Centerra owns 100% of the Altan Tsagaan Ovoo (“ATO”) deposit through is wholly owned subsidiary Centerra Gold Mongolia, LLC. The deposit is located in the Dornod Aimag, the easternmost province in Mongolia approximately 480 km East North East of Ulaanbaatar, the capital of Mongolia.
The ATO deposit is located on the Tsagaan Ovoo license, which was acquired by Centerra early in 2010. Beginning in May 2010 and through December 2011, Centerra carried out a significant amount of exploration work, including geologic mapping, stream-sediment sampling, grid-soil sampling, geophysical surveys (ground and airborne magnetic surveys, IP and gravity), trenching, and extensive diamond drilling. At ATO, significant gold (Au), Silver (Ag) and Zinc (Zn) mineralized rock has been encountered in three pipe-like bodies. As of December 2011, 182 diamond drill holes have been completed for a total of 32,105 metres. 2011 exploration expenditures for the ATO project totalled $11.4 million compared to $8.4 million in 2010. During the fourth quarter of 2013 exploration expenditures in Mongolia was $1.9 million compared to $3.0 million in the same period of 2012. The majority of the exploration work in the fourth quarter 2013 was conducted at the ATO property in eastern Mongolia. For 2014 approximately $6 million is planned for exploration programs in the greater ATO district.