Wheels start to turn for Centerra in Mongolia

Things are finally beginning to move for Centerra Gold (CG-T) at its Gatsuurt project in Mongolia.

The company announced the Mongolian government started to review the projects reserves and feasibility study a necessary first step in a process, which if all goes well, will lead towards the negotiation of an investment agreement and the development of the project.

Centerra finished a feasibility study on the project back in early 2006, and has long planned to truck ore from Gatsuurt 35 km to its producing Boroo mine. The company would build a bio-oxidation circuit at Boroo for the Gatsuurt ore.

Development of Gatsuurt was stalled after public outcry over what was deemed too generous of a tax deal for Centerra at Boroo, and general distaste for foreign direct investment. But the investment climate in the country of just 2 million people has improved as of late, and the initiation of review of Gatsuurt further solidifies the governments return to a more friendly approach to foreign direct investment.

Gatsuurt has an open-pittable indicated resource of 18.6 million tonnes grading 3.1 grams gold for 1.8 million oz. of gold

On a day when a higher U.S. dollar and lower oil prices caused gold prices to fall, Centerra shares finished the day off 9 to $10.06 on 167,000 shares traded.