Centerra Gold (TSX: CG) continues to see operational issues at its mining facilities. Following the seizure of its Kumtor Mine last year, the company has now halted gold bar production at another mine due to what appears to be a quality control issue.
The firm this morning revealed that it has halted gold dore bar production at its Oksut Mine, which is found in south-central Turkey. Production has been halted as a result of the firm identifying mercury in the gold room at its adsorption-desorption plant.
Identified as a temporary production halt, the company is now faced with the problem of cleaning the mercury and removing it from the room. At the same time, the company is looking at methods to remove the mercury in the recovery process which may require the purchase of additional equipment, such as a retort and scrubbing system, before production restarts at the plant.
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In the interim, the company has indicated that it intends to continue to mine, stack and process ore at the site. Processed ore will remain in a “gold-in-carbon” form until it can be made into dore bars once systems come back online.
The current impact on prior guidance is not yet known, with a future update to provide further clarity.
The Oksut Mine, found in Turkey, has been in production for under two years time, with commercial production being achieved in May 2020. The mine is currently the firms most productive asset prior to this mornings announcement, with the mine expected to produce between 210,000 and 240,000 ounces of gold this year, while also having the lowest production costs.
To date, the mine had produced and sold over 54,000 ounces this year as per the company.
Centerra Gold last traded at $12.60 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
