Centamin Egypt Reports on Activities in the Quarter Ended September 30, 2009
October 30 2009 - 9:29AM
Marketwired Canada
Centamin Egypt Limited ("Centamin" or "the Company") (TSX:CEE)(ASX:CNT)(AIM:CEY)
is providing the following report on its activities in the quarter ended
September 30, 2009:
Highlights
Construction and Development
- Stage 1 Commissioning activities well advanced with completion in several
areas
- Continued good progress on remaining construction activities
- First delivery of seawater to site via 25km pipeline and bore field
- Commencement of construction on direct seawater intake
- Crushing and conveyor systems commissioned and performing above required
rates
- Power installations approaching completion with powerlines
energized across the project
- Peak manpower continues to be sustained with +1,000 personnel on site
through to final commissioning
Operations
- Open pit mine production increases in both material and ore movement
- Underground mining contractor mobilised and portal development
substantially completed
- 14,710m of diamond drill ("DD") and 929m of exploration reverse
circulation ('RC") completed during the quarter
- Eight drill rigs on site continuing resource definition drilling to
target Hapi, Amun Deeps and Pharaoh Zone
- Regional Exploration continues - drilling commenced at Quartz Ridge Main
Quartz Vein structure during the quarter with 11 holes completed. 9
holes successfully intersected the outcropping quartz vein, up to 60m
below surface. Results pending
- Significant intersections received for the quarter include:
D1454 - 11375N - 32m @ 5.65g/t Au from 691m
D1455 - 10700N - 42m @ 2.79g/t Au from 423m
D1463 - 10750N - 35m @ 2.03g/t Au from 493m
D1466 - 11700N - 19m @ 4.88g/t Au from 583m
D1468 - 10800N - 16m @ 4.29g/t Au from 441m
Corporate
- Commenced work for move to main board of the London Stock Exchange -
admission anticipated on 06 November 2009
- Company remains debt and hedge free
Commenting on the quarterly report Josef El-Raghy, Managing Director/CEO of
Centamin, stated:
"The quarter saw further significant progress in construction and commissioning
activities and follows our first gold pour in June 2009. We continue to achieve
major construction milestones quarter on quarter and look forward to achieving
commercial scale production by the end of the calendar year. Corporately the
move to the main board of the London Stock Exchange represents another step in
the company's growth from a junior explorer to a gold producer of size and scale
with operations that should have a sustained growth cycle ahead."
SUKARI GOLD PROJECT CONSTRUCTION
Stage 1 construction and commissioning activities progressed well throughout the
September 2009 quarter. Stage 2 construction is also well advanced and continues
to meet forecast construction targets and milestones.
Major construction milestones achieved during the quarter include the
commissioning of crusher and conveying systems and the delivery of seawater to
the Sukari Gold Project raw water pond, which followed completion of pipeline
system installations. Other activities throughout the quarter have focused on
power generation systems, plant pipe installations, mechanical and electrical
controls and the direct seawater intake facility. Several non process buildings
were also completed with the laboratory and warehouse completed and now
operational.
Workforce levels remained +1000 during the September quarter with significant
scopes of work well advanced into commissioning and completion stage. Manning
levels are expected to reduce throughout the December quarter as Stage 1
construction activities are completed and full commissioning of major plant
components are achieved.
Progress pictures can be viewed on the Company's website - www.centamin.com.
Project Engineering and Design
Piping engineering and design with SENET in South Africa continues to progress
well with Stage 1 installations approaching completion during the quarter. Stage
2 final drawings have been received and piping installation has commenced.
Crusher & Conveyor Systems
Crusher and conveying systems were commissioned during the September quarter
with formal hand over to Operations due early in the forthcoming quarter.
Operational performance to date has at times exceeded the 4mtpa throughput
requirements.
Reclaim and Grinding Systems
Mill assembly and mill lining installations are complete with final
commissioning underway. Mechanical testing and commissioning of SAG & Ball Mills
has progressed well with no major issues encountered. The mechanical
installation of all conveyor systems has been completed.
CIL Circuit & Gold Recovery
Following the installation of tank agitators in the June quarter, activity
focused on testing and commissioning of these units. CIL tanks have been filled
to capacity and tank agitator tests have been run. All pipe racks have been
erected and piping installations have been completed.
Construction of the gold room is practically complete with all mechanical
installations now in place.
Reagents, Air & Water Services
The air services building is approaching completion and all compressors and air
blowers have been installed mechanically.
The Reverse Osmosis plant was fully installed and commissioned in the September
quarter.
