More than 17 tonnes of gold produced at Kumtor in 2016

At least 550,960 ounces or 17, 136.78 tonnes of gold have been produced at Kumtor mine

located in Issyk-Kul region of Kyrgyzstan in 2016. Centerra Gold Inc. reported.

As noted, Kumtor mine exceeded the mid-point (540,000 ounces) of Centerra's favourably revised gold production outlook issued after last year's third quarter.

2017 gold production

Kumtor's production forecast is expected to be in the range of 455,000 ounces to 505,000 ounces with 30% of the production expected to be in the fourth quarter.

At Kumtor, 2017 total capital expenditures, excluding capitalized stripping, are forecast to be $96 million. Spending on sustaining capital of $68 million relates primarily to major overhauls and replacements of the heavy duty mine equipment ($58 million), major overhauls and replacements of mill equipment ($3 million) and other items ($7 million).

Growth capital investment at Kumtor for 2017 is forecast at $28 million and includes:

• relocation of certain infrastructure at Kumtor related to the life-of-mine expansion plan amounting to $9 million,
• tailings dam construction ($11 million),
• purchase of new mining equipment ($4 million),
• dewatering projects ($2 million),
• other items ($2 million).

The tailings dam construction in 2017 is the first such construction required to contain the additional 3.6 million ounces of gold reserves that resulted from the KS-13 pit expansion.

As such, it is classified as growth capital. This initial raise is the start of a 3-year program that will not be completed until 2019 (total estimated cost of $32 million).

All tailings dam construction prior to 2017 was related to containing tailings that were generated from the approved ore reserve prior to approval of the KS13 pit expansion.

The cash component of capitalized stripping costs related to the development of the open pit is expected to be $172 million of the $234 million total capitalized stripping in 2017.

 Centerra Gold Inc. is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia, and other markets worldwide. Centerra is the largest Western-based gold producer in Central Asia.