The Öksüt Project is located in the Kayseri province of south-central Turkey, 295 km to the southeast of the capital city of Ankara and 48 km directly south of the city of Kayseri.
The Öksüt Project was originally an exploration joint venture between Centerra and Stratex International Plc. Centerra and Stratex were parties to a joint venture arrangement, formed in 2009, to explore the Öksüt Gold Project. Centerra earned an initial 50% equity in the project by advancing $3 million to the joint venture through October 2011 and acquired an additional 20% interest in the project in October of 2012 with an additional contribution of $3 million, which brought its equity interest to 70%. In January 2013, Centerra purchased Stratex’s remaining 30% interest in the Öksüt Project for a $20 million cash payment and a 1% Net Smelter Return royalty on the project, subject to a $20 million cap. The closing of the transaction was conditional upon the granting of two operation licenses by the Turkish authorities which occurred on January 16, 2013 and Centerra now owns 100% of the Project.
The Öksüt Gold Project was discovered by Stratex in early 2007. Reconnaissance rock chip sampling returned up to 0.113 g/t Au from silica ledges within altered andesitic volcanic rocks at what is now the Güneytepe deposit. In late 2007, Stratex made applications for tenements to cover the property and obtained a total of nine contiguous exploration licenses covering 111.6 square kilometres.
Following the formation of the joint venture, several additional drilling programs were completed on the property resulting in the first Centerra publication of a Mineral Resource estimate on the Project in February 2013 (effective at December 31, 2012) subsequently followed by a revised Mineral Resource estimate published in February 2014 (effective at December 31, 2013). On February 19, 2014, Centerra announced the results of a preliminary economic assessment (PEA) on the Project. An updated Mineral Resource estimate was published in February 2015 (effective at December 31, 2014). On July 28, 2015, Centerra announced the results of a feasibility study on the Öksüt Project and a 43-101 Technical Report was completed and filed on SEDAR in September 2015.
The Öksüt Project is planned as a conventional truck and shovel open pit heap leach mining operation. A total of approximately 26.1 million tonnes of ore at a grade of 1.4 g/t Au, containing a total of approximately 1.2 million ounces of gold, is planned to be mined and stacked over a mine life of eight years from two open pits, the Keltepe and the smaller Güneytepe pit.
Öksüt Gold Property Conceptual Layout