Alacer Gold Announces Third Quarter Mine Production
Gold Production Increases 9% to 112,680 ounces
TORONTO, Oct. 11, 2011 /CNW/ - Alacer Gold Corp ('Alacer' or the 'Corporation') [TSX: ASR] and [ASX: AQG] is pleased to announce its third quarter 2011 mine production from its four mines in Australia and Turkey. The third quarter financial statements and management discussion and analysis will be released on November 14, 2011 with a conference call to follow. Conference call details can be found later in this release.
Quarterly Highlights
-- Third quarter gold production of 112,680 (110,020 attributable)
ounces, a 9% increase over the previous quarter.
-- Year-to-date gold production totals 307,343 (300,962
attributable) ounces.
-- The Çöpler Gold Mine continued its exceptional ramp-up with
gold production increasing to 53,200 ounces (on 100% basis) for
the quarter and produced its 100,000th ounce on August 24,
2011.
-- Çöpler mined grade increased 66% to 2.07g/t gold for the
quarter.
-- The Higginsville Gold Operations produced its 500,000th ounce
of gold on September 8, 2011.
-- At the South Kalgoorlie Operations, ore production from the HBJ
open pit increased 105% to 351,939 tonnes for the quarter.
Safety and Environment
Alacer operations reported three Lost-Time Injuries ('LTIs') during the third quarter of 2011. The group's LTI Frequency Rate(1) ('LTIFR') was 3.1 at the end of the third quarter. Ten Medically-Treated Injuries ('MTIs') were reported for the third quarter 2011. The group's MTI Frequency Rate(1) ('MTIFR') was 9.0 at the end of the third quarter.
There were no external reportable environmental incidents during the third quarter.
Operations
Çöpler Gold Mine (95% owned)
-- Çöpler produced 53,200 ounces of gold (100% basis),
representing a 29% increase over the previous quarter.
-- A total of 76,390 recoverable ounces of gold were mined during
the quarter and placed on the leach pad, which represents a 56%
increase over the previous quarter.
-- The mined grade increased by 66% to 2.07g/t gold for the
quarter (Q2: 1.25g/t). This was significantly more than planned
as contained gold mined for the Manganese Pit to the end of
September 2011 has been 25% more than modelled with
reconciliations being 22% positive on grade and 5% positive on
tonnes.
-- Ore processed through the new crusher and agglomeration circuit
ramped up to 781,938 tonnes at 3.0g/t gold for the quarter (Q2:
20,296 tonnes crushed). Bottlenecks in the circuit are being
progressively removed to enable the design throughput of 15,500
tonnes per day to be achieved consistently.
-- Tonnes placed on the heap leach pad directly from the open-pit
mine (dump leach) totalled 995,624 tonnes at 1.3g/t.
-- The heap-leach pad Phase 2 expansion, which includes a valley
fill, was 50% complete by the end of the quarter.
-- Construction of the new Çöpler village has been substantially
completed and relocation will commence during the fourth
quarter.
Higginsville Gold Operations (100% owned)
-- On September 8, 2011, the Higginsville Gold Operations achieved
500,000 ounces of gold production since the first gold was
poured on July 1, 2008.
-- Higginsville produced 35,018 ounces of gold for the quarter,
representing a 14% decrease over the previous quarter (Q2:
40,919 ounces).
-- Ore delivered from the Trident underground mine totaled 210,468
tonnes, 14% less tonnes than mined during the second quarter.
The reduction in tonnes resulted from a slower than the
anticipated extraction rate from mining the first secondary
stope in the Apollo Lode. Furthermore, a geotechnical review
led to changing the mining methodology for the Athena Lode,
which delayed certain budgeted stopes and development. This
risk minimization strategy, rather than an ounce maximization
or sequence efficiency strategy, will result in the most cost
effective and highest overall extraction percentage of the
remaining Athena ore reserve.
