Anatolia Minerals Development Ltd fka ANO.U

[Ed Monton]

Anatolia Minerals Is Handed a 4 Million Ounce Gold Play In Turkey By Rio Tinto, Its Strategic Partner.

It is nearly two years since Minews last wrote about Anatolia Minerals and during that time a lot has happened to the company. In March of this year it was promoted to the Toronto Stock Exchange, but despite this and its long standing relationship with Rio Tinto in Turkey, its shares tend to be ignored in North America. Maybe this is because it is seen as too close to Iraq, Syria and Iran, but Rio Tinto clearly has no worries on this score as Anatolia was the only junior partner mentioned by Rio Tinto in its recent quarterly report. Richard Moores, the president, thinks that the solution may be to have a listing in London and he has been over recently to test the water. Brits are unlikely to have such prejudices as Turkey is a favoured holiday destination and reports from brokers to whom he presented have been unanimously favourable.

Turkey has a long history of mining which goes back 9,000 years into the dawn of history. The country lies at the gateway from Eastern Europe to Asia and was the focus of major tectonic movement. It is therefore not surprising to find that mining has been a constant activity in what was the centre of the Byzantine Empire and then the Ottoman. In fact it is claimed that the Bronze Age started there. Mining was under governmental control until recent years and Anatolia was in there at the start of privatisation. The company is run from Ankara and the Turkish staff have held key operating, technical and administrative positions jobs in Western and Turkish mining companies and the Turkish government.

The initial 4 year alliance with Rio Tinto was signed back in April 2000 to seek base and precious metals in the country. Last November it was extended to the end of 2007 and the enthusiasm of the major is reflected in the fact that it has spent US$9 million so far on joint venture exploration. Rio Tinto is earning into four prospects , each of which require it to spend US$10 million and payment of US$1.5 million to get a 66.67 per cent interest. The new terms are similar to those in the original agreement with the exception that RioTinto will now provide an extra providing US$500,000 a year for greenfields project generation exploration as well as US$216,000 annually to offset office expenses incurred by Anatolia at chosen properties.

Clearly Anatolia has won the respect of its major partner for the way it has brought systematic Western exploration techniques to a number of attractive projects in areas with recognised potential for gold, silver, copper, zinc, cobalt, nickel, plus other minerals. And this month it received its reward when it was allowed to buy a 100 per cent interest in the Copler gold project from Rio Tinto and the original licence holder. This interest comes free of any royalties, earn-in or back-in rights and Rio Tinto is taking 4 million Anatolia shares which takes its holding up to 15.7 per cent. The Turkish partner is being paid US$2 million in cash, plus a deferred element for a similar amount in cash or Anatolia shares.

Effectively, therefore, Anatolia has acquired a project with an inferred resource of 44 million tonnes grading 2.9 g/t to contain 4.2 million ounces of gold for virtually nothing. Presumably it was deemed to be too small for the Rio Tinto portfolio, but it could be a company maker for Anatolia. According to Richard Moores the plan is to fast- track development of the shallow leachable portion of the resource into a high grade open pit mine. At the same time work will be undertaken to decide how best to bring the sulphide resources into the development plan to maximise value. Progress will be accelerated by Rio Tinto’s generous gesture in handing over a comprehensive scoping study with preliminary economics for Copler as part of the deal.

This leaves Rio Tinto earning into three projects and a lot of attention is focused on the Kizilviran gold/copper porphyry prospect. In October drilling was paused there as the partners were worried that a significant proportion of copper in drill samples and more than half the molybdenum was being trapped in an insoluble residue and was not being reported an assays. Drill cores from the original hole are being re-assayed, but if the results are simply adjusted for the lost copper and molybdenum at present prices this hole averaged 0.6% copper over the full 594 metres. That may be worth repeating. 0.6% copper over 594 metres which Richard Moores describes modestly as “a great hole.” In total Kizilviran includes several square kilometres of porphyry-type alteration, widespread copper and gold mineralisation and large, strong, geophysical anomalies. One hole doesn’t make a mine, but the partners could be onto something big enough for inclusion this time into Rio Tinto’s portfolio. Let’s hope Anatolia likes the look of AIM.

http://www.minesite.com/archives/features_archive/2004/jan-2004/AnatoliaMinerals230104.htm