Name and Location
Öksüt gold project, Turkey.

Client
Centerra Gold.

Project Description
Based on a positive feasibility study, an estimated 26.1-million tonnes at an average grade of 1.4 g/t of measured and indicated resources has been converted to probable reserves using a gold price of $1 250/oz and a cutoff grade of 0.3 g/t gold.

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.

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

The life-of-mine strip ratio is expected to be 2:1. Ore will be crushed to 38 mm through two stages of crushing and 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.
Electrical power is expected to be supplied to the project by a dedicated 28 km power line tied into the local power grid.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value of $242-million, using an 8% discount rate, and a 42.5% internal rate of return. Payback on construction capital and preproduction expenditures is expected to be 2.5 years after production begins.

Value
Preproduction expenditure and construction capital are estimated at $221-million, including a $25-million contingency.

Duration
First gold production is targeted for early in the second quarter of 2017.

Latest Developments
The environmental-impact assessment (EIA) process continues on schedule, with formal EIA approval expected late in the third quarter or early in the fourth quarter of 2015.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Centerra Gold, tel + 416 204 1953 or fax +1 416 204 1954.