Alacer Gold announces a 15% increase in 2013 production guidance at Çöpler
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 attributable(1) 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."
| |Attributable| Cash | | |
| | | | Total |Attributable|
| | Gold |Operating Costs| | |
| 2013 | Production | (2) |Cash Costs(2)| CapEx |
| | | | | |
|Calendar Year| (ounces) | ($/oz) | ($/oz) |($ millions)|
|Revised | 192,000 to | | | |
|Guidance | 200,000 | 375 to 390 | 405 to 425 | unchanged |
|Previous | 162,000 to | | | |
|Guidance | 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.
|Çöpler | |2014|2015|2016|2017|
|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
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 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
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CO: Alacer Gold Corp.
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-0- Sep/23/2013 11:55 GMT
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