Centerra Gold - Operations - REN

The REN claims were staked between 1982 and 1987 and are still held by the original claim owners or their families. Since the early 1980s several companies have had lease and option agreements with the claim owners and carried out exploration for gold on the claims including geological mapping, geochemical sampling (both rock and soils), geophysical surveying and drilling.
Newmont explored the property from 1983 to 1986 and drilled 13 holes totaling 1,768 metres.
The Cordex Syndicate of companies leased the property in 1987 and conducted exploration through 1989, drilling 115 holes, mostly to depths of about 45 metres, to define a reserve in dyke-hosted gold mineralization discovered earlier by Newmont.
Corona Corporation optioned the REN property from the Cordex Syndicate in 1990 and started to explore for gold at greater depth.
Homestake acquired Corona in 1992. The high cost of deep exploration on the REN property prompted the formation of a new joint venture among Homestake, Barrick and Newmont. Some 17 holes for a total of 10,000 metres were drilled from 1992 to 1993, with most of the work being concentrated on the southern one-third of the property.
Following the 1992 to 1993 exploration activity, the REN property reverted back to Homestake, with 72% interest, and to the Cordex Syndicate, with its 28% interest held by Rayrock Mines. The property remained idle in 1994. In 1995, the Cordex Syndicate assigned its interest to Homestake.
In November 1995, Uranerz U.S.A. Inc and Romarco Minerals Inc. entered into the REN joint venture with Homestake, whereby each company could earn a 30% interest in the project by spending $5.3 million on exploration. Deemed expenditures to that time were estimated at about $3.5 million.
During 1996 and 1997 the exploration focus was on the Corona Fault Zone, while in 1998 new targets were explored in the central area of the property. Over that three-year period 15 deep holes were drilled but with no intersections of economic grade. Drilling techniques for deep targets were not as well developed during that period and core drilling was not extensively used.
Cameco acquired Uranerz in 1998, renamed it UUS Inc. and continued to finance exploration activities at REN. Romarco Minerals withdrew from the joint venture in 1999, relinquishing its option to earn a 30% interest. By July 2000, Cameco had earned a 60% interest in the joint venture by spending a total of $5.3 million. From July 2000 through the end of August 2000, Cameco funded additional exploration and earned another 2.14% interest in the joint venture. Homestake was acquired by Barrick in 2001.
REN Joint Venture completed 43 deep drill holes from 1999 to 2002 using RC drilling to reach the target depth and then changing to core drilling to recover core samples through the zone of interest. This drilling led to the discovery of high-grade mineralization in 2000, when drill hole RU-24 returned an intersection of 43 metres with a grade of 35.0 grams per tonne, and to the eventual discovery of the JB Zone in 2002.
In 2003 the REN joint venture increased its exploration efforts, drilling 22 holes with a combined length of 15,360 metres in the JB Zone, as well as undertaking geophysical and other technical surveys for total costs of $5.5 million.
Total exploration expenditures on the property to the end of 2003 are estimated at $21.2 million. Since October 2001, Cameco Gold and Barrick have contributed total project funding of $14.3 million in proportion to their respective interests.
In 2004, the REN joint venture spent $3.9 million on exploration programs which included a groundwater test well, metalurgical test work on mineralized core samples, and drilling programs comprising 28 holes totalling 17,396 metres. As a result, the JB Zone was extended to the south and a new mineralized zone - the 69 Zone - was discovered.
In 2005, additional exploration lead to a 52% increase in contained gold in the indicated resource category from the year-end 2004 resource estimate. The increase is due to upgrading inferred resources in the 69 Zone through additional drilling, the completion of two additional holes into a high-grade section of the JB Zone and increasing the higher grade capping level from 40 g/t gold to 70 g/t gold.
From 2006 through to 2008, further drilling and exploration continued. Centerra is also considering different options, including joint ventures or selling.
In 2009, Centerra signed a purchase agreement for sale of its interest with Rye Patch Gold Corp.
In 2010, Homestake Mining Company of California (a subsidiary of Barrick Gold Corporation) elected to exercise its pre-emptive right to acquire Centerra Gold U.S. Inc.'s 64% interest in the REN joint venture for US$35.2 million.

Updated April 19, 2010