Centerra Gold

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

Client Overview

Centerra Gold Inc., headquartered in Toronto, Ontario, is a leading gold mining company with a global portfolio of high-value operations and development projects. The Gatsuurt Gold Project, located in Mongolia, was conceived as an open-pit tank leach operation and represented one of the company’s strategic development opportunities in Central Asia.

Client Needs

Centerra Gold required a project partner to lead the Gatsuurt Project through its Trade-Off and Feasibility Study phases. The objectives included:

• Developing a NI 43‑101–compliant Feasibility Study to inform investment decisions and reporting.
• Conducting trade-off studies to evaluate development scenarios, optimize cost, and ensure constructability.
• Identifying opportunities to reduce capital (CAPEX) and operating (OPEX) expenditures without compromising engineering quality.
• Establishing robust project planning, procurement strategies, and execution readiness for eventual construction.

TMG’s mandate extended to supporting risk management, document control, and cost estimating to provide a fully integrated study and planning solution.

TMG’s Contributions

• Trade-Off Study Execution: TMG performed comprehensive evaluations of development alternatives, comparing constructability, cost, and operational performance to identify the most viable development pathway for the Gatsuurt Project.
• Feasibility Study Delivery (NI 43-101 Compliant): TMG managed and executed the full Feasibility Study to meet NI 43‑101 standards, ensuring technical rigor and alignment with investor reporting requirements. The study provided a clear and defensible economic assessment to guide Centerra Gold’s investment decision-making.
• Value Engineering & Design Optimization: Through iterative design reviews and value engineering workshops, TMG identified opportunities to streamline project scope and optimize design, achieving significant reductions in projected capital costs.
• Procurement & OEM Collaboration: TMG engaged directly with Original Equipment Manufacturers (OEMs) to bundle major equipment packages, negotiate favorable pricing, and integrate procurement planning with the overall execution strategy.
• Comprehensive Project Management Support: TMG provided services spanning cost control, planning and scheduling, risk management, and document control to ensure seamless coordination of study deliverables and readiness for transition to project execution.

Results

The collaboration between Centerra Gold and TMG produced exceptional outcomes:

• $88.7 Million Value Engineering Improvements: Achieved through design optimization and strategic scope adjustments relative to the 2016 Mongolian Feasibility Study.
• $60 Million CAPEX Reduction: Secured via OEM collaborations and bundled equipment procurement strategies.
• $2.5 Million OPEX Reduction: Realized by optimizing operational strategies and leveraging vendor partnerships.
• $1.3 Million Total Study Under-Run: Delivered through precise cost management, including a $200,000 saving on traffic management packages and $1.3 million savings in overall study execution via active consultant oversight.

Beyond cost reductions, TMG’s approach positioned the Gatsuurt Project for future expansion, including an enhanced metallurgical drilling program that increased project value and potential production capacity.

The Gatsuurt Gold Project demonstrates Centerra Gold’s commitment to disciplined project planning and fiscal responsibility. TMG’s integrated study execution and value engineering expertise delivered measurable cost savings and strengthened the project’s investment profile, reinforcing Centerra Gold’s leadership in global gold development.