Canadian Mining Journal

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GOLD: Centerra, government accord near for Gatsuurt mine



MONGOLIA – Centerra Gold of Toronto and the Mongolian government are nearing an accord that will allow the development of the Gatsuurt gold mine to move a step closer. The state has expressed willingness to accept a 3% net smelter interest on top of the existing royalty and tax regime rather than take a 34% equity interest in the project.

Centerra is ready to negotiate the fine points of that agreement as well as those covering development and investment. The company then says it will undertake to update the existing economic and resource studies done a decade ago. Exploration drilling to expand the resource and hydrogeological drilling are planned.

The Gatsuurt deposit lies about 55 km from the existing Boroo mill, and ore will be trucked there for processing at a rate of 4,800 t/d. Ore that is amenable to carbon-in-pulp treatment from the Central and Main zones will be mined initially. Other types will be stockpiled until a second phase when they will undergo Biox treatment. A conventional truck and shovel open pit operation is planned.

The Gatsuurt deposit has proven and probable reserves of 17.1 million tonnes grading 2.9 g/t Au and containing more than 1.6 million oz of gold. There are also 5.1 million indicated tonnes at 2.4 g/t and 5.5 million inferred tonnes at 2.5 g/t.

More information can be found at CenterraGold.com.