Centerra Gold Inc. (Centerra) and Kumtor Gold Company (KGC) have summed up their operating results in the third quarter of 2018. In the first nine months KGC produced 306,467 ounces or 9,532.2 kg of gold and contributed more than 5.66 billion soms in taxes and mandatory payments.
Kumtor produced 122,445 ounces, or 3.81 tons of gold in the third quarter compared to 138,561 ounces or 4.31 tons in the same period of 2017.
Gold sales in the third quarter were 119,521 ounces, or 3.72 tons. Total revenues from gold sales in the third quarter were $142.8 million.
Kumtor has designed and initiated a two-year 60,000-meter drill program to test potential extensions of gold mineralization along the Kumtor trend. The program is focused within the Central, Southwest and Sarytor pits and the Northeast Target area.
A budget of $18 million has been allocated to the program with $6.5 million for 2018 and $11.5 million budgeted for 2019.
Drilling in 2018 is planned to test near surface targets, including the Hockey Stick Zone, the northwest periphery of the Central Pit and the corridor between the Central Pit and Southwest Pit.
During the third quarter 30 diamond drill holes were completed for a total of 8,318 meters, at the vicinity of the Central and Southwest Pits and the Northeast Target area. More than half of the holes (17 drill holes for a total of 4,507 meters) were completed in the Central Pit area targeting the Hockey Stick Zone.
In the Southwest area 7 drill holes were completed for a total of 2,297.7 meters. In the Northeast area 6 drill holes were completed for a total of 1,512.4 meters.
In the fourth quarter drilling will be focused on inferred near-surface mineralization in the northeast wall of the Central Zone, southwest extension of the Hockey Stick Zone and periphery of the Northeast target.
During the third quarter contributions to the national budget in taxes, deductions to the Social Fund and other mandatory payments have totaled 1.5 billion soms.
Scott Perry, President and Chief Executive Officer of Centerra, stated: “Our sites had another safe quarter, and we continue to roll out phase two of our Work Safe – Home Safe program, as we strive to zero harm within the work place.”
“During the quarter and earlier than planned Kumtor accessed and started mining and processing the higher-grade material from the SB Zone in the Central Pit. As a result, Kumtor delivered better than planned results in the quarter, producing over 122,000 ounces of gold at all-in sustaining costs (before taxes) of $662 per ounce sold. With our third quarter earnings release, Centerra increased its gold production guidance for Kumtor for the year to 490,000-510,000 ounces and company-wide to 665,000 to 705,000 ounces”.
“We also lowered our expected all-in sustaining costs on a by-product basis (before taxes) at Kumtor to $700 to $750 per ounce sold and at Mount Milligan to $825 to $875 per ounce sold, which brought the Centerra’s consolidated all-in sustaining costs on a by-product basis (before taxes) to $782 to $829 per ounce sold,” Scott Perry stressed. (24.kg/Ukrainian metal)