Centerra Gold Reports 14-day Reduction in Mount Milligan Mill Production; Provides General COVID-19 Update
April 01 2020 - 5:05PM
Centerra Gold Inc. (“Centerra”) (TSX: CG) reports that as a
precautionary measure in light of the COVID-19 pandemic, the Mount
Milligan Mine in British Columbia, Canada will significantly reduce
manpower and temporarily reduce mill throughput to 50,000 tonnes
per day for a two week period commencing April 6, 2020. While
there are no reported cases of COVID-19 at the Mount Milligan Mine,
the mine is remote and has a large camp accommodation facility
where substantially all of the on-site employees reside while on
their rotation. Most employees work on a two-week rotation,
and April 6 is the next scheduled rotation change. During
this two-week period, mill feed will be sourced from surface ore
stockpiles and be processed using only the primary crusher. Mining
activities will continue but will be limited to support building of
the tailings storage facility. The site will also continue
preparation to capture and store the maximum volume of water from
the upcoming spring melt.
As previously disclosed, the Company
significantly reduced manpower and operations at the Öksüt Project
in Turkey on March 31, 2020 for an initial period of two
weeks. This decision was taken in response to recent Turkish
government initiatives aimed to reducing the spread of COVID-19.
The Company has also temporarily closed its head office in Toronto
and regional offices in Bishkek, Kyrgyz Republic, Prince George,
British Columbia and Ankara, Turkey and has asked its workforce to
operate remotely.
Kumtor operations and the molybdenum operations
continue for the time being and, in the case of the Kumtor Mine,
with the support of the Kyrgyz Republic Government.
The Company’s operations, regardless of the
level of activity, have implemented a number of pre-emptive
measures to prevent the spread of COVID-19 and ensure the safety of
its employees, contractors, communities and other
stakeholders. These measures range from enhanced workplace
hygiene and social distancing, conducting temperature checks using
non-contact thermometers, asking health questions of all
individuals entering the site, limiting the number of employees at
site and in the camp, and limiting the number of people in the
kitchen and eating areas to promote social distancing. A
standard operating procedure has been implemented at all sites in
case there is a need for individual isolation and subsequent
transportation from site for any individual who exhibits COVID-19
related symptoms. Each operating site is also taking
proactive measures to ensure business continuity, including to find
potential alternatives to acquire supplies and to ensure its
products can be sold and monetized.
The Company is continuing to review the impact
of COVID-19 on its 2020 production and cost guidance.
Centerra continues to have significant
liquidity, including cash net of debt of approximately $35 million
as at March 31, 2020 and total overall liquidity in excess of $500
million including access to its corporate credit facility at March
31, 2020.
The Company notes that the situation is fluid
and has been changing rapidly. The measures enacted reflect the
Company’s best assessment at this time but will remain flexible and
be revised as necessary or advisable and/ or as recommended by the
public health and governmental authorities.
About CenterraCenterra Gold
Inc. is a Canadian-based gold mining company focused on operating,
developing, exploring and acquiring gold properties in North
America, Asia and other markets worldwide and is one of the largest
Western-based gold producers in Central Asia. Centerra
operates two flagship assets, the Kumtor Mine in the Kyrgyz
Republic and the Mount Milligan Mine in British Columbia, Canada
and now has a third operating gold mine, the 100% owned Öksüt Mine
in Turkey. Centerra's shares trade on the Toronto Stock
Exchange (TSX) under the symbol CG. The Company is based in
Toronto, Ontario, Canada.
Cautionary Note Regarding
Forward-Looking StatementsCertain information contained in
this news release, may be “forward-looking information” for the
purposes of Canadian securities laws. Such forward-looking
information involves risks, uncertainties and other factors that
could cause actual results, performance, prospects and
opportunities to differ materially from those expressed or implied
by such forward looking information. The words “believe”,
“expect”, “anticipate”, “contemplate”, “plan”, “intends”,
“continue”, “budget”, “estimate”, “may”, “will”, “schedule”,
“understand” and similar expressions identify forward-looking
information. These forward-looking statements relate to,
among other things: statements regarding the Company's plans to
reduce activities at Mount Milligan for a two-week period
commencing April 6, 2020, and at its Öksüt Mine for two weeks
starting on March 31, 2020.
Such statements reflect the Company's views as
at the date of this news release and are subject to certain risks,
uncertainties and assumptions, and undue reliance should not be
placed on such statements. Forward-looking information is
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by Centerra, are inherently subject to
significant political, business, economic and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking information.
Due to the rapidly evolving risks relating to
COVID-19, the Company’s guidance will not reflect the Company’s
estimates of its 2020 performance if there are any further
significant disruptions to any of its operations. Readers are
cautioned to carefully consider the risks identified in the
Company’s news release and management’s discussion and analysis
filed on March 26, 2020. For a list of known risk factors, please
see “Risks That Can Affect our Business” in the Company’s most
recently filed Annual Information Form.
For more
information:
John W. PearsonVice President, Investor
Relations(416) 204-1953john.pearson@centerragold.com
Additional information on Centerra is
available on the Company’s web site at
www.centerragold.com and at SEDAR at
www.sedar.com.
A PDF accompanying this announcement is available
at http://ml.globenewswire.com/Resource/Download/9141b2a3-e949-4f72-9e03-6608b0bc492d
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