TORONTO, Sept. 23, 2013 /CNW/ - Alacer Gold Corp. ("Alacer" or the "Corporation") [TSX: ASR and ASX: AQG] is pleased to announce that gold production guidance for the Çöpler Gold Mine has increased to 192,000 - 200,000 attributable1 ounces for 2013.
Rod Antal, Alacer's Chief Executive Officer, commented "Çöpler continues to perform at a high level with record quarterly production of more than 68,000 ounces in the second quarter. This great performance has led to a 15% increase in our gold production guidance. Positive ore reconciliations are continuing in the Manganese Pit, and gold recoveries are improving as effectively all ore is now agglomerated when stacked on the leach pad."
|Revised Guidance||192,000 to 200,000||375 to 390||405 to 425||unchanged|
|Previous Guidance||162,000 to 178,000||340 to 375||385 to 425||52|
The mining plan changed earlier this year which postponed the Manganese Pit south pushback. Waste tonnes related to the Manganese Pit pushback would have been capitalized; however, the revised mine plan included waste stripping for oxide ore that is appropriately expensed. The shift in the waste production profile has resulted in an increase in our cash operating cost guidance.
Guidance for Çöpler's attributable capital expenditure remains unchanged and primarily relates to construction of a SART plant and a clay-handling circuit. Additionally, annualized reductions of approximately $16 million have already been made to Alacer's general and administrative costs.
Çöpler Oxide Four Year Production Profile
A preliminary mining schedule has been generated from the recent Mineral Resource estimate announced on July 25, 2013. Based on this schedule, preliminary production guidance for heap-leaching oxide ore over the coming four years is provided in the table below.
|Waste tonnes mined (100%)||(millions)||27||27||27||21|
|Sulfide tonnes mined (100%)3||(millions)||1.0||1.5||2.3||3.8|
|Oxide ore tonnes treated||(millions)||6.5||6.6||6.5||6.1|
|Oxide ore grade||(g/t gold)||1.4||1.1||1.0||1.1|
|Heap leach gold ounces produced (100%)||('000's)||200||160||140||150|
|Heap leach gold ounces produced (attributable)||('000's)||160||130||110||120|
Rod Antal added, "The oxide ore production profile released today shows steady heap-leach gold production over the coming four years. Cash flows generated from this new production profile will increase Alacer's ability to implement critical investment decisions over the next few years, including a sulfide ore processing decision. Alacer is currently analyzing the various studies and test work done to date to determine the optimal solution for processing Çöpler's sulfide ore. We are aiming to release the outcomes of this review by the end of the year, thus providing a definitive development path for Çöpler."
Alacer is a leading mid-tier gold producer with interests in multiple mines which provide ore to three processing facilities in Australia and Turkey:
- 80% interest in the Çöpler Gold Mine;
- 100% interest in the Higginsville Gold Operations; and
- 100% interest in the South Kalgoorlie Gold Operations.
Alacer's primary focus is to maximize portfolio value, maximize free cash flow, minimize project risk, and return value to shareholders. Alacer has a strong balance sheet and is committed to responsibly developing its current operations and focused exploration programs creating value.
Except for statements of historical fact relating to Alacer, certain statements contained in this press 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 be contained in this document and other public filings of Alacer. Forward-looking information often relates to statements concerning Alacer'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.
Forward-looking information includes statements concerning, among other things, production, cost and capital expenditure guidance; development plans for processing sulfide ore at Çöpler; the sales process to sell Alacer's Australian assets; the generation of free cash flow and payment of dividends; matters relating to proposed exploration, communications with local stakeholders and community relations; negotiations of joint ventures, negotiation and completion of transactions; commodity prices; mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates; the development approach, the timing and amount of future production, timing of studies and analyses, the timing of construction and development of proposed mines and process facilities; capital and operating expenditures; economic conditions; availability of sufficient financing; exploration plans and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, regulatory and political matters that may influence or be influenced by future events or conditions.
Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other of Alacer's filings, and include the inherent speculative nature of exploration results; the ability to explore; communications with local stakeholders and community and governmental relations; status of negotiations of joint ventures; weather conditions at Alacer's operations, commodity prices; the ultimate determination of and realization of mineral reserves; existence or realization of mineral resources; the development approach; availability and final receipt of required approvals, titles, licenses and permits; sufficient working capital to develop and operate the mines and implement development plans; access to adequate services and supplies; foreign currency exchange rates; interest rates; access to capital markets and associated cost of funds; availability of a qualified work force; ability to negotiate, finalize and execute relevant agreements; lack of social opposition to the mines or facilities; lack of legal challenges with respect to the property of Alacer; the timing and amount of future production and ability to meet production, cost and capital expenditure targets; timing and ability to produce studies and analyses; capital and operating expenditures; economic conditions; availability of sufficient financing; the ultimate ability to mine, process and sell mineral products on economically favorable terms and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, regulatory and political factors that may influence future events or conditions. While we consider these factors and assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.
You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on our current expectations and our projections about future events. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in Alacer's filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Alacer does not intend, and undertakes no obligation to update any forward-looking information to reflect, among other things, new information or future events.
1 Alacer owns 80% of Çöpler.
2 Cash Operating Costs and Total Cash Costs are non-IFRS financial performance measures with no standardized definitions under IFRS. For further information, see the "Non-IFRS Measures" section of the MD&A for the three month period ended June 30, 2013.
3 The sulfide tonnes mined are planned to be stockpiled.
SOURCE: Alacer Gold Corp.
For further information:
For further information on Alacer Gold Corp., please contact:
Lisa Maestas - Director of Investor Relations - North America at +1-303-292-1299
Roger Howe - Director of Investor Relations - Australia at +61-2-9953-2470