TORONTO, ONTARIO -- (Marketwire) -- 02/07/13 -- This news release contains forward-looking information that is subject to the risk factors and assumptions set out on page 12 and in our Cautionary Note Regarding Forward-looking Information on page 14. All figures are in United States dollars.
Centerra Gold Inc. (TSX: CG) today issued updated 2012 year-end estimates for the Company's reserves and resources and a fourth quarter 2012 exploration update. The updated reserves and resources are based on the new Kumtor KS-13 open pit mine expansion (announced November 7, 2012) and the Company's successful 2012 exploration programs.
Highlights (using $1,350/oz. gold price for reserve estimation):
-- At Centerra's 100% owned Oksut project in Turkey, a new resource estimate of 682,000 contained gold ounces of indicated resources and 477,000 contained gold ounces of inferred resources has been outlined as a result of the successful drilling in 2012.-- Exploration drilling at the Kumtor project in 2012 has further increased both open pit and potential underground mineral resources below the KS- 13 pit design.-- As a result of the KS-13 open pit expansion, first announced on November 7th, 2012, the Kumtor proven and probable reserves (as of December 31, 2012) have increased by 58% or 3.6 million contained ounces of gold compared to 6.3 million ounces of gold as of December 31, 2011 and now total 9.5 million contained ounces of gold.
During 2012, Centerra's proven and probable gold reserves increased by 3.6 million contained ounces (before accounting for 2012 production) to 11.1 million ounces of contained gold, compared to 8.1 million ounces as of December 31, 2011. This represents an increase of 45% before accounting for 534,000 contained ounces processed at Kumtor and Boroo during 2012. The total reserve increase is the result of the significant expansion of the Kumtor Central Pit and is described in detail in a new NI 43-101 technical report filed on SEDAR in December 2012. All 2012 year-end reserves were estimated using a gold price of $1,350 per ounce compared to $1,200 per ounce at December 31, 2011.
In Mongolia, at the Boroo mine, proven and probable reserves total 178,000 contained ounces of gold after accounting for approximately 110,000 contained ounces being processed in the mill and or loaded on the heap leach pad in 2012. The remaining reserves are now entirely within existing ore stockpiles on surface. At the current reserve gold price assumption, the Boroo operation can continue to feed the mill from stockpiles for approximately two more years and operate and recover gold from the heap leach pad into 2014. At the Gatsuurt project, proven and probable reserves remain unchanged at 1.5 million ounces of contained gold.
The initial resource estimate for the 100% owned Oksut project in Turkey has an indicated resource of 682,000 ounces of contained gold and an inferred resource of 477,000 ounces of contained gold. The estimated resource is contained in two zones. The Ortacam North Zone has an indicated resource of 682,000 ounces of contained gold and an inferred resource of 353,000 ounces of contained gold. The Ortacam Zone has an inferred resource of 124,000 ounces of contained gold.