Centerra Gold Inc. (TSX: CG) and Kumtor Operating Company updated the Kumtor reserves and resources as of December 31, 2013.
In 2013, gold production at the Kumtor mine was
– 600,402 ounces or 18,674.6 kg for the full year 2013.
The 2013 production guidance was achieved due to mining carried out in the high-grade SB Zone of the Central Pit.
Reserves and Resources
Kumtor’s proven and probable mineral reserves total 8.51 million ounces of contained gold as of December 31, 2013 after processing 766,000 contained ounces in 2013. Kumtor’s life-of-mine plan is based only on the open pit reserves, and no provision has been made for production from the underground resources.
Measured and indicated resources at Kumtor were unchanged at 2.65 million contained ounces and inferred resources were unchanged at 2.64 million contained ounces.
All 2013 year-end reserves and resources were estimated using a gold price of $1,300 per ounce compared to $1,350 per ounce at December 31, 2012. The change in gold price had no impact on the reserves and resources.
Thousands of tonnes
Thousands of oz
|– proven||4 841||1,9||296||9,20|
|– probable||80 345||3,2||8 220||255,68|
|Total Reserves||85 186||3,1||8 516||264,88|
|– measured||21 975||2,3||1 631||50,73|
|– indicated open pit||12 113||2,3||898||27,93|
|– indicated Stockwork
|Total Measured and
|34 439||2,4||2 650||82,42|
|– Central Pit,
Southwest and Sarytor deposits
|– Underground Stockwork
|– Underground SB Zone||3 413||11,2||1 229||38,23|
|14 754||5,6||2 646||82,30|
1 – The reserves and resources include those of the open-pit area as well as of the Southwest and Sarytor deposits and have been estimated based on a gold price of US$1,300 per ounce.
2 – “OP” means open pit and “UG” means underground.
The reserves and resources estimated by Centerra are determined in accordance with National Instrument 43-101 which is the same standard used by many international mining companies. Such reserve and resource estimates are based on mining operations continuing until the end of the current life of mine plan in 2026 and do not consider potential mining activities after that time. These estimates also formed the basis of Centerra’s discussions with the Government of the Kyrgyz Republic when they entered into the non-binding Heads of Agreement on the Kumtor Restructuring. The Company will file updated reserve and resource estimates with the appropriate Kyrgyz authorities for their review and approval to facilitate the updating of the Kyrgyz state reserve registry.
The Kumtor mine estimates it will produce between 550,000 and 600,000 ounces1 or 17.1 to 18.7 tonnes of gold in 2014 and similar to 2013, over 50% of this gold production is expected during the fourth quarter when mining will reach the high-grade section of the SB Zone.
The projected capital expenditures for 2014, excluding capitalized stripping, are estimated to be $85 million of which $42 million will be spending on sustaining capital2, including the major overhaul maintenance of the mine equipment, purchase of ball mill girth gear, tailings dam construction raise and other items. Growth capital2 investment at Kumtor is forecast at $43 million and includes the relocation of certain infrastructure at Kumtor related to the KS-13 life-of-mine expansion plan, dewatering projects and purchase of new mining equipment.
Capitalized stripping costs (cash) are expected to be $191 million in 2014.
Kumtor’s all-in costs2 including all capital expenditures and taxes are forecast between $1,008 and $1,100 per ounce sold.