REG - Centamin PLC - Doropo Pre-Feasibility Study Update

CentaminAnnouncement

29/11/2022 07:00

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RNS Number : 8212H  Centamin PLC  29 November 2022

 

29 November 2022

Centamin plc

("Centamin" or "the Company")

LSE: CEY / TSX: CEE

 

Doropo pre-feasibility study update

Increased resource confidence; exploration upside potential; processing
optimisation identified

Centamin is pleased to provide an update on the pre-feasibility study ("PFS")
at its Doropo project located in north-eastern Cote d'Ivoire, including an
upgrade to Mineral Resources; details of potential operating and capital
cost-saving opportunities within the processing flowsheet; and identified
resource growth potential within the license area.

Martin Horgan, CEO, commented: "The Doropo PFS workstreams are advancing well
and delivering positive results. Following the completion of an extensive
infill drilling programme through 2021 and 2022, we have now delivered the
first mineral resource estimate constrained in pit shells, with 2.5Moz in the
Indicated category eligible to be assessed for inclusion in the maiden
reserves estimate. The Indicated Resource grade of 1.52g/t Au should support
improved project economics given it exceeds the 1.25g/t Au average feed grade
assumed in the 2021 PEA. In addition, the exploration team has successfully
identified a number of targets for follow-up drilling that show potential to
deliver further resource growth.

Furthermore as part of the PFS metallurgical test work programme, we have
identified an opportunity to remove the flotation and regrind circuit that was
outlined in the PEA, in favour of a whole of ore leach flowsheet. Given the
potential to deliver significant capital and operating cost savings, we are
undertaking further comparative test work ahead of publishing the outcome of
the PFS which is now expected in H1 2023."

HIGHLIGHTS

 * Infill drilling adds 2.4Moz of Indicated Resources for a total of 2.52Moz at a
grade of 1.52 grams per tonne of gold ("g/t Au"), constrained within
US$2,000/oz pit shells.

 * Indicated Resources represent a 22% increase in grade versus the 2021
preliminary economic assessment ("PEA") average grade of 1.25g/t Au.

 * Resource growth identified, extensions and regional exploration targets have
been identified using both new data and reinterpreting old data.

 * The potential for significant capital and operating cost savings are under
investigation as part of the pre-feasibility study after encouraging initial
metallurgical test work results indicate the opportunity to simplify the
processing circuit.

 * ·PFS completion is expected in H1 2023, to enable the inclusion of the
results of the mineral processing and metallurgical test work upside
opportunity.

DOROPO MINERAL RESOURCE STATEMENT

Constrained mineral resource demonstrates the potential scale of eventual
economic extraction

Over the last 18 months a 124,000 metre reverse circulation ("RC") and core
infill drilling programme was completed. PFS infill drilling was undertaken on
a 25 metre x 50 metre spacing versus previously wider-spaced drilling of 50
metre x 50 metre. Samples were prepared on-site and sent to independent
laboratories in Cote d'Ivoire and Ireland, with industry standard quality
assurance and quality control ("QAQC") applied.

 

            October 2022                                   February 2021
            Tonnage (Mt)  Grade (g/t)  Gold Content (Moz)  Tonnage (Mt)  Grade (g/t)  Gold Content (Moz)
 Measured   -             -            -                   -             -            -
 Indicated  51.51         1.52         2.52                2.34          2.13         0.16
 M+I        51.51         1.52         2.52                2.34          2.13         0.16
 Inferred   13.67         1.14         0.50                142.9         1.13         5.21

 

The Mineral Resource Estimate ("MRE") data presented in the tables included in
this document comprises a summary extract of the Mineral Resource report for
the Doropo project. For comparative purposes, data for 2021 has been included
where possible. Note that the 2021 MRE is minimally constrained* and the 2022
MRE has been constrained using optimised pit shells.

The significant figures used in the table are intended to reflect the level of
accuracy of the different resource classifications reported.

·      A material feature for 2022 is constraining within optimised pit
shells using an unchanged metal price assumption of US$2,000/oz for Mineral
Resource reporting. This explains the reduction in tonnage from 2021 to 2022.

·      The amount of Indicated Mineral Resource has increased by 2.4Moz
due to the PFS infill drilling programme.

·   This is a more rigorous approach involving the application of the
Reasonable Prospects for Eventual Economic Extraction ("RPEEE") criterion
reflected in most current reporting codes.

RESOURCE UPSIDE

Extensional and regional exploration targets identified

Over the last 18 months, in addition to the PFS infill drilling programme, the
exploration team have focussed on surface mapping, geochemistry, portable
x-ray fluorescence analysers ("pXRF") multi-element analysis and reviews of
the artisanal mining sites. Furthermore, historic data has been reinterpreted
and reanalysed including the auger, RC, air-core and core drilling data,
airborne geophysical data, and inductively coupled plasma ("ICP")
multi-element data.

