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Press release from Marketwire

Centamin-Updated Resource and Reserve Statement

Wednesday, December 18, 2013

Centamin-Updated Resource and Reserve Statement

02:01 EST Wednesday, December 18, 2013

PERTH, AUSTRALIA--(Marketwired - December 17, 2013) -

Centamin plc (LSE: CEY) (TSX: CEE)For immediate release 18 December 2013 Centamin plc ("Centamin" or "the Company") (LSE:CEY, TSX:CEE) Updated Resource and Reserve StatementCentamin is pleased to provide an update to its resources and reservesfor the Sukari Gold Mine as outlined below.Highlights- Total Measured and Indicated resource containing 13.4 millionounces (Moz) (previously 13.1Moz) comprising open pit resource of12.6Moz and underground resource of 0.8Moz.- Total combined open pit and underground reserve containing8.2Moz, down 19% from 10.1Moz at 31 December 2011 due to miningdepletion and increased mining and processing costs associated with achange from subsidised to international fuel prices.- Open pit and surface stockpile reserve containing 7.7Moz.- Underground reserve of 2.30 million tonnes (Mt), a 120% increaseon 1.1Mt at 31 December 2011.- Underground proven component of the mineral reserve of 0.52Mtgrading 11.4g/t gold provides support that further higher grades willcontinue to be defined as drilling and development continues.- Resource and reserve definition continues in parallel withexpanding underground infrastructure, targeting high grade areas.Open Pit Resource for the Sukari Gold Mine. Measured Indicated Total Measured & Inferred IndicatedCut-off Tonnes Grade Tonnes Grade Tonnes Grade Gold Tonnes Grade Gold(g/t) (Mt) (g/t) (Mt) (g/t) (Mt) (g/t) (Moz) (Mt) (g/t) (Moz)0.1 333.9 0.62 350.8 0.69 684.7 0.66 14.53 73.7 0.7 1.660.2 241.3 0.81 257.0 0.89 496.2 0.85 13.56 52.2 0.9 1.510.3 183.8 0.98 201.5 1.06 385.4 1.02 12.64 39.5 1.1 1.400.4 145.7 1.15 164.3 1.22 310.0 1.19 11.86 31.9 1.3 1.330.5 118.7 1.31 135.1 1.39 253.8 1.35 11.01 26.1 1.5 1.260.7 82.6 1.62 97.4 1.70 179.9 1.66 9.60 18.7 1.9 1.141.0 52.9 2.06 64.4 2.14 117.3 2.11 7.95 12.5 2.4 0.96Notes to Table:- Totals may not equal the sum of the components due to roundingadjustments.- The mineral resource estimate is based on the mined surface asat 30 June 2013 and adjusted for historical, current and plannedunderground mining.- All available assays as at June 2013.- Resource data set comprises 234,788 two metre down holecomposites and surface rock chip samples.- Proven and Probable mineral reserves are included in mineralresources.- The resources are estimates of recoverable tonnes and gradesusing Multiple Indicator Kriging with block support correction.- Measured resources lie in areas where drilling is available at anominal 25 x 25 metre spacing, Indicated resources occur in areasdrilled at approximately 25 x 50 metre spacing and Inferred resourcesexist in areas of broader spaced drilling.- The resource model extends from 9700mN to 12200mN and to amaximum depth of 0mRL (a maximum depth of approximately 1000 metresbelow wadi level).Underground Resource for the Sukari Gold Mine. Tonnes Grade Contained goldResource ('000 t) (g/t Au) ('000 oz)Measured 537 12.8 222Indicated 3,805 5.1 622Total M&I 4,342 6.1 844Inferred 2,925 5.2 489Notes to Table:- Totals may not equal the sum of the components due to roundingadjustments.- The underground resource has been generated from availabledrilling (35,000 metres and 12,300 face samples) and modelled using a2g/t cut off to determine resource outlines.Total Combined (Open Pit and Underground) Mineral Reserve for theSukari Gold Mine. Proven Probable Mineral Reserve Tonnes Grade Tonnes Grade Tonnes Grade Contained Gold (Mt) (g/t (Mt) (g/t (Mt) (g/t Au) Au) Au) (Moz)New Reserve 119.5 1.06 110.6 1.17 230.1 1.11 8.2(1-5)Previous 125.5 1.04 151.5 1.21 277.0 1.13 10.1Reserve(6)Notes to Table:- Totals may not equal the sum of the components due to roundingadjustments(1) Total includes:OpenPit reserve = 212Mt @ 1.10g/t for 7.5MozsUnderground reserve = 2.3Mt @ 7.20g/t for 0.5MozsStockpiles = 16Mt @ 0.45g/t for 0.2Mozs(2) Based on mined surface as at 30 September 2013 and a goldprice of US$1,300 per ounce(3) Ultimate Open Pit design has a waste to ore ratio of 5:1.(4) See additional notes in tables below for the underground andopen pit reserves(5) The change from subsidised to international fuel price hasreduced the new reserve by approximately 1.8Mozs(6) As at 31 December 2011 at US$1,100 per ounceOpen Pit Mineral Reserve by ClassificationThe component of the combined reserve as outlined above that relates tothe open pit operation is summarised below.Reserve Classification Tonnes Grade Contained gold (Mt) (g/t Au) (Moz)Proven 112 1.04 3.76Probable 100 1.16 3.73Stockpile 16 0.45 0.23Total 230 1.05 7.70Notes to Table:- Totals may not equal the sum of the components due to roundingadjustments.