Toronto-listed Centerra Gold on Wednesday said it had received regulatory
approval for its mine plan to restart using the heap leach facility at its
Boroo mine, in Mongolia.

The miner said it expected to resume the heap leach operation when it had
been recommissioned and estimated production from the heap-leach operation
would add about 2 000 oz/m to its production portfolio from December onwards.

Centerra also said it had received a mining licence for its Altan Tsagaan
Ovoo (ATO) development project, in Eastern Mongolia.

The company said exploration drilling would continue on the ATO property,
targeting extensions and feeders to the pipe-like bodies hosting the current
ATO resource and possible strike extensions to the nearby Mungu prospect.
Regional exploration on the larger land package, including other target areas
would continue during the year.

Since 2010, the company had established a combined measured and indicated
resource of 22.28-million tons grading 1.2 g/t, holding an estimated 824 000 oz
of gold.

The company expected to produce between 450 000 oz and 470 000 oz of gold
from the Boroo and the Kumtor mine, in Kyrgyzstan, for the year.

Centerra Gold CEO Ian Atkinson said the issuance of the
Mongolian permits underlined the company’s confidence in the future of its
Mongolian projects.

Centerra in July said it was watching the Mongolian political landscape evolve
following recent elections, in which the conservative Democratic Party won the
most seats in Parliament, although not enough to avoid forming a coalition
government.

The party was reported as campaigning for more restrictive international
mining laws and the possible nationalisation of mines.

Investors reacted optimisticly to the positive Mongolia update, pushing
Centerra’s TSX-listed stocks 16.70% higher to C$11.95 apiece on Wednesday.

miningweekly.com