The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region
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48 | ASIA Miner | Volume 13 • Issue 1 | 2016 Central Asia CENTERRA Gold's Kumtor project in the Kyrgyz Republic contin- ues to perform well with 103,701 ounces of gold produced in the quarter ending September 30, compared to 95,262 ounces in the corresponding period of 2014. The company also revised its 2015 production guidance with the lower end of the range increased by 20,000 ounces to refect better production estimates for Kumtor and for Boroo in Mongolia. The company has revised all-in costs per ounce to refect lower operating costs and revised capital expenditures forecast for updat- ed capital requirements for Kumtor and Öksüt in Turkey. At Kumtor mining activities in the third quarter continued to focus on waste stripping from cut-back 17, while the mill primarily pro- cessed stockpiled ore. Total waste rock and ore mined was 41.9 million tonnes compared to 48.7 million tonnes in the comparative period of 2014. The decrease primarily refected a 6% increase in average haulage distance. Other factors impacting mining included a decrease in haul truck availability of 5% and the impact of unusually warm and wet con- ditions that resulted in lost production hours. During the quarter, Kumtor mined 1.1 million tonnes of ore at an average grade of 1.80 grams/tonne (g/t), compared to 1.4 million tonnes mined at an av- erage grade of 3.49 g/t in the third quarter of 2014. During the quarter Kumtor's average mill head grade was 2.83 g/t with a recovery of 75.7%, compared to 3.05 g/t and 72.7% for the same period of 2014. Overall company operating costs on a sales basis, excluding cap- italized stripping, decreased by 24% to $33.5 million in the third quarter from $43.8 million in the same period of 2014. This was due to processing lower cost ounces at Kumtor driven by a reduction in cost for diesel, labour and other consumables as well as favourable movements in exchange rates. Decreased costs include lower diesel costs ($10.3 million) due to lower fuel prices, blasting costs ($2 million) due to lower blasted tonnages and implementation of an improved wider drill pattern on waste material, lower labour costs ($1.5 million) due to favourable exchange movement on local salaries and lube costs ($0.9 million) due to improved oil analysis processes. Centerra has appointed Scott Perry as CEO, replacing Ian At- kinson who has retired. It has also appointed Frank Herbert as president. ASSAY results from the 2015 reverse circulation (RC) drilling pro- gram at White Cliff Minerals Aucu Gold Project in the Kyrgyz Repub- lic continue to deliver exceptional high grade gold mineralization. The best recent result was 8 metres @ 55.2 grams/tonne (g/t) gold with this hole extending the Upper Gold Zone (UGZ) by a further 300 metres along strike. Another hole returned 4 metres @ 59.9 g/t including 1 metre @ 189 g/t, an additional 2 metres @ 43.5 g/t, and 1 metre @ 103.4 g/t. It also extended the UGZ zone. White Cliff managing director Todd Hibberd says these results have extended the UGZ a further 400 metres along strike to the east and high grade gold mineralization has now been confrmed over 1300 metres of strike. "The gold grades are exceptional. High grade gold results greater than one ounce per tonne (31 g/t) have been identifed in multiple locations along the 1300 metres of strike of the Upper Gold Zone. The UGZ remains open at depth and along strike. "High grade mineralization starts at surface and in addition to be- ing identifed in these outstanding drill results, has been identifed repeatedly in trench and bulldozer cuts. With results like these we are confdent that the 2016 drill program will produce a signifcant resource upgrade," he said. A portion of White Cliff's 2016 drill program will comprise infll re- source defnition holes aimed to grow the defned resource well to- wards the company's existing medium term exploration target of between approximately 15 to 20 million tonnes grading between 4-5 g/t being approximately 2 to 3 million ounces. Todd Hibberd said the results from White Cliff's 2015 drilling cam- paign provided confdence in the company's exploration target. Results were also received for another hole which was not drilled deep enough to intersect the main gold lode. It intersected minor low-grade mineralization and will be re-drilled with a diamond tail to test the main target during the 2016 drilling program. The Aucu project contains extensive porphyry related gold and copper mineralization starting at surface and extending over several kilometres. Drilling in 2014 defned a gold discovery with an initial inferred resource of 1.15 million tonnes @ 4.2 grams/tonne contain- ing 156,000 ounces. Drilling has also defned a signifcant copper deposit at surface consisting of 10 million tonnes @ 0.41% copper containing 40,000 tonnes of copper. Kumtor continues strong performance The 83sqkm Aucu project is in the western part of the Tien Shan Belt, 350km west-southwest of the Kyrgyz capital Bishkek. White Cliff intersects high grade gold