- Based on mined surface as at 30 September 2013 and a gold priceof US$1,300 per ounce.- The change from the previous US$1,100 to US$1,300 gold price hasincreased the new reserve by approximately 0.6Mozs.- Cut-off grades (gold): CIL oxide 0.20g/t, CIL transitional 0.45g/t, CIL sulphide 0.44g/t, Dump Leach oxide 0.08g/t.- Designed underground reserves detailed below do not form part ofthe Open Pit Reserve.Underground ReserveThe component of the combined reserve as outlined above that relates tothe underground operation is summarised below. Tonnes Grade Contained goldReserve ('000 t) (g/t Au) ('000 oz)Proven 520 11.4 191Probable 1,815 6.0 349Total 2,335 7.2 540Notes to Table:- Totals may not equal the sum of the components due to roundingadjustments.- Stopes for reserves are then designed using a 3g/t cut off andmining dilution applied at 15% @ 0.8g/t as all stopes are located inmineralised porphyry and 10% mining loss is then assumed to allow forstope bridges and material left in stopes after mining.An updated NI 43-101 resource and reserve report will be completed andfiled in due course on SEDAR at and on the Company's website.Josef El-Raghy, Chairman of Centamin, commented:"As expected there has beensome impact on the overall reserve from thehigher international fuel price environment that Sukari has operatedunder since Q1 2012. However, it is pleasing to note that theunderground drilling campaign, which has escalated steadily during2013, has started to outline substantial regions of high grade ore. Itis our expectation that this trend will continue as undergrounddevelopment is expanded and the multiple high-grade drill targets atSukari are tested and defined over the coming months and years."For more information please contact:Centamin plc BuchananJosef El-Raghy, Chairman Bobby MorseAndy Davidson, Head of Business Development and Cornelia BrowneInvestor Relations Gabriella Clinkard( + 44 20 7466 5000+44 1534 828708QUALIFIED PERSON AND QUALITY CONTROLInformation of a scientific or technical nature in this document wasprepared under the supervision of Andrew Pardey, BSc. Geology, ChiefOperating Officer of Centamin plc and a qualified person under theCanadian National Instrument 43-101.The open pit resource was prepared by Nic Johnson of MPR GeologicalConsultants Pty Ltd, Australia. The open pit mineral reserve wasprepared by Patrick Smith of AMC Consultants Pty Ltd, Australia. Theunderground resource and reserve was prepared by Chris Boreham,Underground Mine Manager of Centamin plc and audited by DeclanFranzmann of Crosscut Consulting, Australia. All the above persons arequalified as Competent Persons as defined in the 2012 Edition ofthe"Australian Code for Reporting Exploration Results, Mineral Resourcesand Ore Reserves (JORC Code)".Such qualified persons have verified the data disclosed, includingsampling, analytical, and test data underlying the information oropinions contained in this announcement in accordance with standardsappropriate to their qualifications.An updated NI 43-101 resource and reserve report will be completed andfiled in due course on SEDAR at and on the Company's website.In relation to historical resources and reserves, refer to thetechnical report entitled "Mineral Resource and Reserve Estimate forthe Sukari Gold Project, Egypt" dated 14 March 2012 and filed on SEDARat, for further discussion of the extent to which theestimate of mineral resources/reserves may be materially affected byany known environmental, permitting, legal, title, taxation,socio-political, or other relevant issues.CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTSThis document contains "forward-looking information" which may include,but is not limited to, statements with respect to the future financialor operating performance of Centamin plc ('Centamin' or 'the Company'),its subsidiaries (together 'the Group'), affiliated companies, itsprojects, the future price of gold, the estimation of mineral reservesand mineral resources, the realisation of mineral reserve and resourceestimates, the timing and amount of estimated future production,revenues, margins, costs of production, estimates of initial capital,sustaining capital, operating and exploration expenditures, costs andtiming of the development of new deposits, costs and timing of futureexploration, requirements for additional capital, foreign exchangerisks, governmental regulation