Alacer exceeds 2014 production guidance and provides 2015 guidance

TORONTO, Jan. 20, 2015 /CNW/ - Alacer Gold Corp. ("Alacer" or the "Company") [TSX: ASR and ASX: AQG] announces certain unaudited fourth quarter and full-year 2014 results and the Company's 2015 production and cost guidance for its Çöpler Gold Mine in Turkey.

Highlights of 2014 (100%):

• Çöpler gold production of 227,927 ounces
• Preliminary Total Cash Costs (C2)¹ of $525 per ounce²
• Preliminary All-in Sustaining Costs¹ of $695 per ounce²
• Cash balance of $347 million and no debt at year end
• 4.9 million man-hours, or 675 days worked without a lost-time injury

Highlights of 2015 Guidance (100%):

Rod Antal, Alacer's Chief Executive Officer, stated, "Çöpler has delivered another excellent year of production and cost performance.  This strong performance is a direct result of the process improvements and operating team's continuing efforts to optimize the Çöpler orebody.  Most importantly, the year's accomplishments were achieved without a lost-time injury.

Çöpler will continue to generate operating free cash flow in 2015 with production between 180,000 and 200,000 ounces at industry-low All-in Sustaining Costs of $775 to $825 an ounce. We are continuing to pursue initiatives to realize value beyond the existing mine plan, with re-optimization efforts underway to take advantage of the expanded heap leach pad capacity and extend oxide production beyond 2017.  The results of this work will be announced at the end of the first quarter 2015."  

Full-Year 2014 Unaudited Results

Çöpler's 2014 gold production of 227,292 ounces was largely a result of improved processing efficiencies, offset by lower stacked oxide tonnes and head grade.

Fourth quarter and full-year 2014 financial statements and the related management's discussion and analysis are planned to be released on or about February 18, 2015 (North America) and February 19, 2015 (Australia).  Conference call details will be announced in due course.

2015 Guidance

Guidance for Çöpler's 2015 gold production and costs are as follows:

As previously announced, capital expenditures for the Sulfide Project will increase in 2015, resulting in the above noted increase to All-in Costs. 

Çöpler's 2015 sustaining capital expenditure is planned to total $35 million ($28 million attributable), which includes the final phase of the heap leach pad expansion. Çöpler's 2015 growth capital expenditure is planned to total $100 million ($80 million attributable) for the Sulfide Project (subject to Board approval).

Expenditure on Alacer's exploration portfolio in Turkey is planned to total $22 million during 2015, of which $10 million is attributable to Alacer. Alacer's exploration portfolio in Turkey is held in various joint ventures with our Turkish partner, Lidya Madencilik San. Ve Tic, A.Ş. ("Lidya Mining").

*Rounding differences will occur
General and administrative cash expense for 2015 is planned to total $13 million.
Çöpler Gold Mine Production Statistics for 2014

2015 Reporting Dates

Alacer's quarterly MD&A and financial reporting schedule for the remainder of 2015 is expected to be as follows:

Conference calls and audio webcasts are planned to be held for each quarterly report and details will be announced closer to the call.

Notes

In this announcement:

• All production statistics are on a 100% basis except where otherwise noted.
• All $'s are US$'s except where otherwise noted.
• All ounces are troy ounces of gold.
• 2015 guidance is based on budgetary assumptions of a $1,200/ounce gold price and US$: TRY (Turkish Lira) of 2.2 to 1.0.

About Alacer

Alacer is a leading intermediate gold mining company, with an 80% interest in the world-class Çöpler Gold Mine in Turkey. The Corporation's primary focus is to maximize portfolio value, maximize free cash flow, minimize project risk, and therefore create maximum value for shareholders.

Alacer is actively pursuing initiatives to enhance value beyond the current mine plan:

• Çöpler Oxide Production Optimization – expansion of the existing heap leach pad to 56 million tonnes has started, and the Corporation continues to evaluate opportunities to optimize and extend the oxide production beyond the current reserves.
• Çöpler Sulfide Project – the Environmental Impact Assessment has been approved and the project is progressing as planned. The Sulfide Project is forecast to produce a further 3.2 million ounces of gold at industry low All-in Sustaining Costs¹ averaging $597 per ounce over a 20 year life of the mine as detailed in the Definitive Feasibility Study.
• Alacer continues to pursue numerous high-potential exploration projects in Turkey in various joint ventures with our Turkish partner Lidya Mining.

Cautionary Statements

Except for statements of historical fact relating to Alacer, certain statements contained in this press 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 be contained in this document and other public filings of Alacer. Forward-looking information often relates to statements concerning 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.

Forward-looking information includes statements concerning, among other things, preliminary cost reporting in this news release, production, cost and capital expenditure guidance; development plans for processing sulfide ore at Çöpler; the generation of free cash flow and payment of dividends; matters relating to proposed exploration, communications with local stakeholders and community relations; negotiations of joint ventures, negotiation and completion of transactions; commodity prices; mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates; the development approach, the timing and amount of future production, timing of studies, announcements and analyses, the timing of construction and development of proposed mines 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, budgetary, economic, legal, social, regulatory and political matters that may influence or be influenced by future events or conditions.

Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other of Alacer's filings, and include the inherent speculative nature of exploration results; the ability to explore; communications with local stakeholders and community and governmental relations; status of negotiations of joint ventures; weather conditions at Alacer's operations, commodity prices; the ultimate determination of and realization of mineral reserves; existence or realization of mineral resources; the development approach; availability and final receipt of required approvals, titles, licenses and permits; sufficient working capital to develop and operate the mines and implement development plans; access to adequate services and supplies; 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 or facilities; lack of legal challenges with respect to the property of Alacer; the timing and amount of future production and ability to meet production, cost and capital expenditure targets; timing and ability to produce studies and analyses; capital and operating expenditures; economic conditions; availability of sufficient financing; the ultimate ability to mine, process and sell mineral products on economically favorable terms and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, regulatory and political factors that may influence future events or conditions. While we consider these factors and assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.

You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on our current expectations and our projections about future events. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in Alacer's 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.

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¹ Total Cash Costs, All-in Sustaining Costs and All-in Costs are non-IFRS financial performance measures and have no standardized definitions under IFRS. For further information and detailed reconciliation, please see the "Non-IFRS Measures" section of the MD&A for September 30, 2014.
² 2014 costs are preliminary. Audited financials will be released with Alacer's full-year financial results on or about February 18, 2015.
³ Subject to Board approval
⁴ Attributable gold production is reduced by the 20% non-controlling interest at the Çöpler Gold Mine.
⁵ Sulfide ores are being stockpiled and reported as long-term inventory.

SOURCE Alacer Gold Corp.