Power Plant
As reported previously, the Cummins (7MW) power station was commissioned and is
currently providing power to the Sukari Gold Project. Operational performance is
in line with design expectations.
Mechanical and piping installation has progressed well in the MAK (28MW) power
station with diesel system mechanical installations and engine overhauls
completed in the September quarter. Commissioning of engines 3 and 4 is
currently underway with test runs having commenced. Power from sets 3 and 4
combined with the Cummins power station will initially be sufficient to run the
Sukari operation whilst work continues on set's 1 and 2.
Fuel Farm tank installations are currently being commissioned and diesel fuel is
now being received to the fuel farm. Piping of the tanks to the pump skids and
pipe racks was completed during the September quarter.
Site Buildings and Infrastructure
Power lines were energized during the quarter. MCC buildings are complete and
established at various locations.
Stage 1 civil works are complete with minor ancillary works undertaken
throughout the September quarter. The main warehouse building and laboratory
buildings were completed and commissioned during the quarter.
Tailings and Tailings Storage Facility ("TSF")
With the thickener and cyanide process water tanks fully installed in the
previous quarter, steel work and pump systems were completed and commissioned
during the September quarter.
Stage 1 of the TSF is complete and the process has been tested through the
delivery of seawater into the TSF. Civil works for Stage 2 construction, which
will provide ongoing storage capacity, continue to progress well.
Seawater Supply System
Mobilisation and installation works for the direct seawater intake facility
commenced in the September quarter and are expected to be completed toward the
end of 2009. Activity has focused on sheet piling work ahead of piping
installations in the forthcoming quarter.
Water bore development, which was established whilst the approval process for
direct seawater intake was ongoing, is now complete, with seawater being
delivered into the raw water pond on site at the Sukari Gold Project. This
follows the completion of successful pump station commissioning throughout the
September quarter.
To view the Raw Water Pond, please visit the following link:
http://media3.marketwire.com/docs/rawwaterpond.pdf
EXPLORATION
During the quarter, resource definition drilling was concentrated in the Pharaoh
zone north of 11300N, following the high grade Hapi Zone at depth, deeper Hapi
zones at the basal porphyry contacts, the west dipping high grade shear zone
basal porphyry contact at the eastern margins and other mineralised structures
within the porphyry. Drilling also occurred in the south of the Sukari porphyry
from Wadi Fault testing the along strike continuity of the Amun Deeps porphyry
blocks and mineralisation, Hapi Zone and Downthrust Zone from 10800N northwards.
Drilling will continue with 8 rigs in all of the above areas for the foreseeable
future.
To view Figure 1 - Sukari Gold Project, please visit the following link:
http://media3.marketwire.com/docs/sukariproject.pdf
Amun and Ra Zones (10000 - 11200N)
Hole D1455 was drilled to infill the main porphyry block and Hapi Zone, test the
extent of the Amun Deeps porphyry block and the Downthrust Zone and successfully
intersected high grade mineralisation (42m @ 2.79g/t Au from 423m (Figure 2 and
Table 1). Hole D1463 was drilled further north on 10750N along strike from
D1455, drilling intersected a highly encouraging zone of Amun Deeps porphyry at
depth, of 35m @ 2.03g/t Au from 493m. Hole D1468 was drilled on 10800N with a
high grade intersection of 16m @ 4.29g/t Au from 441m reported at the upper
hangingwall contact of the Amun Deeps porphyry; in the projected down dip
location of the Hapi Zone structure (Table 1). This has provided encouragement
to continue testing along strike north of 10700N where recently completed holes
D1471 and D1474 (assays awaited) have recently intersected significant blocks of
mineralised porphyry.
To view Figure 2 - Sukari Gold Project, please visit the following link:
http://media3.marketwire.com/docs/Amunzone.pdf
Pharaoh Zone (11200N - 12100N)
Most of the drilling during the quarter was focused in the Pharaoh Zone,
targeting infill and along strike extension of the high grade Hapi Zone
mineralisation, deeper high grade zones at the base and contact of the main
porphyry to the sedimentary country rock package and more west-dipping
mineralisation in the far north (Figure 1).
Drilling continued to return strong intersections at the base of the porphyry
intrusion in the Hapi and deeper zones (Table 1). This correlated strongly with
previously recorded results along strike and up and down dip; and infilled
previously untested areas of the porphyry.
Hole D1454 (11375N) was drilled to infill the deeper Hapi Zone and confirmed
strong Au mineralisation at the basal porphyry contact (32m @ 5.65g/t Au from
691m). Hole D1466 (11700N) returned; high grade zone of 19m @ 4.88g/t Au from
583m, intersected at the basal porphyry contact.