-- The Trident underground mine delivered ore with an average
grade of 4.35g/t gold for the quarter, about 7% less than the
previous quarter (Q2: 4.69g/t), due to mining a lower grade
Apollo stope in sequence and reduced tonnages or high-grade ore
from the Athena Lode.
-- The Trident decline is at the 748RL and 32 vertical meters away
from the planned underground drill platform location for infill
drilling of the Helios and Artemis Lodes.
-- Oxide ore production from the Vine open pit totalled 28,628
tonnes at 4.29g/t containing 3,953 ounces. The Vine open pit
will be substantially completed by the end of the year. Future
open pit ore is likely to be sourced from a Vine cutback and
the Fairplay Complex.
-- Chalice underground mine development commenced, the first
decline cut was fired on August 13, 2011.
South Kalgoorlie Operations ('SKO') (100% owned)
-- South Kalgoorlie Operations (excluding Frog's Leg ore) produced
8,972 ounces of gold, a 22% increase over the previous quarter
(Q2: 7,469 ounces).
-- High-grade ore mined from the HBJ open pit increased to 351,939
tonnes at 1.52g/t, a 105% tonnage increase over the previous
quarter (Q2: 171,636 tonnes). Low-grade ore mined totalled a
further 267,217 tonnes at 0.73g/t.
-- At the end of the quarter, HBJ ore stockpiles totalled 189,411
tonnes of high grade at 1.5g/t gold and 540,960 tonnes of low
grade at 0.7g/t gold.
-- Ore mining from the current HBJ Phase 2 east-wall cutback will
be substantially completed towards the end of 2011.
-- The SKO expansion study approached finalization during the
quarter as various mining and processing scenarios were
evaluated.
Frog's Leg Joint Venture (49% owned)
-- Frog's Leg ore produced 15,490 ounces of gold, representing an
11% increase over the previous quarter (Q2: 13,986 ounces).
-- A total of 85,978 tonnes were mined at an average grade of
6.46g/t gold, comprised of 77% stoping ore and 23% development
ore.
Edward Dowling, President and CEO of Alacer stated, 'Çöpler continues to exceed our expectations with production of 53,200 ounces for the quarter. To date, the mined grade of this world-class orebody has been significantly more than modeled, while the tonnes mined and gold recoveries have been approximately as planned. This bodes well for profits as the higher grades flow through to revenue and the bottom line.
One of our key growth projects is building a new, higher capacity SKO processing facility. One key parameter being analysed further is the optimal mix of mining the HBJ deposit via open pit and underground methods. The timing of mining various resources at SKO is being optimized prior to committing to construction of a new processing facility.
The strong performance of Alacer's mines has enabled the Company to maintain our trend of strong quarterly production growth. We are now well placed to comfortably exceed our production guidance of more than 400,000 ounces for 2011 and we look forward to providing the market with revised guidance soon.'
