Oksut mine shutdown overshadows Centerra Gold’s first quarter results

Centerra said the decline was primarily due to a higher current tax expense related to the Öksüt mine and a $72.3 million gain recognized on the sale of the company’s stake in the Greenstone Gold Mines partnership. .

Production for the period was 93,784 ounces of gold and 20.6 million pounds of copper. According to the figure, Öksüt was responsible for 54,891 ounces, while Mount Milligan in Canada delivered 39,093 ounces of gold.

“While the ADR plant at the Öksüt mine currently remains shut down, mining, crushing, stockpiling and leaching activities continue as planned until the gold loading stage on carbon,” chief executive Scott Perry said on a conference call.

He noted that the company continues to evaluate options to address the issue at the ADR plant and is exploring other ways to monetize gold into carbon. Such an alternative would provide a temporary solution until gold bullion production at Öksüt can be restarted, or for the life of the mine with minimal equipment required at the ADR plant, Perry said. .

The miner noted that full-year 2022 guidance for Öksüt and consolidated Centerra remained under review while production guidance for Mount Milligan was unchanged between 190,000 and 210,000 ounces of gold.

The Öksüt mine became Centerra’s third operating mine in January 2020 when it poured its first gold. Approximately 28.2 million tonnes of ore grading 1.3 g/t gold, containing a total of 1.2 million ounces, are expected to be mined and stockpiled over an eight-year mine life.

Farewell to Kumtor

The Toronto-based company highlighted the resolution of a long-running dispute with the Kyrgyz Republic over ownership and profit-sharing of the massive Kumtor gold mine, which was seized by the government in May 2021.

As part of the settlement, Centerra transferred ownership of the mine to its wholly owned subsidiary Kumtor Gold and a subsidiary of state refiner Kyrgyzaltyn OJSC.

Kumtor was the largest of Centerra’s gold mines, contributing over 50% of the company’s total production.

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