TORONTO, May 20 /CNW/ - Anatolia Minerals Development Limited ("Anatolia" or the "Company") (TSX: ANO) today announces a disciplined strategy for bringing the Copler gold mine into production. Anatolia plans a staged approach for the development of the Copler gold mine by first building a heap leach operation for the near-surface oxide mineralization. This approach takes advantage of lower capital costs, lower operating costs and lower development risk. Cash flow from the initial phase will provide the means to advance future stages for milling of higher grade oxide ores and development of sulfide ore. Edward Dowling, President and CEO, will discuss these plans today at Anatolia's annual general meeting. A copy of Mr. Dowling's presentation is available at Anatolia's website (www.anatoliaminerals.com).
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.
Capital costs for Phase 1 are estimated at approximately US$190 million. Starting with the initial heap leach, the operation is expected to produce about 175,000 ounces of gold per year for approximately eight years. After the initial ramp up year, having a cash cost of approximately $400 per ounce of gold, it is expected that cash costs for following years will average approximately $290 per ounce of gold recovered.
Anatolia currently has sufficient funds to commence Phase 1. The Company will require an additional US$90 to US$100 million to complete Phase 1, support the Company's exploration and growth strategy, and provide for adequate working capital.
Edward Dowling stated, "After carefully considering a variety of development alternatives, we have selected a disciplined, phased approach for the development of Copler. This methodical approach provides lower initial capital cost, reduces risk and allows for the development of the full potential of the Copler gold mine."
About Anatolia
Anatolia Minerals is a leader among exploration and development companies in Turkey. The Company's 100%-owned Copler Gold Project is among Turkey's largest undeveloped gold deposits. Anatolia is pursuing a disciplined strategy for growth through resource discovery and development.
Anatolia currently has 83.1 million common shares issued and outstanding, 100.4 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.