Reserve and Resource Summary

Table 1
Centerra Gold Inc.
2015 Year-End Gold Reserve and Resource Summary
(as of December 31, 2015)

Gold Mineral Reserves (1) (11) (12)
(tonnes and ounces in thousands)
Property (3) Category Tonnes Grade (g/t) Contained Gold (oz)
Kumtor (5) Proven 8,832 1.4 402
  Probable 60,406 2.7 5,240
  Proven+Probable 69,239 2.5 5,642
Gatsuurt (7) Proven - - -
  Probable 17,129 2.9 1,603
  Proven+Probable 17,129 2.9 1,603
Öksüt (10) Proven - - -
  Probable 26,137 1.4 1,161
  Proven+Probable 26,137 1.4 1,161
Total Proven 8,832 1.4 402
  Probable 103,672 2.4 8,004
  Proven+Probable 112,505 2.3 8,405
Gold Measured and Indicated Mineral Resources(2) (11) (12)
(tonnes and ounces in thousands)
Property (3) Category Tonnes Grade (g/t) Contained Gold (oz)
Kumtor Open Pit (4) (5) Measured 19,450 2.9 1,787
  Indicated 10,151 2.4 777
  Measured+Indicated 29,602 2.7 2,564
Boroo (6) Measured 452 2.2 32
  Indicated 4,464 1.5 210
  Measured+Indicated 4,916 1.5 242
Gatsuurt (7) Measured - - -
  Indicated 5,098 2.4 398
  Measured+Indicated 5,098 2.4 398
Ulaan Bulag (8) Measured - - -
  Indicated 1,555 1.5 73
  Measured+Indicated 1,555 1.5 73
ATO (9) Measured 9,663 1.5 465
  Indicated 8,920 1.1 306
  Measured+Indicated 18,583 1.3 771
Öksüt (10) Measured 2,100 0.7 45
  Indicated 4,698 0.7 111
  Measured+Indicated 6,798 0.7 156
Total Measured 31,665 2.3 2,329
  Indicated 34,886 1.7 1,875
  Measured+Indicated 66,552 2.0 4,204
Gold Inferred Mineral Resources(2) (11) (12) (13)
(tonnes and ounces in thousands)
Property (3) Tonnes Grade (g/t) Contained Gold (oz)
Kumtor Open Pit (4) (5) 3,894 1.2 148
Kumtor Stockwork Underground (5) 931 11.6 348
Kumtor SB Zone UG (6) 3,806 10.7 1,315
Boroo (6) 7,323 1.0 235
Gatsuurt (7) 5,475 2.5 440
Ulaan Bulag (8) 315 1.3 13
ATO (9) 386 0.6 8
Öksüt (10) 2,380 0.8 65
Total 24,511 3.3 2,573

(1)The mineral reserves have been estimated based on a gold price of $1,200 per ounce.

(2)Mineral resources are in addition to reserves. Mineral resources do not have demonstrated economic viability.

(3)Centerra’s equity interests as of this news release are: Kumtor 100%, Gatsuurt 100%, Boroo 100%, Ulaan Bulag 100%, ATO 100%, and Öksüt 100%.

(4)Open pit resources at Kumtor are constrained by a pit shell developed using a gold price of $1,450 per ounce.

(5)The open pit reserves and resources at Kumtor are estimated based on a cut-off grade of 0.85 grams of gold per tonne for the Central Pit and 1.0 grams of gold per tonne for the Southwest and Sarytor deposits. Underground resources occur below the open pit resources shell and are estimated based on a cut-off grade of 6.0 grams of gold per tonne. Further information concerning the Kumtor deposit, including key assumptions, parameters and methods used to estimate mineral resources and reserves, as well as, political, environmental and other risks are described in Centerra’s most recently filed Annual Information Form and the Technical Report on the Kumtor Project, dated March 20, 2015 each of which has been filed on SEDAR.

(6)The open pit resources at Boroo are estimated as all material below the pit above a 0.5 grams of gold per tonne cut-off grade.

