Centerra Gold Secures Permits to Extend Mount Milligan Operations to 2035 with 10% Throughput Boost
Centerra Gold’s amended environmental permits allow Mount Milligan Mine to continue operations through 2035, including a 10% plant throughput expansion starting in 2028. The company is advancing engineering studies for a potential life-extension to 2045, expected to sustain over 1,000 jobs and extend cash flow.
1. Mount Milligan Permit Amendments Secure Operations Through 2035
Centerra Gold has received amended environmental assessment approvals and all related permits for its Mount Milligan Mine in central British Columbia, authorizing continued production through the end of 2035. The amendments include a sanctioned 10% increase in plant throughput beginning in 2028 and expanded stockpile capacity to optimize feed flexibility. These outcomes reflect the province’s commitment to an expedited review process initiated in January 2025 under its economic development program. Engineering and technical studies are well underway to support a further life-of-mine extension to 2045, as outlined in the company’s September 2025 Pre-Feasibility Study. Management estimates that the extended mine life will secure over 1,000 direct jobs and generate hundreds of millions of dollars in regional economic activity, benefiting First Nations partners and local communities through sustained procurement and employment opportunities.
2. Kemess Preliminary Economic Assessment Highlights Strong Value and Growth Upside
The recently released Preliminary Economic Assessment for Centerra’s Kemess project in northern British Columbia delineates a robust, 15-year mine plan combining conventional open-pit and underground methods. Key metrics include an after-tax net present value (5% discount) of US$1.1 billion and an internal rate of return of 16%, based on long-term assumptions of US$3,000 per ounce of gold and US$4.50 per pound of copper. The study targets initial production in late 2031, with average annual output of 171,000 ounces of gold and 61 million pounds of copper, yielding approximately 267,000 gold-equivalent ounces at all-in sustaining costs near US$970 per ounce. The resource update underpinning the PEA reports indicated resources of 3.3 million ounces of gold and 1.1 billion pounds of copper, plus inferred resources of 3.6 million ounces and 1.2 billion pounds respectively, with only 47% of these tonnes included in the base case. Management underscores significant untested exploration targets—such as the deep Kemess Offset zone and Kemess East trend—that may materially enhance project scale and economics in follow-on studies toward a Pre-Feasibility Study in 2027.