Centerra Gold (TSX: CG; NYSE: CGAU) shares jumped to their highest level in more than three years after it released a pre-feasibility study that extended the life of its Mount Milligan open pit mine in British Columbia by about 10 years.
The study issued Thursday extends the producing mine’s life until 2045, boosts gold and copper reserves by at least 52% and production by about 12%, while estimating capital costs at $186 million. The mine is about 155 km north of Prince George in central BC.
“Mount Milligan’s [life-of-mine] extension marks a key milestone in advancing Centerra’s organic gold growth strategy,” CEO Paul Tomory said in a news release. “Ongoing exploration continues to highlight the potential to further expand mineral resources and extend mine life beyond the updated plan.”
The forecast extension for Mount Milligan, which ranks as a mid-tier project by reserve size and grade…
