Comprehensive Conceptual Study confirms previous resource estimate, good recoveries and additional potential.
Anatolia Minerals Development Limited (TSX: ANO.U; "Anatolia") has received from Rio Tinto Mining & Exploration Limited (Rio Tinto) a Conceptual Study on Anatolia's 100%-owned Copler gold project in eastern Turkey. The study is based on data compiled during a 3 1/2-year, $5 million joint Anatolia/Rio Tinto exploration effort and represents Rio Tinto's first stage evaluation of a project following exploration. The study makes a number of recommendations to bring Copler to developable status. Major aspects of Copler are addressed in the study, and no fatal flaws have been identified.
As part of the Conceptual Study delivered to Anatolia in January, 2004, Rio Tinto reported an Inferred JORC resource audited by SRK Consulting (Qualified Person for the purposes of NI 43-101 is Dr. Alwyn Annels, Principal Mining Geologist). Rio Tinto's resource estimate was based on 3D wire-frames and block models incorporating the currently interpreted geological controls on gold distribution. Notional pit outlines were designed around these inferred resources. Tonnages were calculated using specific gravity and bulk density data collected by Rio Tinto from Copler core samples. The estimates were audited by SRK Consulting according to the requirements of the JORC code. The audited Inferred Resource is summarized below:
--------------------------------------------------------------------- Contained Classif- Cut-off Million Grade Million Zone Type ication Grams Au/t Tonnes Grams Au/t oz Au --------------------------------------------------------------------- Main Zone Oxide Inferred 1.0 4.8 2.3 0.4 -------------------------------------------------------- Sulfide Inferred 1.0 23.5 2.1 1.6 --------------------------------------------------------------------- Marble Zone Oxide Inferred 1.0 3.0 4.7 0.5 -------------------------------------------------------- Sulfide Inferred 1.0 1.1 1.8 0.1 --------------------------------------------------------------------- Manganese Oxide Inferred 2.0 5.4 2.7 0.5 -------------------------------------------------------- Mine Zone Sulfide Inferred 2.0 8.2 3.0 0.8 --------------------------------------------------------------------- Combined Oxide Inferred - 13.2 3.0 1.4 -------------------------------------------------------- Sulfide Inferred - 32.8 2.3 2.5 ---------------------------------------------------------------------
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Note: The term 'oxide' as explained in the Conceptual Study refers to readily leachable mineralization and does not necessarily imply the total oxidation of the rock, although this is the case in many places.
"We are very pleased that Rio Tinto's inferred resource estimate tallies so closely with the previously-reported Watts, Griffis & McOuat (Toronto) estimate; less than +/-10% on a global resource basis." Said Richard Moores, Anatolia's CEO. "Given the differences in procedures, constraints and cut-offs, it is amazing that it is so close. It must also be realized that there are a sizeable number of well-mineralized holes not included in either study because they are too far outside the more closely spaced holes used in the separate estimates. In many holes used, there are gold-mineralized portions excluded for one reason or another and many also bottomed in good grade material." This is underscored by the SRK Consulting statement: "Too many drill holes appear to have been terminated prematurely and thus additional drilling is necessary to close wire-frames with more confidence."
Preliminary metallurgical results reported in the study, reviewed and confirmed by Resource Development Inc., Lakewood, Colorado, indicate acceptable recoveries for both the oxide and sulfide portions of the resource, although further work is recommended for optimization of process. Recovery from Manganese Mine oxides averaged 92%, with 80% for both the Marble and Main zones, although fine grinding raised Marble zone recoveries to the 90% level. Gold recovery is rapid in the Manganese Mine and Main zones (6 to 12 hours) with low to moderate reagent consumption. Marble zone oxides take up to 48 hours to leach and have a slightly higher reagent use than the other zones.
On average 80% to 83% of sulfide gold in the Main and Manganese Mine zones reports to a concentrate, from which 92% to 96% of the gold in concentrate was recovered by bio-leaching and roasting (per diagnostic leach tests), respectively. This indicates an overall 72% to 76% recovery of gold in sulfides may be achieved. An additional 13% of gold from Manganese Mine zone sulfides was recovered by leaching flotation tailings. Further work is recommended to confirm and improve results achieved to date. Says Richard Moores: "While metallurgical results to date are favourable, indicating high gold recoveries at low to reasonable cost, we feel additional work could result in improvements enhancing Copler's viability. We think Copler has the potential to become one of the most competitive new gold projects in Europe."
Anatolia has been engaged in minerals exploration in Turkey since 1996. In January, 2004, Anatolia increased its interest in the 4-million ounce Copler project to 100%. Anatolia plans to fast-track drilling and engineering of the shallow leachable portion of the Copler resource to reach an early decision on an open pit gold operation.
In April, 2000, Anatolia and Rio Tinto formed a 4-year strategic alliance to seek base and precious metal deposits in Turkey. In November, 2003, the alliance was extended through year-end, 2007. To date, Rio Tinto has funded nearly US$12 million for JV exploration ($5 million at Copler). Rio Tinto is currently earning into three prospects in Turkey, each requiring expenditures of US$10 million, completion of an order of magnitude study and payment of US$1.5 million for Rio Tinto to earn a 66.67% interest. Anatolia continues to add value to shareholders through this joint venture arrangement.
Anatolia currently has 40.2 million common shares issued and outstanding, 47.2million fully diluted. For more information: Richard C. Moores, President, (303) 670-9945/9947 (fax), or George Duggan, Investor Relations, (818) 542-6880/249-7024 (fax), or visit www.anatolia-minerals.com. Anatolia trades on the Toronto Stock Exchange in US dollars as ANO.U.
This news release may contain forward-looking statements in respect of various matters including upcoming work programs and events. The results or events predicted in these forward-looking statements may differ materially from actual results or events. Anatolia disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Assays are performed by OMAC Laboratories, Ireland, with quality control of sampling, preparation and assaying overseen jointly by Rio Tinto and Anatolia whose President, Richard C. Moores, is a "qualified person" for the purposes of applicable Canadian securities regulations.