Centerra Gold Announces 2021 Year-End Mineral Reserves and Resources and Fourth Quarter Exploration Update
Centerra Gold Announces 2021 Year-End Mineral Reserves and Resources and
Fourth Quarter Exploration Update
This news release contains forward-looking information that is subject to risk factors and assumptions as set out in the Cautionary Note
Regarding Forward-Looking Information section on pages [14-15]. All figures are in United States dollars unless otherwise stated.
TORONTO, Feb. 25, 2022 (GLOBE NEWSWIRE) -- Centerra Gold Inc. (“Centerra” or the “Company”) (TSX: CG) (NYSE: CGAU) today
announced its 2021 year-end estimates for mineral reserves and mineral resources. 2021 year-end mineral reserves have been estimated
based on a gold price of $1,350 per ounce for the Mount Milligan Mine and the Öksüt Mine and $1,250 per ounce for the Kemess Property,
and a copper price of $3.00 per pound.
Centerra Mineral Reserves and Resources Highlights as at December 31, 2021:
Centerra’s proven and probable gold mineral reserves total 4.85 million ounces of contained gold (288 million tonnes (Mt) at 0.52 g/t
gold), a decrease of 0.3 million ounces of contained gold from December 31, 2020 (excluding the impact of the loss of control of the
Kumtor Mine in May 2021).
Centerra’s overall measured and indicated gold mineral resources, exclusive of mineral reserves, increased by 1.4 million ounces to
7.1 million ounces of contained gold (653 Mt at 0.34 g/t gold), excluding the impact of the loss of control of the Kumtor Mine. Centerra
added ounces to the Mount Milligan Mine’s mineral resources as a result of in-fill drilling completed during the 2021 drilling program.
Centerra’s proven and probable copper mineral reserves decreased by 101 million pounds to 1,366 million pounds of contained
copper (257 Mt at 0.24% copper), primarily as a result of 2021 depletion.
Centerra’s measured and indicated copper mineral resources, exclusive of mineral reserves, increased by 453 million pounds to
5,783 million pounds of contained copper (1,032 Mt at 0.20% copper).
Centerra Year-End Gold Mineral Reserves and Mineral Resources
Mineral Reserves
As at December 31, 2021, Centerra’s proven and probable gold mineral reserves total an estimated 4.85 million contained ounces (288 Mt
at 0.52 g/t gold), compared to 11.2 million contained ounces (374.6 Mt at 0.93 g/t gold) in the prior year. In 2021, proven and probable gold
mineral reserves decreased by 6.3 million contained ounces, primarily due to processing of approximately 0.5 million contained ounces and
the loss of control of the Kumtor Mine (including the gold inventory of approximately 6.0 million contained ounces as of December 31, 2020).
Partially offsetting the overall decrease was the addition of approximately 0.2 million contained ounces at the Öksüt Mine.
Mount Milligan
At the Mount Milligan Mine, proven and probable gold mineral reserves total an estimated 1.8 million ounces of contained gold (150.0 Mt at
0.38 g/t gold) as of December 31, 2021, compared to 2.1 million contained ounces gold (170.6 Mt at 0.39 g/t gold) as of December 31,
2020. For 2021, proven and probable gold mineral reserves decreased by 310,000 contained ounces of gold, including the processing of
306,000 contained ounces of gold.
Öksüt
At the Öksüt Mine, proven and probable gold mineral reserves total an estimated 1.1 million ounces of contained gold (30.5 Mt at 1.16 g/t
gold) at December 31, 2021, compared to the estimated 1.1 million ounces of contained gold (26.3 Mt at 1.34 g/t gold) as at December 31,
2020. Proven and probable gold mineral reserves 2021 depletion (196,000 ounces) was more than offset by an increase of 203,000
contained ounces due to an updated life of mine plan and decrease of the cut-off grade from 0.2 g/t to 0.16 g/t gold.
Kemess
At the Kemess Property, the proven and probable gold mineral reserves for the Kemess Underground Project are unchanged at an
estimated 1.9 million contained ounces (107.4 Mt at 0.50 g/t gold) as at December 31, 2021.
Mineral Resources
Centerra’s measured and indicated gold mineral resources decreased by approximately 0.9 million ounces of contained gold to 7.1 million
ounces of contained gold (652.9 Mt at 0.34 g/t gold), when compared to the December 31, 2020 estimate. The decrease is a result of the
loss of control of the Kumtor Mine (2.3 million ounces as of December 31, 2020), partially off-set by the addition of 1.4 million ounces to the
Mount Milligan Mine’s mineral resources as a result of in-fill drilling completed during the 2021 drilling program. All measured and indicated
gold resource figures in this section are presented exclusive of gold mineral resources.
