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.

It is envisoned that a local contractor will conduct mining with a conventional truck-and-shovel fleet using small, selective loading equipment and 36 t trucks.

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

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

LoM 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
The Turkish Ministry of Economy has approved an investment incentive certificate for the Oksüt project.

The certificate provides for tax-related advantages such as a decrease in corporate income tax from 20% to 2%, value added tax and customs duty exemptions, as well as government support for social security premiums and interest payment on loans.

In January, Centerra received the pastureland permit for the project, completing the permit process for the project.

The company is expected to announce a construction decision by the end of this month.

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.