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:: Alacer Gold to Pursue POX as Sulfide Ore Processing Method
Alacer Gold Corp. is pleased to announce its intention to pursue whole ore pressure oxidation as the processing method for sulfide ore at its 현pler Gold Mine in Erzincan Province, Turkey. Alacer recently completed an exhaustive technical review that confirmed POX provides the best economic return for processing the 현pler sulfide ore. Alacer will host a conference call to discuss this decision onMonday, November 4 at 5.00 p.m. (North America Eastern Standard Time) and Tuesday, November 5 at 9:00 a.m. (Australian Eastern Daylight Time). Details for the conference call are set forth below.
"Alacer has examined all processing options in a systematic, organized and disciplined manner. We believe that the approach to project development that we are announcing today will maximize our portfolio value while minimizing project risk and delivering the best return to our shareholders," said Mr. Rodney P. Antal, Alacer's Chief Executive Officer. Mr. Antal continued, "We recognize that today's decision has taken a long time. Given the current gold price environment and volatile market conditions, we have taken a deliberate approach to growing our business. As part of this approach, we deemed it necessary to thoroughly review and analyze all test work to ensure that POX is the best commercial option for processing the 현pler sulfide ore."
Alacer's near-term organic growth is focused on development of the sulfide ore at the 현pler Gold Mine. The sulfide Measured and Indicated Resource of 120.9 million tonnes at 1.5g/t gold represents 62% of the total tonnes in the Measured and Indicated Resource at 현pler, or 6.0 million contained gold ounces out of the total 8.5 million contained gold ounces.
Alacer is taking a phased approach to the project whereby it will design a 5,000 tonne per day ("tpd") plant that can be scaled up if conditions warrant in the future. A Definitive Feasibility Study ("DFS") is currently underway and it is expected that the results of this study will be announced no later than June 2014. Upon release of the DFS, the Corporation's Board of Directors will decide whether to proceed to detailed engineering and construction of the project. Alacer believes that the DFS will demonstrate that the POX project is economically compelling in the current market environment. In addition, the POX project will benefit from the competitive advantages that doing business in Turkey offers, including good infrastructure and low labor and power costs.
Mr. Antal commented, "The staged approach for development of the sulfides provides several benefits to Alacer: the smaller POX plant lowers the capital intensity and de-risks the project as a whole while retaining the option to scale up the project and potentially increase throughput in the future. As evidenced by our successful heap leach operations at 현pler, Alacer has demonstrated its ability to permit, construct, commission and operate a mine in Turkey. Alacer expects to leverage this experience to successfully deliver the next phase of 현pler's development. Importantly, we expect that most, if not all, of the up-front capital required to construct the POX project will be funded using existing cash and future cash flows from the high-margin, low-cost oxide heap leach operations at 현pler."
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