The coming quarter will see drilling continuing in the Pharaoh Zone to define
the Hapi and deeper zones along strike and test the eastern porphyry contact. In
the Amun Zone drilling will continue to test the Amun Deeps, Downthrust and Hapi
Zones north of 10700N. Drilling access tracks are underway using drill and blast
and rockbreakers to unlock the strong resource potential of the steepest parts
of the North West part of the hill, previously sparsely drilled due to the
challenging topography.
REGIONAL EXPLORATION
Drilling commenced at Quartz Ridge Main Quartz Vein structure during the quarter
with 11 holes completed for 929m out of a planned 26 holes. All holes drilled to
date, except two, successfully intersected the outcropping quartz vein, up to
60m below surface and over 2-6m downhole widths of quartz vein and altered
rocks, over a strike length of 300m. The mineralised structure remains open at
depth and along strike, drilling continues. Assays are awaited.
Wide spaced regional work continued to increase coverage of the mapping and
geochemistry as the exploration push continues away from the Sukari hill (Figure
3).
OPEN PIT MINING
Centamin conducts its open pit mining operations on an 'owner operator' basis.
Primary mining fleet includes ten CAT785C rear dump trucks and two O&K RH120E
excavators with additional mine support equipment in place. Atlas Copco
equipment is used to supply grade control and blast hole drilling equipment.
A total of 1,310,369 bank cubic metre ("BCM") of material was mined during the
quarter with 903,938 tonnes of ore mined and delivered to the ROM pad for
processing.
---------------------------------------------------------------------------
September June March % Change
Sukari Gold Project Quarter Quarter Quarter Sept vs
Mine Production 2010 2009 2009 June Quarter
---------------------------------------------------------------------------
Ore mined kt 904 353 248 +256%
Material movement BCM 1,310 1,157 445 +13%
---------------------------------------------------------------------------
During the quarter, ore was mined in Stage 1 from the 1148RL to 1124RL bench and
in Stage 2 from 1184RL to 1178RL during the period. 31,669 grade control metres
in Stage 1 and Stage 2 were completed to the 1124RL and 1172RL. The permanent
assay laboratory commenced Fire Assay and sample preparation during the period.
Drilling and mapping has shown high grade Au is associated with strongly sheared
and sericite-hematite altered porphyry; with stock works of extensional quartz
veins and sheared contacts with the hangingwall rocks. Correlations between the
resource model and grade control are satisfactory, with mineralised controlling
structures adequately appearing in the grade control and mapping.
UNDERGROUND MINE DEVELOPMENT
Centamin announced in the previous quarter that it had issued a Letter of Intent
to Barminco for the immediate mobilisation of personnel and equipment, and
subsequent commencement of underground mining activities at the Sukari Gold
Project in Egypt.
Site works have continued with underground portal substantially completed during
the September quarter.
The Company believes it has the opportunity to increase production by accessing
higher grade ore from an underground mine. The aim is to access this higher
grade ore earlier than otherwise would have been scheduled through surface
mining. PGM commenced preparations for underground mining in April 2009 and
portal development commenced in July 2009. Although the decline will be
sufficient for eventual production, the initial objective is to fully
investigate the expected ground conditions and provide access for additional
drilling and geotechnical investigations.
An initial underground mining rate of 500,000 tonnes per annum at a grade
between 5-10g/t Au is being targeted thus bringing higher grade ore feed into
production earlier than otherwise would have been scheduled through surface
mining at circa 2g/t. Full production from the underground could potentially be
achieved approximately 18 months after commencement of the decline.
To view Figure 3 - Sukari Gold Project, please visit the following link:
http://media3.marketwire.com/docs/sukarigold.pdf
CORPORATE
On 3 July 2009, the company announced that it had attained subscriptions from
various North American resource focussed funds for a private placement of 19
million ordinary shares at an offering price of C$1.56 per share. Following the
close of the offer on 16 July 2009, the offer was fully subscribed and raised
gross proceeds of C$29.6M. Centamin Egypt Limited intends to use the net
proceeds of the offering for the continued exploration activities and general
corporate purposes.
On 4 August 2009, the company announced its intention to apply for admission to
the Official List of the UK Listing Authority (the "Official List") and to
trading on the London Stock Exchange's Main Market for listed securities. This
listing is subject to regulatory approval and is expected to be completed on 06
November 2009.
The Company is currently debt free, unhedged and able to aggressively pursue
further exploration and development activities, including the underground
development of the high grade Amun Deeps Zone.
