Alacer Gold Reports 27% Increase in Gold Production at Lower Costs for Third Quarter 2014

TORONTO, Oct. 27, 2014 /CNW/ -Alacer Gold Corp. ("Alacer" or the "Corporation") [TSX: ASR and ASX: AQG] announced today that it has filed its third quarter 2014 financial results and related management's discussion and analysis ("MD&A"). The corresponding financial statements and MD&A are available on www.AlacerGold.com and on www.SEDAR.com. All currencies referenced herein are denominated in USD unless otherwise stated.

Rod Antal, Alacer's Chief Executive Officer, stated, "Çöpler produced 63,356 ounces in the third quarter, a 27% increase in production over the second quarter. This increased production was realized while achieving a milestone of 600 days without a lost-time injury. Our production is at the lowest cost in the industry with All-in Costs¹ of $763, which included $55/ounce related to sulfide project expenditures.

In the short term, our focus is to deliver high margin returns by producing additional oxide ounces beyond 2017. The heap leach pad expansion study will be completed by the end of this year and if successful will provide the ability to extend the oxide mine life by converting the 4.2 million tonnes at 1.2 gpt of oxide ore currently classified as waste into reserves. Concurrently, we are assessing other oxide ore opportunities within the current Çöpler resource and surrounding district to further improve this production profile.

In the medium term, our growth will come from the Sulfide Project. Basic engineering has commenced and the permitting process is on track with the EIA approval by year end being the first step.

In the longer term, our growth will come from our extensive exploration portfolio throughout Turkey. The exploration program continues and we recently released the continuing positive exploration results from Dursunbey.

Our strategy will be achieved with a solid foundation built on delivering high-margin gold production and a growing debt-free cash position of $320 million."

Q3 2014 Highlights 

Strategic

• The Corporation filed a Technical Report with updated Measured Resources and Mineral Reserve estimates for the Çöpler Gold Mine.
• Alacer commenced a technical study to assess the potential to expand the current heap leach pad design capacity of approximately 50 million tonnes.
• Basic engineering commenced and the permitting process continued to progress to plan for the Sulfide Project.
• Exploration drilling results were announced indicating continued positive trends at the Dursunbey prospect in western Turkey.
• Alacer announced the appointment of two new independent directors to the Board, Anna Kolonchina and Alan Krusi.

Operational

• In August, the Çöpler Gold Mine reached 4 million man-hours worked without a lost-time injury and recorded 600 days without a lost-time injury as of October 16, 2014.
• Total gold production was 63,356 ounces, and attributable gold production[2] was 50,685 ounces.
• All-in Sustaining Costs/ounce¹ were $711 and All-in Costs/ounce¹ were $763, of which $55/ounce were related to sulfide project expenditures.
• An additional 0.5 million tonnes of sulfide ore was stockpiled at an average grade of 3.49 g/t gold. Sulfide ore mined continued to provide a positive gold reconciliation during Q3 2014, which resulted in a 29% positive reconciliation on a contained ounce basis as compared to the 2013 resource model.
• Finalized chemical commissioning of the SART plant and full commissioning of the second Carbon-in-Column ("CIC") circuit.
• A three-year Collective Labor Agreement ("CLA") at the Çöpler Gold Mine was signed effective July 1, 2014.
• The Corporation remains on track to meet full-year 2014 production and cost guidance, excluding growth capital for the Sulfide Project.

Financial

• The Corporation ended Q3 2014 with cash and cash equivalents of $319.7 million[3], and had no external debt. The cash and cash equivalents balance increased $27.7 million during the quarter.
• Working capital increased $24.6 million to $349.7 million.
• Attributable net profit from operations was $14.9 million, or $0.05 per share.
• Adjusted Net Profit¹ was 13.1 million, or $0.05 per share.
• Cash flow from operating activities totaled $42.5 million.

Conference Call / Webcast Details

Mr. Rod Antal, Chief Executive Officer of Alacer, will host a conference call on Monday, October 27 at 5:00pm (North America Eastern Daylight Time) and Tuesday, October 28 at 8:00am (Australian Eastern Standard Time).

The third quarter 2014 financial statements, related management's discussion and analysis, and a conference call presentation will be available on www.AlacerGold.com prior to the call commencing.

You may listen to the call via webcast at http://services.choruscall.ca/links/alacer141027.html.  The conference call presentation will also be available at the link provided prior to the call commencing.

You may participate in the conference call by dialing:

If you are unable to participate in the call, a webcast will be archived until November 27, 2014 and a recording of the call will be available on Alacer's website at www.AlacerGold.com or through replay until Tuesday, January 27, 2015 by using passcode 8901# and calling:

About Alacer

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 attributable ounces of gold at All-in Costs¹ 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.  This includes optimizing the mine plan and undertaking a study to assess expanding the design capacity of the existing heap leach pad.
  
  
• 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 Costs¹ 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.

Cautionary Statements

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.

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¹ All-in Sustaining Costs/ounce, All-in Costs/ounce and Adjusted Net Profit are non-IFRS financial performance measures and have no standardized definition under IFRS. For further information and detailed reconciliations, see the "Non-IFRS Measures" section of the MD&A for September 30, 2014.
² Attributable gold production is reduced by the 20% non-controlling interest at the Çöpler Gold Mine.
³ Balance includes the Lidya Mining portion of YTD 2014 profits

SOURCE Alacer Gold Corp.