Centerra Gold says it is disappointed by its total gold production for 2012 at the Kumtor mine, with 315,238 ounces produced. Fourth quarter production totalled 189,438 ounces after the company was forced to overcome unexpected acceleration of ice and waste in the Central Pit.

Centerra’s president Ian Atkinson says, “The year proved to be a challenging one. As a result of the accelerated ice and waste into the Central Pit, we shifted our ore mining activities to the strike extension of southwest end of the SB Zone, discovered in 2011, that had no historical mining production.”

The company announced a reduction in production in November, due to the mine encountering an irregular till/bedrock contact while transitioning from waste to ore. Final production results at Kumtor were impacted by lower than expected mill throughput and recovery, as well as lower than expected mill head grades. “However, an expansion of the open pit at Kumtor announced in November is expected to deliver consistent annual gold production averaging 650,000 ounces for the next decade,” says Ian Atkinson.

Centerra’s 2013 gold production forecast at Kumtor is between 550,000 and 600,000 ounces, with almost 50% expected to occur in the fourth quarter. “This year we expect approximately 75% of our production to come from the SB Zone which has had a number of years of historical production,” says Ian Atkinson.

Centerra says its Boroo operation in Mongolia performed well in the 2012 fourth quarter, exceeding gold production target for 2012 by 7000 ounces for a total of 29,878 ounces of gold. The 2012 total gold production at Boroo was 71,838 ounces.

In other news, the company is moving toward reporting an ‘all-in cash cost’ methodology for its gold production. Centerra’s projected consolidated all-in cash cost per ounce produced for 2013, is within a range of $1067 to $1164.

www.centerragold.com

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