Mount Milligan
At the Mount Milligan Mine, measured and indicated resources increased by 1.4 million contained ounces of gold, as a result of the infill
drilling described above, for a total of 2.8 million ounces of contained gold (284.0 Mt at 0.31 g/t gold) as at December 31, 2021.
Öksüt
At the Öksüt Mine, measured and indicated gold resources as at December 31, 2021 increased by 53,000 contained ounces, attributable to
an updated resource estimate, offset by processing 196,000 contained ounces of gold during 2021.
Kemess
At the Kemess Underground and Kemess East projects, measured and indicated gold resources are unchanged compared to December
31, 2020, totaling 4.0 million ounces of contained gold (351.2 Mt at 0.36 g/t gold).
Inferred Gold Mineral Resources
The Company’s inferred gold mineral resource estimate totals 1.0 million contained ounces of gold (95.4 Mt at 0.34 g/t gold) as at
December 31, 2021, a decrease of 4.3 million contained ounces when compared to December 31, 2020. The decrease is primarily a result
of the loss of control of the Kumtor Mine which resulted in a decrease of 4.4 million contained ounces, partially offset by the addition of
125,000 ounces at the Mount Milligan Mine.
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 mineral resources will ever be upgraded to a higher category.
Centerra Year-End Copper Mineral Reserves and Mineral Resources
Mineral Reserves
Proven and probable copper mineral reserves total an estimated 1,366 million pounds of contained copper (257 Mt at 0.24% copper).
Mount Milligan
At the Mount Milligan Mine, proven and probable copper mineral reserves total an estimated 736 million pounds of contained copper (150 Mt
at 0.22% copper) as at December 31, 2021 compared to 837 million pounds of contained copper (171 Mt at 0.22% copper) as at December
31, 2020. The decrease of 101 million contained pounds of copper was primarily due to the processing of 97 million contained pounds of
copper in 2021.
Kemess
The Kemess Underground Project’s proven and probable copper mineral reserves are unchanged and are estimated to be 630 million
pounds of contained copper (107 Mt at 0.27% copper) as at December 31, 2021.
Mineral Resources
Measured and indicated copper mineral resources total an estimated 5,783 million pounds of contained copper (1,032 Mt at 0.20% copper).
The copper mineral resources are located at the Mount Milligan Mine, the Berg Property, the Kemess Underground, and Kemess East
properties, all which are located in Canada. All measured and indicated copper mineral resource figures in this section are presented
exclusive of mineral reserves.
Mount Milligan
At the Mount Milligan Mine, measured and indicated mineral resources increased by 453 million pounds of contained copper to an estimated
974 million pounds (284 Mt at 0.16% copper) as at December 31, 2021. The increase in measured and indicated mineral resources
resulted from an updated resource estimate upon the completion of the 2021 in-fill drilling program.
Kemess
At Kemess, measured and indicated mineral resources are unchanged at 2,107 million pounds of contained copper as at December 31,
2021. The Kemess Underground measured and indicated mineral resources total an estimated 697 million pounds of contained copper
(174 Mt at 0.18% copper) and Kemess East measured and indicated mineral resources total an estimated 1,410 million pounds of
contained copper (178 Mt at 0.36% copper).
Inferred Copper Mineral Resources
Centerra’s inferred copper mineral resource estimate totals 539 million pounds of contained copper (108 Mt at 0.16% copper). This
includes an estimated 47 million pounds of contained copper (17 Mt at 0.19% copper) at Mount Milligan that represents a year-over-year
increase of 19 million pounds of contained copper due to a revised resource estimation and classification. At Kemess inferred copper
mineral resources include 210 million pounds of contained copper (48 Mt at 0.20% copper) at Kemess Underground and 203 million pounds
of contained copper (29 Mt at 0.31%) at Kemess East, both unchanged from December 31, 2020.
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 mineral resources will ever be upgraded to a higher category.
Goldfield
On February 22, 2022, the Company announced that it had entered into a definitive agreement to acquire the Goldfield District Project
(“Goldfield”) from Waterton Nevada Splitter, LLC. Goldfield consists of three known deposits: Gemfield, Goldfield Main and McMahon Ridge.
Centerra is aware that a previous NI 43-101 technical report was published in 2013 on the Goldfield property by a previous owner. Centerra
has reviewed that report and subsequent studies on the project as part of its due diligence and expects to further refine and update that
work before announcing a resource estimate (expected in the first half of 2023) and an updated feasibility study thereafter.
