The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group


Tuesday, November 16, 2010

ANATOLIA PROVIDES ÇÖPLER UPDATE AND ANNOUNCES ARRANGEMENT OF CREDIT FACILITY09:00 EST Tuesday, November 16, 2010TORONTO, Nov. 16 /CNW/ - Anatolia Minerals Development Limited ("Anatolia" or the "Company") [TSX: ANO] is pleased to provide an update on Çöpler Gold Mine in Eastern Turkey and announce the closing of a credit facility. Ed Dowling, President and CEO of Anatolia stated, "An enormous amount of work has been accomplished at Çöpler and key production systems are currently being tested and commissioned. The current schedule shows the first gold pour will occur in December, 2010; however, unanticipated events could push this important milestone into January 2011. As such and after reviewing a number of alternatives, the Company has closed a backstop financing facility with Standard Bank to ensure sufficient liquidity during this vital period. We are excited about the new relationship with Standard Bank which has proven to be an excellent business partner."Çöpler Construction ProgressConstruction activities began at Çöpler Gold Mine in October 2009 (see News Release, October 5, 2009) and substantial progress was made this quarter, with construction activities advancing on all fronts. Management was targeting to achieve first pour earlier during Q4 2010, but some slippage has occurred. Critical path items leading towards the first gold pour are presently scheduled for completion during December 2010. Some risk remains to this schedule that could push first pour to January 2011. Key remaining elements on the first pour critical path include final water-level adjustment to the process water pond, connection conversion from the 34.5kV construction power to the 154kV permanent power system and completion of piping in the elution and carbon handling systems. Once these items are complete, solution can be added to the leach pad. First pour would then follow three to five weeks thereafter.The earthworks and concrete work is almost complete with structural steel, piping, mechanical, electrical and instrumentation installations well underway. Lining of the pregnant pond and storm event pond is complete and water has been pumped to the pregnant pond and circulated onto the leach pad for pre-wetting the run-of-mine ore which has been placed on the leach pad. The pre-wetting is done via the leach pad irrigation system that will be used for adding diluted leach solution to the run-of-mine ore. All pregnant and barren piping to and from the leach pad and carbon in column ("C-I-C") area has now been installed, hydro tested, provided with secondary containment and, where necessary, heat traced. Lining of the leach pad Cell 1 is complete with Cell 2 now nearing completion. Overliner installation and concurrent placement of run-of-mine ore will resume in Cell 2 as soon as the lower elevations of composite liner are completed and overliner has been placed. This work is currently ongoing.The reagent preparation area is now substantially complete and tested. Reagent addition will be initiated as soon as all checks are complete and safety measures are in place. The reagent storage facility structural steel is complete. This facility now only needs the installation of the gantry crane before it is fully functional.The primary crusher foundations have been completed together with the multi-plate tunnel structure for the primary crusher discharge conveyor. The tunnel is now being backfilled. The apron feeder and conveyor tables have been installed and structural steel work is nearing completion. The bottom frame of the primary crusher has been installed with crusher mechanical installation continuing in November. The fine ore crushing building concrete is complete and the secondary and both tertiary crushers have been rough set. The surge bin support steel for the secondary and tertiary crushers is now complete and the surge bins are being installed concurrently with the balance of the structural steel for the fine ore crushing and screening building. The overland conveyor system from the fine ore crushing building to the leach pad is structurally complete and the agglomerator is ready to be set. The portable conveying system is substantially complete, with the mobile conveyors, transfer and horizontal conveyors fully assembled and pre-wired for operation.The C-I-C adsorption plant is complete with the 6-column train, carbon screen and associated piping installed and hydro-tested. The C-I-C plant will shortly be run with water to allow operators to familiarize themselves with its operation. The elution building is complete and is fully enclosed. All equipment is installed and is currently in the pre-commissioning phase. All equipment is installed and all pumps are wired and are awaiting pre-commissioning. The refinery building is complete, including most of the piping that is now substantially complete. All process equipment has been installed in the refinery and is currently being prepared for pre-commissioning.The raw water booster station building has been completed and the booster pumps set and terminated. The main submersible pumps and the reconfiguration of the raw water line will be completed in November.The new permanent 40.2 kilometer, 154kV power line and the 16MVA mine substation were completed with all tests and checks and energized on September 23. The two main electrical rooms on site have been completed and have been energized. The transition from construction power to the permanent 6.6kV distribution system is in progress. The raw water booster station electrical room has been completed and will be energized in November.The electrical and instrumentation contractor has completed the majority of the distribution network and is pre-checking and terminating all equipment. Installation of the digital control system is in progress. The instrumentation and process control system hardware has been preassembled and tested and is now on site following factory acceptance tests in Istanbul.The commissioning team is on-site for pre-commissioning and commissioning procedures. Handover packages together with all appropriate documentation are being assembled as part of the commissioning process.The pre-engineered building contractor has completed the new 50-man