Third Quarter Production Statistics
________________________________________________________________________
| | | | South |Frog's| | Alacer |
| | | |Kalgoorlie|Leg JV| | Gold |
| Operation | |Higginsville| |(49%) | Çöpler | Total |
|____________|________|____________|__________|______|_________|_________|
|U/G ore |(tonnes)| 210,468| -|85,978| -| 296,446|
|mined (HG) | | | | | | |
|____________|________|____________|__________|______|_________|_________|
|U/G mined | (g/t) | 4.35| -| 6.46| -| 4.96|
|grade | | | | | | |
|____________|________|____________|__________|______|_________|_________|
|U/G mined |(ounces)| 29,460| -|17,854| -| 47,314|
|ounces | | | | | | |
|____________|________|____________|__________|______|_________|_________|
|O/P ore |(tonnes)| 28,628| 351,939| -|1,786,536|2,167,103|
|mined (HG) | | | | | | |
|____________|________|____________|__________|______|_________|_________|
|O/P waste |(tonnes)| 422,986| 711,173| -|3,379,795|4,513,954|
|mined | | | | | | |
|____________|________|____________|__________|______|_________|_________|
|O/P mined | (g/t) | 4.29| 1.52| -| 2.07| 2.01|
|grade | | | | | | |
|____________|________|____________|__________|______|_________|_________|
|O/P ounces |(ounces)| 3,953| 17,199| -| 118,943| 140,095|
|mined | | | | | | |
|____________|________|____________|__________|______|_________|_________|
|Total HG |(tonnes)| 239,096| 351,939|85,978|1,786,536|2,463,549|
|tonnes mined| | | | | | |
|____________|________|____________|__________|______|_________|_________|
|Total mined | (g/t) | 4.61| 1.52| 6.46| 2.07| 2.37|
|grade | | | | | | |
|____________|________|____________|__________|______|_________|_________|
|Total HG |(ounces)| 33,413| 17,199|17,854| 118,943| 187,409|
|mined ounces| | | | | | |
|____________|________|____________|__________|______|_________|_________|
|Ore treated1|(tonnes)| 318,752| 236,604|80,001|1,777,562|2,412,919|
|____________|________|____________|__________|______|_________|_________|
|Head grade1 | (g/t) | 3.47| 1.35| 6.30| 2.06| 2.32|
|____________|________|____________|__________|______|_________|_________|
|Recovery1 | (%) | 96.8| 91.3| 91.8| 65.0| 62.7|
|____________|________|____________|__________|______|_________|_________|
|Gold | (oz) | 35,018| 8,972|15,490| 53,200| 112,680|
|produced1 | | | | | | |
|____________|________|____________|__________|______|_________|_________|
|Attributable| (oz) | 35,018| 8,972|15,490| 50,540| 110,020|
|gold | | | | | | |
|produced | | | | | | |
|____________|________|____________|__________|______|_________|_________|
(1 )The gold ounces reported as produced are based on the ounces poured. This reported production differs to the ounces mined and treated due to the time period gold is in the processing circuit, the use of estimated recovery rates for ore yet to be processed, and assay adjustments.
Year-to-Date Production Statistics (January to September 2011)
__________________________________________________________________________
| | | | South |Frog's | | Alacer |
| | | |Kalgoorlie|Leg JV | | Gold |
| Operation | |Higginsville| | (49%) | Çöpler | Total |
|____________|________|____________|__________|_______|_________|__________|
|U/G ore |(tonnes)| 681,340| -|211,723| -| 893,063|
|mined (HG) | | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|U/G mined | (g/t)| 4.53| -| 6.82| -| 5.07|
|grade | | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|U/G mined |(ounces)| 99,222| -| 46,415| -| 145,637|
|ounces | | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|O/P ore |(tonnes)| 36,095| 582,219| -|5,469,132| 6,087,446|
|mined (HG) | | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|O/P waste |(tonnes)| 1,420,395| 3,086,533| -|8,550,920|13,057,848|
|mined | | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|O/P mined | (g/t)| 4.80| 1.43| -| 1.48| 1.50|
|grade | | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|O/P ounces |(ounces)| 5,566| 26,762| -| 260,267| 292,595|
|mined | | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|Total HG |(tonnes)| 717,435| 582,219|211,723|5,469,132| 6,980,509|
|tonnes mined| | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|Total mined | (g/t)| 4.54| 1.43| 6.82| 1.48| 1.95|
|grade | | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|Total HG |(ounces)| 104,788| 26,762| 46,415| 260,267| 438,232|
|mined ounces| | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|Ore treated1|(tonnes)| 979,828| 670,678|250,223|5,628,501| 7,529,230|
|____________|________|____________|__________|_______|_________|__________|
|Head grade1 | (g/t)| 3.68| 1.18| 6.04| 1.21| 1.69|
|____________|________|____________|__________|_______|_________|__________|
|Recovery1 | (%)| 96.7| 90.6| 91.7| 58.5| 75.3|
|____________|________|____________|__________|_______|_________|__________|
|Gold | (oz)| 112,060| 23,109| 44,556| 127,618| 307,343|
|produced1 | | | | | | |
|____________|________|____________|__________|_______|_________|__________|
|Attributable| (oz)| 112,060| 23,109| 44,556| 121,237| 300,962|
|gold | | | | | | |
|produced | | | | | | |
|____________|________|____________|__________|_______|_________|__________|
(1 )The gold ounces reported as produced are based on the ounces poured. This reported production differs to the ounces mined due to the time period gold is in the processing circuit, the use of estimated recovery rates for ore yet to be processed, and assay adjustments.
