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REG - Centamin PLC - Sukari Underground Expansion

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RNS Number : 3551G  Centamin PLC  15 November 2022

15 November 2022

Centamin plc

("Centamin" or "the Company")

LSE: CEY / TSX: CEE

 

Centamin Confirms Potential to Expand Sukari Underground

Centamin is pleased to announce the potential to expand the Sukari Gold Mine
('Sukari') underground mine to 1.5 million tonnes per annum ('Mtpa') of total
ore mined, as supported by the independent option study. This is at the upper
end of the previously indicated range and represents a 31% increase in ore
mining rates from the current life of mine average of 1.1Mtpa. Total material
movement (ore + waste) for the expanded underground would be approximately
2Mtpa.

Martin Horgan, CEO, commented: 'Expansion of the Sukari underground mining
capacity is a significant step towards delivering on our commitment to
consistently produce 500,000 ounces per annum from the Sukari Gold Mine. The
ability to expand the underground is a result of our transformed approach to
mineral resource management which delivered a doubling of the underground
reserve in 2021, coupled with the productivity and cost benefits that are
being realised following the transition to owner mining. The expansion option
that we are taking forward to the next phase of mine planning offers both low
capital intensity and a lower level of execution risk.'

HIGHLIGHTS

Sukari underground expansion drives further production growth

 * Initial evaluation based on the current resource model exceeds the necessary
return threshold to be advanced to the next phase of engineering.

 * Increasing underground ore mining rates to 1.5Mtpa, a 31% increase to current
life of mine average.

 * Low capital intensity with an estimated US$25-35 million additional capital
expenditure.

 * Increased gold production driven by higher-grade underground tonnes displacing
lower-grade open pit and stockpile mill feed.

 * Safety, cost and productivity benefits with the use of underground portals
from the base of the open pit.

 * Short project delivery time, targeting steady state for full year 2025.

Next step is to fully engineer and schedule the expansion in H1 2023.The
Company has completed an independent option study carried out by Entech, the
mining consultants specialising in resource geology, mining engineering,
geotechnical and ventilation services based out of Perth, Australia, and
supported by site management.  The study included extensive scenario
modelling assessing cut-off grade analysis; optimal ore mining rates ranging
from 1Mtpa to 2Mtpa; geotechnical risk analysis; orebody geometry; mining
methods; existing infrastructure and fleet capacity requirements.

Using the current cut-off grade of 2.2 grams per tonne of gold, the study
recommended increasing ore mining rates to 1.5Mtpa as the optimal
expansion-cost-risk trade off, with no material change to mining method. The
expansion is facilitated through the use of portals into the open pit which
will significantly reduce haulage distances and improve productivity. This
will allow the trucking fleet requirement to remain reasonably consistent even
as mining continues to depth, and from a safety perspective it provides an
additional means of egress.

The capital investment is estimated to be between US$25-35 million and will
primarily be spent on ventilation upgrades, underground development,
additional fleet items (two trucks, one development drill rig and a loader)
and potential increases to the paste-fill plant capacity.

As part of the study, a base case mining and development schedule was produced
for the expanded 1.5Mtpa mining rate utilising the 2021 underground resource
model.  The next step is to deliver a fully engineered mining schedule by
mid-2023, incorporating the upcoming 2022 Sukari mineral resource estimate,
scheduled for publication in December 2022. Given lead times for equipment
delivery and infrastructure implementation, it is estimated that underground
mining rates will gradually ramp up throughout 2024 and reach the increased
steady state for 2025.

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 greater than five million ounces of gold, and today
has a projected future 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 Cote 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 not only deliver operational and financial performance but
to 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, Head of 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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