwanite (Figure 20 and Figure
21).
2018 Annual Report
Page 24 of 61
Figure 20. Ardich Conceptual Section Map
Figure 21. A-A’, Conceptual Section of the Ardich

2018 Annual Report
Page 25 of 61
GEOCHEMISTRY
After geology and structural interpretation of the area and outcrop mapping, geochemical sampling
programs were conducted in the prospect. Trenching followed by channel sampling returned with elevated
gold values up to 23.7g/t Au (Table 1) (Figure 22 and Figure 23).
Table 1. Summary of Surface Geochemistry

Years Rock Soil
2017 175 624
2018 912
TOTAL 1087 624
The listwanite zone located approximately 800m east of Ardich main mineralized zone cropping out were
subjected to rock sampling. 118 rock samples were collected but no significant gold results were received.
(Figure 24).
AR39 was designed to test possible extend of mineralized listwanite at the surface and beneath ophiolites,
but this the hole failed to intersect any mineralized listwanite beneath ophiolites.
Figure 22. Ardich Soil Geochemistrty Map. Samples belong2017 or earlier soil surveys.
2018 Annual Report
Page 26 of 61
Figure 23. Ardich Rock Geochemistrty Map
Figure 24. Ardich East extension AR39 & rock geochemistrty map
2018 Annual Report
Page 27 of 61
DRILLING
Drilling program has been conducted with three drilling companies in Ardich Project. Yavuz Öz and Co.
(Drilltek), Pozitif and Ortadoğu. Ortadoğu left the project after only one hole completed. In 2018, total of
14,216.40 meters of diamond core holes (PQ-HQ) were drilled with 91 holes (Figure 25).
The first and second phase resource drilling program was successfully completed. Most of holes are gap-
filling holes that validated consistency of mineralization in current dolomite-listwanite body. A total of 35
resource holes have been completed to test non-drilled gaps and extensions (Table 2).
The Listwanite zone is a product of early stage high pressure deformation in the region which most likely
created partial melting and subsequent intrusive in the composition of Microdiorite. Block rotations along
the major fault zones also created very good trapping mechanism for upwelling hydrothermal fluids and
associated alterations, mainly in the form of silicification or dense thin quartz veining. Early stage magnetite
veining (which most likely carried gold to upper part of this epithermal system) slowly oxidized to goethite
and hematite in late stage indicating the system was highly acidic during the oxidation stage for early formed
hematite. Migrating meteoric water probably neutralized the hydrothermal waters to create more hematitic
Fe-oxides. Early developed listwanites formed very good host rock for these migrating fluids due to their
high porosity and permeability. Replacement textures and related mineral enrichments in the form of
manganese coatings or disseminated pyrites can be seen at the structural zones. Brecciation is seen
predominant in listwanites and dolomite.
Listwanite formations in the prospect extends from northwest to southeast on surface and continues to all
direction beneath the ophiolite. 650m x 500m mineralized area has been identified and part of this zone has
been tested by diamond drilling. The rest stays open in all directions with high potential to add to the
continuity of the already defined mineralized zone.
Table 2. Drill Hole Summary Table

Years DDH, m DDH, drill hole
2017 1,374.10 9
2018 14,216.40 91
TOTAL 15,590.50 100
2018 Annual Report
Page 28 of 61
Figure 25. Drill hole locations and surface reflection of mineralized zones of Ardich
Ardich all drill holes gold significant results are given in the Table 3.
Table 3. Ardich Project Significant Drill Intercepts with a cut-off grade 0.3 g/t Au
From Interval Depth
Hole ID To (m) Au g/t Remarks Comments
(m) (m) (m)
AR01 39.00 66.00 27.00 0.94 Oxide 121.00
72.10 113.00 40.90 1.43 Oxide Includes isolated intervals of core loss totaling 1.1m
Including 80.00 86.00 6.00 5.69 Oxide
AR02 28.70 30.70 2.00 0.93 Oxide 87.80
37.70 41.70 4.00 0.49 Oxide
52.70 54.70 2.00 0.59 Sulfide
60.70 63.70 3.00 0.40 Oxide
76.70 87.80 11.10 2.09 Oxide
AR03 23.30 82.20 58.90 0.87 Oxide 95.60
AR04 13.20 104.00 90.80 1.79 Oxide 171.70 Includes isolated intervals of core loss totaling 5.9m
Including 77.80 99.00 21.20 5.56 Oxide Includes isolated intervals of core loss totaling 2.9m
AR05 22.30 25.30 3.00 0.64 Oxide 152.20 23.30-24.30 Sulfide
45.40 79.00 33.60 0.59 Oxide
87.00 109.30 22.30 1.07 Oxide
118.80 120.10 1.30 0.67 Oxide
AR06 44.00 65.00 21.00 0.54 Oxide 227.30
2018 Annual Report
Page 29 of 61
From Interval Depth

(m) (m) (m)
85.00 137.00 52.00 0.75 Oxide 87.60-89.60 Sulfide
141.00 146.00 5.00 0.44 Oxide
198.00 206.00 8.00 1.21 Mixed 198.00-202.00 ;203.00-204.00 and 205.00-206.00
Sulfide
210.00 213.00 3.00 0.56 Sulfide
AR07 4.00 6.00 2.00 0.72 Oxide 200.20
33.00 39.00 6.00 2.16 Oxide 33.00-34.00 Sulfide
63.00 85.80 22.80 2.53 Oxide Includes isolated intervals of core loss totaling
1.4m. 72.70-73.90 Sulfide
103.10 125.60 22.50 3.36 Mixed 117.60-125.60 Sulfide
Including 113.40 119.60 6.20 7.60 Oxide 117.60-119.60 Sulfide
131.60 137.60 6.00 0.92 Sulfide
AR08 23.10 27.40 4.30 1.57 Oxide 183.90
31.40 67.80 36.40 1.37 Mixed Includes isolated intervals of core loss totaling
0.5m. 31.10-33.40
and 34.40-37.40 Sulfide
71.80 77.80 6.00 0.56 Oxide
106.00 109.00 3.00 0.36 Oxide
AR09 53.30 121.00 67.70 4.08 Mixed 134.40 60.30-61.30; 72.10-73.10;90.40-92.80; 118.00-
120.00 Sulfide
Including 92.80 107.00 14.20 7.21 Oxide
115.00 118.00 3.00 18.99 Oxide
AR10 27.00 83.00 56.00 1.30 Mixed 145.40 43.00-44.00; 46.00-47.00 Sulfide
Including 54.00 62.00 8.00 3.43 Oxide
AR11 46.00 54.00 8.00 0.87 Oxide 163.70
62.00 66.00 4.00 0.66 Oxide
Including 74.00 81.00 7.00 5.18 Oxide Includes isolated intervals of core loss totaling 1.0m
114.00 116.00 2.00 0.9 Oxide
AR12 58.00 108.00 50.00 2.02 Oxide 515.20
Including 89.00 102.00 13.00 4.38 Oxide
AR13 33.00 37.00 4.00 0.54 Oxide 168.60
67.00 109.00 42.00 1.04 Oxide
Including 78.00 80.30 2.30 7.5 Oxide
121.60 124.60 3.00 0.94 Oxide
AR14 107.40 135.50 28.10 2.31 Oxide 218.40
Including 117.80 123.80 6.00 5.6 Sulfide
AR15 27.60 66.60 39.00 2.39 Oxide 236.00 Includes isolated intervals of core loss totaling 2.1m
2018 Annual Report
Page 30 of 61
From Interval Depth