(7)The open pit reserves and resources at Gatsuurt are estimated using a 1.4 grams of gold per tonne cut-off grade. Resources are estimated as all material below the reserve pit above the 1.4 grams per tonne cutoff grade. Further information concerning the Gatsuurt deposit, including key assumptions, parameters and methods used to estimate mineral resources and reserves, as well as, political, environmental and other risks are described in Centerra’s most recently filed Annual Information Form and the Technical Report on the Gatsuurt Project, dated May 9, 2006 each of which has been filed on SEDAR.

(8)The open pit resources at Ulaan Bulag are estimated on a cut-off grade of 0.8, 0.9 or 1.0 grams of gold per tonne depending on ore type and process method.

(9)The ATO open pit resources are estimated based on a Net Smelter Return (NSR) cut-off grade of $6.50 NSR per tonne for oxide mineralization and $25.50 NSR per tonne for sulphide mineralization.

(10)The open pit reserves at Öksüt are estimated based on a 0.3 grams of gold per tonne cut-off grade. Open pit resources are constrained by a pit shell developed using a gold price of $1,450 per ounce and are estimated based on a 0.2 grams of gold per tonne cut-off grade. Further information concerning the Öksüt deposit, including key assumptions, parameters and methods used to estimate mineral resources and reserves, as well as, political, environmental and other risks are described in Centerra’s most recently filed Annual Information Form and the Technical Report on the Öksüt Project, dated September 3, 2015 each of which has been filed on SEDAR.

(11)A conversion factor of 31.10348 grams per ounce of gold is used in the reserve and resource estimates.

(12)Numbers may not add up due to rounding.

(13)Inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically. It cannot be assumed that all or part of the inferred resources will ever be converted to a higher category.

 

Table 1 (continued)
2015 Year-End Polymetallic Resource Summary
(as of December 31, 2015)

Category Tonnes (000’s) Gold Grade (g/t) Contained Gold (19) (oz 000's) Silver Grade (g/t) Contained Silver (oz 000’s)
ATO Project (17) (18) (19)
Oxide Mineral Resources (14) (15) (16) (18) (20) (21)
(> $6.50 NSR cut-off Grade)
Measured Resources 3,677 1.3 148 8.5 1,010
Indicated Resources 3,294 0.7 78 7.2 758
Measured and Indicated 6,971 1.0 226 7.9 1,768
 
Inferred Resources (17) 87 0.8 2 5.0 14
Sulphide Mineral Resources (14) (15) (16) (18) (20) (21)
(> $25.50 NSR cut-off Grade)
Measured Resources 5,986 1.7 318 8.02 1,543
Indicated Resources 5,626 1.3 228 8.52 1,541
Measured and Indicated 11,612 1.5 545 8.26 3,084
 
Inferred Resources (17) 299 0.6 6 5.78 56
Category Lead Grade (%) Contained Lead (lb 000's) Zinc Grade (%) Contained Zinc (lb 000's)
Measured Resources 0.979 129,197 1.704 224,874
Indicated Resources 0.803 99,598 1.447 224,874
Measured and Indicated 0.894 228,795 1.579 404,348
 
Inferred Resources (17) 1.025 6,757 2.306 15,201

(14)Mineral resources have been estimated on the following metal prices (gold $1,300 per ounce), (silver $20 per ounce), (lead $ 0.90 per lb), (zinc $0.90 per lb).

(15)Mineral resources do not have demonstrated economic viability.

(16)Inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically. It cannot be assumed that all or part of the inferred resources will ever be upgraded to a higher category.

(17)Centerra’s equity interest in the ATO project is 100%.

(18)Numbers may not add up due to rounding.

(19)The contained gold resources have also been included in Centerra’s 2015 Year-end Gold Reserve and Resource Summary.

(20)The ATO resources are estimated based on a Net Smelter Return cut-off grade of $6.50 NSR per tonne for oxide mineralization and $25.50 NSR per tonne for sulphide mineralization.

