Centerra Gold Announces Temporary Suspension of Gold Doré Bar Production at the Öksüt Mine
March 18 2022 - 7:16AM
Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG) (NYSE:
CGAU) today announced that it has temporarily suspended gold doré
bar production at the Öksüt Mine due to mercury having been
detected in the gold room of the adsorption-desorption recovery
(“ADR”) plant.
Centerra has taken several initial actions in
response, including cleaning mercury from affected areas, taking
steps to mitigate and prevent exposure, implementing the necessary
safety protocols and protective equipment and is in the process of
taking the necessary regulatory reporting steps. The Company is
also evaluating several potential technical solutions to remove the
mercury in the gold recovery process, including a retort and
scrubbing system in the ADR plant, prior to the restart of
production.
Despite the temporary suspension, the Öksüt Mine
continues to mine ore, stack ore on the leach pad, and process ore
within the ADR plant into a gold-in-carbon form. The gold-in-carbon
will be stockpiled until the re-start of the electrowinning
process, where the recovery of gold from concentrated solution
occurs.
The Company is evaluating the impact on 2022
guidance, noting that through March 17 the Öksüt Mine produced and
sold over 54,000 gold ounces.
Following a thorough review, Centerra expects to
provide an update in due course.
Cautionary Note Regarding
Forward-Looking InformationInformation contained in this
document which are not statements of historical facts may be
“forward-looking information” for the purposes of Canadian
securities laws and within the meaning of the United States Private
Securities Litigation Reform Act of 1995. 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. The words “believe”, “expect”,
“anticipate”, “contemplate”, “plan”, “potential”, “intends”,
“continue”, “budget”, “estimate”, “may”, “will”, “schedule”,
“understand” and similar expressions identify forward-looking
information. These forward-looking statements relate to, among
other things: potential solutions to deal with mercury in the Oksut
Mine’s gold processing facility, evaluations of solutions to deal
with mercury in the ADR plant, effects on the Oksut Mine’s
production, continued mining, stacking and processing operations,
the timeline for resumption of gold bar production, impacts of 2022
guidance and amounts of future gold production.
Forward-looking information is necessarily based
upon a number of estimates and assumptions that, while considered
reasonable by Centerra, are inherently subject to significant
political, business, technical, economic and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking information. Factors and assumptions that could
cause actual results or events to differ materially from current
expectations include, among other things: uncertainty over the
causes of the presence of mercury in the ADR plant, the
effectiveness or timeliness of solutions to remove mercury from the
gold recovery process; the ability of the Company to mitigate or
prevent the effects of mercury exposure, or regulatory actions or
scrutiny inhibiting, delaying or resulting in additional costs for
the Öksüt Mine’s gold recovery process or other operations. For
additional risk factors, please see section titled “Risks Factors”
in the Company’s most recently filed Annual Information Form
available on SEDAR at www.sedar.com and EDGAR
www.sec.gov/edgar.
There can be no assurances that forward-looking
information and statements will prove to be accurate, as many
factors and future events, both known and unknown could cause
actual results, performance or achievements to vary or differ
materially from the results, performance or achievements that are
or may be expressed or implied by such forward-looking statements
contained herein or incorporated by reference. Accordingly, all
such factors should be considered carefully when making decisions
with respect to Centerra, and prospective investors should not
place undue reliance on forward looking information.
Forward-looking information is as of March 18, 2022. Centerra
assumes no obligation to update or revise forward-looking
information to reflect changes in assumptions, changes in
circumstances or any other events affecting such forward-looking
information, except as required by applicable law.
About Centerra GoldCenterra
Gold Inc. is a Canadian-based gold mining company focused on
operating, developing, exploring and acquiring gold properties in
North America, Turkey, and other markets worldwide. Centerra
operates two mines: the Mount Milligan Mine in British Columbia,
Canada, and the Öksüt Mine in Turkey. While the Company still owns
the Kumtor Mine in the Kyrgyz Republic, it is currently no longer
under the Company’s control. The Company also owns the Goldfield
District Project in Nevada, United States, the Kemess Underground
Project in British Columbia, Canada, and owns and operates the
Molybdenum Business Unit in the United States. Centerra's shares
trade on the Toronto Stock Exchange (“TSX”) under the symbol CG and
on the New York Stock Exchange (“NYSE”) under the symbol CGAU. The
Company is based in Toronto, Ontario, Canada.
For more information:Toby Caron Treasurer and
Director, Investor Relations (416) 204-1694
toby.caron@centerragold.com
Shae FrosstManager, Investor Relations(416)
204-2159shae.frosst@centerragold.com
Additional information on Centerra is
available on the Company’s web site at
www.centerragold.com and at SEDAR
at www.sedar.com and EDGAR at
www.sec.gov/edgar.
A PDF accompanying this announcement is
available
at http://ml.globenewswire.com/Resource/Download/ab1192f7-8015-4900-b588-dbf517553de8
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