TORONTO, Dec. 18, 2014 /CNW/ - Alacer Gold Corp. ("Alacer" or the "Corporation") [TSX: ASR and ASX: AQG] is pleased to announce the results of the heap leach pad expansion study which has resulted in a 14% increase in ultimate capacity to 56 million tonnes. The total cost of the expansion is estimated to be $30M which combines the previously planned heap leach phase four expansion with the new capacity increase to 56 million tonnes. The Corporation expects to spend $25M of the expansion costs in 2015. Work is currently underway on a technical review to re-optimize the mine plan which will take advantage of the new expanded heap leach capacity. The results of this work will be announced towards the end of first quarter 2015.
Rod Antal, Alacer's Chief Executive Officer, commented, "The results of the Sulfide Project Definitive Feasibility Study provided the catalyst to evaluate the potential of increasing the existing heap leach pad capacity, thereby allowing an extension to oxide production beyond 2017. The resulting increase of nearly seven million tonnes of capacity to the heap leach pad is a great result and enables the addition of high-margin oxide production.
With the ultimate capacity of our existing heap leach pad now established, we will be advancing the technical work on a second heap leach pad located towards the west of the Çöpler Mine. Over the next 12 months we will take our conceptual plan to an engineered design with detailed cost estimates. This will be an important step to provide us with additional oxide production options into the future."
Alacer is a leading intermediate gold mining company with an 80% interest in the world-class Çöpler Gold Mine in Turkey. The Corporation's primary focus is to maximize portfolio value, maximize free cash flow, minimize project risk, and therefore create maximum value for shareholders.
During 2014, Çöpler is forecast to produce 160,000 to 180,000 attributable1 ounces of gold at All-in Costs2 of $730 to $780 per ounce. Çöpler's oxide ore is currently being processed in a conventional crush, agglomeration, heap-leach and gold recovery circuit.
Alacer is actively pursuing initiatives to enhance value beyond the current mine plan:
- Çöpler Oxide Production Optimization - continuing to evaluate opportunities to optimize and extend the oxide production beyond the current reserves.
- Çöpler Sulfide Project – work is ongoing following the June 2014 Sulfide Definitive Feasibility Study ("DFS") which demonstrated robust financial returns from processing sulfide ore and extends Çöpler's mine life to 20 years. Çöpler is forecast to produce a further 3.2 million ounces of gold at low All-in Costs2 averaging $810 per ounce over the life of the mine.
- Alacer continues to pursue numerous high-potential exploration projects in Turkey in various joint ventures with our Turkish partner, Lidya Mining.
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, preliminary cost reporting in this press release, production, cost and capital expenditure guidance; ability to expand the current heap leach pad, development plans for processing sulfide ore at Çöpler; results of any gold reconciliations; ability to discover additional oxide gold ore, 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, announcements and analysis, the timing of construction and development of proposed mines and process facilities; capital and operating expenditures; economic conditions; availability of sufficient financing; exploration plans; receipt of regulatory approvals 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 analysis; 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 Attributable gold production is reduced by the 20% non-controlling interst at the Çöpler Gold Mine.
2 All-in Costs is a non-IFRS financial performance measure and has no standardized definition under IFRS. For further information and detailed reconciliation, please see the "Non-IFRS Measures" section of the MD&A for September 30, 2014.
SOURCE: Alacer Gold Corp.
For further information: Lisa Maestas - Director, Investor Relations at +1-303-292-1299