REG - Centamin PLC - Sukari Resource & Reserve Update

CentaminAnnouncement

13/12/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221213:nRSM4384Ja&default-theme=true

RNS Number : 4384J  Centamin PLC  13 December 2022

13 December 2022

Centamin plc

("Centamin" or "the Company")

LSE: CEY / TSX: CEE

 

Geological focus delivers further Resource and reserve growth

Second year of reserve growth at Sukari, driven by a 33% increase in
underground reserves

 

Martin Horgan, CEO, commented: "Today's announcement marks the second
consecutive year of resource and reserve growth at Sukari, further
underpinning its status as a Tier 1 gold mine. Our improved geological
understanding has resulted in meaningful growth of both resources and reserves
at unchanged cut-off grades. The open pit Mineral Reserve gain replaced annual
depletion for the first time since 2015, while the underground Mineral
Reserves of 1.2Moz represents a threefold increase since 2020, net of mining
depletion, which further supports the planned underground expansion project.

Aligned with our growth strategy, we have an aggressive drilling campaign
across known targets within the underground and elsewhere in the Concession
area. We have added nearly 2Moz of gross Mineral Reserves over the last two
years and we remain confident in delivering more growth both at Sukari and
across the wider portfolio."

HIGHLIGHTS

·      Delivered 1.3 million ounce ("Moz") increase in Sukari Gold Mine
("Sukari") Measured and Indicated Mineral Resources to 11.11Moz at 1.08 grams
per tonne of gold ("g/t Au"), representing a 13% increase in ounces after
twelve months of mining depletion and inclusive of Mineral Reserves.

·      Delivered a 5% increase in Sukari Proven and Probable Mineral
Reserves to 6.0Moz at 1.1g/t Au after twelve months of mining depletion. This
included adding 0.8Moz of Mineral Reserves before mining depletion:

o  0.4Moz added within the open pit at an average grade of 1.0g/t Au,
successfully replacing reserve depletion and extending the open pit life of
mine to 14 years; and

o  0.4Moz added within the underground at an average grade of 3.9g/t Au, an
11% improvement in ounces, and further supports the plan to increase the
underground mining rate to 1.5Mtpa.

·      Identified multiple Sukari Mineral Resource and Reserve growth
opportunities:

o  280,000 metres of drilling budgeted for 2023 focussing on open pit
resource-to-reserve conversion at depth, underground exploration and
delineation of known targets, and testing surface targets across the Sukari
Concession.

·      Updated Sukari life of mine plan to be announced in H1 2023
incorporating the fully engineered Sukari underground expansion plan.

·      Group Measured and Indicated Mineral Resource base has increased
by 13% to 13.6Moz in 2022, after Sukari mining depletion, upgrade to Doropo
Mineral Resources and removal of the non-core asset Batie West in Burkina
Faso.

SUKARI GOLD MINE MINERAL RESOURCE & reserve statements

Mineral Resource Estimate

The Mineral Resource data presented in the tables included in this document
comprises of a summary extract of the Mineral Resource report for the Group's
operating mine, Sukari. For comparative purposes, data for 2021 has been
included where possible. The significant figures used in the table are
intended to reflect the level of accuracy of the different resource
classifications reported. Numbers have been rounded and therefore there may be
small differences in the totals. Varying cut-off grades have been clearly
stated. The gold price assumption for the open pit Mineral Resource estimates
was unchanged at US$2,000/oz.

The Sukari Mineral Resource estimated at the end of June 2022 saw an 13%
increase in Measured and Indicated Resource ounces, net of twelve months
mining depletion.

An update to the open pit Multiple Indicator Kriging ("MIK") Sukari Mineral
Resource was performed by H&S Consultants Pty Ltd ("H&SC"):

·      H&SC depleted the 2022 open pit MIK Mineral Resource estimate
for Sukari as at 30 June 2022, within a whittle pit shell generated by
Centamin at a gold price of US$2,000/oz.

·      The open pit Mineral Resource estimate includes the planned
underground voids within the selected pit shell.

·      A cut-off grade of 0.3 g/t Au is used for reporting the open pit
Mineral Resource estimate.

In respect of the Sukari underground Mineral Resource, the estimate was
performed by Centamin and audited by Cube Consulting Pty Ltd:

·      The model has been developed utilising additional drilling
(79,364 metres) and geological information at a consistent domain cut-off
grade of 0.5g/t Au with a cut-off date of 30 June 2022.

·      The estimation methodology of Ordinary Kriging ("OK") employed in
preparing the updated underground Mineral Resource is consistent with the 2021
estimate, using the reporting cut-off grade of 1.0g/t Au.

·      The Sukari underground Mineral Resources are defined below the
US$2,000/oz open pit shell and combined with the open pit Mineral Resources to
provide an overall Sukari Mineral Resource estimate.

Table 1. Sukari Gold Mine Mineral Resource

                    June 2022                           June 2021
     Category       Tonnage  Grade  Gold Content (Moz)  Tonnage  Grade  Gold Content (Moz)
     (Mt)                    (g/t)  (Mt)                (g/t)
     Measured (M)   267      1.04   8.90                220      1.06   7.45
     Indicated (I)  53       1.30   2.21                70       1.05   2.36
     M+I            320      1.08   11.11               290      1.05   9.81
     Inferred       18       1.6    1.0                 14       1.4    0.6

Mineral Reserve Estimate

The Mineral Reserve data presented in the tables included in this document,
comprise a summary extract for the Sukari Mineral Reserve report. Currently
all the Mineral Reserves are contained within the Sukari Concession area. For
comparative purposes, data for 2021 has been included. Numbers have been
rounded and therefore there may be small differences in the totals.

