TORONTO, July 27 /CNW/ - Anatolia Minerals Development Limited ("Anatolia" or the "Company") (TSX: ANO) announces second quarter update and outlook for upcoming events.
Copler Gold Project
Milestones
The Company continued to advance its principal objective of building the Copler Gold Mine. Local community expectations remained high, with substantial emphasis given to managing social and community programs to ensure appropriate benefits flow to local constituents. The Company achieved numerous milestones in the second quarter including:
- Safety, Social, Health and Environment: Mine development and
operating activities are being conducted to meet Turkish and
international standards. The Company operated with one lost-time
accident for the quarter. The Company began developing formal action
plans to meet applicable performance standards for safety and health,
social, and environmental guidelines. A total of 18 action plans were
under development during the second quarter, with nine now complete.
In addition, management has commissioned a social impact assessment
to be conducted later this year.
- Engineering, Procurement and Construction: Engineering was fully
completed during the second quarter, and all drawings were delivered
to Anatolia. Purchase order commitments for equipment and
construction materials continued on schedule. As of June 30, 2009,
Anatolia's payments against purchase order commitments for
engineering, equipment and construction materials achieved 80% of
contracted values. Most major components, including the crushing
plant, screens, conveyors and tanks, were transported to site. The
power line was substantially complete, but incurred damage in a late
spring storm. The contractor and utility company are working to
repair the damaged section. The power line is not needed for
construction purposes; the construction utility power supply was not
affected by this event. Engineering and fabrication of the ADR plant
is substantially complete and is enroute to Turkey; the last
remaining ADR electrical and switchgear equipment has been ordered.
At this time no delays are anticipated due to late delivery of any
materials or equipment. Mining and other earth moving equipment
sufficient for initial needs was fully mobilized to site during June.
- Local Contracting: The Company reached understandings with local
stakeholders on many local contracting and other economic development
opportunities. Local contracting opportunities encompass many support
elements, including light construction, small earthworks, concrete
work, haulage, transportation, and various other services and
supplies contracts. Management is committed to developing local
capacity and continues to assess other opportunities for local
businesses and individuals consistent with capabilities, and
technical considerations of the project.
- Local Employment: Anatolia engaged the local communities in
discussions to provide training and direct employment with the
Company and several of its key contractors. Vocational training began
in May and received excellent local response. Job postings were made
and employment interviews conducted. The Company and its main
contractors are prepared to make employment offers to individuals
from the surrounding communities.
- Sustainability: The Company, through town-hall meetings and community
outreach efforts is consistently reiterating the Company's commitment
to promote local economic and social development in compliance with
the International Finance Corporation ("IFC") Performance Guidelines
and the Equator Principles.
- Resettlement: Residents of the Copler Village will be resettled to a
nearby location agreed to by the Village Council according to an
approved Master Relocation Plan. Architectural and construction
plans, designs and zoning approvals are complete for the new village
and the Company is ready to commence earthworks in preparation for
full construction. Completing resettlement is not anticipated to
affect the project's critical path.
- Project Financing: Anatolia closed the US$62.5 million senior project
debt (the "Debt Facility") with Bayerische Hypo- und Vereinsbank AG,
a member of UniCredit Group ("HVB") on March 31, 2009 (see Anatolia
News Release, dated March 31, 2009). Activities relating to this Debt
Facility focused on advancing the conditions precedent to drawdown.
The milestones outlined above addressed many of these conditions
precedent; additional work is continuing.
The Company has made solid progress and has completed the second quarter milestones as outlined with our shareholders.
Outlook
Despite the achievements against plan made during the second quarter, year-to-date overall construction progress was more limited than anticipated in management's original 2009 development plan. Although substantial progress was made with respect to local understandings during the second quarter, one remaining contracting issue needed to be settled during the third quarter. This issue has very recently been settled through negotiations supported by relevant authorities, commercial partners and other stakeholders, albeit coordination of ramp-up activities on the ground at Copler is ongoing. The pre-stripping and major earthworks activities planned to begin in July have been delayed approximately a month. In turn, this delay may cause a similar slippage in subsequent milestones. Management is evaluating various options to reduce the construction period.
The Company is reviewing the financial impact of this delay and will announce the implications in the near future once the Company factors the effect of this recent contracting resolution into the construction schedule.
Edward Dowling, President & CEO of Anatolia stated, "As we have progressed in Turkey, it is clear that doing the right things, the right way, and in the right order is vitally important. This takes time, but in the end it builds enterprise sustainability. We are pleased that we now have what appears to be a clear path to production."
Other
Other activities at Copler during the second quarter included:
- Anatolia announced plans to drill the underlying sulfide gold deposit
at Copler (see Anatolia News Release, dated May 19, 2009). The
program will include approximately 12,000 meters, designed primarily
to extend and better define the gold mineralization of several known
sub-vertical structures encountered during earlier drilling.
Following the announcement of this program, Anatolia's exploration
team initiated the bidder selection process and is presently
finalizing the drill plan. The Company will announce the commencement
of drilling.
- Management continued advancing metallurgical testing of sulfide
samples collected during the 2008 drilling program and evaluating
processing alternatives. Once results from the sulfide drilling
program are available, the sulfide resource will be updated and
management will undertake to prepare a new technical report.
Other Exploration Projects
Other exploration activities remain limited, with substantially all
Company financial resources being committed to construction of the Copler Gold
Project. Recent exploration activities include:
- Developing a program to re-start exploration at Cevizlidere,
following termination of the joint venture with Rio Tinto late last
year. During the second quarter, management met with its advisors and
various stakeholders from the region. Work for at least the balance
of 2009 is expected to involve engagement with local constituents to
build trust and establish a community support agreement. A third
party has been retained to develop an initial resource estimate based
on the 27 holes drilled previously by Anatolia during the joint
venture. A technical report is expected to be complete during the
fourth quarter 2009.
- A Preliminary Resource Estimate for the Karakartal copper-gold
deposit has been prepared by a third party consultant to the Company.
This technical report is under final review, and management expects
it to be released during the third quarter 2009.
Strategic Opportunities
- The Company continues to explore strategic growth and diversification
opportunities. To assist with these activities, Anatolia added Howard
Stevenson as Vice President Corporate Development (see Anatolia News
Release, dated June 11, 2009). As the Company continues to advance
Copler to production, initial strategic activities will focus on
strategy development and vetting of potential targets.
- Anatolia continued to evaluate prospective Turkish strategic
partners. The Company sees this as a key element for long-term
strategic sustainable growth in Turkey, and is seeking to follow the
successful framework achieved by other mining companies.
About Anatolia
Anatolia Minerals, recognized as a leader in exploration and development in Turkey, is developing its Copler Gold Project. Initial plans are to produce approximately 1.3 million ounces of gold at a cash cost of about $260 per ounce. Additional production expansion of the oxide and sulfide gold resource is expected at Copler by taking advantage of the inherent large resource through on-going technical activities. In addition, Anatolia holds a significant pipeline of prospective gold and base metal projects.
Anatolia currently has 114.7 million common shares issued and outstanding, 133.5 million fully diluted. Anatolia's common shares are listed for trading on the Toronto Stock Exchange under the symbol 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, economic conditions, 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, titles, 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, lack of social opposition to the mine, 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.