Table 1 (see additional footnotes on page 7)
Centerra Gold Inc. 2021 Year-End Mineral Reserve and Resources Summary – Gold (1)
(as at December 31, 2021)
Proven and Probable Gold Mineral Reserves
Proven Probable Total Proven and Probable
Property Tonnes
(kt)
Grade
(g/t)
Contained Gold
(koz)
Tonnes
(kt)
Grade
(g/t)
Contained
Gold (koz)
Tonnes
(kt)
Grade
(g/t)
Contained
Gold (koz)
Mount Milligan (4) 107,444 0.39 1,342 42,531 0.36 496 149,975 0.38 1,838
Öksüt 494 1.23 20 30,034 1.16 1,123 30,528 1.16 1,143
Kemess Underground - - - 107,381 0.50 1,868 107,381 0.50 1,868
Total 107,938 0.39 1,362 179,946 0.60 3,487 287,884 0.52 4,849
1) Centerra’s equity interests as of this news release are as follows: Mount Milligan 100%, Öksüt 100%, Kemess Underground and Kemess
East 100%. Numbers may not add up due to rounding
2) Mineral resources are in addition to mineral reserves. Mineral resources do not have demonstrated economic viability.
3) 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 mineral resources will ever be upgraded to a higher category.
4) Production at Mount Milligan is subject to a streaming agreement with RGLD Gold AG and Royal Gold, Inc. (collectively, “Royal Gold”)
which entitles Royal Gold to 35% of gold sales from the Mount Milligan Mine. Under the stream arrangement, Royal Gold will pay $435 per
ounce of gold delivered. Mineral reserves and resources for the Mount Milligan property are presented on a 100% basis.
Table 2 (see additional footnotes on page 7)
Centerra Gold Inc. 2021 Year-End Mineral Reserve and Resources Summary - Other Metals (1)
(as at December 31, 2021)
Measured and Indicated Gold Mineral Resources (2)
Measured Indicated Total Measured and Indicated
Property Tonnes
(kt)
Grade
(g/t)
Contained Gold
(koz)
Tonnes
(kt)
Grade
(g/t)
Contained
Gold (koz)
Tonnes
(kt)
Grade
(g/t)
Contained
Gold (koz)
Mount Milligan (4) 134,531 0.31 1,331 149,426 0.30 1,428 283,957 0.31 2,759
Öksüt 17,720 0.50 283 - - - 17,720 0.50 283
Kemess Underground - - - 173,719 0.31 1,737 173,719 0.31 1,737
Kemess East - - - 177,500 0.40 2,305 177,500 0.40 2,305
Total 152,251 0.33 1,614 500,645 0.34 5,470 652,896 0.34 7,084
Inferred Gold Mineral Resources (3)
Property Tonnes
(kt)
Grade
(g/t)
Contained
Gold (koz)
Mount Milligan (4) 17,232 0.37 203
Öksüt 1,215 0.44 17
Kemess Underground 47,700 0.34 529
Kemess East 29,300 0.30 283
Total 95,447 0.34 1,032
Property
Tonnes
(kt)
Copper
Grade
(%)
Contained
Copper
(Mlbs)
Molybdenum
Grade
(%)
Contained
Molybdenum
(Mlbs)
Silver
Grade
(g/t)
Contained
Silver
(koz)
Proven Mineral Reserves
Mount Milligan (4) 107,444 0.23 534 - - - -
Probable Mineral Reserves
Mount Milligan (4) 42,531 0.21 201 - - - -
Kemess Underground 107,381 0.27 630 - - 1.99 6,878
Total Proven and Probable Mineral Reserves
Mount Milligan (4) 149,975 0.22 736 - - - -
Kemess Underground 107,381 0.27 630 - - 1.99 6,878
Total Copper and Silver 257,356 0.24 1,366 - - 0.77 6,878
Measured Mineral Resources (2)
Mount Milligan (4) 134,531 0.16 479 - - - -
Berg(5) 176,384 0.36 1,391 0.03 132 3.02 17,152
Kemess Underground - - - - - - -
Kemess East - - - - - - -
Thompson Creek 57,645 - - 0.07 92 - -
Endako 47,100 - - 0.05 48 - -
Indicated Mineral Resources (2)
Mount Milligan (4) 149,426 0.15 495 - - - -
Berg(5) 220,284 0.27 1,311 0.03 161 3.08 21,799
Kemess Underground 173,719 0.18 697 - - 1.55 8,632
Kemess East 177,500 0.36 1,410 - - 1.97 11,240
Thompson Creek 59,498 - - 0.07 85 - -
1) Centerra’s equity interests as of this news release are as follows: Mount Milligan 100%, Kemess Underground 100%, Kemess East
100%, Berg 100%, Thompson Creek 100%, and Endako 75%. Numbers may not add up due to rounding.
2) Mineral resources are in addition to mineral reserves. Mineral resources do not have demonstrated economic viability.
