Canada’s Centerra Gold has released results of a pre-feasibility study (PFS) for its idled Thompson Creek molybdenum mine in Idaho, USA. This forms part of Centerra Gold’s strategic plan for the company’s assets.

Centerra Gold’s Molybdenum Business Unit (MBU) is a fully integrated business in North America. The MBU consists of the Thompson Creek mine in Idaho, the Endako mine in northern British Columbia, Canada, a joint venture for which Centerra owns a 75% interest and remaining 25% held by Sojitz Moly Resources, and the Langeloth Metallurgical Facility near Pittsburgh, Pennsylvania. The Thompson Creek and Endako mines have been under care and maintenance since late 2014 and mid-2015, respectively, with significant infrastructure in place that is reported to be in excellent condition. Whilst its mines have been idle, the Langeloth facility has continued to operate at reduced capacity, processing third party concentrates and selling finished molybdenum products.

A restart of the Thompson Creek mine, as part of a vertically integrated operation at Langeloth, would result in a combined US$373M after-tax net present value (5%) (NPV) and 16% after-tax internal rate of return (IRR), based on flat molybdenum prices of US$20/lb. The PFS includes an optimised 11-year mine plan and envisages a phased-up production profile totalling approximately 60kt Mo-in-concentrate over the life of mine (LOM).

The Thompson Creek PFS demonstrates that between US$350-400M will be required for pre-production capital expenditures, which includes the optimised mine plan with an 11-year mine life. The company will spend between US$9-10M at Thompson Creek this year to advance studies, including de-risking activities such as geotechnical drilling, additional engineering costs and site early works. Centerra Gold has started a feasibility study (FS) for Thompson Creek, which it plans to complete by mid-2024. A final decision to proceed will reportedly take place between mid-2025 and early 2027. First production is envisaged by the second half of 2027.

Elevated molybdenum prices and a global molybdenum deficit have made the decision to restart mining operations at Thompson Creek attractive. North American molybdenum production has seen a downtrend in recent years due to labour issues and declining ore grades at copper-molybdenum mines. As a result, molybdenum concentrate production from the Thompson Creek mine would ease some supply concerns, especially for domestic steel and stainless steel producers.

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