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Boroo Gold gets permission to resume heap leach operations

Toronto-based Centerra Gold has received regulatory approval to resume heap leach operations at its Boroo mine, where operations were suspended in June, 2009, following charges of impropriety by the Mongolian government on issues such as record keeping, land use, and operational procedures. The operating licences were reinstated just 30 days later, but the heap leach facility remained shut down, subject to an additional permitting process.

More than three years later, Boroo has finally received regulatory approval from the Mongolian government to resume heap leach operations and expects to produce 2,000 ounces of gold monthly beginning in December. Centerra also announced that the Mineral Reserve Authority of Mongolia has issued a mining licence to Centerra Gold Mongolia for the AltanTsagaanOvoo project in Eastern Mongolia. However, the Gatsuurt project, located about 35 km from Boroo, still needs Mongolia’s Water and Forest law to be changed before a permit can be issued.

The company said exploration drilling would continue on the ATO property, targeting extensions and feeders to the pipe-like bodies hosting the current ATO resource and possible strike extensions to the nearby Mungu prospect. Regional exploration on the larger land package, including other target areas would continue during the year. Since 2010, the company had established a combined measured and indicated resource of 22.28-million tons grading 1.2 g/t, holding an estimated 824 000 oz of gold.