Centerra Gold (TSX: CG; NYSE: CGAU) has issued a resource update that increases by more than 10 times the tonnages at its Kemess project in the Toodoggone district of north-central British Columbia.Inferred resources now total 169,260 tonnes grading 0.41 gram gold for 2.2 million contained oz., Centerra said Tuesday. This dwarfs the 209,000 oz. in the previous resource.The update also pegs indicated gold at 192,990 tonnes grading 0.44 gram gold per tonne for 2.7 million ounces. That represents a 39% drop in contained oz. from the previous resource from December 2023. Kemess is about 250 km northeast of Smithers.“We are moving forward with a preliminary economic assessment on Kemess, using an open pit and long hole open stoping underground mining concept, which is expected to be completed by the end of 2025,” Centerra president and CEO Paul Tomory said in a release. “The significant existing infrastructure already in place is expected to lower the execution risk compared to typical greenfield projects of this scale.”Indicated copper now stands at 192,990 tonnes grading 0.23% copper for 971 million contained pounds, 13% less than in the 2023 resource. Inferred copper totals 169,260 tonnes at 0.22% copper for 821 million contained pounds, more than 10 times higher than the previous contained total.The company envisions a possible 15-year operation at Kemess with potential annual production of about 250,000 gold-equivalent oz, giving Centerra two long-life copper-gold assets in BC, Tomory added.Following Centerra’s purchase last month of a 9.9% stake in Thesis Gold (TSXV: TAU), whose Lawyers-Ranch project is 45 km northwest of Kemess, Tomory noted the regional potential by using existing infrastructure.Centerra shares were down 1.9% to C$10.13 apiece on Wednesday morning, for a market capitalization of C$2.12 billion. That contrasts with their performance Tuesday, when shares rose to C$10.33 each, their highest level so far this year.Earnings down 16%On Tuesday, the company reported adjusted first-quarter net earnings of $26.4 million or 13¢ per share, down 16% from the $31.3 million, or 15¢ per share a year earlier. Revenue fell 2% to $299.5 million.Operations produced positive free cash flow of $10 million. Centerra’s two main operations are Mt Milligan in north-central British Columbia and Öksüt in south-central Turkey.Gold production totaled 59,379 oz. at all-in sustaining costs of $1,491 per oz. and 11,647 oz. copper. While production was down 47% and 19%, respectively, those tallies were expected due to lower grades in the Mt Milligan orebody and heavy rainfall at Öksüt, BMO Capital Markets analyst Raj Ray said in a note.“Centerra’s share price performance has lagged peers and we believe investors will be looking for improved operational consistency, additional visibility on the growth opportunities within the portfolio and potentially some derisking/optionality with the molybdenum business,” he said.$10M dividendCenterra’s board approved a quarterly dividend of 7¢ per common share, for about $10.1 million for shareholders.At the end of the quarter, Centerra had $608 million in cash, liquidity of more than $1 billion and no debt, Raymond James analyst Brian MacArthur noted.
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