Included in the Mineral Resources, the Mineral Reserves as of 30 June 2022
were 6.0Moz of gold. The increase, net of twelve months depletion, from 2021
is attributable to significant Mineral Resource to Mineral Reserve drill
conversion within the open pit and underground. The gold price assumption used
for estimating Mineral Reserves is unchanged at US$1,450/oz. Based on the
planned throughput and mining rates, the remaining Mineral Reserve life of
Sukari open pit operation and stockpiles is approximately 14 years and 10
years for the underground, as of 30 June 2022.

Table 2. Sukari Gold Mine Mineral Reserve

                                   June 2022                           June 2021
                        Category   Tonnage  Grade  Gold Content (Moz)  Tonnage  Grade  Gold Content (Moz)
                                   (Mt)     (g/t)  (Mt)                         (g/t)
 OPEN PIT               Proven     108.9    0.9    3.3                 100.4    1.2    3.9
                        Probable   27.5     1.5    1.3                 20.8     1      0.6
                        P & P      136.4    1.0    4.6                 121.1    1.2    4.6

 UNDERGROUND            Proven     4.0      3.6    0.5                 2.1      3.3    0.2
                        Probable   5.3      4.2    0.7                 5.7      3.6    0.7
                        P & P      9.3      4.0    1.2                 7.8      3.5    0.9

 STOCKPILES             Proven     17.4     0.5    0.3                 17.4     0.5    0.3
                        Probable   -        -      -                   -        -      -
                        P & P      17.4     0.5    0.3                 17.4     0.5    0.3

 TOTAL MINERAL RESERVE  P & P      163.1    1.1    6.0                 146.4    1.2    5.8

Qualified persons

Information of a scientific or technical nature in this document, including
but not limited to the Mineral Reserve and Mineral Resource estimates, was
prepared by and under the supervision of Craig Barker, the Group's Qualified
Person(s), and independent Qualified Person(s) as below:

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.

Sukari Gold Mine, Egypt

·      Mineral Reserve (open
pit)                        Quinton de Klerk of Cube
Consulting Pty Ltd

·      Mineral Reserve (underground)                 Quinton de
Klerk of Cube Consulting Pty Ltd

·      Mineral Resource (open
pit)                      Arnold van der Heyden of
H&S Consultants Pty Ltd

·      Mineral Resource (underground)               Craig
Barker of Centamin plc

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 and Mineral Reserve Estimates contained in this document are
based on available data as at 30 June 2022.

Varying cut-off grades have been used, and clearly marked, for estimating the
Mineral Resource and Mineral Reserve estimates.

mineral resource and reserve notes

Mineral Resource Notes

Open Pit

·      All open pit Mineral Resources are estimates of recoverable
tonnes and grades using MIK with block support correction produced in the GS3
software.

·      Measured Resources lie in areas where drilling is available at a
nominal 25 x 25 metre spacing, Indicated Resources occur in areas drilled at
~25 x 50 metre spacing and Inferred resources exist in areas of broader spaced
drilling.

·      The open pit Mineral Resource estimate at a 0.3 g/t Au cut-off
grade extends over a strike length of ~2.5 kilometres, a width of ~500 metres
and from current surface to a depth of ~900 metres.

·      The open pit Mineral Resource estimate used surface rock chip,
diamond, reverse circulation and advanced grade control drilling, while
open-pit grade control and underground face samples were excluded with the
dataset being closed off as at 15 July 2022. The open-pit resource data set
comprised 553,776 two-metre drill hole composites and surface rock chip
samples.

·      The Mineral Resource estimates were adjusted to the mining
surface and underground mining voids as at 30 June 2022, and includes some
material that could be mined by underground methods.

Underground

·      All underground Mineral Resources are estimated using OK and
Vulcan software.

·      Measured Resources lie in areas where drilling is available on at
least 20 x 20 metre spacing and the interpreted mineralisation defined by
underground mine development. Indicated Resources occur in areas drilled at
~50 x 25 metre spacing and Inferred Resources exist in areas of broader spaced
drilling of ~100 x 50 metre spacing.

·      The underground Mineral Resource estimate at a 1.0 g/t Au cut-off
grade is unconstrained and extends over a strike length of ~2.5 kilometres, a
width of ~500 metres and from current surface to a depth of ~1,200 metres.

·      All available surface drilling, channel and underground samples
were used as at 30 June 2022. The resource data set used directly in the
Mineral Resource Estimate comprised a total of 125,547 one metre down hole
drilling composites, 188,559 one metre down hole channel sample composites and
31,288 two and a half metre down hole drilling composites.

·      The Mineral Resource Estimates were adjusted to the mining
surface and underground mining voids as at 30 June 2022.

Stockpile

·      Open Pit, Underground and Course Ore Stockpile material have been
reported at a cut-off of 0.4g/t Au.

Mineral Reserve Notes

·      Open pit and stockpiles cut-off grade for reporting of 0.4g/t Au.

·      Open pit Mineral Reserve estimate includes 8.1Mt at 0.4g/t Au for
0.1Moz gold, using a 0.2g/t Au cut-off grade, for dump leach material.

·      Underground cut-off grade for reporting of 1.0g/t Au for
development with stopes defined within a 2.2g/t Au cut-off.

 

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 14 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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDBLBDDDUBDGDD