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Centerra Gold Inc. (TSX:CG) has completed a preliminary economic assessment study (PEA) at its 100% owned Öksüt project in south-central Turkey. Öksüt consists of the Keltepe deposit and the smaller Güneytepe deposit.
Centerra Gold Inc. (TSX:CG) has completed a preliminary economic assessment study (PEA) at its 100% owned Öksüt project in south-central Turkey. Öksüt consists of the Keltepe deposit and the smaller Güneytepe deposit.
The company used the recent December 31, 2013 resource estimate for the basis for the PEA which used a cut-off grade of 0.2 grams per tonne of gold and a gold price of $1,300 per ounce and was announced in a news release dated February 5, 2014. The resource estimate consists of: (i) indicated mineral resources from the Keltepe deposit, estimated at 29 million tonnes grading 1.2 grams per tonne of gold for 1.1 million contained ounces of gold; and (ii) inferred mineral resources located at the Güneytepe deposit, estimated at 4.7 million tonnes grading 0.9 grams per tonne of gold for 134,000 contained ounces of gold.
The PEA envisions a conventional open-pit and heap leach facility with an expected 34 million tonnes of ore to be stacked at a maximum rate of 11,000 tonnes per day.
Highlights of the PEA study (using a $1,300 per ounce gold price) include:
- 11 year mine life (2016 to 2027),
- Life of mine gold production of 893,000 ounces, average annual gold production of 125,000 ounces in years 4 through 6,
- Total construction capital and preproduction costs of $166 million,
- Total sustaining capital of $9 million,
- All-in costs(1) for the project of $849 per ounce,
- All-in costs including taxes(1) for the project of $914 per ounce,
- After tax net present value (NPV) of $117 million at an 8% discount rate with a 19% project internal rate of return,
- Payback on construction capital and pre-production costs is expected to be 4.5 years after production begins.
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