Alacer Gold announces further exploration results for the Ç?pler District in Turkey

Criteria

JORC Code explanation

Commentary

Sampling Techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• Diamond drill core was sampled as half core at 1m intervals or to geological contacts.
  
• RC chip samples are collected in calico bags (3-5kg) for analysis and representative sub-samples placed into chip box trays at 1m intervals for logging. Reject samples are collected in PVC bags and stored in a bag farm for 6 months in case need arises for relogging, duplicate sampling, metallurgical sampling and follow-up QAQC.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• To ensure representative sampling, diamond core is marked considering mineralization intensity and veining orientations then sawn and half core sampled.
  
• Where possible all diamond core is oriented using 2IC Ezy-Mark or Reflex ACT II systems and collected in HQ triple tube splits pumped out with water. PVC pipe is inserted into areas of core loss marked with interval of loss. PVC pipe is cut to equivalent length of core loss and placed into core trays. Majority of holes are downhole surveyed using a MEMs Gyro to ensure accurate location of all samples within the bore hole.
  
• RC chip samples are collected at 1m intervals using a side mounted rotary cone splitter. All samples are weighed using digital scales with weights recorded and used to determine sample representivity. The scale is tared before each measurement. All weights are recorded onto paper and transferred to the geological database.

Aspects of the determination of mineralization that are Material to the Public Report.

In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralization types (eg submarine nodules) may warrant disclosure of detailed information.

• Diamond Core samples are submitted as 1m half core to SGS Ankara laboratory for standard industry analysis i.e. samples crushed and split to 3kg, pulverized and subsampled to 250g and fire assayed using a 30g charge, with gravimetric finish on all gold values >3g/t. Whole rock analysis for 36 elements using a four acid digest and ICP-ME (OES) finish is completed for all exploration and resource development samples. Over limit precious and base metals are reanalyzed by AAS. All samples are analysed for Total Carbon and Sulphur. Where applicable, Cyanide leachable gold is determined using a hot 'Shaker Test' modified BLEG method. All samples are weighed on receipt, dried, reweighed and moisture content determined. Crushing and Grind size checks are completed at all stages of sample reduction.
  
• RC samples go through the same assay process at SGS Ankara, with initial samples submitted being 3-5kg RC chip samples that are crushed and then split to 3kg before pulverizing.

Drilling Techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• Diamond drilling was mainly carried out with HQ and HQ3 triple tube. Precollars, metallurgical and difficult holes were completed with PQ and PQ3 triple tube. NQ was used in situations where, due to difficult ground conditions, the best option was a reduction in core size to NQ. Majority of holes were downhole surveyed by MEMs Gyro provided and maintained by Wellforce International. At times when MEMs Gyro was not available a Reflex Multi-Shot tool was used in place of Gyro. Core orientation was completed using the 2IC Ezy-Mark orientation system, with use of the Reflex ACT II tool for orientation when Ezy-Mark kits not available.
  
• Çöpler District: RC drilling was completed with a nominal 5.25 inch face sampling hammer. Majority of holes were downhole surveyed by MEMs Gyro provided and maintained by Wellforce International.A Reflex Multi-Shot tool was used when the MEMs Gyro was not available.

Drill Sample Recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

• Diamond Core -
  • All diamond core is measured and reconciled against core blocks, end of hole depth and drillers run-sheets.
  • Intervals of visual and calculated missing core are recorded in the sampling spreadsheet and geological database. PVC of equivalent length to missing core interval is inserted as a visual marker of core loss.
  • Core recovery is calculated on a per metre basis of recovered core and entered into the database as a percentage. In general, core recoveries are between 80 – 90%, reflecting strongly sheared, brecciated, altered and in areas of limestone, karstic ground being drilled (cavities).
    
• RC Samples -
  • Both primary and residual samples are weighed to document sample recovery and determine recovery percentages against nominal expected sample weights.
  • The rotary cone sampling unit is adjusted as required to maintain a representative sample volume being collected by a 5.25 inch face sampling hammer.
  • All weighing is completed in the field using a digital scale with tare function.
  • Duplicate samples, standards and blanks are inserted into sample stream to achieve 10% QAQC coverage of sampled material.

Measures taken to maximize sample recovery and ensure representative nature of the samples.

• Diamond Core -
  • Use of HQ3 and PQ3 triple tube with splits to collect maximum intact core.
  • Inner tubes pumped out with water to prevent core loss and breakage.
  • Use of bentonite commenced with Yakuplu North drilling to improve core recovery through 'caking' of more porous and poorly consolidated lithologies.
  • Drilling of short core runs (1.5m).

