Centerra predicts 640,000 to 700,000 ounces gold production this year
Centerra had budget $276.4 million for capex this year, along with $30 million for exploration to help achieve its goal of mining 1.5 million ounces of gold annually.
Posted: Tuesday , 12 Jan 2010
RENO, NV -
Toronto-based miner Centerra Gold Monday forecast a consolidated gold production of between 640,000 to 700,000 ounces this year, compared to 675,592 ounces produced in 2009.
Centerra CEO Steve Lang said mining operations had a very strong fourth quarter, which enabled the company to build its cash balances to US$320 million, which will be used to grow the company.
The company plans to spend $30 million for exploration this year, an increase from the $25 million budgeted last year. Centerra also has budgeted $276.4 million in capital expenditures this year.
"Significant capital investment at Kumtor is planned in order to expand and renew our mining fleet," Lang said in a news release. "Exploration at Kumtor will continue to look for opportunities to add further open pit resources to expand open pit mining past 2017 and give us sources of ore to blend with the higher grade material from underground."
The company plans to spend $38 million to develop the SB and Stockwork underground deposits with production targeted for 2012. "As we continue to expand our operations in both Mongolia and the Kyrgyz Republic, an aggressive focus on adding additional operating platforms through our business development and exploration efforts will increase our future gold production and help us achieve our goal of producing 1.5 million ounces of gold annually," he said.
The Kumtor mine is expected to produce between 520,000 to 560,000 ounces this year while gold production at Boroo/Gatsuurt is forecast to be 120,000 to 140,000 ounces. The company will receive the final operating permit for the Boroo heap leach facility by March 1st, allowing it to restart the heap leach within days of receiving the permit, Centerra announced.
Planned capital investment of $152.1 million during 2010 at Kumtor will enable Centerra to "develop the long-term potential of the mine, by expanding and renewing the open pit fleet, increasing ice haulage capacity and continuing underground development.
At Gatsuurt in Mongolia, Centerra intends to spend $73.8 million this year including construction of a bio-oxidation plant, mine pre-stripping for Gatsuurt sulphide ore, tailings dam costs and the purchase of mobile equipment.
Capital for the development of deeper sulphide ore at Gatsuurt will only be invested "if the company is successful in obtaining an acceptable agreement for Gatsuurt with the Government of Mongolia," Centerra said.