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Centerra Gold extends Mount Milligan mine life to 2033

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(Kitco News) - Centerra Gold (TSX: CG) today announced that the company has extended the life of mine (LOM) for its Mount Milligan copper-gold mine to 2033.

In its press-release, the company reported an increase in proven and probable gold mineral reserves from the 2021 year-end mineral reserve and resources summary by 1.1 million contained ounces (1.8 million to 2.9 million) and copper mineral reserves by 260 million contained pounds (736 million to 996 million).

The company said that the Mount Milligan mine deposit contains mineral reserves totaling 246.2 million tonnes at 0.37 g/t gold and 0.18% copper, adding that mine life extended by over four years, extending open pit mining and milling operations to 2033.

Centerra expects LOM payable gold production of 1.9 million ounces at a production cost of $502/ounce, an all-in sustaining cost on a by-product basis of $756/ounce and all-in cost on a by-product basis of $770/ounce.

Net cash flow over the LOM is estimated at $640 million using a gold price of $1,500/ounce and copper price of $3.25/pound and over $1.0 billion at prices of $1,700/ounce of gold and $3.50/pound of copper.

Mount Milligan’s after-tax NPV is estimated at $486 million at a 5% discount rate using a gold price of $1,500/ounce and copper price of $3.25/pound and an estimated $797 million at gold and copper prices of $1,700/ounce and $3.50/pound, respectively.

Centerra Gold operates two mines: the Mount Milligan mine in British Columbia, Canada, and the Öksüt mine in Türkiye. Centerra also owns the Goldfield District project in Nevada, United States, the Kemess underground project in British Columbia, Canada, and owns and operates the molybdenum business unit in the United States and Canada.

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