Name of the Project
Öksüt gold project.

Location
Turkey.

Client
Centerra Gold.

Project Description
The Öksüt project’s estimated mineral reserves as at June 30, 2015, were 26.1-million tonnes at an average grade of 1.4 g/t of gold containing 1.2-million ounces of gold using a cutoff grade of 0.3 g/t and a gold price of $1 250/oz.

The feasibility study envisions a conventional openpit and heap-leach operation.

The heap-leach pad has been designed with an ultimate ore capacity of 40-million tonnes.

Electrical power is expected to be supplied to the project using a dedicated 28 km power line connected to the local power grid.

Water supply is expected to be sourced from two company-owned water wells, which have been fully permitted.

Mining is planned to be conducted by a local contractor with a conventional truck-and-shovel fleet using small, selective loading equipment and 36 t trucks.

The life-of-mine strip ratio is expected to be 2:1.

The ore will be crushed to 38 mm through two stages of crushing and will be placed on the heap-leach pad at a rate of 11 000 t/d.

Life-of-mine gold recovery is expected to be 77%.

The project is expected to process 26.1-million tonnes of ore at an average grade of 1.4  g/t gold over eight years, producing 895 000 oz of gold at an average all-in-sustaining cost of $490/oz sold.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a base case net present value, at an 8% discount rate, of about $242-million and an internal rate of return of 42.5%.

Value
Preproduction and construction capital is expected to be a modest $221-million, which includes a $25-million contingency.

Duration
Not stated.

Latest Developments
Centerra Gold has received the Turkish pastureland permit for its Öksüt growth project, paving the way for the project’s future development.

Centerra’s Turkish subsidiary Öksüt Madencilik Sanayi ve Ticaret (Omas) has taken receipt of the permit, together with a notice to pay a ‘grass fee’ of about $4-million to the Kayseri Directorate of Food, Agriculture and Livestock.

Omas will also have to pay a refundable deposit to the directorate to start a process to deliver land to the company. The process entails converting the pastureland to industrial-use land and the company expects the land delivery process to take up to 45 days.

The Centerra board is yet to make a construction decision on the project; the company expects this in late February.

Centerra had previously planned for first production from the mine in the second quarter of 2017.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Centerra Gold VP investor relations John Pearson, tel +1 416 204 1953 or email john.pearson@centerragold.com.