ACG Buys Turkish Gold Project for $7.85 Million

ACG Metals Limited is bolstering its gold production capabilities with the acquisition of the Keşkek gold project in Turkey. The company has inked a definitive agreement to purchase the mining licence and associated rights from Meta Nikel Kobalt Madencilik Sanayi ve Ticaret A.Ş. (META) for an initial outlay of $4 million, with a further $3.85 million contingent on the commencement of production. This strategic move is designed to extend the operational life of ACG's existing heap leach facility, ensuring continued gold output for several years.

The Keşkek project, located approximately 70 kilometers from ACG's Gediktepe mine, represents a significant addition to the company's asset base. The acquisition grants ACG access to a new source of oxide ore, crucial for maintaining throughput at its processing plant. This development is particularly timely as ACG ramps up its sulphide ore processing for copper and zinc concentrates, demonstrating a diversified approach to resource utilization.

Initial estimates for the Keşkek pit, as defined by META and independently verified by ACG's technical team, indicate approximately 300,000 tonnes of material grading 0.90 g/t gold. ACG's own assessment suggests a broader mineral resource of 1.5 million tonnes at 0.65 g/t gold, with considerable exploration potential for an additional 5 to 10 million tonnes. This upside underscores the long-term value proposition of the acquisition.

Metallurgical testing has confirmed the viability of processing Keşkek's oxide ore, with ACG achieving gold recoveries between 75-80% through column leaching. These figures are projected to increase to approximately 85% by employing ACG's proprietary recovery process at the Gediktepe facility. This synergy allows ACG to leverage existing infrastructure and patented technology, minimizing new capital expenditure and maximizing operational efficiency.

The transaction terms also include a 1% gross revenue royalty payable to META on gold extracted from the licence area, alongside a payment of $60 per ounce for any additional gold reserves discovered and delineated outside the initial Keşkek pit. ACG anticipates total project expenditure, encompassing phased exploration and closure, to reach approximately $15 million over a ten-year period. The company's Chairman and CEO, Artem Volynets, highlighted the acquisition as a prime example of their strategy to identify value-accretive growth opportunities that capitalize on existing operational strengths and generate sustained cash flow.

The integration of Keşkek into ACG's operations is expected to be seamless. Ore will be transported to the Gediktepe facility via established road networks, with ACG's current mining contractor already present at the META site. Furthermore, the proximity of Keşkek to ACG's existing concentrate transport routes offers additional logistical efficiencies. Mining and gold production are slated to commence in mid-2027, following the completion of residual leaching at the Gediktepe heap leach facility and the necessary permitting approvals.