GOLD: Centerra says Oksut feasibility study is positive

TURKEY – Centerra Gold of Toronto has looked at the feasibility study for its Oksut gold project and says it is positive. If the timeline goes as projected, the first production from the mine 50 km south of the city of Kayseri will be in...

TURKEY – Centerra Gold of Toronto has looked at the feasibility study for its Oksut gold project and says it is positive. If the timeline goes as projected, the first production from the mine 50 km south of the city of Kayseri will be in Q2 2017. A net present value of $242 million (8% discount) and an internal rate of return of 42.5% are projected.

Output will be 155,000 oz annually during the first four years. Probable reserves are 1.2 million contained oz of Au in 26.1 million tonnes at an average grade of 1.4 g/t gold using a cut-off grade of 0.3 g/t.

Pre-production and construction costs, including contingency, will be $221 million (all US dollars) to build a project that will recover 895,000 oz of gold over an eight-year mine life. Total life of mine and mill sustaining capital will be $10 million, plus $30 million of capitalized stripping. The project will pay for itself in 2.5 years after production begins.

Centerra puts the all-in sustaining cost of an ounce of gold from Oksut at $725. Add in the taxes, and the AISC becomes $777.

Centerra is ready to begin development at Oksut in Q1 2016. Detailed engineering and ordering of long lead time items will start in the second half of 2015. Please see CenterraGold.com for more information.

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