As a result, three main areas with multiple targets have been identified:

·      Main Cluster: Ten potential resource extensional targets and five
new targets.

·      Vako Shear Zone: (approximately 14km west of the Main Cluster)
seven exploration targets.

·      Kilosegue deposit: Four potential resource extension targets.

A 20,000 metre RC drilling programme commenced in Q4 2022 to drill test these
targets.

PRE-FEASIBILITY UPDATE

Potential processing flowsheet update offers capital and cost saving
opportunities

The 2021 PEA indicated a processing flowsheet which included a full flotation
and regrind circuit. The results of the more detailed mineral processing and
metallurgical recovery studies, including a more extensive metallurgical
drilling programme, have indicated the potential to simplify the processing
circuit.

The PFS mineral processing and metallurgical recovery studies included a
dedicated 6,230 metre metallurgical drilling programme. The initial whole ore
metallurgical test work was performed as a baseline for the detailed
metallurgical test work programme. Gold extraction for the fresh samples
averaged around 85% at an average head assay grade of only 0.6 g/t Au. With
the oxide and transitional samples both averaging above 90% for assay head
grades of 0.8 and 1.0 g/t Au respectively.

These encouraging initial results indicate the opportunity to remove the
pyrite flotation, ultrafine grind circuit and subsequent flotation concentrate
leaching circuits. This would have significant positive implications for both
the capital and operating costs as the process flowsheet would become a more
conventional whole of ore leach circuit configuration.

Centamin is now in the process of performing comparative testing of flotation
and fine grinding configurations versus whole of ore leaching to confirm the
potential to remove the PEA flotation circuit flowsheet design.

Given the material impact this could have on the overall economics of the
project we have taken the decision to delay the results of the PFS into H1
2023 when we expect the comparative study to be completed.

Work programmes in their final stages

 

Environmental & Social

·    PFS-level environmental and social baseline studies are
substantially complete, and the environmental and social scoping report is
well advanced including draft terms of reference for an environmental and
social impact assessment ("ESIA").

·     Work to date has confirmed broad stakeholder support for the
project, potential development of the Project would need to be done with due
sensitivity to existing socio-economic and bio-physical values, to date no
major obstacles to permitting and approval have been identified.

Water

·      Hydrology and hydrogeology is well advanced.

·      Kinetic Humidity Cell Testing ("HCT") testing identifying no
significant issues.

·      Site water balance modelling ongoing.

Infrastructure

·      Infrastructure geotechnical analysis and reporting complete, with
preferred site layout.

·      TSF option analysis complete.

Mining

·      The mine design and schedule optimisation are underway using the
new resource model.

·      Mining contractor tender evaluation is well advanced.

 

Mineral Resource Notes

·      All available data was used as at 25th October 2022.

·      The gold grade estimation method is Localised Uniform
Conditioning.

·      The rounding of tonnage and grade figures has resulted in some
columns showing relatively minor discrepancies in sum totals.

·     All Mineral Resource Estimates have been determined and reported in
accordance with NI 43-101 and the classification adopted by the CIM.

·      A cut-off grade of 0.5 g/t gold is used for reporting as it is
believed that the majority of the reported resources can be mined at that
grade.

·      *The 2021 MRE was limited to blocks with a maximum depth of 250
metres below surface and within 80 metres of drill hole data.

·      Pit optimisations based on a US$2,000/oz gold price were used to
constrain the 2022 Mineral Resource and were generated by Orelogy Mine
Consultants, who are working on the PFS.

·      This Updated Mineral Resource Estimate was prepared by Mr. Mike
Millad of Cube Consulting Pty Ltd who is the Qualified Person for the
estimate.

·      This Updated Mineral Resources Estimate is not expected to be
materially affected by environmental, permitting, legal title, taxation,
socio-political, marketing or other relevant issues.

Qualified persons

A "Qualified Person" is as defined by the National Instrument 43-101 of the
Canadian Securities Administrators. The named Qualified Person(s) have
verified the data disclosed, including sampling, analytical, and test data
underlying the information or opinions contained in this announcement in
accordance with standards appropriate to their qualifications. Each Qualified
Person consents to the inclusion of the information in this document in the
form and context in which it appears.

Information of a scientific or technical nature in this document, including
but not limited to the Mineral Resource estimates, was prepared by and under
the supervision of the Group Qualified Persons, Howard Bills, Group
Exploration Manager, Craig Barker, Group Mineral Resource Manager, and Mike
Millad, the independent Qualified Person from Cube Consulting Pty Ltd.  All
are geoscientists who fulfil the requirements of being a "Qualified Person(s)"
under the CIM Definition Standards.

