CENTERRA Gold is on track to meet its 2014 production and cost guidance with the large Kumtor mine in the Kyrgyz Republic contributing the majority of ounces produced. During the June quarter Kumtor produced 77,860 ounces of the company’s total production of 92,124 ounces with the remainder from Boroo mine in Mongolia.

Kumtor’s total was higher than the 72,365 ounces produced in the corresponding quarter of 2013 as the company processed stockpiled ore from cut-back 15 that was mined during the fourth quarter of 2013. During quarter two of 2014, Kumtor’s mill head grade averaged 2.35 grams/tonne with a recovery of 73.2%, compared with 2.17 grams/tonne and a recovery of 69.3% for the same quarter in 2013 when metallurgically difficult stockpiled ore was processed.

Tonnes processed were approximately 1.4 million for the second quarter, which was 6% higher than the comparative quarter of 2013 when the mill was affected by an unscheduled shutdown as a result of protesters’ actions. During the quarter, Kumtor’s mining fleet focused on stripping waste to establish access to the south portion of the Kumtor pit (cut-back 16) that was expected to provide high-grade ore at the end of the third quarter. The total waste and ore mined for the second quarter of 2014 was 49.5 million tonnes compared to 47.9 million tonnes in the comparative period of 2013, reflecting the increased mining fleet.

Total waste and ore mined for the first six months of 2014 was 100.3 million tonnes compared to 88.1 million tonnes in the comparative period of 2013, representing an increase of 14% due to the increased volume of higher density material mined, shorter haulage distances of waste material used for construction of the buttress within the pit and increased fleet capacity. The buttress, at the bottom of the advancing Davidov glacier on the edge of the ultimate pit design is working effectively. However, there can be no assurance that the buttress will ultimately stop or sufficiently slow down the movement of the glacier.

Centerra’s quarterly total was down from the 99,426 ounces produced in the corresponding period of 2013 while for the six months to June 30 Centerra produced 208,794 ounces. Cash provided by operations increased to $71.7 million compared to $40.8 million in the second quarter of 2013.

Centerra’s president and CEO Ian Atkinson said, “I am pleased to report that during the quarter the Kumtor mine obtained approvals of its 2014 mine plan allowing the operation to continue uninterrupted. Both the operations performed well and we are on track to achieve our 2014 guidance. The company is continuing discussions with the government regarding the potential restructuring of Kumtor to resolve all outstanding concerns relating to the project.”

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