• RC Sample -
  • Monitoring of sample weights and adjusting rotary cone sampling system accordingly to ensure correct weight of primary sample split.
  • Monitoring of reject sample weight versus expected nominal achievable 20kg reject. Advising driller to modify drilling speed and or hammer rate to produce coarser sample and less fines.
  • Monitoring of outside return to flag excessive fines loss.
  • No wet sampling.
  • Clearing of sample equipment by air burst every metre drilled before progressing to next metre sampled.
  • Manual cleaning of sampling cyclone and rotary cone splitter at end of every hole and during drilling as required to prevent contamination.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• No relationship has been identified between sample recovery and grade.
  
• Comparisons completed between RC and Diamond sample outcomes from Çöpler District detected no significant assay bias due to sampling / material type bias.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Diamond Drill core was logged in detail for lithology, alteration, mineralization, structure and veining. Data collection is considered to a standard appropriate for Mineral Resource estimation.
  
• Diamond Core –
  • Core samples were tested by immersion method at a frequency of 1 determination every 3m for insitu density for all material types for every hole drilled.
  • Point load testing was completed at a frequency of 1 determination in every 3m for all intact core.
  • Detailed geotechnical logging completed on Yakuplu North cored holes capturing data for Fracture Index, RQD and GSI calculation.
  • Samples collected for external metallurgical testwork for Yakuplu North prospects.
  • Samples collected for external transmitted, reflected and SEM petrological determinations of mineralization and waste lithology, textures and alteration.All core photographed wet and dry for reference.
    
• RC Chip Samples -
  • RC cuttings were logged for rock type by the mineral composition, mineralization by sulphide and oxide mineral species, alteration and vein mineralogy in sufficient detail to interpret distribution of lithology and mineralization distribution and relative subjective mineral abundances.
    
• RC Chip Samples –
  • All RC chip samples analysed on site by ASD XRD PIMA analyser for determination of non-ore mineral species e.g. clays, carbonates, phyllosilicates. Data used for determination of alteration assemblages, lithology distributions based on geochemistry and location of regolith / transitional boundaries such as BOT, BOCO, TOFR and REDOX.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel etc) photography.

• Logging is qualitative in nature.
• Diamond core was photographed both wet and dry.
• RC chips were photographed for future reference.

The total length and percentage of the relevant intersections logged.

• All drill holes and RC chips were logged in full.

Sub-Sampling Techniques and Sample Preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

• Diamond Core –
  • Exploration and Resource diamond core is half core sampled using a manual drop saw to cut to one side of the bottom of core line (where present in competent ground).
  • Half-core with bottom of hole line is retained in the tray.
  • PQ core is used for metallurgical sampling. ¼ core is used for initial assay. ½ core is dispatched in 1m intervals for metallurgical compositing and testing, ¼ core is retained in tray.
  • HQ triple tube core is used for geotechnical drilling, 10cm complete core segments are extracted for external laboratory testing (UCS, DS). Core block with sample details is left in core tray.
  • As with geotechnical core, select sampling for petrology is collected from ½ core and a core block with details of sample is inserted into core tray.
  • Soft (clay), poorly consolidated (regolith, oxide) and fragmental samples (fault, shear, breccia materials) are hand split into 1m ½ core samples.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

RC samples are drilled using a face sampling hammer with samples collected via a rig side-mounted cyclone and rotary cone splitter. Samples are collected dry. Occasional moist samples are collected at top of sample intervals following 3m rod changes. Samples remain dry during metre by metre blow-out of contaminants in cyclone and cone splitter. Duplicate samples are collected using a 50/50 Jones riffle splitter at the drill rig.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Industry standard diamond and RC drilling techniques are used (as described above) and are considered appropriate.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• For RC drilling, contamination and sample representivity were managed through –
  • Full end of hole clean-out of cyclone and cone splitter.
  • During drilling clean-out of cyclone and splitter when in oxides and clays to prevent caking contamination.
  • Blow-out of all sampling equipment following sampling of each metre and before start of drilling of next metre.
  • Adjustment of rotary cone splitter to maximize sample collected.
  • Weighing of primary and reject samples to measure sample recovery.
  • Varying drill hammer penetration rate to maximize particle size and reduce fine sample loss through outside return.
  • Maintaining a dry sample.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• RC and diamond sampling have 5% of total submitted samples as field duplicates. With RC samples, a field duplicate is collected through use of a Jones riffle splitter to achieve a 50% primary sample split. With diamond core, quarter core repeats are selected and submitted post- primary sample submission. A further 5% of samples submitted are "blanks" and "standards" designed to check on laboratory performance during assay (accuracy & precision). Laboratory QAQC and field duplicates combined represent 10% of material assayed and analysed.
  