3) 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 mineral resources will ever be upgraded to a higher category.
4) Production at Mount Milligan is subject to a streaming agreement which entitles Royal Gold to 18.75% of copper sales from the Mount
Milligan Mine. Under the stream arrangement, Royal Gold will pay 15% of the spot price per metric tonne of copper delivered. Mineral
reserves and resources for the Mount Milligan property are presented on a 100% basis.
5) In December 2020, the Berg property was optioned to a third party which has the right to acquire a 70% interest in the property over a
period of up to five years.
Table 3 - Centerra Gold Inc. (see additional footnotes on page 7)
Reconciliation of Mineral Reserves
and Mineral Resources(1)(2) – Contained Gold (koz) as at December 31, 2021
1) Centerra’s equity interests as of this news release are as follows: Mount Milligan 100%, Öksüt 100%, Kemess Underground and Kemess
Endako 122,175 - - 0.04 118 - -
Total Measured and Indicated Mineral Resources (2)
Mount Milligan (4) 283,957 0.16 974 - - - -
Berg(5) 396,668 0.31 2,702 0.03 293 3.05 38,951
Kemess Underground 173,719 0.18 697 - - 1.55 8,632
Kemess East 177,500 0.36 1,410 - - 1.97 11,240
Total Copper and Silver 1,031,844 0.20 5,783 0.02 636 1.39 58,823
Thompson Creek 117,143 - - 0.07 177 - -
Endako 169,275 - - 0.04 166 - -
Inferred Mineral Resources (3)
Mount Milligan (4) 17,232 0.19 47 - - - -
Berg(5) 13,982 0.26 79 0.02 5 4.39 1,971
Kemess Underground 47,700 0.20 210 - - 1.65 2,530
Kemess East 29,300 0.31 203 - - 2.00 1,880
Total Copper and Silver 108,214 0.16 539 0.02 50 1.27 6,381
Thompson Creek 806 - - 0.04 1 - -
Endako 47,325 - - 0.04 44 - -
December 31,
2020 (2)
2021
Throughput(3)
2021
Addition
(Deletion)(4)
December 31,
2021
Proven and Probable Gold Mineral Reserves
Mount Milligan 2,148 306 (4) 1,838
Öksüt(5) 1,136 196 203 1,143
Kemess Underground 1,868 - - 1,868
Kumtor Open Pit 6,013 - (6,013) -
Total 11,166 502 (5,814) 4,849
Measured and Indicated Gold Mineral Resources
Mount Milligan 1,396 - 1,363 2,759
Öksüt(5) 230 - 53 283
Kemess Underground 1,737 - - 1,737
Kemess East 2,305 - - 2,305
Kumtor Open Pit 2,280 - (2,280) -
Total 7,948 - (864) 7,084
Inferred Gold Mineral Resources(6)
Mount Milligan 78 - 125 203
Öksüt(5) 23 - (6) 17
Kemess Underground 529 - - 529
Kemess East 283 - - 283
Kumtor Open Pit and Underground 4,465 - (4,465) -
Total 5,378 - (4,346) 1,032
East 100%. As previously reported, Centerra is no longer in control of the Kumtor Mine.
2) Mineral reserves and mineral resources reported in Centerra’s Annual Information Form filed in March 2021. Centerra reports mineral
reserves and mineral resources separately. The amount of reported mineral resources does not include those amounts identified as
mineral reserves. Mineral resources do not have demonstrated economic viability. Numbers may not add due to rounding.
3) Corresponds to process plant feed at both Mount Milligan and Öksüt.
4) Changes in mineral reserves or mineral resources, as applicable, are attributed to: (i) changes to metal price and foreign exchange
assumptions, (ii) information provided by drilling and subsequent reinterpretation and reclassification of mineral resources, and (iii) changes
to cost estimates and metallurgical recoveries.
5) Öksüt open pit mineral reserves and mineral resources include the Keltepe and Guneytepe deposits.
6) 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 mineral resources will ever be converted to a higher category.
Additional Footnotes for Tables 1, 2, 3
General
A conversion factor of 31.1035 grams per troy ounce of gold is used in the mineral reserve and mineral resource estimates.
Mount Milligan
The mineral reserves have been estimated based on a gold price of $1,350 per ounce, copper price of $3.00 per pound and an
exchange rate of 1USD:1.30CAD.
The open pit mineral reserves are estimated based on an NSR cut -off of $7.64 per tonne (C$9.55 per tonne) and takes into
consideration metallurgical recoveries, concentrate grades, transportation costs, smelter treatment charges and royalty and
streaming arrangements in determining economic viability.