On behalf of Centamin Egypt Limited
Josef El-Raghy, Managing Director/CEO
30 October 2009
Quality Assurance and Control and Qualified Person
The information in this report that relates to ore reserves has been compiled by
Mr Tadek Wojtowicz and internally reviewed by Mr Andrew Pardey. Mr Pardey is a
Member of the Australasian Institute of Mining and Metallurgy and is a full time
employee of the Company. He has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity he is undertaking, to qualify as a "Competent Person" as defined in the
2004 Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves" and is a "Qualified Person" as defined in
the "National Instrument 43-101 of the Canadian Securities Administrators" and
"CIM Definition Standards For Mineral Resources and Mineral Reserves" of
December 2005 as prepared by the CIM Standing Committee on Reserve Definitions
of the Canadian Institute of Mining. Mr Pardey's written consent has been
received by the Company for this information to be included in this report in
the form and context which it appears.
The information in this report that relates to ore reserves has also been
independently verified by Mr Pieter Doelman, an employee of Coffey Mining Pty
Ltd Perth. Mr Doelman is a Member of the Australasian Institute of Mining and
Metallurgy and has sufficient experience, relevant to the style of
mineralisation and type of deposit under consideration and to the activity he is
undertaking, to qualify as a "Competent Person" as defined in the 2004 Edition
of the "Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves" and is a "Qualified Person" as defined in the
"National Instrument 43-101 of the Canadian Securities Administrators" and the
"CIM Definition Standards For Mineral Resources and Mineral Reserves" of
December 2005 as prepared by the CIM Standing Committee on Reserve Definitions
of the Canadian Institute of Mining. Mr Doelman consents to the inclusion of
this estimate in reports.
Information in this report which relates to exploration, geology, sampling and
drilling is based on information compiled by geologist Mr Richard Osman who is a
full time employee of the Company, and is a member of the Australasian Institute
of Mining and Metallurgy with more than five years experience in the fields of
activity being reported on, and is a 'Competent Person' for this purpose and is
a "Qualified Person" as defined in "National Instrument 43-101 of the Canadian
Securities Administrators". His written consent has been received by the Company
for this information to be included in this report in the form and context which
it appears.
The assay samples were analysed by Ultra Trace Pty Ltd, Canning Vale, Western
Australia.
The information in this report that relates to mineral resources is based on
work completed independently by Mr Nicolas Johnson, who is a Member of the
Australian Institute of Geoscientists. Mr Johnson is a full time employee of
Hellman and Schofield Pty Ltd and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a "Competent Person" as defined
in the 2004 edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves" and is a "Qualified Person" as
defined in "National Instrument 43-101 of the Canadian Securities
Administrators". Mr Johnson consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
Refer to the updated Technical Report which was filed in May 2009 for further
discussion of the extent to which the estimate of mineral resources/reserves may
be materially affected by any known environmental, permitting, legal, title,
taxation, socio-political, marketing or other relevant issue.
Table 1 - Significant Intersections September 2009 Quarter
---------------------------------------------------------------------------
HOLE NORTH EAST DIP AZI EOH FROM TO INTERVAL AUAR1
---------------------------------------------------------------------------
D1449 11575 10783 -85 270 755.5 113 115 2 2.35
---------------------------------------------------------------------------
601 618 17 1.26
---------------------------------------------------------------------------
incl. 661 662 1 5.03
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1452 11725 10800 -78 270 668.2 367 378 11 1.16
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1453 11500 10885 -82 270 729.3 147 151 4 48.30
---------------------------------------------------------------------------
147 148 1 186.00
---------------------------------------------------------------------------
346 348 2 1.79
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1454 11375 10775 -89 270 776.2 18 28 10 1.24
---------------------------------------------------------------------------
120 135 15 3.28
---------------------------------------------------------------------------
incl. 120 122 2 14.60
---------------------------------------------------------------------------
298 300 2 3.94
---------------------------------------------------------------------------
691 723 32 5.65
---------------------------------------------------------------------------
incl. 697 706 9 13.5
---------------------------------------------------------------------------
incl. 722 723 1 14.6
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1455 10700 10825 -76 270 706.9 423 465 42 2.79
---------------------------------------------------------------------------
incl. 433 434 1 39.0
---------------------------------------------------------------------------
incl. 450 451 1 12.3
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1456 11775 10804 -78 270 668.2 6 11 5 1.05
---------------------------------------------------------------------------
415 419 4 2.65
---------------------------------------------------------------------------
incl. 433 435 2 4.34
---------------------------------------------------------------------------
600 611 11 6.63
---------------------------------------------------------------------------
incl. 607 608 1 56.0
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1457 11300 10738 -86 270 739.5 61 83 22 1.70
---------------------------------------------------------------------------
incl. 70 71 1 6.36
---------------------------------------------------------------------------
