TORONTO, Oct. 28 /CNW/ - Anatolia Minerals Development Limited ("Anatolia") (TSX: ANO) today announced lower capital and operating cost estimates for its 100%-owned Copler Gold Project, located in east-central Turkey. Prior estimates placed capital costs at approximately US$190 million, with life of mine cash operating costs at about $290 per ounce of gold after start-up. Both estimates are expected to decline within a range of 10-15%.
These downward revisions come as Anatolia has completed engineering and most pre-construction infrastructure. Construction mobilization began earlier this month. Declines are attributable to favorable changes in fuel costs, foreign exchange rates, labor markets, material costs, personnel requirements and construction segment resources.
Edward C. Dowling, President and CEO of Anatolia stated, "Economic conditions have changed substantially since announcing plans in May 2008 to initially develop Copler (Phase 1) as a crush-heap leach operation. We expect capital and operating costs to be favorably affected by these conditions. Additional cost reductions are achievable by renegotiation of contracts and compressing the operating structure to best match the simplified processing method."
Anatolia has outlined a multi-phase approach to developing Copler. This initial phase targets open-pittable near-surface oxide ores, which will be processed through a 15,500 tonne per day crush-heap leach operation. Management estimates Phase 1 will produce 1.3 million ounces of gold over an eight year mine life. A technical report compliant with Canada's National Instrument 43-101 standard for mineral disclosure is being prepared to disclose Phase 1 mineral reserves and mineral resources and related Phase 1 stand-alone economics. This report will be filed on SEDAR upon incorporation of the revised project economics outlined in this news release.
About Anatolia
Anatolia Minerals is a leader among exploration and development companies in Turkey, pursuing a disciplined strategy for growth through resource discovery and development. The Company's 100%-owned Copler Gold Project is among Turkey's largest undeveloped gold deposits. Anatolia is developing Copler with a holistic approach. The Company plans a phased mine development at Copler. Phase 1 begins with a crush-heap leach operation for the oxide ores. Simultaneously, the Company is accelerating exploration and technical work to generate additional gold resource and reserves for both oxide and sulfide ores. In Phase 2, the Company plans to install milling for higher-grade oxide ores to produce additional gold along with the initial heap leach. Phase 3 will culminate in the development of the sulfide mineral resources.
Anatolia currently has 83.1 million common shares issued and outstanding, 100.5 million fully diluted. Anatolia trades on the Toronto Stock Exchange as ANO.
Cautionary Statements
Certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in Anatolia's public filings, Anatolia's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the timing and amount of future production, the timing of construction of the proposed mine and process facilities, capital and operating expenditures, availability of sufficient financing, and any and all other timing, development, operational, financial, economic, legal, regulatory, political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other Anatolia filings, and include the ultimate determination of mineral reserves, availability and final receipt of required approvals, licenses and permits, sufficient working capital to develop and operate the proposed mine, access to adequate services and supplies, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and associated cost of funds, availability of a qualified work force, and the ultimate ability to mine, process and sell mineral products on economically favorable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Anatolia filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Anatolia does not intend, and undertakes no obligation to update any forward looking information to reflect, among other things, new information or futures events.