The mineral resources have been estimated based on a gold price of $1,550 per ounce, copper price of $3.50 per pound and an
exchange rate of 1USD:1.30CAD.
The open pit mineral resources are constrained by a pit shell and are estimated based on a copper equivalent basis which was
equivalent to NSR cut-off of $7.35 per tonne (C$9.55 per tonne) and takes into consideration metallurgical recoveries, concentrate
grades, transportation costs, smelter treatment charges and royalty and streaming arrangements in determining economic viability.
Further information concerning the Mount Milligan deposit, including key assumptions, parameters and methods used to estimate
mineral resources and mineral reserves, as well as environmental and other risks are described in Centerra ’s most recently filed
Annual Information Form and in the Mount Milligan Mine Technical Report, dated March 26, 2020, each of which has been filed on
SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar.
Öksüt
The mineral reserves have been estimated based on a gold price of $1,350 per ounce and an exchange rate of 1USD:7.5TL.
The open pit mineral reserves are estimated based on 0.16 grams of gold per tonne cut-off grade.
Open pit optimization used a tonne weighted LOM metallurgical recovery of 77% (Keltepe Pit 75%, Guneytepe Pit 85%).
The mineral resources have been estimated based on a gold price of $1,550 per ounce.
Open pit mineral resources are constrained by a pit shell and are estimated based on 0.16 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 mineral reserves, as well as environmental and other risks are described in Centerra ’s most recently filed Annual
Information Form which is available on SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar and the Technical Report on
the Öksüt Project, dated September 3, 2015, which is available on SEDAR at www.sedar.com.
Kemess Underground
The mineral reserves have been estimated based on a gold price of $1,250 per ounce, copper price of $3.00 per pound and an
exchange rate of 1USD:1.25CAD.
The mineral reserves are estimated based on an NSR cut -off of C$17.30 per tonne and takes into consideration metallurgical
recoveries, concentrate grades, transportation costs and smelter treatment charges in determining economic viability.
The mineral resources have been estimated based on a gold price of $1,450 per ounce, copper price of $3.50 per pound and an
exchange rate of 1USD:1.25CAD.
The mineral resources are estimated based on an NSR cut -off of C$15.00 per tonne and takes into consideration metallurgical
recoveries, concentrate grades, transportation costs and smelter treatment charges.
Further information concerning the Kemess Underground deposit is described in the technical report dated July 14, 2017 and filed on
SEDAR at www.sedar.com by AuRico Metals Inc. The technical report describes the exploration history, geology and style of gold
mineralization at the Kemess Underground deposit. Sample preparation, analytical techniques, laboratories used and quality
assurance-quality control protocols used during the exploration drilling programs are consistent with industry standards and carried
out by independent certified assay labs.
Kemess East
The mineral resources have been estimated based on a gold price of $1,450 per ounce, copper price of $3.50 per pound and an
exchange rate of 1USD:1.25CAD.
The mineral resources are estimated based on an NSR cut -off of C$17.30 per tonne and takes into consideration metallurgical
recoveries, concentrate grades, transportation costs and smelter treatment charges.
Further information concerning the Kemess East project is described in the technical report dated July 14, 2017 and filed on SEDAR
by AuRico Metals Inc. The technical report describes the exploration history, geology and style of gold mineralization at the Kemess
East project. Sample preparation, analytical techniques, laboratories used and quality assurance-quality control protocols used during
the exploration drilling programs are consistent with industry standards and carried out by independent certified assay labs.
Thompson Creek
The mineral resources have been estimated based on a molybdenum price of $14.00 per pound.
The open pit mineral resources are constrained by a pit shell and are estimated based on 0.030% molybdenum cut-off grade.
Endako
The mineral resources have been estimated based on a molybdenum price of $14.00 per pound and an exchange rate of
1USD:1.25CAD.
The open pit mineral resources are constrained by a pit shell and are estimated based on 0.025% molybdenum cut-off grade.
Berg
The mineral resources have been estimated based on a copper price of $3.50 per pound, molybdenum price of $14.00 per pound,
silver price of 21.00 per ounce and an exchange rate of 1USD:1.25CAD.
The open pit mineral resources are constrained by a pit shell and are estimated based on 0.25% copper equivalent cut-off grade that
takes into consideration metallurgical recoveries, concentrate grades, transportation costs, and smelter treatment charges in
determining economic viability.
Qualified Person
Slobodan (Bob) Jankovic, Professional Geoscientist, member of the Association of Professional Geoscientists of Ontario (APGO) and
Centerra’s Senior Director, Technical Services, has reviewed and approved the scientific and technical information related to mineral
reserves and resources estimates contained in this news release. Mr. Jankovic is a Qualified Person within the meaning of Canadian
Securities Administrator’s National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).
