Initial drilling is designed to intersect an area which was previously drilled in the former Soviet republic between 1970 and 1990.
Kyrgyzstan Mining News
The decision means the $210 million arbitration against the Kyrgyz Republic will advance to the merits stage, the Canadian junior said.
Centerra Gold, a Toronto-based Canadian company, appears in the news regarding its troubles in Kyrgyzstan and its operations at the Kumtor gold mine.
Shares fell after the miner said it would suspend dividends until further notice, due to current restrictions to funds held at its Kyrgyz Republic subsidiary, Kumtor Gold.
The miner increased gold output guidance for the mine to 520,000 to 560,000 ounces and lowered all-in sustaining cost forecast to $666 – $718 per ounce.
With the deal Centerra gets its hands on Mount Milligan, a large mine in British Columbia and reduces its reliance on Kumtor mine, in Kyrgyzstan, for cash flow.
Kumtor mine is the country's largest private sector employer and taxpayer and Centerra’s main gold producing mine.
The company is yet to receive an approval of its Kumtor’s 2016 mine plan, which it requires to continue operating the mine beyond June 30.
President Almazbek Atambayev has ordered state prosecutors to review the legality of agreements signed with the company in 2003-2004 and 2009.
The company said the arbitration proceedings will be held at Stockholm and Sweden, and that they will be conducted under the UNCITRAL rules.
Fresh string of penalties and fees are one of the latest signs of renewed tensions between the Kyrgyzstan government and the Canadian miner.
Ruling is one of the latest signs of renewed tensions between the Kyrgyzstan government and the miner, which have been locked in a bitter dispute over profit sharing for years.
They are looking into a dividend paid by Kumtor to Centerra in 2013, which the miner says complied with the country's laws and 2009 agreements governing the project.
After a five-year delay, the country’s parliament has finally approved Centerra’s plans to mine the Gatsuurt gold deposit.
These rulings set aside the award of the International Arbitration Court at the Moscow Chamber of Commerce and Industry dated June 30, 2014 (the “MCCI Award”) through which Stans was awarded US$118,000,000 in damages.
Figures include 520,695 ounces of gold from the Kumtor mine, in the Kyrgyz Republic, and 16,226 ounces of gold from the Boroo mine, in Mongolia.
The country's government said the current agreement "ran counter to the country's national interests."
Construction of the gold mine, located in the south-central Kayseri province, should start in early 2016, followed by production by mid-2017.
Leonard Homeniuk has spent most of his time under house arrest since he was detained on July 27.
Bulgarian police arrested Len Homeniuk in July on an Interpol warrant over alleged corrupted deals in Kyrgyzstan.
In March last year, Anna Kuranova sued the company alleging to have been fired wrongfully.
The frozen payment corresponds to what the Kyrgyz Republic was told by an international arbitration court to give Stans for revoking its rare earth mining licenses in the country.
The extension is for the miner's permits for emissions into the atmosphere and waste disposal into the tailings pond.
Negotiations between the parties, however, are expected to continue over the summer.
Mali, Papa New Guinea, Burkina Faso, Guinea, Tanzania, DRC and Mongolia among countries where gold mining contributed the most to their locals economies, says the World Gold Council.