of mining operations and explorationoperations, timing and receipt of approvals, consents and permits underapplicable mineral legislation, environmental risks, title disputes orclaims, limitations of insurance coverage and regulatory matters.Often, but not always, forward-looking statements can be identified bythe use of words such as "plans", "expects", "is expected","budget","scheduled", "estimates", "forecasts", "intends", "targets","aims","anticipates" or "believes" or variations (including negativevariations) of such words and phrases, or may be identified bystatements to the effect that certain actions, events or results"may","could", "would", "should", "might" or "will" be taken, occur or beachieved.Forward-looking statements involve known and unknown risks,uncertainties and a variety of material factors, many of which arebeyond the Company's control which may cause the actual results,performance or achievements of Centamin, its subsidiaries andaffiliated companies to be materially different from any futureresults, performance or achievements expressed or implied by theforward-looking statements. Readers are cautioned that forward-lookingstatements may not be appropriate for other purposes than outlined inthis document. Such factors include, among others, future price ofgold; general business, economic, competitive, political and socialuncertainties; the actual results of current exploration anddevelopment activities; conclusions of economic evaluations andstudies; fluctuations in the value of the U.S. dollar relative to thelocal currencies in the jurisdictions of the Company's key projects;changes in project parameters as plans continue to be refined; possiblevariations of ore grade or projected recovery rates; accidents, labourdisputes or slow-downs and other risks of the mining industry; climaticconditions; political instability, insurrection or war, civil unrest orarmed assault; labour force availability and turnover; delays inobtaining financing or governmental approvals or in the completion ofexploration and development activities; as well as those factorsreferred to in the section entitled "Risks and Uncertainties" sectionof the Management discussion and analysis. The reader is also cautionedthat the foregoing list of factors is not exhausted of the factors thatmay affect the Company's forward-looking statements.Although the Company has attempted to identify important factors thatcould cause actual actions, events or results to differ materially fromthose described in forward-looking statements, there may be otherfactors that cause actions, events or results to differ from thoseanticipated, estimated or intended. Forward-looking statementscontained herein are made as of the date of this document and, exceptas required by applicable law, the Company disclaims any obligation toupdate any forward-looking statements, whether as a result of newinformation, future events or results or otherwise. There can be noassurance that forward-looking statements will prove to be accurate, asactual results and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on forward-looking statements.ABOUT CENTAMIN PLCCentamin is a mining company that has been actively exploring in Egyptsince 1995. The Company's principal asset is its interest in the largescale, low cost Sukari Gold Mine, located in the Eastern Desert ofEgypt. The operating company Sukari Gold Mines is jointly owned byCentamin's wholly owned subsidiary Pharaoh Gold Mines NL and theEgyptian Mineral Resource Authority on a 50% equal basis. Sukariproduced 150,000 ounces of gold in its maiden year of production in2010, consistently expanding thereafter to reach over 260,000 ounces in2012. The 'Stage 4' plant expansion programme commenced in 2011 totarget 450-500,000 ounces per annum production from 2015 onward. TheSukari Gold Mine is the first large-scale modern gold mine in Egypt.Centamin's operating experience in Egypt gives it a significantfirst-mover advantage in acquiring and developing other gold projectsin the prospective Arabian-Nubian Shield. In 2011 the Group acquired,through Sheba Exploration Holdings Limited, four mineral licences inEthiopia where it is conducting further exploration activities. InSeptember 2013, the Group entered into a joint venture with AlectoMinerals plc ("Alecto") to pursue existing and new opportunitiesidentified by Alecto in Ethiopia. The initial joint venture projectsrelate to two exploration licenses, Wayu Boda and Aysid Meketel. This information is provided by RNS The company news service from the London Stock ExchangeEND


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