Case Study

Centerra Gold

Gatsuurt Gold

Location: Selenge Aimag, Mongolia
Commodity: Gold Dore
Project Phases: Trade Off Study/Feasibility Study (TOS/FS)

Client Overview

Centerra Gold Inc, a prominent gold mining company headquartered in Toronto, Ontario, has earned its reputation as a leading player in the industry. The Gatsuurt Gold project, located in Mongolia, represented one of their ambitious endeavors, designed as an open-pit tank leach operation.

TMG’s Contributions

Within the intricate landscape of the Gatsuurt Gold project, TMG assumed a pivotal role in providing project management oversight, guiding the project through its critical phases:

Trade Off Study: TMG conducted a comprehensive Trade Off Study, a pivotal undertaking that examined various project options and assessed their viability. This strategic analysis formed the foundation upon which subsequent decisions were built, ensuring that the project charted the most advantageous course.
Feasibility Study & NI 43-101: TMG’s expertise extended to the execution of a Feasibility Study, a meticulous examination of the project’s technical, economic, and operational feasibility. This rigorous evaluation was conducted in strict adherence to the standards set forth in NI 43-101, ensuring the project’s alignment with industry best practices.

Results

The partnership between Centerra Gold and TMG yielded substantial and tangible results, exemplifying the power of expertise, innovation, and collaborative effort:

Value Engineering Improvements: Through meticulous analysis and proactive engineering, the project realized an impressive $88.7 million worth of value engineering improvements. This achievement was a testament to the diligent efforts in optimizing the project’s design, systems, and processes, ultimately enhancing its cost-efficiency and effectiveness.
CAPEX and OPEX Enhancements: Direct collaboration with Original Equipment Manufacturers (OEMs) led to substantial enhancements, resulting in a remarkable $60.0 million reduction in Capital Expenditure (CAPEX) and a $2.5 million reduction in Operational Expenditure (OPEX). This remarkable outcome reflected the dedication to innovative cost management strategies and operational excellence.
Fiscal Efficiency and Expansion: The project’s fiscal success extended beyond cost reduction. Remarkably, the project was completed with an impressive $1.3 million under budget, a testament to meticulous financial management and operational precision. Furthermore, an expanded metallurgical drilling program added an extra layer of value, broadening the project’s horizons and potential.

The Gatsuurt Gold project exemplified the partnership between Centerra Gold and TMG as a collaborative force driving excellence in the gold mining sector. It showcased the ability to transform challenges into opportunities, resulting in profound enhancements in cost efficiency, fiscal responsibility, and operational expansion. This case study underscored the invaluable role of expert project management in delivering remarkable results and further solidified Centerra Gold’s position as an industry leader in gold mining.