All mineral reserve and resources have been estimated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and
Petroleum and NI 43-101.
Mineral reserve and mineral resource estimates are forward-looking information and are based on key assumptions and subject to material
risk factors. If any event arising from these risks occurs, the Company ’s business, prospects, financial condition, results of operations or
cash flows and the market price of Centerra’s shares could be adversely affected. Additional risks and uncertainties not currently known to
the Company, or that are currently deemed immaterial, may also materially and adversely affect the Company's business operations,
prospects, financial condition, results of operations or cash flows and the market price of Centerra’s shares. See the section entitled “Risk
Factors” in the Company’s annual Management’s Discussion and Analysis (MD&A) for the year -ended December 31, 2021, available on
SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar and see also the discussion below under the heading “Caution Regarding
Forward-looking Information”.
2021 Fourth Quarter Exploration Update
Exploration activities in the fourth quarter of 2021 included drilling, surface sampling, geological mapping and geophysical surveying at the
Company’s various projects and earn -in properties, targeting gold and copper mineralization in Canada, Turkey, Finland and the United
States of America.
Exploration expenditures at the Company’s continuing operations for the year and for the quarter were $37.4 million and $9.2 million,
respectively. The activities were focused on expanded drilling programs at the Mount Milligan Mine and the Öksüt Mine, as well as at the
Sivritepe Project, which is a greenfield exploration property located in north-eastern Turkey.
Mount Milligan Mine
The 2021 diamond drilling program at the Mount Milligan Mine totalled 39,505 metres in 68 drill holes (13,914 metres in 27 exploration drill
holes and 25,591 metres in 41 resource expansion drill holes). Primary brownfield exploration targets included zones below the current
ultimate open-pit boundary, i.e., MBX Deep and WBX Deep, and on the eastern margin of the open-pit, i.e., Great Eastern Fault (“GEF”)
zone, where positive drilling results were returned in 2019 and 2020.
Mount Milligan Brownfield Drilling and Exploration
Exploration and resource expansion drilling continued in the fourth quarter of 2021 with the completion of 22 diamond drill holes totalling
15,445 metres. Fifteen drill holes, totalling 10,024 metres, were completed in the MBX and WBX Deep zones resource
expansion/exploration targets below the current ultimate open-pit boundary in the central portion of the deposit. Three drill holes, totalling
2,568 metres, were completed in the DWBX zone planned for resource expansion on the western pit wall. Four drill holes, totalling 2,853
metres, were completed in the GEF zone, testing for both shallow mineralization associated with the GEF, and deeper porphyry
mineralization associated with the underlying Great Eastern stock.
Complete or partial assay results were returned for 22 drill holes, including results from 8 holes drilled in the third quarter of 2021 and 14
holes drilled in the fourth quarter of 2021. These include potential significant mineralization from below the ultimate open-pit boundary in the
MBX and WBX Deep zones, and along the western margin of the open-pit in the DWBX zone.
Selected significant intersections are reported below:
MBX and WBX Deep Zones (central portion of the open-pit)
21-1349 71.1 metres @ 0.67 g/t Gold (“Au”), 0.24% Copper (“Cu”) from 3.7 metres including 12.0 metres @
1.22 g/t Au, 0.36% Cu from 36.0 metres
93.0 metres @ 0.35 g/t Au, 0.31% Cu from 168.0 metres
60.0 metres @ 1.15 g/t Au, 0.03% Cu from 267.0 metres
DWBX Zone (western margin of the open-pit)
Assay results returned from the MBX Deep zone during the fourth quarter of 2021 show wide intercepts of potentially significant
mineralization below the ultimate open-pit boundary. Porphyry-style mineralization is associated with potassic altered latite-andesite units in
the footwall of the MBX monzonite porphyry stock. All lithologies are variably crosscut by early, transitional, and late-stage veins. To date,
the tested dimensions of the MBX Deep zone are approximately 200 metres (north-northeast to south-southwest) by 140 metres (east to
west) with an average width of 110 metres, for significant intervals, and potential to expand to the south and to the east. A second series of
fault-bound monzonite porphyry intrusions with potassic alteration ± mineralized early veins have been drilled at depth underlying the
ultimate pit boundary and the MBX stock by approximately 400 metres to 600 metres.
Assay results returned from the DWBX zone during the fourth quarter show wide intercepts of porphyry -style mineralization along the
western margins of the ultimate pit boundary, with narrow intercepts of vein associated high gold-low copper mineralization. Porphyry-style
mineralization is associated with potassic alteration and early quartz veins within the DWBX composite stock and the stock margins. A
moderately west-dipping hydrothermal breccia body has been identified at shallow depth in host volcanic rocks in the northern part of the
DWBX zone. This feature is believed to be associated with emplacement of porphyry stocks and remains to be tested down-dip to the west
and into the Goldmark stock footwall volcanic rocks. Results returned from the DWBX zone in 2021 show potential for resource expansion
to the west of the current ultimate pit boundary.
