TORONTO, CANADA -- (Marketwired) -- 05/03/13 -- This news release contains forward-looking information that is subject to the risk factors and assumptions set out on page 2 under the heading, "Cautionary Note Regarding Forward-looking Information".
Centerra Gold Inc. (TSX: CG) reports that a large section of Kumtor's principal waste-rock dump, the Davidov Valley Waste-rock Dump, is experiencing a greater than anticipated rate of movement. Beginning in mid-March, the rate of movement of the waste-rock dump increased beyond the anticipated rate, requiring acceleration to the planned relocation of certain mine infrastructure. Employees in the affected buildings have been moved to temporary work locations until new facilities are constructed.
The movement of the Davidov Valley Waste-rock Dump is described in the Kumtor Technical Report (December 20, 2012) and in the life-of-mine plan. As indicated in the report, the waste-rock dump movement required the relocation of certain mine infrastructure including workshops, administrative facilities and electrical substations. The Company has expedited the relocation of the infrastructure to ensure continued safe operations and planned gold production to date has not been affected.
As a result of this increase in movement, the Company has discontinued deposition of waste-rock on the affected portion of the Davidov Valley Waste-rock Dump. In the short-term, the Company is placing waste-rock on permitted sites currently unaffected by the movement. An alternative long-term waste-rock dumping plan is being finalized. The Company is working with the Kyrgyz regulatory authorities and external engineering advisors to expedite approval of such a plan. Based on discussions with the authorities to date, the Company believes that such approvals are likely to be forthcoming.
The Government has established a special commission to visit the Kumtor mine site and inspect the waste-rock dump movement. The Company is fully cooperating with the commission.
While the Company expects that it will be able to develop alternative plans that will permit the mine to continue planned operations and that such alternative plans will receive prompt regulatory approval from the Kyrgyz authorities, the Company cannot give assurances in this regard. In the event that an alternative plan cannot be developed or approved promptly the Company would expect a negative impact on its mine operations, production and financial results.
Cautionary Note Regarding Forward-looking Information
This news release and the documents referred to herein contain statements which are not statements of current or historical facts and are "forward-looking information" within the meaning of applicable Canadian securities laws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Wherever possible, words such as "believe", "expect", "plan", "continue", "may", "will", "strategy" and other similar expressions have been used to identify forward-looking information.
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