• Results to date are within expected industry tolerances for duplicate and laboratory performance. There is no material bias to report.

Whether sample sizes are appropriate to the grain size of the material being sampled.

• Sample sizes are considered appropriate to correctly represent the gold mineralization based on: the style of mineralization, the thickness and consistency of the intersections, the sampling methodology and assay value ranges for gold.

Quality of Assay Data and Laboratory Tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• The fire assay gold analyses undertaken are considered a total assay method. Fire assay gold analysis is an appropriate assay method for this type of deposit.
• Multi-element analyses of silver, copper, lead and zinc undertaken by four acid digestion via ICP-AES are considered total assay methods except where they exceed the upper detection limit.
• In cases where samples are overlimit they are re-assayed using a four acid digest with HCI leach, and AAS finish. These assay methods are considered to be total.
• For gold assays greater than 3g/t, the fire assay process is repeated with a gravimetric finish for coarse gold. This is a total assay method.
• Cyanide leach analysis is completed to determine potential gold leach recoveries when compared against total contained gold. The cyanide leach analysis is a partial analysis method.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• TerraSpec 4 desktop ASD PIMA (Portable Infrared Mineral Analyser) spectrometer for detection of alteration (clay mineralogies) was used. The machine is serviced and calibrated annually and used in conjunction with TSG software for conversion of spectral data to mineral data. PIMA is used on all RC chip samples to create clay and mineralogy models for correlation against alteration logging and geochemically determined lithologies.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

• Industry standard certified reference materials and blanks were utilized in order to check laboratory assay quality control. Standards and blanks represent 5% of sample submissions (1 in 20 samples, alternating blank and standard).
• Laboratory visits to SGS Ankara and ACME Labs Ankara are conducted on a quarterly basis.
• Field duplicates and laboratory coarse crush duplicates (prior to pulverizing) are part of standard process.
• Sizing checks (dry sieve) on crushed and pulverized samples are reported for all holes at 1 check in every 20 samples.
• SGS and ACME laboratories report all internal laboratory QAQC outcomes for each hole.
• Laboratory submits monthly QAQC Report to client.

Verification of Sampling and Assaying

The verification of significant intersections by either independent or alternative company personnel.

• Intersections were reviewed by the Chief and Senior Exploration Geologists following receipt of the assay results.
• All assay results are processed and validated by the Senior Data Administrator prior to loading into the database. This includes plotting standard and blank performances, review of duplicate results.
• Original assay certificates are issued as PDF for all results and compared against digital CSV files as part of data loading procedure into the database.
• Geology Manager reviews all tabulated assay data as MAIG QP.

The use of twinned holes.

• No twin holes were drilled.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• All primary data is sent electronically as both PDF and CSV files to a dedicated assay email cabinet with restricted access.
• Email assay dropbox only receives data.
• Data within the dropbox is registered and uploaded to DataShed Data Management Software and Geological Database for validation.
• Data is validated through a series of queries and protocols.
• All geological data related to drilling, logging and testwork is saved within the Geological database (downhole surveys, collar surveys, collar metadata, logging data, geotechnical data, all assay data).
• Database is annually audited by external consultants.
• Database is audited prior to resource estimates.
• Database is backed up daily and monthly on network and on remote hard drives.
• Database is copied monthly and sent to Alacer's head office in Denver.

Discuss any adjustment to assay data.

• Assay adjustments are only made when associated drill hole data cannot be validated e.g. unverified collar locations, identified data entry errors. All deletions and changes are logged within the database and reported on a monthly basis.

Location of Data Points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Drillhole collar locations were surveyed by both in-house mine surveyors and contract surveyors as part of collar survey validation process. 10% of historic collars are field verified.
• Diamond and RC drill holes are downhole surveyed by MEMs Gyro, Reflex Multishot and North Seeking Gyro.

Specification of the grid system used.

• All drill hole collars surveyed in ED 50 grid using differential GPS.

Quality and adequacy of topographic control.

• Topographic surfaces are prepared from detailed ground surveys and ortho-corrected satellite imagery. Satellite imagery accurate to <1m contouring. Satellite imagery is current as of 9^th August, 2015.

