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Anatolia Energy Drilling Targets Setaatli As Satellite For Temrezli ISR Uranium

Anatolia Energy (ASX:AEK) will in March start Phase 2 drilling at the Setaatli Project to test its promising potential as a satellite operation to its Temrezli ISR Uranium Project in Turkey.

Drilling at Setaatli in 2014 returned some good intersections including 2.5 metres at 2,150ppm eU3O8 and 6.2 metres at 810ppm eU3O8 and is located 40 kilometres southwest of Temrezli.

This would provide Setaatli as a potential "feeder" source of ore to Temrezli.

Temrezli has near-term uranium production potential with a Pre-Feasibility Study due for completion early this year. Construction could begin in 2015 with first production as early as mid-to late 2016.

Drilling at the Deliler and Tulu Tepe prospects will follow-up on high grade mineralisation intersected in Phase 1 exploration drilling completed in the fourth quarter of 2014.

This includes both infill and immediate step-out drilling.

Metallurgical test work, chemical and radiometric analyses, and resource estimation will also be carried out.

"Based on the results of our recent drilling and surface mapping, the Sefaatli Project is emerging as an exciting uranium district, with results to date exceeding our expectations," interim managing director Paul Cronin said.

"It is increasingly likely that Sefaatli may be capable of being developed as a satellite operation to feed into our advanced Temrezli ISR Uranium Project.

"I am confident, that at the completion of the current drilling and testing program, and initial resource can be estimated at Sefaatli."

Deliler Prospect

Phase 1 drilling at the Deliler Prospect was focussed in areas where previous drilling in the 1980s intersected widespread uranium mineralisation open in all directions.

Whilst most holes intersected two or more lenses, and one hole up to 5 stacked lenses, drilling confirmed a consistently mineralised horizon which lies between 950-975 metres.

Better intercepts within the fault zone and the 'roll-front" included:

- 6.2 metres at 810ppm eU3O8 from 59.8 metres including 1.7 metres at 1,490ppm eU3O8;
- 1.8 metres at 940ppm eU3O8 from 75.4 metres including 0.6 metres at 1,940ppm eU3O8; and
- 1.3 metres at 580ppm eU3O8 from 51.9 metres including 0.5 metres at 1,520ppm eU3O8.

Phase 2 drilling at Deliler will consist, initially, of 29 holes and approximately 5,200 metres of drilling to infill the fault and "roll-front" at a drill density sufficient to understand the geometry of the uranium mineralisation.

Tulu Tepe Prospect

At Tulu Tepe a limited drilling program was completed before the program was suspended due to poor weather.

All drill holes intersected two or more lenses and one hole up to 4 stacked lenses, with a distinct zone of uranium enrichment occurring around 80 metres beneath ground surface.

This returned better intercepts of:

- 1.4 metres at 540ppm eU3O8 from 82.4 metres including 0.6 metres at 1,270ppm eU3O8;
- 2.5 metres at 2,150ppm eU3O8 from 81.7 metres including 1.2 metres at 3,980ppm eU3O8; and
- 4.3 metres at 930ppm eU3O8 from 80.5 metres including 0.5 metres at 2,240ppm eU3O8.

Wide spaced drilling was confined to the west and east sides of the prospect.

Phase 2 drilling at Tulu Tepe will consist, initially, of 17 holes and approximately 2,000 metres of drilling.

This is planned to in-fill step-out from the western and eastern mineralisation areas, first at a drill density of 100 metres by 100 metres and then, subject to the results, at a sufficient density to understand the geometry of the uranium mineralisation.

Temrezli ISR Uranium Project

Anatolia's flagship Temrezli Uranium Project has a current resource of 13.3 million pounds U3O8 with potential for near-term production.

The company has commenced a PFS at Temrezli which is due for completion in early CY15. The project is not likely to require a bankable feasibility study 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.

A recently updated Preliminary Economic Assessment highlighted potential for a 1 million pound per annum U308 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 U308 price and an IRR of 109%.

The company has also received strong results from metallurgical test work on Temrezli core material, which showed that it is amenable to extraction of uranium using a standard alkaline leach environment.

In addition, hydrogeological test work has indicated that higher potential production flow rates are possible.


Planned drilling at Anatolia Energy's Setaatli Project will follow up on recent high grade intersections and could result in an initial resource estimate.

The project's location just 40 kilometres southwest of Temrezli gives it potential to be developed as a satellite operation to the advanced ISR project.

This adds to the progress that Temrezli has been making and could further improve its economics.

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.

A significant milestone and share price catalyst ahead is the completion of the PFS.

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