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() has received strong results from metallurgical test work on core material from the Company’s Temrezli uranium deposit which show that the Temrezli deposit is amenable to extraction of uranium using a standard alkaline leach environment.
This is in keeping with other in-situ recovery (ISR) uranium projects in the United States.
The samples were collected from wide spaced drilling in the northeast of the deposit which contains over 65% of the resource. The material was selected from lenses 1 to 5 which are the most laterally continuous.
Key points of metallurgical test work
Results from Maden Tetkik ve Arama (MTA) laboratory in Ankara returned rapid leach kinetics under ISR alkaline agitation leaching in 14 samples.
Uranium recovery of 84.9% was achieved in samples above the resource cut-off grade of 200ppm U3O8.
Improved metallurgical recoveries are to be incorporated into the upcoming PFS. Average recovery in the previous PEA was assumed to be 69%.
Extraction of other elements into solution is very low due to selective uranium leaching.
Interim CEO & MD Paul Cronin said: “These metallurgical results confirm that the Temrezli deposit is amenable to extraction of uranium using a standard alkaline leach environment as seen in other ISR uranium projects in the United States.
"l am particularly delighted with uranium recoveries exceeding 80% within a short leach time.
"The results indicate that plant design at a head grade significantly above the current assumption of 100ppm can be achieved with significant cost and recovery benefits.
"The rapid leach kinetics also indicate that production to plant capacity will be achievable with less wells than we had previously assumed in the PEA potentially reducing the working capital required to achieve first cash flows.”
Half core HQ diameter core material was collected from the drill rig and immediately vacuum sealed to preserve sample integrity.
Recent hydrogeological test work results
Recent results from hydrogeological test work at its flagship Temrezli Uranium Project in Turkey have indicated higher potential production flow rates are possible.
The hydrogeological work represents some of the final components to the Temrezli Pre-Feasibility Study which Anatolia expects to deliver in the coming weeks.
Significantly there could also be a positive impact on well field operating costs as a result of the testwork when combined with improved metallurgical recoveries which would result in a more optimal well field design.
Temrezli PFS is due in weeks
Data collected from the hydrologic tests will be used to further the conceptual hydrogeological model of the deposit and to redevelop numerical models being utilised by Tetra Tech for detailed well field planning.
The hydrogeological work represents some of the final components to the Temrezli PFS which the Company expects to deliver in the coming weeks.
Recent Updated Preliminary Economic Assessment (PEA)
The upgraded Mineral Resource for Temrezli stands at 13.3 million pounds at a high average grade of 1157ppm.
The updated PEA highlighted potential for a 1 million pound per annum ISR uranium facility with Operating costs of US$20.22/lb and AISC of US$23.50/lb.
Upfront Capex was US$30.2 million with a 10 year mine life. This produced an NPV of US$186.5m at US$60/lb price and an IRR of 109%.
Near term uranium production potential
The Company has commenced a PFS at Temrezli which is due for completion in early CY15. The project is not likely to require a BFS given similar ISR projects in overseas markets.
Anatolia could begin construction in 2015 following completion of environmental permitting. First production could be as early as mid-to late 2016.
Mineral Resource upside
Near term upside to uranium resource potential exists from the nearby Sefaatli deposit 40 kilometres away where historic drilling intercepted mineralisation up to 2400ppm at depths less than 150 metres.
Under a production scenario it would likely host a satellite IX plant.
Analysis
Today's test work results are the second batch of strong results which has received in a week that demonstrate the future looks bright for development of the Temrezli project.
With a uranium recovery of 84.9% in samples above the resource cut-off grade of 200ppm U3O8 the improved metallurgical recoveries will be incorporated into the upcoming PFS. This should significantly enhance results given that average recovery in the previous PEA was assumed to be 69%.
The PFS at Temrezli is due for completion in early CY15 which is a significant milestone and price catalyst ahead for .
Temrezli already boasts the second lowest capital intensity of recently developed/developing ISR projects of US$3.28/lbpa with a peer average of US$5.70/lbpa.
Temrezli represents one of the few global uranium projects with a medium term production scenario with all-in sustaining costs below current spot prices.
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