(m) (m) (m)
Including 32.60 40.50 7.90 3.87 Oxide
Including 49.20 51.70 2.50 7.97 Oxide
Including 58.00 60.00 2.00 6.34 Oxide
205.00 208.50 3.50 0.33 Oxide
AR16 0.00 4.00 4.00 0.79 Oxide 224.00
24.00 78.00 54.00 1.53 Oxide
Including 45.00 52.00 7.00 5.81 Oxide
93.00 105.40 12.40 0.43 Oxide
207.30 210.30 3.00 1.17 Oxide
219.00 221.00 2.00 1.16 Oxide
AR17 21.00 58.00 37.00 1.67 Sulfide 182.00 24.60-54.80 Sulfide
66.00 71.00 5.00 0.9 Oxide
AR18 0.00 4.00 4.00 1.44 Oxide 105.50
27.50 47.50 20.00 1.08 Oxide
61.30 63.30 2.00 0.74 Oxide
69.60 76.20 6.60 1.54 Oxide
Including 70.60 72.40 1.80 3.24 Oxide
AR19 0.00 2.00 2.00 2.31 Oxide 133.00
13.00 20.00 7.00 0.71 Oxide
24.00 27.00 3.00 1.27 Oxide
35.00 90.50 55.50 0.99 Oxide
Including 63.00 65.00 2.00 3.47 Oxide
AR20 25.20 65.00 39.80 1.84 Mixed 122.80 25.20-28.20, 33.60-41.00, 42.00-53.00m Sulfide
AR21 99.80 103.90 4.10 3.58 Oxide 128.80
AR22 82.50 106.70 24.20 2.15 Oxide 146.20 94.50-98.10 Sulfide
Including 85.50 88.50 3.00 4.24 Oxide
112.70 114.70 2.00 1.00 Sulfide
AR23 5.00 44.00 39.00 0.78 Oxide 172.70
138.00 145.00 7.00 4.07 Oxide
Including 140.00 143.00 3.00 6.57 Oxide
AR24 114.60 171.60 57.00 2.01 Oxide 186.60 126.00-155.60 Sulfide
AR25 69.00 77.00 8.00 2.91 Oxide 134.20
2018 Annual Report
Page 31 of 61
From Interval Depth

(m) (m) (m)
Including 73.80 75.70 1.90 6.91 Oxide
81.00 87.70 6.70 0.73 Oxide 84.70-87.70 Sulfide
AR26 6.00 61.00 55.00 0.80 Oxide 124.70 17.00-18.00 Sulfide
75.00 82.00 7.00 0.38 Oxide
AR27 158.00 201.10 43.10 1.82 Mixed 228.60 Including 23.90m Sulfide
Including 161.00 170.00 9.00 3.88 Sulfide 161.00-162.00 Oxide
213.00 228.60 15.60 0.60 Mixed 216.00-228.60 Sulfide
AR28 36.30 40.00 3.70 0.77 Oxide 85.40
45.00 70.00 25.00 0.59 Oxide
77.00 79.00 2.00 0.61 Oxide
AR29 94.60 117.10 22.50 2.64 Oxide 120.10 Includes isolated interval of 0.5m core loss
Including 99.60 106.20 6.60 4.84 Sulfide Includes isolated interval of 0.5m core loss
AR30 26.50 50.80 24.30 1.59 Oxide 200.60 40.80-41.80 Sulfide
Including 31.10 34.80 3.70 3.86 Oxide
73.00 76.10 3.10 1.84 Oxide
106.70 132.30 25.60 2.40 Oxide
Including 108.70 114.00 5.30 4.51 Oxide
143.80 175.30 31.50 1.64 Oxide 143.80-150.20 Sulfide
Including 154.10 156.70 2.60 7.81 Oxide
AR31 5.00 30.00 25.00 0.64 Oxide 160.70 Includes isolated intervals of core loss totaling
0.6m, 20.00-21.00 Sulfide
36.00 104.60 68.60 2.21 Oxide 75.00-84.00m Sulfide
Including 79.00 96.00 17.00 5.50 Mixed 80.00-84.00m Sulfide
AR32 11.00 46.40 35.40 1.03 Oxide 130.20 Includes isolated intervals of core loss totaling 1.5
m
54.10 73.10 19.00 0.81 Oxide
82.20 88.20 6.00 0.32 Oxide
95.20 99.20 4.00 0.42 Oxide
AR33 125.70 159.70 34.00 1.47 Sulfide 197.70 Includes isolated intervals of core loss totaling 1.1
m
Including 136.90 138.90 2.00 4.34 Mixed 137.90-138.90 Sulfide
AR34 - - - - - 169.40 There is no consecutive 3m mineralization
AR35 17.00 33.60 16.60 0.89 Oxide 101.60 24.00-25.00 Sulfide
38.60 70.00 31.40 0.84 Oxide Includes isolated interval of 0.8m core loss
Including 58.00 60.00 2.00 3.77 Oxide
77.90 82.90 5.00 0.29 Oxide
92.90 97.60 4.70 0.41 Oxide
AR36 14.80 26.80 12.00 0.46 Oxide 141.80
2018 Annual Report
Page 32 of 61
From Interval Depth

(m) (m) (m)
50.20 93.60 43.40 1.20 Oxide Includes isolated intervals of core loss totaling 1.3
m, 59.00-60.00 Sulfide
Including 63.30 68.30 5.00 2.98 Oxide
AR37 88.40 123.00 34.60 4.31 Oxide 180.30 120.00-122.00 Sulfide
Including 92.40 108.80 16.40 7.06 Oxide
AR40 22.00 26.00 4.00 0.39 Oxide 208.00
37.00 39.00 2.00 0.89 Oxide
48.00 81.00 33.00 0.72 Oxide Includes isolated intervals of core loss totaling 0.4
m
AR41 43.40 93.60 50.20 3.01 Oxide 150.90 105.00-107.00 Sulfide
Including 50.40 52.40 2.00 4.41 Oxide
Including 59.40 67.30 7.90 8.81 Oxide
Including 74.00 78.40 4.40 8.97 Oxide
98.00 108.00 10.00 5.42 Oxide 105.00-107.00 Sulfide
AR42 27.00 50.50 23.50 1.70 Oxide 147.30 49.40-50.50 Sulfide
Including 41.00 43.70 2.70 4.42 Oxide
56.50 82.80 26.30 1.53 Oxide
Including 78.80 81.80 3.00 5.59 Oxide
AR43 60.20 65.20 5.00 6.48 Oxide 152.30
Including 61.20 63.20 2.00 9.78 Oxide
85.40 93.40 8.00 0.43 Oxide
112.00 122.20 10.20 0.81 Oxide
143.80 151.40 7.60 0.76 Oxide 150.40-151.40 Sulfide
AR46 107.00 117.00 10.00 0.57 Oxide 253.40
131.50 132.50 1.00 5.78 Oxide
AR47 70.90 82.00 11.10 1.74 Sulfide 134.40 72.90-74.00 Sulfide
87.20 98.90 11.70 1.62 Oxide
AR48 36.10 42.10 6.00 1.83 Oxide 92.20
46.10 49.10 3.00 1.25 Oxide
AR49 19.40 26.40 7.00 1.47 Oxide 131.40
AR50 27.30 39.00 11.70 4.49 Oxide 95.00 37.00-39.00 Sulfide
2018 Annual Report
Page 33 of 61
From Interval Depth

