Centerra acquires 9.9% of British Columbia-focused Thesis Gold

Centerra Gold (TSX: CG) has bought a 9.9% stake in Thesis Gold (TSXV: TAU), citing the potential growth and synergy of the latter’s flagship project located next to its Kemess gold-copper project in north-central British Columbia.

In a press release Tuesday, the Canadian gold miner said it will purchase approximately 23.5 million common shares of Thesis at C$1.03 a share for C$24.2 million. The issue price represents a 10% premium to the five-day volume-weighted average price of Thesis’ shares on the TSX Venture Exchange.

Thesis Gold traded at C$0.95 by noon ET, down 1.0% for the day, with a market capitalization of C$202.2 million. Earlier in the session, it had risen to a 52-week high of C$1.04.

“Centerra’s interest is a strong endorsement of the extraordinary potential of the Lawyers-Ranch project and the work our team has accomplished to date,” Thesis Gold CEO Ewan Webster said in the press release.

The Lawyers-Ranch project covers a 495-sq.-km land package within the Toodoggone mining district, which shares a similar geological history and potential mineral endowment to the prolific Golden Triangle to the west. The property hosts a former underground mine that operated between 1989-1992, during which it produced over 173,000 oz. of gold and 3.6 million oz. of silver.

The Vancouver-based company is currently advancing the project through a pre-feasibility study to build on the results from the preliminary economic assessment (PEA) from October 2024.

The PEA outlined a potential 14-year mine (open pit and underground) with annual gold-equivalent production of 215,000 oz. Its post-tax net present value (at 5% discount) is estimated at C$1.3 billion, with an internal rate of return of 35.2%. Initial capital cost of the project is about C$598 million.

The study used a mineral resource estimate of 82 million tonnes grading 1.11 grams per tonne (g/t) gold and 31.9 g/t silver in the measured and indicated category, plus another 12 million tonnes at 1.48 g/t gold and 20.9 g/t silver inferred.

In addition to the PFS, Thesis is also conducting key baseline work to initiate the project’s environmental assessment process and executing a summer exploration program to grow the Lawyers-Ranch resource.

Potential synergy

“Thesis’ recent preliminary economic assessment, resource update and drill results are very encouraging and demonstrate the potential of this highly prospective district,” stated Centerra’s CEO Paul Tomory.

“Given the proximity of our Kemess asset to the Lawyers-Ranch project, we see the potential for substantial synergies, including the ability to leverage existing infrastructure to unlock regional potential,” he added.

Centerra’s Kemess project, situated 45 km to the south of Lawyers-Ranch, is home to a former copper-gold mine that produced approximately 3 million oz. of gold and 800 million lb. of copper over a 12-year period until 2011.

Centerra acquired Kemess as part of its AuRico Metals takeover in late 2017.