Centerra acquires 9.9% of BC-focused Thesis Gold

Centerra Gold (TSX: CG) has bought a 9.9% stake in Thesis Gold (TSXV: TAU), citing the potential growth and synergy of the latter’s flagship project located next to its Kemess gold-copper project in north-central British Columbia.

The Canadian gold miner said Tuesday it will purchase about 23.5 million common shares of Thesis at $1.03 a share for $24.2 million. The issue price represents a 10% premium to the five-day volume-weighted average price of Thesis’ shares on the TSX Venture Exchange.

Thesis Gold fell 2.6% to 95¢ Tuesday afternoon in Toronto for a market capitalization of $199 million. Earlier in the session, it had risen to a 52-week high of $1.04.

“Centerra’s interest is a strong endorsement of the extraordinary potential of the Lawyers-Ranch project and the work our team has accomplished to date,” Thesis Gold CEO Ewan Webster said in a news release. 

The Lawyers-Ranch project covers 495 sq. km within the Toodoggone mining district, which proponents say shares similar geological history with the Golden Triangle to the west. The property hosts a former underground mine that operated from 1989 to 1992 when it produced 173,000 oz. of gold and 3.6 million oz. of silver.

PEA study

The Vancouver-based company is currently advancing the Lawyers-Ranch project through a pre-feasibility study to build on the results from the preliminary economic assessment (PEA) from October 2024.

The PEA outlined a potential 14-year mine (open pit and underground) with annual gold-equivalent production of 215,000 ounces. Its post-tax net present value (at 5% discount) is estimated at $1.3 billion, with an internal rate of return of 35%. Initial capital cost of the project is about $598 million.

The study used a resource of 82 million measured and indicated tonnes grading 1.11 grams gold per tonne and 31.9 grams silver, plus another 12 million inferred tonnes at 1.48 grams gold and 20.9 grams silver.

In addition to the PFS, Thesis is also conducting key baseline work to initiate the project’s environmental assessment process and executing a summer exploration program to grow the Lawyers-Ranch resource.

Potential synergy

“Thesis’ recent preliminary economic assessment, resource update and drill results are very encouraging and demonstrate the potential of this highly prospective district,” Paul Tomory, CEO of Centerra, commented.

“Given the proximity of our Kemess asset to the Lawyers-Ranch project, we see the potential for substantial synergies, including the ability to leverage existing infrastructure to unlock regional potential.”

Centerra’s Kemess project, situated 45 km to the south of Lawyers-Ranch, is home to a former copper-gold mine that produced approximately 3 million oz. of gold and 800 million lb. of copper over a 12-year period until 2011.