Mount Milligan Mine PFS: $186M Capex Over a 10-Year Mine Life
Centerra Gold Inc.'s Mount Milligan Mine in British Columbia, Canada has a Pre-Feasibility Study (PFS) outlining initial capital of $186M. The mine plan runs 10 years at about 275 koz Au (2026 guidance midpoint) per year.
Centerra Gold Inc.'s Mount Milligan Mine has reported Pre-Feasibility Study (PFS) results for the gold project in British Columbia, Canada. It reflects Centerra Gold Inc.'s (CGAU) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $186M. All-in sustaining costs are pegged at 1700 USD/oz. Economics are based on 2026 assumed market prices of $4,250/oz gold and $6.25/lb copper (post-stream realized $2,915/oz Au, $5.25/lb Cu).
Production and mine plan. Life of mine is 10 years. Average annual production is approximately 275 koz Au (2026 guidance midpoint).
Resources and ownership. Royalties and streams: Royal Gold streaming agreement: 35% of gold and 18.75% of copper produced; Royal Gold pays $435/oz gold and 15% of spot copper price.
These figures are extracted from Centerra Gold Inc.'s technical disclosures and reflect the most recent PFS on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Our Analysis
- Initial capex
- $186M
costlier than 42% of 177 projects we track
- Mine life
- 10yrs
- Study price assumption
- 2026 assumed market prices of $4,250/oz gold and $6.25/lb copper (post-stream realized $2,915/oz Au, $5.25/lb Cu)
- Spot gold today
- $3,898.90/oz
Among the 177 gold projects we track, this one sits comfortably inside the pack rather than at either end: initial capex of $186M is lower than 58% of them, so the build is unremarkable in absolute terms. That middling rank is the honest starting point. For an investor, it means the asset neither offers the optionality of a genuinely small build nor carries the execution burden of a large one. British Columbia is a mining-friendly jurisdiction with an established permitting framework, which supports the numbers rather than inflating them, and the study is a pre-feasibility, so treat the estimate as a plus or minus 25% band rather than a build decision.
The funding picture is where this project separates itself. The $186M build is small against a US$4.01B market cap, and that ratio is the sharpest signal available: a company of this size can absorb the construction without the dilution or project financing that would otherwise dominate the equity story. It is also one of nine projects in the portfolio, so this is not a single-asset bet, and the capital call is unlikely to strain the balance sheet. The constraint that matters most is therefore not money but the ten-year mine life, which is short enough that the asset must be judged on how quickly it converts capital into cash before the reserve runs down.
The price assumption deserves scrutiny. The study uses $4,250/oz gold and $6.25/lb copper, with post-stream realised prices of $2,915/oz and $5.25/lb, against a live spot of $3,898.90/oz. The gold deck sits above today's market, so the returns carry some optimism that a lower price would erode. The question that decides this project: does a ten-year, $186M build still clear its hurdle at spot rather than at the study's price?
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.
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