(m) (m) (m)
AR51 45.30 48.30 3.00 1.04 Oxide 119.60
57.70 65.00 7.30 0.82 Oxide
69.00 82.00 13.00 2.37 Oxide 72.00-74.00 Sulfide
86.00 99.40 13.40 0.95 Oxide
AR52 59.00 70.00 11.00 0.75 Oxide 216.90
74.00 79.00 5.00 0.35 Oxide
97.40 102.70 5.30 0.62 Oxide
121.30 179.00 57.70 3.84 Mixed Including several consistent oxide and sulfides
zones.
Including 135.60 147.50 11.90 6.40 Mixed 70/30 Oxide-Sulfide Zones
Including 166.10 171.20 5.10 6.42 Mixed 60/40 Sulfide-Oxide Zones
188.00 204.00 16.00 0.51 Oxide 188.00-188.80 and 190.80-192.80 Sulfide
AR53 49.60 98.10 48.50 2.69 Oxide 142.90 62.60-63.60 and 67.60-69.60 Sulfide
Including 78.60 84.60 6.00 7.06 Oxide
106.60 142.00 35.40 0.89 Oxide 70/30 Oxide-Sulfide Zones
AR54 5.00 66.40 61.40 2.22 Oxide 110.30 37.80-38.80 Sulfide
Including 49.00 55.40 6.40 7.75 Oxide
AR55 3.00 27.10 24.10 1.55 Oxide 126.80
Including 16.00 18.00 2.00 5.49 Oxide
31.10 73.60 42.50 2.55 Mixed 32.70-34.50 and 54.60-61.30 Sulfide
Including 44.30 47.80 3.50 6.80 Oxide
Including 55.80 59.30 3.50 5.67 Mixed 50/50 Oxide-Sulfide Zones
Including 63.30 67.30 4.00 7.64 Oxide
AR56 22.30 48.70 26.40 2.41 Oxide 103.60 32.30-33.30 Sulfide
Including 34.30 37.30 3.00 6.23 Oxide
63.10 79.00 15.90 1.41 Oxide 64.10-65.80 Sulfide
AR57 - - - - - 148.00 There is no mineralization
AR58 23.90 85.30 61.40 2.04 Mixed 99.80 Including several consistent oxide and sulfides
zones.
Including 70.30 76.30 6.00 7.09 Oxide
AR59 30.50 52.00 21.50 1.55 Oxide 131.70
2018 Annual Report
Page 34 of 61
From Interval Depth

(m) (m) (m)
58.50 94.70 36.20 1.67 Oxide 82.00-83.00 and 85.00-88.00 Sulfide
Including 59.50 64.50 5.00 5.34 Oxide
Including 76.70 79.00 2.30 5.30 Oxide
AR60 - - - - - 57.30 Abandoned at 57.30 due to technical problems and
re-drill at same location as AR66. Assay results are
pending.
AR61 8.00 108.60 100.60 1.35 Oxide 120.20 Includes isolated intervals of core loss totaling
0.8m.
89.10-90.10 and 102.10-103.30 Sulfide
Including 82.10 92.10 10.00 3.01 Oxide
Including 100.10 103.30 3.20 5.01 Oxide 70/30 Oxide
zones.
Including 45.30 57.30 12.00 5.21 Oxide
AR63 44.00 78.30 34.30 1.11 Oxide 124.70
85.30 94.60 9.30 0.79 Oxide
AR64 73.30 125.40 52.10 1.91 Oxide 137.00
Including 121.40 125.40 4.00 8.87 Oxide
AR65 14.70 19.70 5.00 0.65 Oxide 107.40
40.70 76.40 34.00 1.16 Oxide Including isolated a total of 2.00 m core loss
84.70 102.70 18.00 0.81 Oxide 101.20-102.70 Sulfide
zones.
AR67 3.00 12.00 9.00 0.60 Oxide 125.00
24.00 36.00 12.00 0.52 Oxide
42.00 77.70 35.70 1.59 Oxide 55.20-57.20 Sulfide
94.40 124.00 29.60 0.46 Sulfide 70/30 Sulfide
AR68 8.90 65.30 56.40 1.31 Oxide 91.60 38.00-39 and 40.00-45.00 Sulfide
AR69 24.00 132.40 108.40 1.79 Oxide 144.60 89.00-103.00 Sulfide
AR70 115.60 163.00 47.40 2.30 Sulfide 183.00 115.60-125.60 .oxide
173.00 178.00 5.00 0.91 Sulfide
AR71 13.50 67.50 54.00 0.92 Oxide 136.40 62.50-67.50 Sulfide
79.00 81.00 2.00 0.75 Oxide
AR72 65.40 87.30 21.90 3.10 Oxide 105.00 84.30-87.30 Sulfide
AR73 83.00 85.00 2.00 1.14 Sulfide 122.20
88.00 90.00 2.00 0.42 Oxide
AR74 8.00 49.00 41.00 2.45 Oxide 227.00
157.00 167.00 10.00 0.89 Oxide 162.00-167.00 Sulfide
AR75 63.60 84.60 21.00 1.57 Oxide 110.00 68.60-74.60 Sulfide
2018 Annual Report
Page 35 of 61
From Interval Depth

