Centerra receives permits to restart Kumtor

Centerra Gold (TSX: CG) has received approvals and permits to restart open-pit mining at its Kumtor operation in the Kyrgyz Republic.

The Kyrgyz state agency has approved Centerra’s 2020 mine development plan, which includes a revised waste dumping plan and safety measures that involve waste placement in the Central Valley and Sarytor waste rock dumps.

Open-pit mining is ramping up with full production rates expected in the next few days, and the mill is currently processing stockpiled ore.

In December, Centerra reported a significant movement at the Lysii waste rock dump at Kumtor. Two employees were reported missing following the incident. While open-pit mining was halted with a re-evaluation of the mine plan, the mill continued to process stockpiled ore with sufficient stockpiles at the site to maintain expected gold output through to the end of 2020.

The mining fronts and infrastructure were not impacted by the material movement, although the waste rock mined would have been designated for the Lysii area.

The two missing employees were not found after a six-week search, and the company has called off the search effort with the consent of the families involved and the Kyrgyz state.

Centerra is completing an internal review and cooperating with the Kyrgyz authorities on an inquiry.

In addition to Kumtor, Centerra Gold operates the Mount Milligan mine in B.C. and is developing the Oksut gold mine in Turkey. It also holds the Kemess and Greenstone projects in Canada.

Company-wide production guidance for 2019 was for approximately 748,000 oz. gold at all-in sustaining costs (AISCs) of US$728 per oz., with Kumtor contributing 575,000 oz. to 590,000 oz. at AISCs of US$635 to US$685 per ounce.

At press time, Centerra shares were trading at $9.79, with a 52-week range of $6.36 to $13.00. The company has 292 million common shares outstanding for a $2.88-billion market capitalization.