Mount Milligan mine, bought by Centerra Gold, adds second circuit

Mount Milligan mine will soon increase its process capacity by 2,500 tonnes of ore per day with new circuit.

Mount Milligan

Mount Milligan

Mount Milligan mine, situated approximately 93 kilometres north of Fort St. James,  will soon increase its process capacity by 2,500 tonnes of ore per day — to a daily throughput of more than 62,500 tonnes.

Commission of major equipment and components of the new circuit began in October, announced mine owner Thompson Creek Metals Company on Oct. 18.

As the mine continues to perform routine tests and commission all equipment, construction of its permanent secondary crushing circuit is expected to finish this fall.

“We are pleased to have commenced commissioning of the Mount Milligan permanent secondary crushing circuit and look forward to our first feed later this fall,” said Thompson Creek’s CEO and president Jacques Perron in a statement. “Total capital expenditures for the project are expected to be $50 – $55 million, which would be approximately $10 million below guidance.”

At the mine, copper and gold concentrates are produced through a water recycling technique, where the metals are separated from the mined ore by being floated towards the surface.

An expansion of the flotation circuit, with the addition of regrind capacity, is expected to improve gold and copper recoveries, according to the company. A new geometallurgical model is expected to allow operators to better manage the material to the mill, resulting in more efficient mill operations and better predictability.

Mount Milligan mine, along with all other Thompson Creek assets, was acquired by Toronto-based gold mining company Centerra Gold Inc. as of Oct. 20.

The arrangement includes changing Royal Gold, Inc’s streaming interest at the mine from 52.25 per cent gold stream to 35 per cent gold and 18.75 per cent copper.

“Because Centerra is primarily a gold mining company, all of our investors tend to look at us as a gold entity,” said John Pearson, Centerra’s vice president of investor relations. “So we thought that it would be good to maximize the gold exposure from Mount Milligan mine and repositions it as a world-class gold mine.”

Running 24 hours a day, Mount Milligan has been in its production phase since September of 2013 and has a mine-life of  22 years, with 2.2 billion pounds of copper and 5.7 million ounces of gold in proven and probable reserves.

Endako Mine, a molybdenum operation located west of Fraser Lake and previously owned by Thompson Creek, remains under care and maintenance until the molybdenum price is “much higher.”

“We retained the whole molly business as a separate business unit, with the Langeloth metallurgical facility in Pennsylvania generating cash profits that pay for care and maintenance in Endako,” Pearson said. “Right now it’s a cash-neutral business, and we’re just going to hang on to it and wait for a better time in the price cycle.”

In addition to Mount Milligan, Centerra’s assets include the Kumtor Mine in the Kyrgyz Republic in Central Asia and the Boroo Mine in Mongolia. Outside of Asia, the Canadian company also owns the Oksut Gold project in Turkey and is a joint venture partner in the Trans-Canada Project in the Geraldton-Beardmore Greenstone belt of Ontario.

“The acquisition will establish an operating base in Canada — one of the lowest risk mining jurisdictions in the world —which will complement our Canadian-based Greenstone project and provide for further flexibility to expand into the Americas,” said Centerra’s CEO Scott Perry in a statement.

 

Just Posted

A person receives a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. Northern Health confirmed it has the lowest vaccination rates amongst the province’s five regional health authorities. (THE CANADIAN PRESS/Jonathan Hayward)
Vaccination rates in Vanderhoof, Fraser Lake, Fort St James well below provincial average

COVID-19 immunization clinics for youth 12+ coming up in Fort St. James

Steve McAdam (left) is studying substrate conditions in the Nechako River and how they impact sturgeon eggs. The work will help design habitat restoration measures, said McAdam. (Rebecca Dyok photo)
Sturgeon egg studies to help inform future habitat restoration

“It’s an interesting, challenging issue,” says Steve McAdam

Saik’uz First Nation Coun. Jasmine Thomas and Chief Priscilla Mueller speak about the need for addiction treatment facility near Vanderhoof, March 2021. (Aman Parhar/Omineca Express)
Vanderhoof addiction treatment centre tries again with ministry support

Agriculture minister insists she is not interfering in land commission

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Flowers and cards are left at a makeshift memorial at a monument outside the former Kamloops Indian Residential School to honour the 215 children whose remains are believed to have been discovered buried near the city in Kamloops, B.C., on Monday, May 31, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Pick a Sunday:’ Indigenous leaders ask Catholics to stay home, push for apology

Indigenous leaders are calling on Catholics to stand in solidarity with residential school survivors by not attending church services

“They will never be forgotten, every child matters,” says Sioux Valley Chief Jennifer Bone in a video statement June 1. (Screen grab)
104 ‘potential graves’ detected at site of former residential school in Manitoba

Sioux Valley Dakota Nation working to identify, repatriate students buried near former Brandon residential school

The Queen Victoria statue at the B.C. legislature was splattered with what looks like red paint on Friday. (Nicole Crescenzi/News Staff)
Queen Victoria statue at B.C. legislature vandalized Friday

Statue splattered with red paint by old growth forest proponents

Most Read