(m) (m) (m)
AR76 - - - - - 74.90 Abandoned at 74.90 due to technical problems and
re-drill at same location as AR78. Assay results are
pending.
AR77 6.00 27.70 21.70 1.68 Oxide 118.00
AR78 76.00 91.30 15.30 2.44 Oxide 115.40 90.30-.91.30 Sulfide
102.10 109.10 7.00 0.52 Oxide 107.50-109.10 Sulfide
AR79 4.00 32.80 28.80 1.20 Oxide 169.20
AR80 33.50 84.10 50.60 2.99 Oxide 89.50 75.10-77.20 Sulfide
AR81 77.00 85.10 8.10 1.35 Oxide 101.70
AR82 55.50 59.70 4.20 0.78 Oxide 140.20
64.30 89.30 25.00 0.67 Oxide
AR83 19.00 35.00 16.00 0.73 Oxide 139.70 23.00-24.00 and 26.00-27.00 Sulfide
41.00 106.00 65.00 1.61 Mixed 85/15 Oxide-Sulfide
AR84 31.00 48.00 17.00 0.44 Oxide 167.40 34.00-35.00 Sulfide
52.00 93.00 41.00 1.14 Mixed 60.00-67.70 Sulfide
Including 76.00 79.00 3.00 4.76 Oxide
AR85 15.70 24.70 9.00 0.48 Oxide 147.00 20.70-21.70 Sulfide
35.50 39.50 4.00 0.48 Oxide 36.50-37.50 Sulfide
43.50 65.50 22.00 1.24 Oxide
84.50 89.00 4.50 1.01 Oxide
99.00 103.00 4.00 0.45 Oxide
AR86 21.00 46.00 25.00 0.83 Oxide 107.70
54.00 67.00 13.00 1.79 Oxide
AR87 100.50 103.50 3.00 4.18 Oxide 136.20
AR88 25.00 77.00 52.00 1.37 Mixed 112.10 80/20 Oxide-Sulfide
81.00 92.00 11.00 0.41 Oxide
AR89 10.00 56.40 46.40 0.92 Oxide 134.00 53.00-55.00 Sulfide
AR90 48.00 78.00 30.00 1.49 Oxide 118.60
AR91 43.60 61.00 17.40 2.18 Oxide 134.30
65.00 76.00 11.00 0.71 Oxide
80.00 88.00 8.00 0.41 Oxide
92.00 122.10 30.10 0.58 Oxide 115.30-122.10 Sulfide
AR92 40.40 119.00 78.60 0.89 Oxide 151.20
AR94 42.00 45.00 3.00 0.85 Oxide 157.30
75.60 84.50 8.90 0.52 Oxide 82.50-83.50 Sulfide
90.60 143.00 52.40 1.19 Oxide 108.00-109.00 and 111.000-112.00 sulfide
2018 Annual Report
Page 36 of 61
From Interval Depth

(m) (m) (m)
AR95 113.20 115.20 2.00 0.78 Sulfide 298.00
195.00 206.00 11.00 0.78 Oxide
222.00 226.00 4.00 0.31 Oxide 225.00-226.00 Sulfide
238.00 240.00 2.00 0.72 Oxide
246.00 250.00 4.00 0.45 Oxide
256.00 259.00 3.00 0.71 Oxide 256.00-257.00 sulfide
AR96 0.00 6.00 6.00 0.57 ? 193.00 Partial
12.00 15.00 3.00 0.48 ? Partial
20.00 39.40 19.40 0.49 ? Partial
110.00 133.40 23.40 0.83 ? Partial
142.80 145.80 3.00 0.31 ? Partial
155.70 170.20 14.50 0.68 ? Partial
AR97 104.00 122.60 18.60 1.02 - 194.20 Partial
By the central-east part, drill holes demonstrate that the mineralization dropped down by a normal fault
traced in the small gully to the of the main mineralization. At this part, same mineralized horizon and
stratigraphy/structure were intersected at the deeper sections compared with the main mineralized zone
(Figure 26 and Figure 29).
Out cropping mineralized listwanite body extending the northwest of the prospect tested by AR69 that
intersected 108.4m gold mineralization. In this hole mineralization is mainly hosted by listwanite and by
depth followed by dolomite that is getting thinner to the north-east and to the south-west and the thickest
at the center. Cataclastite has been intercepted at the bottom of holes and excluding fault zone
mineralization is unexpected from this unit. Last phase Microdiorite is crosscutting all units at the area and
there is mineralization at faulted part of microdiorite. By these resource hole’s mineralization has been
extended to the north approximately 80m and to the north-west approximately 160m (Figure 27).
Similar to the eastern part, at the southern the drill holes demonstrate that the mineralization dropped
down by a normal fault. Significant gold mineralization intersected at southern part of the prospect such as
AR62: 64.2m @ 2.0 g/t Au from 19.8m, AR64: 52.1m @ 1.91 g/t Au from 73.3m and AR75: 21.0m @
1.57 g/t Au from 63.6m (Figure 28).
2018 Annual Report
Page 37 of 61
Figure 26. Ardich Sections-Location Map
Figure 27. B-B’, Ardich Northern Resource Gap Drilling, Detail Log and Best Au Intercept
2018 Annual Report
Page 38 of 61
Figure 28. C-C’, AR09 and AR08 Detail Log and Best Au Intercept
Figure 29. D-D’, AR51 and AR52 Detail Log and Best Au Intercept
2018 Annual Report
Page 39 of 61
QUALITY OF ASSAY DATA AND LABORATUARY TESTS
Quality Assurance and Quality Control
A total of 15432 (including AR99) samples were sent to ALS and ACME laboratories in 2018 for the
Ardich project. ALS Laboratory (Turkey) is used as main laboratory, Bureau Veritas Minerals (ACME,
Turkey) is used as umpire laboratory. QC samples include CRMs, blanks, field duplicate and umpire
duplicate samples. The overall ratio of QC samples to drill core samples is 13% (Table 4 and Table 5). The
umpire samples including AR55 has been received and for AR56 through AR99 no umpire selected and
sent to BV. Because of the missing umpire samples, the overall ratio is 13%, little lower than the ideal
case of 15%.
Table 4. QC Sample Distribution by Lab.
ALS ACME (UMP LAB)
SAMPLES 13558
CRM 354 22
DUP 664 434
BLANK 396 4
TOTAL 14972 460
Table 5. QC Sample Ratios

Number of Samples Ratio
Samples %
SAMPLES 13558 100 %
CRM 354 3%
DUP 664 5%
BLANK 396 3%
UMP 434 3%
ALS performance for gold decreases with the low-level grade but there is an obvious recalibration period
earlier in the period which returned better results. This shows a quick positive response to the continued
follow-up of the lab performance. BV (Acme) had a better gold performance on the CRMs as there are no
cases of +- 3SDs but low-high biases are noted down (Table 8).
The multi-element CRMs for silver, copper, and sulfur generally performed within accepted tolerances for
ALS with notes to be followed up like readings of consecutive same silver values. However, BV being the
Umpire lab had a questionable performance especially for Silver and. Both ALS and BV had acceptable
performance for Copper. The mis-classified (mis-labelled) samples identified in previous internal and
external reviews are followed-up and corrected in the database. These changes made in the database are
recorded in a separate spreadsheet.
The blank material established that there are no cross-contamination sample prep issues at both labs used
for the project. Only for Cu, there were a number of out of tolerance assays where should be addressed
and investigated through lab audit (Table 7).
2018 Annual Report
Page 40 of 61
The duplicate samples overall yielded acceptable results for the DDH samples. Duplicate samples are
prepared at the lab from the coarse rejects which increases the level of homogeneity and increases the
correlation rate (Table 8).
The umpire duplicate assays confirm the reproducibility of the primary lab gold analyses (Table 8).
The ongoing QAQC performance evaluation for Ardich exploration program shows that ALS took actions
for the identified low-grade Au inconsistencies identified early in the program. However, there were
identified off-calibrations for Au assays during the drilling program and reanalysis requested for the
corresponding intervals and/or batches affected (Table 9).
Table 6. ALS CRM Au Performance Plots

