Sep 4 2015
Centerra Gold Inc. announced today that it has filed on SEDAR a technical report for its 100% owned Öksüt Project, which is located in south-central Turkey.
As reported in the Company's news release of July 28, 2015, the Company expects to begin development of the Öksüt Project in the first quarter of 2016 with first gold production anticipated in the second quarter of 2017. Pre-production expenditures are estimated to be $221 million including a $25 million contingency. Detailed engineering and the ordering of long lead items have commenced.
The Öksüt open pit life-of-mine outlined in the technical report using a gold price of $1,250 per ounce and a discount rate of 8% has an estimated base case project NPV8 (after tax) of approximately $242 million and a project internal rate of return of 42.5% after accounting for all operating costs and capital expenditures related to the open pit operation as well as required tax and royalty payments and reclamation. Additional exploration costs going forward have not been included in the financial analysis.
The environmental impact assessment (EIA) process continues on schedule with formal EIA approval expected late in the third quarter or early in the fourth quarter 2015. Receipt of permits is contingent on the approval of the EIA and applications for all required permits will follow immediately upon approval of the EIA.
The technical report is available on SEDAR at www.sedar.com and on the Company's website at www.centerragold.com.
Qualified Person & QA/QC
The technical report was undertaken by Centerra staff with the assistance of several external consultants. Scientific and technical information in this news release were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and were reviewed, verified and compiled by Centerra's geological and mining staff under the supervision of Gordon Reid, Professional Engineer and Centerra's Vice-President and Chief Operating Officer, who is the qualified person for the purpose of NI 43-101. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the exploration drilling programs on the Öksüt Project have been done consistent with industry standards and independent certified assay labs have been used. Available quality control data indicates that the gold assay data used for resource estimation are reliable.
Source: http://www.centerragold.com/