(21)Variables used to calculate NSR values include;

  • Oxide total recovery of gold=69.8%
  • Oxide total recovery of Silver=56.7%
  • Sulphide Net Smelter Return total recovery of gold=59.9%
  • Sulphide Net Smelter Return total recovery of silver=48.5%
  • Sulphide Net Smelter Return total recovery of lead=42.6%
  • Sulphide Net Smelter Return total recovery of zinc=27.7%
  • Payable royalty on total recovered gold=10.0%
  • Payable royalty on total recovered silver=6.75%
  • Payable royalty on total recovered lead=6.75%

Table 2
Centerra Gold Inc.
Reconciliation of Reserves and Resources
(in thousands of ounces of contained gold) (9) (10)

  December 31 2014 (1) 2015 Throughput (2) 2015 Addition (Deletion) (3) December 31 2015
Gold Proven and Probable Mineral Reserves
Kumtor (4) (5) 6,136 658 164 5,641
Gatsuurt (4) (7) 1,603 - - 1,603
Öksüt (4) (8) - - 1,161 1,161
Total Proven and Probable Reserves 7,739 658 1,325 8,405
 
Gold Measured and Indicated Mineral Resources
Kumtor (4) (6) 2,804 - (240) 2,564
Kumtor Stockwork Underground (4) 54 - (54) -
Boroo (4) 242 - - 242
Gatsuurt (4) (7) 398 - - 398
Ulaan Bulag (4) 73 - - 73
ATO (4) 771 - - 771
Öksüt (4) (8) 1,383 - (1,227) 156
Total Measured & Indicated Resources 5,725 - (1,521) 4,204
 
Gold Inferred Mineral Resources (11)
Kumtor Open Pit(4) (6) 126 - 22 148
Kumtor Stockwork Underground (4) 294 - 54 348
Kumtor SB Underground (4) 1,315 - - 1,315
Boroo (4) 235 - - 235
Gatsuurt (4) (7) 440 - - 440
Ulaan Bulag (4) 13 - - 13
ATO (4) 8 - - 8
Öksüt (4) (8) 9 - 56 65
Total Inferred Resources 2,440 - 133 2,573

(1)Reserves and resources as reported in Centerra’s Annual Information Form filed in March 2015.

(2)Corresponds to mill feed at Kumtor and mill feed or stacked on heap leach pad at Boroo.

(3)Changes in reserves or resources, as applicable, are attributed to information provided by drilling and subsequent reclassification of reserves or resources, a feasibility study on the Öksüt Project and a new resource model for the Kumtor Project.

(4)Centerra’s equity interests as of this news release are as follows: Kumtor 100%, Gatsuurt 100%, Boroo 100%, Ulaan Bulag 100%, ATO 100%, and Öksüt 100%.

(5)Kumtor open pit reserves include the Central Pit and the Southwest and Sarytor Pits.

(6)Kumtor open pit resources include the Central Deposit, Southwest Deposit and Sarytor Deposit.

(7)Gatsuurt open pit reserves and resources include the Central Zone and Main Zone deposits.

(8)Öksüt open pit reserves and resources include the Keltepe and Guneytepe deposits.

(9)Centerra reports reserves and resources separately. The amount of reported resources does not include those amounts identified as reserves.

(10)Numbers may not add up due to rounding.

(11)Inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically. It cannot be assumed that all or part of the inferred resources will ever be converted to a higher category.

 

The following information is based upon the "NI 43-101 Technical Report, Mount Milligan Mine, Northern Central British Columbia" prepared by Thompson Creek Metals Company Inc. ("TCM") and dated effective January 21, 2015 (the "Mt. Milligan Technical Report"). The Mt. Milligan Technical Report has been reviewed on behalf of Centerra Gold Inc. ("Centerra") by Doug Berthelsen, and Robert Clifford and, to the best of Centerra's knowledge, information, and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources or mineral reserves inaccurate or misleading.

The following tables set forth the estimated copper and gold mineral reserves for Mount Milligan as of December 31, 2015:

Proven and Probable Copper and Gold Estimated Mineral Reserves at December 31, 2015(1)

Property Category Tonnes Copper Grade Contained Copper Gold Grade Contained Gold
    (millions) (% Cu) (millions of lbs) (gram per tonne) (millions of oz)
Mount Milligan Proven-Mine 271.9 0.198 1,185 0.416 3.64
  Proven-Stockpile 3.0 0.166 11

0.500

0.05
  Probable-Mine 231.5 0.194 989 0.269 2.00
Total Proven 274.9 0.197 1,196 0.417 3.69
  Probable 231.5 0.194 989 0.269 2.00
  Proven+Probable 506.4 0.196 2,185 0.349 5.69

