Centerra to Spend $405M to Extend Kumtor Pit Production
Centerra Gold is investing $405 million, including $244 million for sustaining capital, to expand production
and extend mine life at its Kumtor gold
operations in the Kyrgykz Republic.
Capital expenditures will be mostly
related to the maintenance or replacement of current open-pit mining equipment and expansion of the tailings
management facility. Gold production
will increase by about 20% to an average of 620,000 oz/y over the five-year
period from 2011 to 2015. Life-of-
mine net cash flow is now estimated at
about $1.5 billion dollars.
The new Kumtor life-of-mine plan is
based only on open-pit reserves. No
provision has been made for production
from underground development activities or from open-pit or underground
resources. Mining production rates will
increase from the current 430,000
mt/d of ore and waste to a peak level of
526,000 mt/d. Total tonnage mined
from the Central Pit will be increased
by about 30%, based on expansion of
mining limits in the southwest wall of
the SB Zone.
The ultimate pit bottom in the SB
zone will be at the 3,618-m elevation,
24 m deeper than was previously
planned. The ultimate pit bottom of the
Stockwork Zone section of the pit will
remain at the 3,722-m elevation.
Kumtor's proven and probable mineral reserves totaled 6.3 million oz of contained gold as of December 31, 2010.
The company expects to spend $12.4
million for ongoing exploration at
Kumtor during 2011. The 2011 exploration program is focused on extending
the underground SB Zone along strike
and down dip and infill drilling of the
inferred resource areas on both the SB
and Stockwork Zones. Additional drilling
is also planned on down-dip extensions
of the Saddle Zone in the Central Pit and
on the Northeast Prospect. An expanded
surface regional exploration program will
include testing targets on the Kumtor
mining concession and also the Karasay
and Koendy target areas.
Spending on Kumtor's underground
development and infill drilling project
during 2011 is estimated at $52 million.
As featured in Womp 2011 Vol 03 - www.womp-int.com