CENTERRA GOLD ANNOUNCES SIGNIFICANT NEW PRECIOUS/BASE
METAL DISCOVERY IN NORTHEAST MONGOLIA
(All figures are in United States dollars.)
To view the complete drill results, graphics, and maps/drill sections discussed in this news release, please visit the following link: http://media3.marketwire.com/docs/CGATO711.pdf or visit the Company�s web site at: www.centerragold.com.
Toronto, ON - July 11, 2011 - Centerra Gold Inc. (TSX: CG) is pleased to announce the discovery of a significant precious and base metal deposit on its 100%-owned Altan Tsagaan Ovoo (ATO) property in northeast Mongolia.
Highlights:
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Multiple long intercepts of high-grade gold, silver and base metal mineralization
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A large land position covering a total of 77,000 hectares
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ATO property acquired in May 2010, $6.5 million spent to date
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124 diamond drill holes completed through May 2011 for a total of 21,753 metres
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Preliminary metallurgical test work initiated at Xstrata Process Support in Sudbury, ON
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Exploration budget for 2011 has been expanded to include: - Further drilling of known targets in the ATO licenses - Initial drilling of the other targets already identified in the land package, including High Land, Duut Nuur, Bayan Gol, Davkhar Tolgoi and Bayan Munkh - Additional metallurgical test work - Baseline social, environmental and hydrologic studies
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Initial resource estimate expected at year-end
Commentary:
Steve Lang, President and CEO of Centerra stated, �We are very excited about this new discovery in what we view as a new emerging mineral district. In the past thirteen months, our exploration group has identified initial targets, drilled those targets with very strong results and identified other potential targets within our license package. Our Board of Directors has recognized the potential of this project and has expanded our 2011 exploration budget to continue the rapid advancement.�
He continued, �Drilling to date at ATO has outlined three breccia pipes which carry significant precious and base metal mineralization on a large property which has several other targets that have yet to be evaluated and tested by diamond drilling. We expect to have an initial resource statement by year-end. Centerra has the in-house operating and technical expertise, as well as, the financial capacity to rapidly advance the ATO discovery to add considerably to shareholder value.�
�Centerra�s Board has approved a $6 million increase in the Company�s 2011 exploration budget from $34 million to $40 million, with $4 million of this additional funding allocated for further work on the ATO property,� he concluded.
Centerra has expended a total of $6.5 million on exploration work since acquiring the ATO property in May 2010. An additional $4 million has been allocated to complete further drill testing this year of the known mineralization and other targets identified on the property and to carry out additional target definition work on the Company�s large land holdings. Additionally, detailed metallurgical test work will be continued and social, environmental and hydrological baseline studies have been started.
THIS PRESS RELEASE CONTAINS TABLES, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN PDF FORMAT.
About Centerra
Centerra Gold Inc. is a gold mining company focused on operating, developing, exploring and acquiring gold properties primarily in Asia, the former Soviet Union and other emerging markets worldwide. Centerra is a leading North American-based gold producer and is the largest Western-based gold producer in Central Asia. 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.
THIS PRESS RELEASE CONTAINS TABLES, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN PDF FORMAT.
Cautionary Note Regarding Forward-looking Information
This news release and the documents referred to herein contain statements which are not statements of current or historical facts and are �forward-looking information� within the meaning of applicable Canadian securities laws. Such forward-looking information involves 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 information. Wherever possible, words such as �believe�, �expect�, �anticipate�, �contemplate�, �target�, �plan�, �intends�, �continue�, �budget�, �forecast�, �projections�, �estimate�, �may�, �will�, �schedule�, �potential�, �strategy� and other similar expressions have been used to identify forward-looking information. These forward-looking statements relate to, among other things, Centerra�s expectations regarding the impact of the Water and Forest Law on the Company�s ATO project, business prospects (including the timing and development of new deposits and the success of exploration activities), and opportunities, including exploration expenditures and exploration plans.
Although the forward-looking information in this news release reflects Centerra�s current beliefs as of the date of this news release based on information currently available to management and based upon what management believes to be reasonable assumptions, Centerra cannot be certain that actual results, performance, achievements, prospects and opportunities, either expressed or implied will be consistent with such forward-looking information. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Centerra, are inherently subject to significant political, business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information.
Other factors that could cause actual results or events to differ materially from current expectations include, among other things: the sensitivity of the Company�s business to the volatility of gold and base metal prices; the political risks associated with the Company�s operations in Mongolia; the impact of changes in, or more oppressive enforcement of, laws, regulations and government practices in the in Mongolia; the effect of the Water and Forest Law on the Company�s operations in Mongolia; the impact of continued scrutiny from Mongolian regulatory authorities; the success of the Company�s future exploration and development activities; competition for mineral acquisition opportunities; the adequacy of the Company�s insurance; environmental, health and safety risks; defects in title in connection with the Company�s properties; the impact of restrictive covenants in the Company�s revolving credit facility; long lead times required for equipment and supplies given the remote location of the Company�s properties; illegal mining on the Company�s Mongolian properties; the Company�s ability to enforce its legal rights; the Company�s ability to obtain future financing; the impact of current global financial conditions; the impact of currency fluctuations; the effect of recent market conditions on the Company�s short-term investments; the Company�s ability to attract and retain qualified personnel; the Company�s ability to make payments including payments of principal and interest on the Company�s debt facilities; risks associated with the conduct of joint ventures;. There may be other factors that cause results, assumptions, performance, achievements, prospects or opportunities in future periods not to be as anticipated, estimated or intended. See �Risk Factors� in the Company�s most recently filed AIF available on SEDAR at www.sedar.com.
There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differ materially from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained in this news release. Accordingly, all such factors should be considered carefully when making decisions with respect to Centerra, and prospective investors should not place undue reliance on forward-looking information. Forward-looking information is as of July 11, 2011. Centerra assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law. |
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