(1)The mineral reserve estimates for Mount Milligan Mine were prepared by Robert Clifford, Director of Mine Engineering at TCM, who is a Qualified Person under NI 43-101. The mineral reserve estimates were prepared using an ultimate open pit design optimized at spot metal prices of $2.95/lb copper, $1,250/oz gold, an exchange rate of US$1.00/C$1.10, a cut-off grade of 0.176% copper equivalent and takes into consideration metallurgical recoveries, concentrate grades, transportation costs, smelter treatment charges and royalty and streaming arrangements in determining economic viability. The mineral reserve estimates are based on the cost assumptions included in the NI 43-101 technical report entitled "NI 43-101 Technical Report-Mount Milligan Mine-Northern Central British Columbia" dated January 21, 2015 and filed on SEDAR on January 21, 2015. Mill recoveries vary by rock type and region but average 85.0% copper and 71.5% gold. Anticipated losses resulting from beneficiation average approximately 4.5% copper and 2.5% gold.

TC Mine and Endako Mine Mineral Reserves

There are no mineral reserves to report for either the TC Mine or the Endako Mine for the year ended December 31, 2015. A review conducted by TCM indicated that the mineral reserves at the TC Mine and the Endako Mine were no longer viable (at prices and exchange rates discussed below), and as such, were re-classified as mineral resources in the 2015 mineral resources statement reported herein.

NON-RESERVES—ESTIMATED MEASURED AND INDICATED MINERAL RESOURCES

The following tables summarize the estimated non-reserves—measured and indicated mineral resources, exclusive of any mineral reserves, at December 31, 2015:

Estimated Measured and Indicated Copper Mineral Resources at December 31, 2015

  Measured Indicated Measured & Indicated
Property Tonnes Copper Grade Tonnes Copper Grade Tonnes Copper Grade
  (millions) (% Cu) (millions) (% Cu) (millions) (% Cu)
Mount Milligan (1) 40.8 0.13 77.7

0.17

118.5 0.16
Berg Property (2) 53.3 0.48 452.7 0.28 506.0 0.30
Total 2015 94.1 0.33 530.4 0.26 624.5 0.27


Estimated Measured and Indicated Gold Mineral Resources at December 31, 2015

  Measured Indicated Measured & Indicated
Property Tonnes Gold Grade Tonnes Gold Grade Tonnes Gold Grade
  (millions) (gram/tonne) (millions) (gram/tonne) (millions) (gram/tonne)
Mount Milligan (1) 40.8 0.465 77.7 0.244 118.5 0.320

 
Estimated Measured and Indicated Molybdenum Mineral Resources at December 31, 2015

  Measured Indicated Measured & Indicated
Property Tonnes Mo Grade Tonnes Mo Grade Tonnes Mo Grade
  (millions) (% Mo) (millions) (% Mo) (millions) (% Mo)
TC Mine (3) 34.3 0.077 31.7 0.068 66.0 0.073
Endako Mine (3) 10.1 0.053 23.3 0.047 33.4 0.049
 Berg Property (2) 53.3 0.030   452.7 0.038 506.0

0.037 

Total 2015 97.7 0.049 507.7 0.040 605.4 0.042


Estimated Measured and Indicated Silver Mineral Resources at December 31, 2015

  Measured Indicated Measured & Indicated
Property Tonnes Silver Grade Tonnes Silver Grade Tonnes Silver Grade
  (millions) (gram/tonne) (millions) (gram/tonne) (millions) (gram/tonne)
Berg Property (2) 53.3 4.5 452.7 3.7 506.0 3.8

(1) The mineral resource estimates, exclusive of mineral reserves, for Mount Milligan Mine were prepared by Robert Clifford, Director of Mine Engineering at TCM, who is a Qualified Person under NI 43-101. The mineral resource estimates were tabulated within a conceptual open pit shell using spot metal prices of $3.50/lb copper, $1,500/oz gold, a cut-off grade of 0.176% copper equivalent, and takes into consideration metallurgical recoveries, concentrate grades, transportation costs, smelter treatment charges, and royalty and streaming arrangements. The mineral resource estimates are based on the cost and price assumptions included in a NI 43-101 technical report entitled "NI 43-101 Technical Report-Mount Milligan Mine-Northern Central British Columbia" dated January 21, 2015 and filed on SEDAR on January 21, 2015.

