Gediktepe

Location
Balikesir Province, Türkiye

Operator
ACG Metals Ltd.

Commodity
Gold, Polymetallic

Royalty
10% NSR on oxide zone and 2% NSR on sulfide zone

EMX has NSR royalties on the Gediktepe mine in western Türkiye. The royalties consist of: (i) a 10% NSR royalty over metals produced from the oxide zone (predominantly gold and silver) after cumulative production of 10,000 gold-equivalent oxide ounces; and (ii) a 2% NSR royalty over metals produced from the sulfide zone (predominantly copper, zinc, lead, silver and gold), payable after cumulative production of 25,000 gold-equivalent sulfide ounces (gold-equivalent as referenced from an underlying 2019 Share Purchase Agreement). 

The Gediktepe VMS deposit was discovered by a Joint Venture initiative between Alacer Gold Corp. and Lidya Madencilik (“Lidya”), a private Turkish company, in 2012-2013 and was quickly advanced to PEA (2014) and Prefeasibility stages (2016). The deposit is comprised of a polymetallic VMS system with precious metal, copper, and zinc rich domains. The upper portion of the deposit is oxidized, forming a precious metal-enriched gossanous cap that will be mined first, followed by production from the underlying polymetallic sulfide deposit. Production at Gediktepe commenced in 2021. In September 2024, ACG Metals Ltd acquired the mine from Lidya.

A series of milestone payments are required, including US$4M one year after commercial production in the oxide zone begins (paid), followed by US$3M upon initiation of sulfide commercial production and a subsequent US$3M payment one year after sulfide commercial production begins. 

Gediktepe Resource Notes       

1. Mineral Resources were reported according to CIM guidelines and definitions.                
2. The Effective Date for the Mineral Resource estimates is March 5, 2019.                
3. Mineral Resources were estimated within geologic domains by either ordinary kriging or inverse distance.        
4. Mineral Resources were reported at NSR cut-offs of U.S. $20.72/t for oxide and U.S. $17.79/t for sulphide using the mineral reserve metal prices (see Table 2.2) x 1.14 (+14%) and variable metal recoveries according to material and mineralization type (refer to Gediktepe 2019 Prefeasibility Study for details).
5. The Mineral Resources have been constrained using an optimised pit shell to reflect reasonable prospects of economic extraction.    
6. Mineral Resources that are not classified as Mineral Reserves do not have demonstrated economic viability.        
7. Mineral Resources are inclusive of Mineral Reserves, except for mining losses and grade dilution, which were determined through re-blocking of the resource model after calculation of the Mineral Resources.
8. The Mineral Resources are quoted on a 100% project basis

The foregoing are “Historical Estimates” within the meaning of NI 43-101. Source: Section 14 of the NI 43-101 pre-feasibility study technical report titled “Gediktepe 2019 Prefeasibility Study” prepared by OreWin Pty Ltd. and filed on SEDAR by Alacer with an effective date of March 26, 2019.

A qualified person has not performed sufficient work to classify the historical resource estimates as current mineral resources, and EMX is not treating the historical estimates as current. Significant data compilation, confirmation drilling, re-sampling and data verification may be required by a qualified person before the historical estimates can be classified as current mineral resources. The historical resource estimates are considered to be reliable and relevant and are presented for the purpose of describing the extent and nature of mineralization as presently understood. The historical resource estimates should not be relied upon until verified.

Gediktepe Reserve Notes

1. Mineral Reserves were reported according to CIM guidelines and definitions.                
2. The Effective Date for the Mineral Reserve estimates is March 5, 2019.                
3. Mineral Reserves were reported using a NSR cut-off based on metal prices of $1,300/oz Au, $18.5/oz Ag, $3.30/lb Cu, and $1.28/lb Zn, smelter terms for treatment and refining charges and transport including ocean freight for sulphide ore concentrates.    
4. The recovery factors used to calculate the Mineral Reserves vary according to material and mineralization type (refer to section 15 of the Gediktepe 2019 Prefeasibility Study for further details).
5. Cut-offs applied: oxide ore $20.67/t and sulphide ore $17.74/t. Additionally, enriched mineralisation with a Cu/Zn grade ratio < 0.75 is considered to be waste.
6. Metal prices used for economic analysis to demonstrate the Mineral Reserve are Au $1,315/oz, Ag $18.0/oz, Cu $3.20/lb and Zn $1.10/lb    
7. Reported Mineral Reserves incorporate and include designed open pit mining losses and grade dilution that are not reported in the Mineral Resource.
8. Only Measured Mineral Resources (and dilution) were used to report Proven Mineral Reserves and only Indicated Mineral Resources (and dilution) were used to report Probable Mineral Reserves.                    
9. Mineral Reserves are a subset of, not additive to, the Mineral Resources and are quoted on a 100% project basis.
10. All monetary figures are in USD.

The foregoing are “Historical Estimates” within the meaning of NI 43-101. Source: Section 15 of the NI 43-101 pre-feasibility study technical report titled “Gediktepe 2019 Prefeasibility Study” prepared by OreWin Pty Ltd. and filed on SEDAR by Alacer with an effective date of Mar. 26, 2019. For further details on other parameters utilized in the estimates, the reader is referred to Section 15 of the Gediktepe Report. 

A qualified person has not performed sufficient work to classify the historical reserve estimates as current mineral reserves, and EMX is not treating the historical estimates as current mineral reserves. Significant data compilation, confirmation drilling, re-sampling, data verification and updating of metal prices, engineering assumptions, and economic parameters may be required by a qualified person before the historical estimates can be classified as current. The historical reserve estimates are considered to be reliable and relevant, and are presented for informational purposes to describe the extent and nature of mineralization on the project as presently understood. The historical reserve estimates should not be relied upon until verified.