2018 Annual Report
Page 41 of 61
Table 7. ALS Blank Au Performance Plots

2018 Annual Report
Page 42 of 61
Table 8. Duplicate & Umpire (ALS vs BV) Au Performance Plots

2018 Annual Report
Page 43 of 61
Table 9. Identified CRM Outliers and Actions Taken

Batch Hole Sample Lab GSS Lab CRM Re- Action
no No No Code Std Au_ppm Au_ppm Anaylsis Taken
Au_ppm
30-018 AR13 563231 ALS OREAS 0.39 0.495 0.495 Replaced new results in
502b DataShed and Revised
QAQC Report
30-018 AR13 563191 ALS OREAS 0.118 0.134 Oreas 152b gave error
152b in re-analysis. No
Action Taken
30-020 AR14 562843 ALS OREAS 0.11 0.134 0.128 No Action Taken
152b
30-022 AR16 566321 ALS OREAS 1.45 1.61 1.82 Re-analysis result
504b higher than cert values.
Result wasn't revised.
152b DataShed and Revised
QAQC Report
152b DataShed
30-117 AR92 601429 ALS OREAS 0.289 0.313 Requested re-analysis
153b
2018 Annual Report
Page 44 of 61
The latest QAQC reviews (including AR63) shows improved lower-grade Au performance but there were
issues identified for multi element performance both for ALS and BV (ex Acme). Mainly Ag performance
is at a questionable level for both labs and Sulfur performance of BV should be investigated by a lab audit.
Lab Audit
A lab audit to ALS laboratory in Izmir which has been the main assay lab for Ardich program was carried
out in January 2018. The recommended action list is as follows;
Laboratory to review the accuracy and reproducibility problem observed within Alacer’s 2017 and 2018
fire assay gold assays. The fire assay with AAS finish for gold analysis should be remediated in the
following batches analyzed. Laboratory should review and update the SOPs related with the calibration of
AAS, AES and AOS equipments. The calibration standards and procedure will be investigated especially
for low grade gold assay measurement. For low grade gold, lab should run extra detailed calibration
procedures by using higher number of low-level standards. During the audit, sample preparation facilities
and procedures found to be in good standing. The fire assay and AAS facilities showed some minor
deficiencies. Dirty cupellation furnace and rusted dirty acid digestion units should be followed up by lab
and also by Alacer during future audits.
It is recommended that the Fire Assay analysis request code should be changed from Au-AA23 to Au-
AA24 to be able to use 50g sample per analysis instead of 30g sample.
BV (ex Acme) laboratory has not been audited in 2018. BV Laboratory and ALS Laboratory should be
audited as soon as possible.
Laboratories and Analysis Methods
ALS (İzmir Office) is the main laboratory, Bureau Veritas Minerals (Ankara) is the umpire laboratory of
Alacer Gold. All surface and drilling samples has been sent to ALS. Drilling pulp samples has been sent to
Bureau Veritas Minerals in 2018 (Table 10 and Table 11)
Table 10. ALS Global Lab Analysis Method

MAIN LAB
ALS Global
Sample_Type Code Decriptions
Core PREP 31B Split off 250g and pulverize split to better than 85% passing 75 microns.
Au-AA23 Au by fire assay and AAS. 30g nominal sample weight.
ME-ICP61 Four Acid Near-Total Digestion, ICP-AES finish.
Au-GRA21 Au by fire assay and gravimetric finish. 30g nominal sample weight.
OG62 (Cu-Pb-Zn Four Acid digestion with ICP-AES or AAS finish. (high grade)
>10000 ppm),
(Ag>100 ppm)
C-IR07 Total carbon by leco funace
S-IR08 Total sulfur by leco funace
Au-AA13 Au by Cyanide leach with AAS finish. 30g nominal sample weight.
S-IR07 Sulfide sulfur by carbonate dissolution of sulfates, Leco furnace and infrared
spectroskopy.
2018 Annual Report
Page 45 of 61
Cu-PKG Sequential Leach for Oxide, sulfide and residual Cu. Various options avaliable 0.5g
sample weight.
Rock PREP 31B Split off 250g and pulverize split to better than 85% passing 75 microns.
ME-ICP61 Four Acid Near-Total Digestion, ICP-AES finish.
Au-GRA21 Au by fire assay and gravimetric finish. 30g nominal sample weight.
Soil PREP 41 Sieve sample to -180 micron (80 mesh). Retain both fractions.
ME-MS41L Aqua regia digestion and a combination af ICP-AES and ICP-MS.
Stream PREP 41 Sieve sample to -180 micron (80 mesh). Retain both fractions.
ME-MS41L Aqua regia digestion and a combination af ICP-AES and ICP-MS.
Bleg Au-CN12 Bleg Au-cyanide leach with ICP-MS finish. 1000g nominal sample weight.
Table 11. ACME Lab Analysis Method

UMPIRE LAB
Bureau Veritas Minerals (ACME)
Sample_Type Code Decriptions
Pulp FA430 Au by fire assay and ICP-ES finish. 30 gr nominal sample weight.
FA530-Au Au by fire assay and gravimetric finish. 30 gr nominal sample weight.
MA300 Multi acid digestion and ICP-ES finish. 25g nominal sample weight.
TC003 Total C and Total S
MA370-X Multi acid digestion and ICP-ES finish.
Sample selection is started for additional analysis as soon as the final results of the has been received.
The criteria for requesting additional analysis according to the projects are as follows in Table 12.
Table 12. Ardich Additional Analysis Method

ARDICH PROJECT Criterias
Total C (C-IR07) Au >0.5 ppm
Total S (S-IR08) Au >0.5 ppm
CN (Au-AA13) Au >0.5 ppm
GEOTECHNICAL STUDIES
In addition to mineralization, and alteration records of the core; geotechnical logging is also performed
properly to characterize the engineering properties of the material like number of joint sets (Jn), Joint
frequency, TCR, SCR, RQD etc. Geotechnical logging is carried out run by run and as well lithological
contact is also considering for determination of logging interval.
The main geotechnical properties of the lithological units in the Ardich area are as follows;
Ophiolite; fractured partly unconsolidated and veined.
Listwanite; Strong to intense silicified, jasper clast bearing, partly faulted, rarely gauge.
Jasperoid; Intense silicified, massive.
Dolomite; Strongly to intense silicified in Listwanite contact and after, brecciated, and fractured.
Cataclastite; laminated, brecciated, massive, veined and silicified, rarely gouge.
2018 Annual Report
Page 46 of 61
Microdiorite (Unmineralized); Mostly fresh, partly clay, chlorite altered, rarely silicified.
Microdiorite (Mineralized); Completely faulted(gauge) and clay altered.
For the project; It is obvious to say that there is not clear correlation between Au assay results and
geotechnical parameters. Mostly high-grade results came from intense silicified, massive and brecciated
listwanite and dolomite units. These massive units have highly TCR, SCR and RQD. On the other hand,
there was totally clay rich fault zones which were including another high-grade Au results zones.
Uniaxial compressive strength of Ardich cores measured in both axial and diameter sections indicated that
Ardic has very high UCS (56.15 MPa) strength parameters compare to other deposits. Like Cakmaktepe,
variation in strength is very high (SD of 52.52) but still rocks aren’t as soft as others.
Ardich geotechnical data to this point is based on 100 holes with measurement at every 10 meters. All
deposits have very soft clay ore zones and they are excluded in this classification (Table 13 and Table 14).
Table 13. Lithological base, uniaxial compressive strength of Ardich ore zone
Row Labels Min of Max of Average of StdDev of
UCS_MPa UCS_MPa UCS_MPa UCS_MPa
CATACLASTITE 0.03 162.37 21.10 24.75
DOLOMITE 1.29 297.28 71.23 49.92
JASPEROID 9.03 240.63 96.06 43.47
LIMESTONE 7.80 109.93 43.28 25.28
LISTWANITE 2.15 260.44 90.93 54.54
MICRODIORITE 1.23 108.67 32.02 34.12
OPHIOLITE 0.42 115.56 16.62 16.88
Grand Total 0.03 297.28 56.15 52.52
Table 14. Uniaxial compressive strength of Ardich ore zone compare to Çöpler and Çakmaktepe
Ardich Copler Cakmaktepe
Average, MPa 56.15 44.18 43.91
Maximum, MPa 297.28 147.06 166.31
Standard Deviation, MPa 52.52 27.21 40.28
Rock Mass Rating(RMR) and Q system equivalent has been calculated for 41 drill holes in Ardich, by the
interpretation of geotechnical data, there was northwest-southeast poor rock mass quality zone has been
defined as consistent with current fault zone. Also, locally unconnected poor rock mass quality intercepts
were determined (Figure 30, Figure 31, Figure 32, Figure 33, Figure 34, Figure 35, Figure 36 and Table 15).
2018 Annual Report
Page 47 of 61
Figure 30. RMR eqn Q system map of Ardich
Table 15. RMR eqn Q system table of Ardich

