Canada-based miner Centerra Gold remains on track to achieve its revised 2022 guidance, which was lowered in August after the suspension of certain operations at its Öksüt mine, in Türkiye.

The guidance for the year is to produce between 245 000 oz and 265 000 oz  of gold this year, compared with the initial target of 400 00 oz to 450 000 oz.

The company on Monday reported third-quarter gold production of 54 134 oz and copper production of 19-million pounds from the Mount Milligan mine, in Canada.

During the quarter, about 40 000 oz of gold were added to the stored in gold-in-carbon inventory of Öksüt.

In March, Centerra suspended gold doré bar production at the Öksüt mine, owing due to the detection of mercury in the gold room at the ADR plant. 

The company is currently constructing a mercury retort system to allow mercury to be safely vaporised from the sludge with the vapor condensed and collected in a fully contained system. The furnace off-gas system will also be replaced to ensure that any remaining mercury is scrubbed from the gas and captured.

All the major equipment has been delivered to site and construction is progressing well, with total capital costs expected to be about $5-million.

Centerra said it would be able to restart the gold room operations at the ADR once it had a new environmental impact assessment (EIA) for the mine. In May, the Environment Ministry inspected the mine and informed the company of a number of deficiencies relating to the EIA.

Öksüt’s application to update its EIA was submitted at the end of August and the full EIA submission would be submitted before the end of 2022, the miner reported.

The company in August suspended leaching operations at the Öksüt mine, while it advanced its applications for an updated EIA, but mining, crushing and stacking activities continued.

“The extent of mining, crushing and stacking activity for the remainder of the year will continue to be evaluated as the company advances through the permitting process and may be reduced significantly prior to the end of the year,” interim president and CEO Paul Wright stated.

Once operations resume, the ADR plant would have sufficient capacity to process up to 35 000 oz/m, which would allow the stored gold-in-carbon inventory to be processed on a timely basis.

Meanwhile, Centerra recorded a consolidated free cash flow deficit of $35.5-million in the third quarter. The free cash flow from mine operations generated at the Mount Milligan mine of $20.9-million was able to offset a majority of the free cash flow deficit from mine operation at Öksüt of $23-million.

The company ended the quarter with a cash position $580.8-million. Based on the firm’s financial position, the board approved a quarterly dividend of C$0.07 a share.