Centerra Gold released the results of a new Preliminary Economic Assessment for its Kemess gold‑copper project in northern British Columbia, confirming a 15‑year mine life and robust economics that could make Kemess the company’s second long‑life asset in the province.
The assessment projects average annual production of 171,000 ounces of gold and 61 million pounds of copper, translating to roughly 267,000 gold‑equivalent ounces per year. Using long‑term commodity prices of $3,000 per ounce of gold and $4.50 per pound of copper, the study estimates a 16% after‑tax internal rate of return and a $1.1 billion net present value at a 5% discount rate. The all‑in sustaining cost is $971 per ounce on a by‑product basis, underscoring the project’s strong cost profile.
Strategically, Kemess would complement Centerra’s existing Mount Milligan mine, extending the company’s mine life beyond 20 years and reinforcing its self‑funded growth model. Because the project is unstreamed—meaning it has not sold future metal output for upfront cash—Centerra can develop Kemess without diluting shareholders, a key advantage highlighted by CEO Paul Tomory.
Tomory said the PEA “represents an important step forward in advancing Centerra’s organic growth pipeline in British Columbia. The study builds on a significant mineral endowment, outlining a de‑risked restart plan that leverages substantial existing infrastructure and employs an integrated open‑pit and long‑hole open‑stoping underground mining operation.” He added that Kemess “could become Centerra’s second long‑life gold‑copper asset in British Columbia, complementing Mount Milligan and strengthening our presence in the Toodoggone, one of the most prospective mining jurisdictions in North America.”
The market reacted positively, with the stock reaching a new 52‑week high. Investors were drawn to the strong NPV and IRR, the de‑risked development plan that reuses existing infrastructure, and the fact that Kemess is unstreamed, which preserves future cash flow for the company.
Looking ahead, Centerra plans to advance technical work toward a Pre‑Feasibility Study expected in 2027. Ongoing drilling in the Kemess Offset and Kemess East zones offers exploration upside that could further improve the project’s economics, especially if commodity prices rise above the long‑term assumptions used in the PEA.
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