Anatolia builds oxide mine at Copler; sulphide mineralization also showing strength

Vancouver – The Copler gold-silver project is shining for Anatolia Minerals Development (ANO-T): construction of an open pit, heap leach operation at Copler got underway just six weeks ago and now drills probing the deposit’s deeper sulphide potential are returning long mineralized intercepts.

Major construction work at the Turkish project started in late September and will continue through the winter. The company is currently focused on critical path items, a list that includes the primary crusher and heap leach pad as well as the adsorption, desorption, and refining plant. Anatolia is aiming to pour its first gold before the end of 2010.

Copler is located 500 km east of Ankara, in central Turkey. Anatolia is planning to develop the Copler project in phases, with the first phase tapping into only oxide mineralization. A single primary crusher will churn through 15,500 tonnes of ore each day; the crushed rock will be placed on a heap leach pad.

The oxide-only operation is supported by 40.8 million tonnes of proven and probable oxide reserves grading 1.65 grams gold per tonne and 3.75 grams silver per tonne.

Anatolia had initially envisioned a second phase of development also based on oxide mineralization, wherein a 5,000-tonne-per-day mill would be added to improve recovery rates from higher-grade oxide ores. However, evaluations thus far have failed to show the additional milling would provide sufficient economic benefit to justify the cost. Studies on the matter continue.

The third phase of development at Copler would allow Anatolia to tap into the project’s sulphide resource. The sulphide resource already stands at 80.9 million measured and indicated tonnes grading 1.43 grams gold, 4.24 grams silver, and 0.12% copper plus 3.3 million inferred tonnes averaging 1.38 grams gold, 2.24 grams silver, and 0.15% copper.

And now a deep drilling program is returning long mineralized intercepts that look certain to grow the sulphide resource. The 12,000-metre program is probing below the Manganese pit and testing subvertical structures near the southern boundary of the Main pit.

Three holes drilled in the Manganese pit area returned some of the best intervals from Copler to date, with respect to intercepts within the pit and below it. Hole 201 cut 78.5 metres grading 5.29 grams gold and 3.14 grams silver from within the pit parameters, then hit 46.9 metres averaging 3.9 grams gold and 12.34 grams silver from 156 metres depth.

Hole 202 returned 62 metres of 9.75 grams gold and 21.98 grams silver from within the open pit boundaries, then intercepted 103.3 metres carrying 2.91 grams gold and 43.91 grams silver from 168 metres depth.

And hole 203 returned 29.8 metres grading 15.21 grams gold and 76.87 grams silver from within the pit, and then cut 27 metres of 2.22 grams gold and 12.89 grams silver from 198 metres depth, followed closely by 44.85 metres grading 1.52 grams gold and 2.26 grams silver from 233 metres downhole.

In the Main zone, the median drill hole depth prior to the current program was just 52 metres. In the new effort, Anatolia is pushing holes to between 100 and 200 metres depth, and the work is paying off. Hole 683 returned 27 metres grading 2.04 grams gold and 1.39 grams silver from 81 metres depth. Hole 690 intercepted 25 metres of 2.77 grams gold and 1.37 grams silver from 129 metres downhole. Hole 695 hit 12 metres grading 3.97 grams gold from 78 metres depth followed by 20 metres averaging 2.32 grams gold and 1.26 grams silver from 126 metres depth. And hole 701 returned 13 metres of 2.43 grams gold followed by 36 metres of 2.46 grams gold.

At the end of September Anatolia has almost $70 million in the bank. Then, in early November, the company closed a $56.4-million private placement, which means Anatolia will likely be able to fund phase one development at Copler with funds on hand, leaving its $62.5-million debt facility untouched.

Also on Anatolia’s to-do list is the relocation of a village that is on top of the deposit. The residents of Copler village approved a relocation plan and much of the planning is complete, including architectural and construction designs and zoning approvals. Anatolia has signed contracts for almost all of the village surface rights; the company says negotiations for the remaining rights are progressing. The company has also obtained title to almost all of the land it needs. Discussions are continuing for a number of private parcels, which Anatolia is prepared to buy on terms consistent with those accepted by the other villagers. If needed, the company could expropriate the land.

In August Anatolia inked a deal with Calik Maden Isletmeleri, a subsidiary of a large Turkish conglomerate, forming a strategic relationship between the companies. The deal allows Calik to acquire up a 20% of any of Anatolia’s projects, including Copler, in exchange for investment. With respect to Copler, Calik already earned a 5% interest by handing over $12.6 million and the Turkish company can earn another 15% by paying an additional $37.8 million.

The two other Anatolia projects that Calik is likely considering are Cevizlidere and Karakartal. Cevizlidere is a copper-gold-molybdenum project 50 km southeast of Copler where Anatolia recently defined an initial resource. The project is now home to 445.7 million inferred tonnes grading 0.38% copper, 0.11 gram gold, and 0.048% molybdenum. The resource was based on 27 holes drilled along 1.6 km of strike; the prospect remains open along another 2.3 km of strike extending to the southeast.

Karakartal is a copper-gold porphyry that sits just 12 km southeast of Copler. Anatolia also recently defined an initial resource for Karakartal, which came in at 28.8 million indicated tonnes grading 0.28% copper and 0.38 gram gold as well as 42 million inferred tonnes averaging 0.23% copper and 0.28 gram gold. The resource at Karakartal also remains open along strike and at depth.

On news of the deep sulphide drilling results from Copler Anatolia’s share price remained unchanged at $2.64. The company has a 52-week trading range of 65¢ to $3.39 and has 138 million shares outstanding.