Lithology Min of Max of StdDev of Average of RMR_eqn_Q
RMR_eqn_Q RMR_eqn_Q RMR_eqn_Q
Cataclastite 7.15 84.39 22.46 53.24
Dolomite 7.15 84.39 21.58 58.63
Jasperoid 10.80 84.39 14.50 71.07
Limestone 17.04 84.39 18.98 59.51
Listwanite 7.15 84.39 23.88 56.58
Microdiorite 10.80 84.39 22.68 38.64
Ophiolite 7.15 84.39 23.89 43.43
Grand Total 7.15 84.39 24.16 52.09
2018 Annual Report
Page 48 of 61
Figure 31. RMR eqn Q system histogram of Cataclastite
Figure 32. RMR eqn Q system histogram of Dolomite

2018 Annual Report
Page 49 of 61
Figure 33. RMR eqn Q system histogram of Limestone
Figure 34. RMR eqn Q system histogram of Listwanite

2018 Annual Report
Page 50 of 61
Figure 35. RMR eqn Q system histogram of Microdiorite
Figure 36. RMR eqn Q system histogram of Ophiolite

2018 Annual Report
Page 51 of 61
METALLURGY
Ardich metallurgical test work is being conducted by John Marsden.The metallurgical program includes
three phases of work.1st Phase bottle roll test program completed on February. 2nd phase column leach
testworks was completed on September. 3rd Phase column leach test work is ongoing at McClelland (59
days leach).
Phase-1 bottle roll test results shown as below in Table 16.
Table 16. Bottle Roll Test Results

Number of Composites Lithology Average Au (g/t) Average Au Recovery (%)
4 Listwanite - Low Grade 0.60 53.8
9 Listwanite - Medium Grade 1.73 70.3
3 Listwanite - High Grade 3.52 67.8
1 Listwanite Clay Fault Gauge 2.30 72.0
1 Dolomite - Low Grade 0.75 69.0
3 Dolomite - Medium Grade 1.51 80.3
5 Dolomite - High Grade 4.03 77.0
2 Jasperoid - Medium Grade 3.55 40.0
2 Cataclastite - Low Grade 0.87 <1
The listwanite, dolomite and jasperoid ore types submitted for Phase I testing indicate that these materials
are potentially suitable for processing by heap leaching at a crush size of 80% passing 12.5 mm. Based on
Phase I results, expected heap leach gold extractions are in the range of 50-75% (mid-range ~65%) for the
samples tested. Expected cyanide and lime consumptions are in the low-moderate range for these ore types.
The cataclastite ore type is unsuitable for processing by either heap leaching or agitated tank cyanide
leaching due to high sulfur content. The cataclastite ore type is considered to be a very small portion (less
than %2) of the identified ore body.
Gold extraction correlates reasonably well with sulfur grade, with gold extraction decreasing with increasing
sulfur content. This requires further investigation in Phase II metallurgical testing program.
Both the listwanite and dolomite ore types have responded quite well to column leach testing. Column leach
testing of the listwanite composites (II-1, II-2 and II-3) at 80% <12.5 mm crush size has yielded final gold
extractions ranging from 72.5% to 82.3% with an average of 76.5% after 89 days of leaching/rinsing (Table
17).
Table 17. Column Leach Test Results
Solution
Leach/Rinse Estimated Au Extracted Assay
Sample Lithology Location applied (t/t
Time, Days Recovery % Au g/t Head g/t
ore)
Comp II-1 Listwanite South 89 3.6 72.5 0.79 1.11

Comp II-2 Listwanite North 89 3.6 74.8 0.89 1.20
Comp II-3 Listwanite West- 89 3.6 82.0 0.73 0.87
(Init. Test) Center
2018 Annual Report
Page 52 of 61
Comp II-3 Listwanite West- 89 3.6 82.6 0.76 0.87

(Dup. Test) Center
Comp II-4 Dolomite North 89 2.9 76.1 0.54 0.69
Comp II-5 Dolomite South 89 3.6 78.6 1.21 1.40
Comp II-6 Dolomite West- 89 2.9 81.5 1.23 1.50
Center
Comp II-7 Jasperoid West- 89 5.3 25.6 0.61 2.49
Center
Column leach testing of the jasperoid composite (II-7) yielded final gold extraction of 25.6% after 89 days
of leaching/rinsing. %. The jasperoid material has significantly higher sulfide content which is impacting
gold extraction. Additional testing of high and low sulfur jasperoid samples is planned as part of the Phase
III testing program.
There is a strong relationship between gold extraction and sulfur grade in the Ardic deposit. Gold extractions
are generally good when the sulfur grade is less than 1%. However, gold extractions decline significantly
as sulfur grade increases. Gold extractions decline to close to 0% at 3.5-4.0% sulfur. Heap leaching of
material with sulfur content >2% is likely to be uneconomic and material with sulfur content between 1 and
2% is likely marginal. This needs to be investigated further at the conclusion of Phase III testing.
Expected cyanide and lime consumptions are in the low-moderate range for these ore types (excluding the
jasperoid). Cyanide consumptions to date in the tests varied from 0.08 to 0.42 kg/mt, averaging 0.28 kg/mt.
Cyanide consumptions in a commercial operation would be expected to be in the range of 0.15-0.20 kg/mt.
RESOURCE
Alacergold announced a maiden Mineral Resource for the Ardich oxide gold deposit located approximately
6km northeast of the Çöpler Gold Mine. The Mineral Resource consists of:
• Measured and Indicated Mineral Resource of 294koz of gold at an average grade of 1.32 Au g/t
(6.9MT).
• Inferred Mineral Resource of 85kozs at an average grade of 1.20 Au g/t (2.2MT).
The size of the Ardich deposit is highly prospective, with this maiden Mineral Resource representing the
first estimate of a potentially larger deposit. The Mineral Resource is based on only the first 55 diamond
core drill holes completed and does not include drill assays received after October 1, 2018. An additional
42 diamond core drill holes have been drilled since the cut-off date for the Mineral Resource. These
additional holes indicate that the current resource estimate will grow (Figure 37).
Figure 37. Ardich Mineral Resource Statement

