SOURCE: Turkpower

July 21, 2011 09:00 ET

TurkPower Corporation Announces Agreement With Beneficiation Plant Manufacturer and Commencement of Mining Operations at Its Kuluncak Site

NEW YORK, NY--(Marketwire - Jul 21, 2011) - TurkPower Corporation (OTCBB: TRKP) (the "Company") is pleased to announce the signing of a cooperation agreement between its subsidiary Maksor Madencilik Sanayi Ve Ticaret Anonim Sirketi (hereafter "Maxore") with the Austrian beneficiation plant manufacturer The Standard GmbH ("Standard") for its Kuluncak iron ore project. TurkPower and Maxore will be closely cooperating with Standard in engineering, research and development, project development and product development of machinery and equipment for its Kuluncak project as well as other mining projects in the future.

The first beneficiation plant for the Kuluncak iron ore mine is a mobile dry beneficiation plant with a capacity of 48,000 - 60,000 tons per month and will be operational by August 2011. In a second phase, a wet beneficiation plant will be installed at the Kuluncak site, allowing for wet beneficiation and higher capacity as early as April 2012. Standard's beneficiation technology and equipment increases the Kuluncak iron ore grade from 58 - 62% to 62 - 65% Fe content.

Open-pit mining operations commenced at the Kuluncak site in May after more than two years of exploration study, ore extraction planning, machinery and equipment selection, waste dump site selection and planning, and ore extraction designing from narrow veins, tabular and massive deposits utilizing mechanized methods. The Company will report soon in more detail about its projected iron ore production and sales for 2011.

About the Kuluncak Mine
The Kuluncak iron ore mine is an open-pit mine, which can be operated from April/May to November and is expected to produce 550,000 metric tons of iron ore per season. According to a two-year feasibility study conducted in 2008 and 2009, the mine has estimated reserves of 20,900,000 metric tons for a net value of approximately $3bn based on current market price for 58 - 62%-grade iron ore. The feasibility study was conducted by one of the world's leading mining companies, which concluded: "The project offers great value for money if a small mine is what one is looking for." The mine has been operational since June 2011, and has more than 140,000 metric tons of iron ore in inventory which will be sold starting in August. The Company expects to sell a total of up to 220,000 tons of iron ore in 2011, and further increase production in the following years.

About TurkPower Corporation
TurkPower Corporation (OTCBB: TRKP) is a Turkish-American junior mining company aiming to buy controlling ownership in an operational iron ore mine and several mining projects under development. TurkPower's sole focus is on the booming Turkish mining industry, where it aims to become a leader in developing, operating and owning base metal mines, by acquiring and consolidating operational mines with proven reserves, utilizing economies of scale to increase returns as well as developing new mining assets. TurkPower's board of directors, management team and employees have extensive expertise and established relations in the Turkish mining industry as well as relations with the relevant government agencies, allowing TurkPower to access key opportunities now emerging in Turkey.

About Turkey

  • 73m inhabitants
  • 17th-largest economy in the world
  • 2nd-fastest growing economy in the world
  • Member of NATO, OECD, OSCE and G-20
  • Classified as a democratic, secular and developed nation by the CIA

Turkey is an important player in the international minerals market due to its wealth of reserves, considerable production capacity and geographical advantages for transportation and shipping. Ranking 28th in global mining production, Turkey also ranks 10th by variety of mines and minerals.

Turkey has the second-fastest growing economy in the world, the fourth-largest shipbuilding industry, the tenth-largest steel-producing facilities, leading electronics manufacturing for Eastern Europe and the Middle East, and has recently surpassed Italy in terms of automobile production.

Safe Harbor Statement

The statements by our officers, and other statements regarding optimism related to the business, consulting, service operations, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business and subject to successful financing. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many risk factors that affect the industry the Company operates in and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere.

Contact Information

  • TurkPower Corporation
    100 Park Avenue
    New York, New York 10017
    T 212-984-0628
    F 212-880-6499