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30 E&MJ; • DECEMBER 2015 www.e-mj.com REGIONAL NEWS - ASIA Centerra's Öksüt Gold Project Receives Environmental Approval Centerra Gold reported that the environ- mental impact assessment (EIA) for its 100% owned Öksüt gold project in south-central Turkey has received final approval from the Turkish Ministry of Environment and Urbanization. The pro- ject is planned to produce a total of 895,000 ounces (oz) of gold over an eight-year mine life, including an average of 155,000 oz/y during the first four years. Pre-production expenditures and construction capital to develop the pro- ject are estimated at $221 million, including a $25 million contingency ( E&MJ; , September 2015, p. 20). Regarding the EIA approval, Centerra CEO Scott Perry said, "We are very pleased that this milestone has been achieved and the timetable for Öksüt continues to move forward as planned. The company will now focus on obtaining all the necessary land-use and other operational permits to allow us to start construction and development of the project late in the first quarter or early in the second quarter of 2016. We are on schedule so far, with first gold production anticipated in the second quarter of 2017." The Öksüt project's estimated mineral reserves as of June 30 stood at 26.1 mil- lion mt at an average grade of 1.4 g/mt gold, containing 1.2 million oz of gold, using a cut-off grade of 0.3 g/mt and a gold price of $1,250/oz. Production will be via a two conventional open pits (Keltepe and Guneytepe) and heap leach- ing. The Keltepe deposit accounts for 90% of the project's resources. Centerra believes the Öksüt property has exploration upside, as evidenced by recent drilling that extended the Guneytepe deposit and identified addi- tional oxide material in the Keltepe NW prospect 1 km from the existing reserve area. Additional drilling is planned once the necessary drill permits are approved. Mesco On Track for Opening Cambodian Gold Mine Indian mining company Mesco Gold seems set to operate Cambodia's first commercial mine, with infrastructure at the Phum Syarung mine in Ratanakiri Province advanced and government approvals pending. Mesco has established the required surface-level infrastructure and has sub- mitted its environmental impact assess- ment. It said it can begin extracting ore within weeks of receiving its production license, although it could take up to a year before gold production begins. Company director Rajeev Moudgil said Mesco has driven two inclines on the 12-km 2 tenement and will install hoists. It has also constructed an assay lab and office, as well as access and haul roads. "The inclines follow the orebody, so technically extraction can start within one or two months of the granting of the mining license," Moudgil said. "It would take close to 12 months to set up a gold processing plant, hence we expect to start production within 12 months of [receiving the] mining license." He added that it would take another six months to ramp up production to full daily capacity of 500 mt. Mesco Gold is a subsidiary of Indian steelmaker Mesco and purchased the rights to develop and mine the Phum Syarung prospect from Canadian ex- ploration company Angkor Gold Corp in 2013. As part of the $1.2 million sale agreement to Mesco, Angkor negotiated a net smelter royalty agreement that will see it receive a share of any gold extracted. The royalty agreement is based on a sliding scale that depends on the price of gold. The royalty was previously about 7.5%, but falling gold prices have reduced it to a current rate of 4% to 5%. Angkor Gold estimated that an under- ground mine built at Phum Syarung could produce 10,000 oz of gold a year over a 10-year mine life. Headframe under construction at the the Phum Syarung mine in Cambodia.