Centerra Gold acquires Goldfield District Development Project

Goldfield is a conventional open-pit, heap leach project in late-stage development, located in a Tier 1 mining jurisdiction. It contains three known deposits: Gemfield, Goldfield Main, and McMahon Ridge. The first pit for potential development is Gemfield. Centerra believes that the project has significant upside potential from its large, underexplored land position in an established mining area in Nevada that has produced more than 4 million oz of gold historically.

Highlights of the Transaction:

• Adds high-quality development project: Goldfield is anticipated to add meaningful future low-cost production to Centerra with a conventional open-pit heap leach mine with expected low capital intensity, similar to that of our operational Öksüt Mine in Turkey.
• Improves geographic profile and provides new platform of operation: Goldfield is located in a Tier 1 jurisdiction and enjoys strong local support. The acquisition increases Centerra's exposure to North America and provides an anchor asset that can act as a foothold for further opportunities in the United States. Centerra currently has five active exploration joint ventures in the United States and six in Canada.
• Short construction period: Goldfield is substantially de-risked. The company plans to further refine existing technical studies undertaken to date by Waterton, with a resource estimate expected to be released in the first half of 2023 and an updated feasibility study thereafter.
• Leverages existing operational expertise: Goldfield is a conventional open-pit, heap leach project that can leverage development and operating expertise obtained at Centerra’s Öksüt Mine which was constructed on time and under budget.
• Underexplored property that provides substantial upside potential: Large land position located in a prolific mining district which has produced over 4 million gold oz. Centerra has identified numerous targets for drill-ready regional exploration, with the potential to expand known deposits and extend mine life.
• Extensive due diligence completed: Centerra’s review of Goldfield has been ongoing since 2020.

Scott Perry, President and Chief Executive Officer of Centerra, stated:

“We are very excited to be adding this high-quality development project and its substantial Tier 1 jurisdiction land package to our portfolio. Similar to our Öksüt Mine, Goldfield will be a heap leach mine, with low initial capital outlay and low projected production costs.

“Our experienced exploration and operational teams have intimate knowledge of an asset of this kind, and I feel confident that they will be able to successfully develop and execute on this project in the coming years, delivering another source of meaningful cash flow to Centerra.

“Lastly, given the current strength of our balance sheet together with our significant projected free cash flowin 2022, acquiring Goldfield leaves Centerra in a position of flexibility to deliver on other shareholder friendly capital return initiatives that will be under consideration over time.”

Read the article online at: https://www.globalminingreview.com/mining/24022022/centerra-gold-acquires-goldfield-district-development-project/