Gediktepe

Location
Balikesir Province, Turkey

Operator
Lidya Madencilik Anayi ve Ticaret A.S.

Commodity
Gold, Polymetallic

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

Gediktepe is a polymetallic VMS mining operation located in western Turkey owned and operated by Lidya Madencilik, a private Turkish company. EMX has two NSR royalties on Gediktepe consisting of: (i) a perpetual 10% NSR royalty over metals produced from the oxide zone (predominantly gold and silver) after cumulative production of 10,000 gold-equivalent ounces; and (ii) a perpetual 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 ounces. Gold-equivalent is as referenced from an underlying 2019 Share Purchase Agreement. Lidya is also responsible for a series of pre-production milestone payments payable to EMX.

Gediktepe has historical Mineral Resource and Mineral Reserve estimates disclosed in a technical report titled “Gediktepe 2019 Prefeasibility Study” prepared by OreWin Pty Ltd. with an effective date of March 26, 2019 and report date of April 3, 2019 filed on SEDAR by Alacer Gold Corp (formerly a reporting issuer in Canada).*

Gediktepe Historical Mineral Resources

Category

Tonnes (kt)

Grade

Metal

Au (g/t)

Ag (g/t)

Cu (%)

Zn (%)

Pb (%)

Au (koz)

Ag (koz)

Cu (kt)

Zn (kt)

Oxide

Measured

                    -  

             -  

            -  

          -  

         -   

             -  

               -  

                    -  

              -  

              -  

Indicated

             2,674

        2.71

       66.3

     0.10

    0.10

        0.47

           233

             5,703

               3

               3

M+I

             2,674

        2.71

       66.3

     0.10

    0.10

        0.47

           233

             5,703

               3

               3

Inferred

                   23

        0.95

       21.8

     0.23

    0.14

        0.12

                1

                   16

              -  

              -  

Sulfide

Measured

             3,999

        0.67

       25.1

     1.01

    1.83

        0.34

             86

             3,221

            40

            73

Indicated

           23,544

        0.74

       27.6

     0.85

    1.69

        0.33

           560

           20,865

          200

          399

M+I

           27,542

        0.73

       27.2

     0.87

    1.71

        0.33

           645

           24,086

          241

          472

Inferred

             2,958

        0.53

       20.2

     0.76

    1.16

        0.27

             51

             1,926

            22

            34

Total (oxide + sulfide)

Measured

             3,999 

        0.67 

       25.1 

     1.01 

    1.83 

        0.34 

             86 

             3,221 

            40 

            73 

Indicated

           26,217 

        0.94 

       31.5 

     0.78 

    1.53 

        0.34 

           792 

           26,568 

          203 

          402 

M+I

           30,216 

        0.90 

       30.7 

     0.81 

    1.57 

        0.34 

           878 

           29,790 

          243 

          475 

Inferred

             2,981 

        0.54 

       20.3 

     0.76 

    1.16 

        0.27 

             51 

             1,941 

            23 

            34 

 

Gediktepe Historical Mineral Reserves

Category

Tonnes (kt)

Grade

Metal

Au (g/t)

Ag (g/t)

Cu (%)

Zn (%)

Au (koz)

Ag (koz)

Cu (kt)

Zn (kt)

Oxide

Proven (P)

                    -  

             -  

            -  

          -  

         -  

             -  

               -  

                    -  

              -  

Probable (P)

             2,755

        2.34

       56.7

          -  

         -  

          207

       5,020

                    -  

              -  

P+P

             2,755

        2.34

       56.7

          -  

         -  

          207

       5,020

                    -  

              -  

Sulfide

Proven (P)

             3,620

        0.68

       26.7

     1.03

    1.93

            79

       3,105

                   37

            70

Probable (P)

           14,960

        0.89

       33.1

     0.89

    1.99

          429

     15,903

                 133

          298

P+P

           18,580

        0.85

       31.8

     0.92

    1.98

          509

     19,008

                 170

          368

Gediktepe was discovered by a JV initiative between Alacer and Lidya in 2012-2013.  The polymetallic VMS deposit has 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 sulfide deposit.

Lidya has advised EMX that the oxide phase has been commissioned and initial production commenced in late 2021. Lidya has also informed the Company that it will likely achieve the 10,000-ounce production milestone later in 2022. The EMX royalty on the oxide zone will commence paying once this threshold is reached.

EMX has filed a Technical Report titled “Gediktepe Project – Balıkesir Province, Turkey NI 43-101 Royalty Technical Report” with an effective date of February 1, 2022, and report date of March 21, 2022, by DAMA Engineering Inc. The Technical Report restates the Gediktepe historical resource and reserve estimates. The Gediktepe Technical Report was prepared in accordance with the exemption set forth in section 9.2 of NI 43-101.

 

* Note: Gediktepe is considered by EMX to be a material property. Concurrent with this AIF, EMX filed a Technical Report dated March 21, 2022 by DAMA Engineering Inc. titled “Gediktepe Project – Balıkesir Province, Turkey NI 43-101 Royalty Technical Report” which has an effective date of February 1, 2022. The Technical Report restates the Gediktepe historical resource and reserve estimates referenced from Technical Report dated April 3, 2019 and filed on SEDAR by Alacer Gold Corp. (formerly a reporting issuer in Canada) titled “Gediktepe 2019 Prefeasibility Study” which has an effective date of March 26, 2019.

Basic assumptions for the historical resource estimate include: (a) open pit constrained, (b) estimated within geologic domains by ordinary kriging or inverse distance, (c) reported at NSR cut-offs of $20.72/t for oxide and $17.79/t for sulfide using mineral reserve metal prices x 1.14 (+14%) and metal recoveries according to mineralization type. 

Basic assumptions for the historical reserve estimate include: (a) reported using NSR based on metal prices of $1,300/oz Au, $18.5/oz Ag, $3.30/lb Cu, and $1.28/lb Zn, metal recoveries according to mineralization type, smelter terms for treatment and refining charges and transport including ocean freight for sulfide concentrates, (b) cut-offs applied were oxide $20.67/t and sulfide $17.74/t, (c) enriched mineralization with a Cu/Zn grade ratio < 0.75 considered as waste, and (d) includes mining losses and grade dilution not reported in the historical resource.

The historical estimates should not be relied on until verified by a Qualified Person.