Financial Results and Conference Call
Complete second quarter financial statements and management discussion and analysis will be released on Monday, November 14 (North America) and Tuesday, November 15 (Australia).
Edward Dowling will host a conference call on at 5.00 pm (Toronto time) Monday, November 14 (North America) and 9.00am (Australian Eastern Standard time) Tuesday, November 15 (Australia). To participate in the conference call, please dial
1-800-946-0719 for U.S. and Canada
1-800-094-765 for Australia
0-800-404-7656 for United Kingdom
800-968-103 for Hong Kong
800-120-3236 For Singapore
1-719-325-2454 for International
7429983 Conference ID
A recording of the call will be available on Alacer's website at
www.AlacerGold.com or through
replay until November 30, 2011 by calling:
1-888-203-1112 for U.S. and Canada
1-719-457-0820 for International
7429983 Replay Passcode
About Alacer
Alacer is a leading intermediate gold company with operations in both Australia and Turkey.
Australia
Alacer has three operating gold mines in Australia, namely the Higginsville and South Kalgoorlie operations; and a 49% interest in the Frog's Leg underground mine. The South Kalgoorlie operations and the Frog's Leg interest were acquired following the successful takeover of Dioro Exploration NL, which was completed in March 2010. The Australian operations are targeting 280,000 ounces of gold in 2011.
Turkey
Alacer is recognized as a leader in exploration and development in Turkey and, with the start-up of Çöpler, will soon be among Turkey's leading gold producers. Çöpler is 95% owned by Alacer and 5% by Lidya Mining. Initial plans at Çöpler are to produce approximately 1.42 million leachable ounces of gold at costs consistent with the lower end of industry standards. Average annual production is expected to be about 175,000 gold ounces. Additional production expansion from the sulfide gold reserve is expected to add 2.25 million ounces. A detailed feasibility study is underway. In addition, Alacer holds a significant pipeline of prospective gold and base metal projects.
Alacer currently has 278.9 million common shares issued and outstanding, 296.9 million fully diluted.
Cautionary Statements
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 Alacer's public filings, 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 and include, but are not limited in any manner to, those with respect to proposed exploration, communications with local stakeholders and community relations, status of negotiations of joint ventures, commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the timing and amount of future production, timing of studies and analysis, the timing of construction of proposed mine 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, economic, legal, social, 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 Alacer filings, and include exploration results and the ability to explore, the ultimate determination of mineral reserves, availability and final receipt of required approvals, titles, licenses and permits, sufficient working capital to develop and operate the mines, access to adequate services and supplies, commodity prices, ability to meet production targets, 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, lack of legal challenges with respect to the property or the Company and the ultimate ability to mine, process and sell mineral products on economically favorable terms. While we consider these assumptions to be reasonable based on information currently available to us, 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 Alacer 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) Lost-Time Injuries Frequency Rate = number of Lost-Time Injuries per one million hours worked and the Medically-Treated Injuries Frequency Rate = number of Medically-Treated Injuries per one million hours worked
ALACER GOLD CORP.
CONTACT: on Alacer Gold, please contact:
Edward Dowling or Lisa Maestas - North America at 1-303-292-1299
Rohan Williams - Australia at 618-9226-0625
Roger Howe - Australia at 61-405-419-139