The above mineralized intercepts were calculated using a cut-off grade of 0.1 g/t Au or 0.1% Cu and a maximum internal dilution interval of
4.0 metres. Significant assay intervals reported represent apparent widths due to the undefined geometry of mineralization in this zone,
relationship between fault blocks, and conceptual nature of the exploration target. Drill collar locations and associated graphics are available
at the following link:
https://ml.globenewswire.com/media/63702a77-3ee8-4dac-b4c3-ccff21f3d4a7/document/?v=02242022094200
A full listing of the drill results, drill hole locations and plan map (including the azimuth, dip of drill holes, and depth of the sample intervals)
for the Mount Milligan Mine have been filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar and are available on the
Company’s website at www.centerragold.com.
including 16.4 metres @ 2.06 g/t Au, 0.03% Cu from 306.0 metres
21-1339 40.9 metres @ 0.13 g/t Au, 0.11% Cu from 24.0 metres
72.0 metres @ 0.28 g/t Au, 0.14% Cu from 159.0 metres
21-1342 73.3 metres @ 0.23 g/t Au, 0.18% Cu from 9.1 metres
101.5 metres @ 0.17 g/t Au, 0.16% Cu from 88.1 metres
21-1344 (partial results) 76.0 metres @ 0.26 g/t Au, 0.15% Cu from 3.0 metres
22.0 metres @ 0.15 g/t Au, 0.18% Cu from 87.0 metres
21-1345 53.3 metres @ 0.23 g/t Au, 0.17% Cu from 3.7 metres
50.3 metres @ 0.70 g/t Au, 0.24% Cu from 262.7 metres
including 13.0 metres @ 1.03 g/t Au, 0.17% Cu from 299.0 metres
21-1348 17.0 metres @ 1.05 g/t Au, 0.11% Cu from 6.0 metres
including 11.00 metres @ 1.47 g/t Au, 0.12 Cu from 8.0 metres
58.6 metres @ 0.30 g/t Au, 0.27% Cu from 186.0 metres
21-1351 62.1 metres @ 0.16 g/t Au, 0.08% Cu from 7.9 metres
148.0 metres @ 0.47 g/t Au, 0.17% Cu from 211.0 metres
including 14.0 metres @ 1.46 g/t Au, 0.17% Cu from 304.0 metres
21-1352 63.0 metres @ 0.24 g/t Au, 0.24% Cu from 37.0 metres
21-1353 45.3 metres @ 0.38 g/t Au, 0.17% Cu from 3.7 metres
21-1354 (partial results) 112.2 metres @ 0.71 g/t Au, 0.34% Cu from 424.3 metres
21-1355 (partial results) 29.0 metres @ 0.27 g/t Au, 0.30% Cu from 3.0 metres
31.0 metres @ 0.14 g/t Au, 0.24% Cu from 42.0 metres
45.5 metres @ 0.31 g/t Au, 0.05% Cu from 141.5 metres
21-1356 (partial results) 152.5 metres @ 0.35 g/t Au, 0.06% Cu from 6.4 metres
21-1335
113.0 metres @ 0.22 g/t Au, 0.17% Cu from 260.0 metres
59.9 metres @ 0.23 g/t Au, 0.14% Cu from 375.1 metres
119.0 metres @ 0.46 g/t Au, 0.37% Cu from 490.0 metres
21-1336 196.5 metres @ 0.33 g/t Au, 0.35% Cu from 84.5 metres
88.0 metres @ 0.38 g/t Au, 0.61% Cu from 290.0 metres
21-1337 53.1 metres @ 0.17 g/t Au, 0.24% Cu from 319.0 metres
42.0 metres @ 0.16 g/t Au, 0.28% Cu from 396.0 metres
21-1338 15.3 metres @ 1.10 g/t Au, 0.34% Cu from 318.7 metres
50.2 metres @ 0.30 g/t Au, 0.35% Cu from 339.5 metres
21-1340
26.0 metres @ 0.68 g/t Au, 0.10% Cu from 145.0 metres
183.0 metres @ 0.27 g/t Au, 0.37% Cu from 198.0 metres
21-1346 (partial results 90.0 metres @ 0.22 g/t Au, 0.31% Cu from 80.0 metres
42.0 metres @ 1.22 g/t Au, 0.26% Cu from 230.0 metres
including 22.6 metres @ 1.96 g/t Au, 0.11% Cu from 239.4 metres
21-1350 (partial results) 181.7 metres @ 0.92 g/t Au, 0.27% Cu from 333.0 metres
53.0 metres @ 0.32 g/t Au, 0.44% Cu from 541.0 metres
Öksüt Mine
During the fourth quarter of 2021, 55 drill holes totalling 12,812 metres were completed before the end of the 2021 diamond drilling
campaign in November. In the fourth quarter of 2021, drilling program mainly focused on developing the Keltepe North (“Keltepe N”) and
Keltepe Northwest ( “Keltepe NW”) oxide gold satellite resources and targeting geochemical gold and geophysical anomalism at the
Büyüktepe, Yelibelen and Boztepe prospects. In addition to these areas, the drilling in the fourth quarter confirmed the discovery of a new
mineralized zone, Keltepe North-Northwest (“Keltepe NNW”), which has the potential to be another satellite deposit.
