JOHANNESBURG (miningweekly.com) – TSX- and ASX-listed Alacer Gold has produced 168 163 oz of gold at all-in sustaining costs (AISC) of $685/oz, meeting its original production targets and beating its AISC cost guidance for the year.

Going forward, the gold mining company expects 2018 to be a pivotal year, as the Çöpler sulphide expansion project, in Turkey, comes on line in the third quarter and initial mining at new oxide deposit Çakmaktepe gets under way later this year.

A guidance of 120 000 oz to 190 000 oz from Çöpler oxides and sulphides was expected for 2018, CEO and president Rod Antal said in a statement on Tuesday.

This comprised Çöpler’s oxide gold production guidance of 70 000 oz to 90 000 oz at AISC for the oxides of $750/oz to $800/oz, and sulphide gold production of 50 000 oz to 100 000 oz.

“The sulphide expansion project is currently 75% complete and dry commissioning is under way in some areas. Start-up of the plant will commence by first processing oxide ore through the crushing, grinding and carbon-in-pulp (CIP) circuits,” he said.

The full sulphide plant will start in the third quarter, with the staged start-up beginning with the crushing, grinding and CIP circuits.

Meanwhile, Çöpler’s oxide sustaining capital expenditure (capex) of $7-million – $6-million attributable – is planned for 2018. This includes $3-million for the expansion of heap leach pad phase four to 58-million tonnes.

Çöpler’s sulphide sustaining capex is expected to total $30-million, while growth capex of $237-million is planned, which includes $225-million for the sulphide expansion project construction; $7-million to complete the Gediktepe definitive feasibility study and $4-million to bring Çakmaktepe into production.

Some $11-million - $6-million attributable – is set aside for expenditure on Alacer’s exploration portfolio in Turkey during 2018, with focus on Çakmaktepe Far North and in-pit drilling at Çöpler to grow the oxide resource.