Data Spacing and Distribution

Data spacing for reporting of Exploration Results.

• Yakuplu North is being drilled to a nominal 50 x 40m spacing.

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• The reported drilling has not been used to prepare Mineral Resource estimates.
• Drill hole spacing for Yakuplu North is sufficient to define grade continuity, geological continuity, depth and lateral extents of mineralization.

Whether sample compositing has been applied.

• Sample compositing has not been applied.

Orientation of Data in Relation to Geological Structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• At Yakuplu North drill holes are at a near right angle to the main mineralized NW-SE trending shear with holes drilled from NE -> SW at 60 degrees. No bias in sampling is anticipated.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• No orientation based sampling bias has been identified in the data.

Sample Security

The measures taken to ensure sample security.

• Chain of custody is managed by Alacer Gold for Yakuplu North through its JV company Kartaltepe.
• Samples are stored on site until collected for transport to SGS laboratory in Ankara, Turkey by an independent cartage contractor.
• Alacer Gold personnel have no contact with the samples once they are picked up for transport to the laboratory.
• Samples for Umpire testwork are transferred directly from SGS Ankara to ACME Labs Ankara using an independent freight carrier.
• Tracking sheets have been set up to track the progress of samples.
• All samples are placed into calico bags with sample tickets and clear sample ID numbering on the outside. Samples are placed inside of labelled polyweave bags holding a maximum 4 samples a bag.

Audits or Reviews

The results of any audits or reviews of sampling techniques and data.

• External reviews of data and processes relating to these prospects have been completed by independent Resource Consultant Paul Gribble, Cube Consulting and Data Revolution. There were no adverse material results of the audits.

Criteria

JORC Code explanation

Commentary

Mineral Tenement and Land Tenure Status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• Yakuplu North mineralization is located within mining leases which are owned by Kartaltepe Madencilik (a subsidiary of Alacer Gold) and Lidya Madencilik in joint venture. Both companies have a 50% interest in the license areas.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• The licenses are in good standing with no known impediment to future grant of a mining permit.

Exploration Done by Other Parties

Acknowledgment and appraisal of exploration by other parties.

• At Yakuplu, small scale open pit mining has occurred in the past for iron ore which is also an indicator for gold mineralization.

Geology

Deposit type, geological setting and style of mineralization.

• The Çöpler District hosts various styles of mineralization, mainly epithermal, skarn and porphyry style gold and gold-copper mineralization.
• The Yakuplu North deposit is strongly shear zone constrained with strong epithermal characteristics and grade association with intrusive diorite dykes. As with the other prospects the mineral association is dominantly Fe-Au-Cu-Ag.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

• easting and northing of the drill hole collar
• elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
• dip and azimuth of the hole
• down hole length and interception depthhole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• The locations and mineralized intersections for all holes completed are reported in Appendix 1 of this release.

Data Aggregation Methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

• Exploration results are reported as length weighted averages of the individual sample intervals.
• No high-grade cuts have been applied to the reporting of exploration results.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• Zones of particularly high-grade gold mineralization have been separately reported in Appendix 1.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

• No metal equivalent values have been used.

Relationship between Mineralization Widths and Intercept Lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralization with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

• At Yakuplu North the mineralization strikes ~NW-SE with dip of ~80 degrees to the NE. Drilling is to the SW at 90 degrees to strike with drilling intercepts representing 40 to 60% of true width.

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Relevant diagrams have been included within the main body of text.

Balanced Reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• All exploration results from these drilling programs have been reported.

Other Substantive Exploration Data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• Metallurgical testing is still to be completed for Yakuplu North but based on similarity of ore to adjacent Yakuplu East and Southeast deposits, the oxide mineralization is anticipated to have similar recovery characteristics to Çöpler Deposit ores and could be processed through the Çöpler processing plant (heap leach).

Further Work

The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• Yakuplu North is an active growth project with scale of mineralized system, strike and depth extent, and grade continuity currently being defined. Multiple diamond drill rigs and an RC rig worked through 2015 and drilling will resume in 2016 to complete an initial 50 x 40m pattern of drilling across a 700m strike extent of mineralized shear.
• The currently defined central area of Yakuplu North will be infill drilled in 2016 to a spacing of 25m x 20m for Indicated Resource estimation.
• A further 300m strike step-out along the Yakuplu North shear is planned for 2016 to the southeast, covering a prospect referred to as Yakuplu Main.