A total of 31,525 metres in 159 drill holes were completed in the 2021 drilling program. The 2021 drilling program contributed to increased
resource expansion and development around the known deposits (Keltepe, Güneytepe, Keltepe N and Keltepe NW). The oxide gold
mineralization that has been delineated at Keltepe N, Keltepe NW and now at Keltepe NNW requires additional infill drilling, which will
commence in the first quarter of 2022.
All the outstanding core samples were dispatched to the assay lab by the end of the year. As the priority was given to the analysis of
samples from Keltepe N, Keltepe NW, and Keltepe NNW, most of the assay results from Büyüktepe, Yelibelen and Boztepe prospects are
still pending. Significant mineralized intercepts were received from Keltepe N, Keltepe NW and Keltepe NNW. Selected significant
intersections are reported below:
Keltepe North (resource expansion oxide gold)
Keltepe North-West (resource expansion oxide gold)
Keltepe North-Northwest (oxide gold)
The above mineralized intercepts were calculated using a cut-off grade of 0.2 g/t Au and a maximum internal dilution interval of 5.0 metres.
The true widths of the mineralized intervals reported represent approximately 60% to 90% of the stated downhole interval. Drill collar
locations and associated graphics are available at the following link:
https://ml.globenewswire.com/media/63702a77-3ee8-4dac-b4c3-ccff21f3d4a7/document/?v=02242022094200
A full listing of the drill results, drill hole locations and plan map (including the azimuth, dip of drill holes, and depth of the sample intervals)
for the Öksüt Mine have been filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar and are available on the Company’s
website at www.centerragold.com.
Other Projects Turkey
Sivritepe Project
The 2021 diamond drilling program was completed with a further 20 drill holes being drilled in the fourth quarter for a total of 4,662 metres. A
total of 15,459 metres in 62 drill holes were completed in 2021. Drilling mainly targeted gold-in-soil geochemical anomalism and succeeded
in identifying multiple mineralized zones. Drilling at the two major prospects, Sivritepe West and Sivritepe East, was specifically designed to
be able to define potential gold resources. The drilling data received to date indicates that the identified mineralized zones are still open
along strike and at depth and need to be targeted by infill and step-out drilling in the 2022 drilling season.
In the fourth quarter of 2021, drilling was focused on the Sivritepe West Prospect, where the extent of the east -west trending gold
mineralized zone was outlined at surface by a nearly one km long gold-in-soil geochemical anomaly. It is interpreted that gold mineralization
is related to the contact between magmatic -hydrothermal breccias and trachy -andesitic intrusive rocks. All the drill holes returned
anomalous oxide and/or sulfide gold mineralized intervals.
Selected significant intersections are reported below:
Sivritepe West (oxide gold)
ODD0574 55.0 metres @ 0.93 g/t Au from 126.4 metres
including 6.0 metres @ 3.32 g/t Au from 147.2 metres
ODD0591 16.7 metres @ 1.20 g/t Au from 15.7 metres
including 13.0 metres @ 1.4 g/t Au from 15.7 metres
ODD0614 42.3 metres @ 1.21 g/t Au from 26.7 metres
including 13.5 metres @ 2.37 g/t Au from 27.5 metres
ODD0616 37.3 metres @ 0.53 g/t Au from 11.4 metres
including 5.0 metres @ 1.14 g/t Au from 22.0 metres
ODD0596 33.0 metres @ 0.48 g/t Au from 65.7 metres
ODD0620 36.0 metres @ 0.87 g/t Au from 10.7 metres
including 23.8 metres @ 1.18 g/t Au from 21.8 metres
ODD0622 19.3 metres @ 0.3 g/t Au from 22.9 metres
ODD0593 68.9 metres @ 0.41 g/t Au from 18.6 metres
ODD0612 91.7 metres @ 0.33 g/t Au from 62.5 metres