Investors should be aware that the figures stated are estimates and no
assurances can be given that the stated quantities of metal will be
produced.

Mineral Resource Estimates contained in this document are based on available
data as at 25(th) October 2022.

About Centamin

Centamin is an established gold producer, with premium listings on the London
Stock Exchange and Toronto Stock Exchange. The Company's flagship asset is the
Sukari Gold Mine ("Sukari"), Egypt's largest and first modern gold mine, as
well as one of the world's largest producing mines. Since production began in
2009 Sukari has produced over 5 million ounces of gold, and today has a
projected mine life of 12 years.

Through its large portfolio of exploration assets in Egypt and West Africa,
Centamin is advancing an active pipeline of future growth prospects, including
the Doropo project in Côte d'Ivoire, and over 3,000km(2) of highly
prospective exploration ground in Egypt's Arabian Nubian Shield.

Centamin practices responsible mining activities, recognising its
responsibility to deliver operational and financial performance and create
lasting mutual benefit for all stakeholders through good corporate
citizenship.

FOR MORE INFORMATION please visit the website www.centamin.com
(http://www.centamin.com) or contact:

 Centamin plc                                                 Buchanan

 Alexandra Barter-Carse, Corporate Communications             Bobby Morse/ Oonagh Reidy/ George Cleary

 +44 (0) 7700 713 738                                         + 44 (0) 20 7466 5000

 investor@centaminplc.com (mailto:investor@centaminplc.com)   centamin@buchanan.uk.com (mailto:centamin@buchanan.uk.com)

Forward-looking Statements

This announcement (including information incorporated by reference) contains
"forward-looking statements" and "forward-looking information" under
applicable securities laws (collectively, "forward-looking statements"),
including statements with respect to future financial or operating
performance. Such statements include "future-oriented financial information"
or "financial outlook" with respect to prospective financial performance,
financial position, EBITDA, cash flows and other financial metrics that are
based on assumptions about future economic conditions and courses of action.
Generally, these forward-looking statements can be identified by the use of
forward-looking terminology such as "believes", "expects", "expected",
"budgeted", "forecasts" and "anticipates"." and include production outlook,
operating schedules, production profiles, expansion and expansion plans,
efficiency gains, production and cost guidance, capital expenditure outlook,
exploration spend and other mine plans. Although Centamin believes that the
expectations reflected in such forward-looking statements are reasonable,
Centamin can give no assurance that such expectations will prove to be
correct. Forward-looking statements are prospective in nature and are not
based on historical facts, but rather on current expectations and projections
of the management of Centamin about future events and are therefore subject to
known and unknown risks and uncertainties which could cause actual results to
differ materially from the future results expressed or implied by the
forward-looking statements. In addition, there are a number of factors that
could cause actual results, performance, achievements or developments to
differ materially from those expressed or implied by such forward-looking
statements; the risks and uncertainties associated with the ongoing impacts of
COVID-19 or other pandemic, general business, economic, competitive, political
and social uncertainties; the results of exploration activities and
feasibility studies; assumptions in economic evaluations which prove to be
inaccurate; currency fluctuations; changes in project parameters; future
prices of gold and other metals; possible variations of ore grade or recovery
rates; accidents, labour disputes and other risks of the mining industry;
climatic conditions; political instability; decisions and regulatory changes
enacted by governmental authorities; delays in obtaining approvals or
financing or completing development or construction activities; and discovery
of archaeological ruins. Financial outlook and future-ordinated financial
information contained in this news release is based on assumptions about
future events, including economic conditions and proposed courses of action,
based on management's assessment of the relevant information currently
available. Readers are cautioned that any such financial outlook or
future-ordinated financial information contained or referenced herein may not
be appropriate and should not be used for purposes other than those for which
it is disclosed herein. The Company and its management believe that the
prospective financial information has been prepared on a reasonable basis,
reflecting management's best estimates and judgments at the date hereof, and
represent, to the best of management's knowledge and opinion, the Company's
expected course of action. However, because this information is highly
subjective, it should not be relied on as necessarily indicative of future
results. There can be no assurance that forward-looking statements will prove
to be accurate, as actual results and future events could differ materially
from those anticipated in such information or statements, particularly in
light of the current economic climate and the significant volatility,
uncertainty and disruption caused by the outbreak of COVID-19. Forward-looking
statements contained herein are made as of the date of this announcement and
the Company disclaims any obligation to update any forward-looking statement,
whether as a result of new information, future events or results or otherwise.
Accordingly, readers should not place undue reliance on forward-looking
statements.

LEI: 213800PDI9G7OUKLPV84

Company No: 109180

 

 

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