Centerra Gold Completes Preliminary Geotechnical Analysis of SB Zone Highwall
and Revises 2007 Kumtor Gold Production Forecast
(All figures are in United States dollars)
TORONTO, ONTARIO - (July 19, 2007) - Centerra Gold Inc. (TSX: CG) announced today that independent geotechnical experts have completed a preliminary analysis of the previously reported (April 27, 2007) Kumtor SB Zone highwall waste dump movement and have recommended stabilization by designing to flatter angles through the underlying till layer and overlying waste dump. The lower slope angles require the removal of more waste than previously planned and delays the release of the high-grade SB Zone ore until the second quarter 2008. Consequently, 2007 gold production at the Kumtor mine is now forecast to be approximately 300,000 ounces compared to Centerra's previous projection of 450,000 to 460,000 ounces. Kumtor's total cash cost for 2007 is expected to be about $580 per ounce, compared to previous guidance of $440 to $450 per ounce.
Overall, Centerra expects 2007 consolidated gold production to be 550,000 to 560,000 ounces. Total consolidated cash costs are now expected to be in the $430 to $440 per ounce range for 2007.
"Although we are all disappointed with the delay in accessing the high-grade SB Zone ore, we are pleased that there are technical solutions to this problem," said Len Homeniuk, Centerra Gold's President and CEO.
Further technical assessment and additional geotechnical drilling is underway. The Company expects by year-end to have a revised outlook for life-of-mine production including an assessment on any impact on reserves and resources.
Qualified Person
The revised production outlook for Kumtor in this news release and the scientific and technical information, were prepared in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and were reviewed, verified and compiled by Centerra's geological and mining staff under the supervision of Ian Atkinson, Certified Professional Geologist, Centerra's Vice-President, Exploration, who is the qualified person for the purpose of NI 43-101.
The Kumtor deposit is described in Centerra's Annual Information Form (the "AIF") for the year ended December 31, 2006 and in a technical report dated March 9, 2006 prepared in accordance with NI 43-101. The AIF and technical report have been filed on SEDAR at www.sedar.com. The technical report describes the exploration history, geology and style of gold mineralization at the Kumtor deposit. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during the drilling programs at the Kumtor site are the same as, or similar to, those described in the technical report.
Cautionary Note Regarding Forward-looking Statements
Statements contained in this news release, which are not historical facts, are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things: volatility and sensitivity to market prices for gold; replacement of reserves; equipment failure; unexpected geological or hydrological conditions; political risks arising from operating in certain developing countries; inability to enforce legal rights, defects in title; imprecision in reserve estimates; success of future exploration and development initiatives; competition; operating performance of the facilities; environmental and safety risks including increased regulatory burdens; seismic activity, weat
her and other natural phenomena; failure to obtain necessary permits and approvals from government authorities; changes in government regulations and policies, including trade and tax laws and policies; ability to maintain and further improve positive labour relations; and other development and operating risks. For further discussion of the factors that could cause actual results to differ materially, please refer to Centerra's Annual Information Form and Annual Management's Discussion and Analysis for the year ended December 31, 2006, available on SEDAR at www.sedar.com.
About Centerra
Centerra is a growth-oriented, pure-play gold company focused on acquiring, exploring, developing and operating gold properties primarily in Central Asia, the former Soviet Union and other emerging markets. Centerra is a leading North American-based gold producer and the largest Western-based gold producer in Central Asia and the former Soviet Union. Centerra's shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is headquartered in Toronto, Canada.
Additional information on Centerra is available on the Company's web site at www.centerragold.com and at SEDAR at www.sedar.com.
CONTACT INFORMATION:
Centerra Gold Inc.
John W. Pearson
Director Investor Relations
(416) 204-1241
Fax: (416) 204-1954
Email: john.pearson@centerragold.com
Website: www.centerragold.com
RENMARK FINANCIAL COMMUNICATIONS INC.
HENRI PERRON : HPERRON@RENMARKFINANCIAL.COM
JASON ROY : JROY@RENMARKFINANCIAL.COM
TEL.: (514) 939-3989
FAX: (514) 939-3717
WWW.RENMARKFINANCIAL.COM