(2) The mineral resource estimate for the Berg property was approved by Robert Clifford, Director of Mine Engineering at TCM who is a Qualified Person under NI 43-101. The mineral resource estimate for the Berg property was prepared using a 0.30% copper equivalent cut-off, with copper equivalency defined using metal prices of $1.60/lb copper, $10.00/lb molybdenum, and $10.00/oz silver, taking into account forecast metallurgical recoveries. Resources are reported to a maximum depth of 450 meters (1,476 feet) below surface.

(3) The mineral resource estimates for TC Mine and Endako Mine were prepared by the TC Mine and Endako Mine staff, respectively, under the supervision of Robert Clifford, Director of Mine Engineering at TCM, who is a Qualified Person under NI 43-101 and Robert Clifford has approved the disclosure of the mineral resource estimate. The mineral resource estimates utilized a cut-off grade of 0.030% Mo and an average long-term molybdenum price of $10.00 per pound. The mineral reserves previously reported proved to be uneconomic and have been re-allocated back as mineral resources and reported in the tables above.

NON-RESERVES—ESTIMATED INFERRED MINERAL RESOURCES

Inferred mineral resources have been estimated in accordance with the definitions of such terms adopted by the CIM and incorporated in NI 43-101. The filed technical reports regarding the disclosure of mineral resources for TC Mine and Endako Mine, Mount Milligan, and the Berg property.

The following tables summarize estimated non-reserves—inferred mineral resources as of December 31, 2015:

Estimated Inferred Mineral
Resources

Property Tonnes Copper Grade Gold Grade Molybdenum Grade Silver Grade
  (millions) (%) (gram/tonne) (%) (gram/tonne)
Mount Milligan (1) 8.8 0.15 0.32 --- ---
TC Mine (2) 0.7 --- --- 0.035 ---
Endako Mine (2) 2.2 --- --- 0.039 ---
Berg Property (3) 144.6 0.23 --- 0.033 2.5

(1)The inferred mineral resource estimates for Mount Milligan Mine were prepared by Robert Clifford, Director of Mine Engineering at TCM, who is a Qualified Person under NI 43-101. The inferred mineral resource estimates were tabulated within a conceptual open pit shell using spot metal prices of $3.50/lb copper, $1,500/oz gold, a cut-off grade of 0.176% copper equivalent, and takes into consideration metallurgical recoveries, concentrate grades, transportation costs, smelter treatment charges, and royalty and streaming arrangements. The inferred mineral resource estimates are based on the cost and price assumptions included in a NI 43-101 technical report entitled "NI 43-101 Technical Report-Mount Milligan Mine-Northern Central British Columbia" dated January 21, 2015 and filed on SEDAR on January 21, 2015.

(2)The inferred mineral resource estimates for TC Mine and Endako Mine were prepared by the TC Mine and Endako Mine staff, respectively, under the supervision of Robert Clifford, Director of Mine Engineering at TCM, who is a Qualified Person under NI 43-101 and Robert Clifford has approved the disclosure of the mineral resource estimate. The inferred mineral resource estimates utilized a cut-off grade of 0.030% Mo and an average long-term molybdenum price of $10.00 per pound.

(3)The inferred mineral resource estimate for the Berg property was approved by Robert Clifford, Director of Mine Engineering at TCM, who is a Qualified Person under NI 43-101. The inferred mineral resource estimate for the Berg property is reported using a 0.30% copper equivalent cut-off, with copper equivalency defined using metal prices of $1.60/lb copper, $10.00/lb molybdenum, and $10.00/oz silver, taking into account forecast metallurgical recoveries. Resources are reported to a maximum depth of 450 meters (1476 feet) below surface.

 

Corporate Headquarters

1 University Avenue, Suite 1500
Toronto, ON
M5J 2P1

Tel: +1 (416) 204-1953

Fax: +1 (416) 204-1954

Email: info@centerragold.com

location

Careers

Careers