2018 Annual Report
Page 53 of 61
The Mineral Resource was based on a 3D geological model developed to define the fault blocks, lithological
units and gold mineralization found along the geologic contacts and fault zones. Mineralized zones were
used to generate a block model estimate of the deposit mineralization. The model includes drill data and
surface mapping through October 1, 2018. A block model estimating grades for gold and sulfur was
constructed. Ardich contains trace occurrences of silver and copper. These two elements do not exist to a
level necessary for grade estimation and inclusion into pit shell economics.
Conventional heap leach processing recovery estimates are based on the most current information available
through three phases of test work, including column leach testing. The recovery estimates include partial
and incomplete testing results. Metallurgically, the deposit has been divided into two zones, Main and East,
as well as being divided by lithology and sulfur grade. The East zone has initially shown lower recoveries
under typical heap leach conditions than the Main zone. Additionally, ores with sulfur grades up to 1% and
potentially up to 2% have been shown to be amenable to conventional heap leaching. Metallurgical
recoveries vary by rock type, zone, and sulfur content; and range from 40% to 73% with a resource average
near 68%.
A pit shell was evaluated using Whittle, based on $1,500/oz gold price for the Ardich Mineral Resource.
Inputs for the pit shell generation include the most current information available for geotechnical conditions,
operating costs, reagent consumptions, and metallurgical recoveries.
All but the very bottom of two drill holes have been drilled within Alacer’s 80% owned and managed
licenses. All of the resource is within the Alacer 80% areas. However, the resource shell used to demonstrate
reasonable prospects for eventual economic extraction crosses the Kartaltepe (Alacer 50% and Lidya 50%)
license boundary due to pit slope requirements needed to reach mineralization residing on Alacer 80%
ground.
Mineral Resource pit shell optimization was completed using Whittle.Internal cut-off grades range from
0.30 – 0.50 g/t Au and were calculated using a $1,500/oz gold price, processing recovery, and processing
cost.
Nested shells were evaluated to understand the grade/tonnage relationship at varying gold prices and cut-
off grades. The results of the nested shell evaluation support the strategy that a large, higher-grade portion
of the deposit could be developed with a smaller footprint and economic risk. This strategy will be further
developed as the existing Mineral Resource is converted into a Mineral Reserve and as additional
exploration definition improves the estimate of the deposit scale and deportment (Figure 38 and Figure 39).
Figure 38. Ardich Nested Shell Results - Indicated

2018 Annual Report
Page 54 of 61
Figure 39. Ardich Nested Shell Results - Inferred
At the time of Mineral Resource estimation, Metallurgium concluded that with a 96% scale-up factor
from column testing results to commercial heap leaching, the following recovery estimates should be
used for the Mineral Resource in Figure 40.
Figure 40. Ardich Metallurgy Parameters for Resource Estimation
BUDGET
End of November 2018, totally 3,032K USD has been spent for Ardich project. Major expenditures are
listed below in Table 18.
Table 18. Ardich 2018 Budget Table
PROJECT YTD Actual Drilling YTD Actual YTD Actual Payroll & YTD Actual Budget
Cost Laboratory Cost Benefits Cost 2018
Ardich 1,175,014 514,749 707,896 2,658,812
Total 3,500,000 USD spent for Ardich project between 2017-2018. According to first resource numbers
unit discovery cost is around 12 usd/ons which is much more lover than world average discovery cost 45
usd/ons for gold projects around the world.
WORK PLAN
It was prediction to connection of mineralization between Ardich and Cakmaktepe North, consequently
AR46 which was located on Northern Cakmaktepe has been drilled and same stratigraphy was intercepted
2018 Annual Report
Page 55 of 61
as Ardich. Therefore 110 new permit applications have been filed to forest state department to fill gap and
explore to extension of south-east Ardich.
Structural mapping at northeast of Cakmaktepe in order to create a structural relation with Ardich
Step-out and infill drilling program will be continued at current mineralized zone (Figure 41).
Figure 41. Possible Project/Gold Extension and next yeat drill plan
Soil sampling program have been done for next year to prove the relationship between Ardich and
Cakmaktepe possible mineralized corridor, thus 2358 soil samples have been planned as four phases to
check surface geochemistry on south-east extension of Ardich project (Figure 42).
2018 Annual Report
Page 56 of 61
Figure 42. Ardich SE extension soil program
Update outcrop mapping in according to rock that exposure on new drill access road and drill locations.
APPENDIX
Appendices are listed below;

• Safety
• Environment
• Community
• Permits
SAFETY
A total of 202,433 hrs. of work has been completed without any LTI or MTC including all AEx projects
during the year. Exploration and Geoscience has achieved a total of 576,698 hours of work without any
LTI or MTC. 12 MMA has been improved to 4.93 from previous 12 month’s 7.39.
Executive HSE summary listed below:

• No Serious Incidents and Just One First Aid Case Incident during the year.
• Decrease in Total Recordable Injury.
• 27 audits were completed by Ardich AEx employees at project during the year.
• Safety drills were continued during the year by the AEx employees with drill contractors.
• Acquisition of occupational safety observer and practitioner culture by all AEx employees.
2018 Annual Report
Page 57 of 61
• No environmental spill and successful completion of all inspections during the year.
• Successful completion of rehabilitation and regular application of night site audits.
• Regular inspection of all contractor staff recruitment periodic inspections and hiring trainings.
• Completion of vehicle tracking system and camera system as basic hardware.
• Exploration WRAC has been updated. During the year settled pool procedure has been added for
Ardich project.
All drilling and other field activities were completed with zero LTI and one first aid incident at Ardich
within 2018.
• On 7th of December at 02.00 a.m. two drilling offsiders were uploading drill rods from a
completed drill hole onto a tractor trailer. During this process the tip of one of the drilling
offsiders right hand ring finger, was pinched between the rods causing soft tissue damage
(bruising) (Figure 43 and Figure 44).
Figure 43. Post-event photo
Figure 44. Ardich Project 2018 Incident Distribution on Body
Risks that identified during drilling activities at Ardich project shown below in Table 19.
2018 Annual Report
Page 58 of 61
Table 19. Ardich Project Closed Risk Table