dormitory, kitchens and 150 seat cafeteria, the warehouse and office buildings. The dormitory is now occupied and the warehouse is currently being prepared to receive all inventory currently stored in temporary facilities.The last remaining land parcel required for the New Çöpler Village resettlement area was secured by the Corporation. As a result, the lot plan for the new village was approved in the Erzincan Cadastral Office and registered in the İliç Title Office. The contract for constructing the New Çöpler Village has been awarded and the construction permit has been received. The contractor has started the construction of the houses and the related infrastructure. Structural components of the majority of the houses are completed. Foundation works are underway for the remaining houses and common areas such as the mosque. Construction of the new village is expected to be substantially complete by the second quarter of 2011.In the Old Çöpler Village the last remaining title other than the ongoing cadastral court cases was transferred to the Corporation during the quarter. Subsequently to quarter end, another title that was subject to a court case was finalized and transferred to the Corporation. Currently, two court cases remain; the first pertaining to four parcels and contesting the cadastral survey between the Treasury Department and individual landowners and a second case between the Forestry Department and an individual landowner contesting the cadastral survey over one parcel. The Corporation has entered into binding agreements for the contested Treasury land with the landowner. If the Treasury wins the case then the Corporation will have the legal right to use the land. For the Forestry lands, the Corporation has already obtained a permit from the Forestry Department for usage. Legal constraints prevent the Corporation from reaching agreement with the individual over the use of the forestry lands until the court case is concluded. The Corporation does not expect significant issues for the remaining title transfers.Çöpler Sulfides An internal preliminary economic assessment of the mining, processing and recovery of gold from the sulfide resources at Çöpler was completed earlier this year. The results supported advancing the sulfide project to pre-feasibility level engineering. During Q3 2010, metallurgical test work was undertaken along with preliminary mining and process engineering design. Work was also focused on developing capital cost and operating cost parameters. Management plans to complete and announce the results of this work during the first quarter of 2011. Previously, management expected to announce this study during Q4 2010. Work to date has produced favourable results and additional optimization is being advanced through a value engineering exercise coordinated with corresponding resource modeling and mine planning.Credit FacilityThe Corporation, through its subsidiaries Kurudere Madencilik A.Ş. and Anagold, entered into a $25 million three-year credit facility (the "Facility") with Standard Bank Plc on November 15, 2010. The Facility is of a revolving nature during the initial year, with a term amortization over the remaining two years. Interest is payable on any outstanding balance at the rate of LIBOR plus 4.5%. The Facility is secured by a partial pledge of Anagold shares and a guarantee by the Corporation. Conditions precedent have been satisfied and first draw-down was made on the date of closing. The Facility is available for general corporate purposes.About AnatoliaAnatolia, recognized as a leader in exploration and development in Turkey, is developing Çöpler. Çöpler is 95% owned by Anatolia and 5% by Lidya Mining (formerly known as Çalık Mining, see News Release, August 13, 2009). Initial plans are to produce approximately 1.3 million ounces of low-cost gold. The first gold pour at Çöpler is expected in December 2010 or January 2011. Full production will average about 175,000 ounces of gold per year after ramp up. Additional production expansion of the oxide and sulfide gold resource is expected at Çöpler 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 139.0 million common shares issued and outstanding, 157.8 million fully diluted. Anatolia's common shares are listed for trading on the Toronto Stock Exchange under the symbol "ANO."Cautionary StatementsExcept for statements of historical fact relating to Anatolia, 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", "targeted", "possible", "continue", "objective" 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, access to sufficient capital resources, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, results of exploration activities, the timing and amount of future production including first gold pour, the timing of construction of the proposed mine and process facilities, the timing of cash flows, capital and operating expenditures, the timing of receipt of permits, rights and authorizations, communications with local stakeholders and community relations, status of negotiations of joint ventures, availability of financing and any and all other timing, development, operational, financial, economic, legal, regulatory and 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 of Anatolia's public filings, and include the ultimate determination of mineral reserves, availability and final receipt of required approvals, licenses and permits, ability to acquire necessary surface rights, sufficient working capital to develop and operate the proposed mine, access to adequate services and supplies, economic conditions, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated cost of funds, availability of a qualified work force, lack of social opposition and legal challenges, and the ultimate ability to mine, process and sell mineral products on economically favorable terms. While Anatolia considers these assumptions to be reasonable based on information currently available to it, 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 Forward-looking statements are based upon management's beliefs, estimate and opinions on the date the statements are made and, 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 future events.For further information: please contact Edward Dowling, President and CEO, or Douglas Tobler, CFO at (303) 292-1299 or visit