Closed Risk Description Comment
Ardich:1 Risk of freezing drilling crews at night shift The big tent started to be used
and the machines and workers
were closed over.
Ardich:2 It was observed that subcontractor tractor trailers warning triangle was Reflective sign was provided.
missing.
Ardich:3 It was observed that there was no barricade around water accumulation Appropriate barricade has been
pond. made.
Ardich:4 It was observed that buckle of back seat belt was out of use on Pre-start training was given to all
subcontractor light vehicle. employees.
Ardich:5 It was observed that the gasoline has been stored in a five liters of Appropriate bins has been
unlabeled potable water bottle. It's a big issue that someone can drink it bought.
and it must be stored in metal tank since it's flemable material.
Ardich:6 A low-pressure fire extinguisher was observed at Ardich project. New fire extinguisher was
provided.
Ardich:7 It was observed that at Ardich project, there was no safety berm around Safety line was placed around
the sediment pool. the sediment pool.
Ardich:8 It was observed that at Ardich project, there was no safety berm around Safety fences was placed around
and on the sediment pool. the sediment pool.
ENVIRONMENT
Hydrocensus
Totally 55 sample (27 composite sample) selected which are covering all lithology in the geological
model. Sampling study completed, and the samples sent to SGS Kocaeli for preparing composite samples.
27 composite sample sent to SGS Burnaby from SGS Kocaeli.
The geochemical static tests were completed. Technical memorandum is preparing base on these results.
A field study (Hydrocensus) was carried out to identify the water points near the work site. During the
study 16 water points defined. Beside of the water points measuring and sampling points defined to collect
water samples and in-situ measurements.
Two-term sampling studies were carried out and the samples are sent to ALS laboratories. The results of
the first sampling study have been received from the laboratories, but the results of the second period are
expected to be receive in order to complete the evaluation.
In order to evaluate the position of the water table, piezometer locations have been defined. After the
completion of the well drilling in the defined locations, evaluations will be made about the groundwater
table - open pit relationship.
Soil and sediment samples were collected, and analysis results were obtained from the laboratory. The
results will be presented by the baseline report.
Background noise measurement has completed, final report expected to evaluate.
2018 Annual Report
Page 59 of 61
Biodiversity
Flora fauna study was prepared by Anagold. The results will be evaluated in the baseline report.
In the meeting with Anagold Environmental Department, it was agreed that the determination of the air
quality peak points was related to the project design and these measurements would be made after the
project was formed.
Rehabilitation
Rehabilitation of drilling locations has been continued and completed at Ardich Projects.
• The top soil is stored in a place during the opening of the drill location.
• After rehabilitation is completed, the top soil is scattered in the same place.
• Spread grass seeds in the same region(Figure 45 and Figure 46).
Figure 45. AR22-24-25 After Rehabilitation March Figure 46. AR33-34 After Rehabilitation May 2018
2018
COMMUNITY
All beekeeping activities was relocated to outside of the current drilling district. Drill rigs were located to
out of buffer zone that defined for water source. Noise effect measurement was ongoing by exploration
and environmental department (Figure 47, Figure 48, Figure 49 and Figure 50).
2018 Annual Report
Page 60 of 61
Figure 47. Ardich water source location Figure 48. Ardich water source location
Figure 49. Relocation of bee hive Figure 50. Ardich noise measurement stations
PERMITS
Working area is mostly located on forestry land, also northeast part is located on treasury land that not
needed to be permit. There are a few private lands at south east of project and no drilling activities
planned for private lands (Figure 51).
Most of drill locations which were permitted in 2018 have been tested on Northwest of Ardich. At the
Southern part of Ardich, forestry permit application completed for 57 locations. 36 of 57 locations are
located on IR.1054 and other 21 locations are located on IR.49729. Purpose of this package to do step out
drilling to south extension of Ardich.
2018 Annual Report
Page 61 of 61
Figure 51. Ardich Cadastral Map
Application to 33 new drill locations has been completed on July and waiting the state department approval.
In September 23 more locations added to permit application to closed gap between Ardich and Cakmaktepe
North. All permits process still pending (Figure 52).
Figure 52. Drill Locations and Access Roads Permits Status of Ardich.

Ardich Annual Report 2018

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ardich Annual Report 2018

Uploaded by

Copyright:

Available Formats

Ardich Gold Prospect

2018 Annual Report

Alacer Gold Exploration

From Seyfettin Genc, Nihat Can Demir

A three-phase metallurgical testing program is being conducted by McClelland Laboratories, Inc.

Figure 1. Regional Conceptual Columnar Section

Figure 3. Tectonostratigraphic columnar section of the Iliç area.

Figure 6. Diorites intruded into the Listwanites.

Figure 7. Geological map of the Ardich area.

Primary rock types

Figure 13. Unaltered ophiolite is cut by stockwork carbonate veins

Figure 14. Massive to locally brecciated dolomite

Hydrothermal breccia with a clast to matrix-supported texture, containing angular to sub-rounded

Quartz-carbonate (-pyrite)-replaced ultramafic rock (listwanite-Jasperoid) containing several, commonly

Figure 16. Pyrite rich, grey colored jasperoid

Figure 18. Sediment clasts bearing brecciated cataclastite

Figure 19. Dark grey color massive limestone

Sedimentary Petrography and Diagenesis

MINERALIZATION AND ALTERATION

It is apparent that a hydrothermal alteration-mineralization system was imposed on a variety of primary

Alteration, veining and hydrothermal brecciation

Figure 20. Ardich Conceptual Section Map

Figure 21. A-A’, Conceptual Section of the Ardich

Table 1. Summary of Surface Geochemistry

Figure 23. Ardich Rock Geochemistrty Map

Table 2. Drill Hole Summary Table

From Interval Depth

From Interval Depth

From Interval Depth

From Interval Depth

From Interval Depth

From Interval Depth

From Interval Depth

From Interval Depth

Figure 26. Ardich Sections-Location Map

QUALITY OF ASSAY DATA AND LABORATUARY TESTS

Quality Assurance and Quality Control

Table 5. QC Sample Ratios

Table 6. ALS CRM Au Performance Plots

Table 7. ALS Blank Au Performance Plots

Table 8. Duplicate & Umpire (ALS vs BV) Au Performance Plots

Table 9. Identified CRM Outliers and Actions Taken

Laboratories and Analysis Methods

Table 10. ALS Global Lab Analysis Method

Table 11. ACME Lab Analysis Method

Table 12. Ardich Additional Analysis Method

Figure 30. RMR eqn Q system map of Ardich

Table 15. RMR eqn Q system table of Ardich

Figure 31. RMR eqn Q system histogram of Cataclastite

Figure 32. RMR eqn Q system histogram of Dolomite

Figure 33. RMR eqn Q system histogram of Limestone

Figure 34. RMR eqn Q system histogram of Listwanite

Figure 35. RMR eqn Q system histogram of Microdiorite

Figure 36. RMR eqn Q system histogram of Ophiolite

Phase-1 bottle roll test results shown as below in Table 16.

Table 16. Bottle Roll Test Results

Comp II-1 Listwanite South 89 3.6 72.5 0.79 1.11

Comp II-3 Listwanite West- 89 3.6 82.6 0.76 0.87

Figure 37. Ardich Mineral Resource Statement

Figure 38. Ardich Nested Shell Results - Indicated

Figure 39. Ardich Nested Shell Results - Inferred

Figure 40. Ardich Metallurgy Parameters for Resource Estimation

Figure 42. Ardich SE extension soil program

Appendices are listed below;