incl. 74 75 1 5.90
---------------------------------------------------------------------------
incl. 668 669 1 6.69
---------------------------------------------------------------------------
incl. 683 684 1 6.20
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1458 11425 10760 -87 270 782.5 163 168 5 7.68
---------------------------------------------------------------------------
incl. 163 164 1 31.5
---------------------------------------------------------------------------
231 235 4 1.56
---------------------------------------------------------------------------
283 289 6 2.83
---------------------------------------------------------------------------
incl. 285 286 1 12.5
---------------------------------------------------------------------------
294 296 2 4.29
---------------------------------------------------------------------------
incl. 366 367 1 5.95
---------------------------------------------------------------------------
672 688 16 1.52
---------------------------------------------------------------------------
700 721 21 2.30
---------------------------------------------------------------------------
incl. 704 705 1 6.49
---------------------------------------------------------------------------
incl. 714 715 1 6.82
---------------------------------------------------------------------------
incl. 719 720 1 6.80
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1459 12025 10825 -88 270 372.0 2 21 19 1.99
---------------------------------------------------------------------------
38 41 3 1.42
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1460 11600 10890 -80 270 740.4 180 182 2 1.72
---------------------------------------------------------------------------
603 615 12 2.48
---------------------------------------------------------------------------
incl. 604 605 1 5.19
---------------------------------------------------------------------------
incl. 609 610 1 9.51
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1461 11650 10730 -82 270 741.0 0 34 34 1.64
---------------------------------------------------------------------------
incl. 329 330 1 5.35
---------------------------------------------------------------------------
incl. 678 681 3 5.50
---------------------------------------------------------------------------
incl. 702 703 1 1.66
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1462 11950 11020 -55 270 449.7 44 46 2 1.41
---------------------------------------------------------------------------
112 146 34 3.29
---------------------------------------------------------------------------
incl. 130 132 2 8.96
---------------------------------------------------------------------------
incl. 135 140 5 6.54
---------------------------------------------------------------------------
incl. 142 143 1 11.3
---------------------------------------------------------------------------
197 199 2 5.69
---------------------------------------------------------------------------
355 358 3 72.10
---------------------------------------------------------------------------
incl. 357 358 1 215
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1463 10750 10811 -73 270 780.7 493 528 35 2.03
---------------------------------------------------------------------------
incl. 499 500 1 7.20
---------------------------------------------------------------------------
incl. 505 506 1 10.2
---------------------------------------------------------------------------
incl. 521 523 2 11.1
---------------------------------------------------------------------------
572 576 4 5.95
---------------------------------------------------------------------------
594 596 2 31.0
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1465 11650 10833 -82 270 642.2 26 28 2 18.2
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1466 11700 10908 -78 270 632.0 179 185 6 2.08
---------------------------------------------------------------------------
incl. 184 185 1 2.08
---------------------------------------------------------------------------
583 602 19 4.88
---------------------------------------------------------------------------
incl. 583 584 1 14.9
---------------------------------------------------------------------------
incl. 586 587 1 5.68
---------------------------------------------------------------------------
incl. 599 602 3 13.6
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1467 11850 10978 -74 270 515.1 267 269 2 8.74
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1468 10800 10930 -68 270 643.7 184 187 3 1.73
---------------------------------------------------------------------------
441 457 16 4.29
---------------------------------------------------------------------------
incl. 450 455 5 8.37
---------------------------------------------------------------------------
500 505 5 2.52
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1469 11700 10763 -75 270 425.4 41 44 3 1.79
---------------------------------------------------------------------------
208 210 2 13.60
---------------------------------------------------------------------------
incl. 401 402 1 9.15
---------------------------------------------------------------------------
---------------------------------------------------------------------------
D1472 11800 10810 -68 270 691.2 0 4 4 2.79
---------------------------------------------------------------------------
incl. 16 17 1 8.68
---------------------------------------------------------------------------
172 177 5 2.48
---------------------------------------------------------------------------
incl. 176 177 1 5.77
---------------------------------------------------------------------------
186 194 8 2.06
---------------------------------------------------------------------------
---------------------------------------------------------------------------
RCD596 11850 10827 -74 270 648.9 408 411 3 2.68
---------------------------------------------------------------------------
incl. 408 409 1 6.12
---------------------------------------------------------------------------
530 533 3 1.42
---------------------------------------------------------------------------
incl. 566 570 4 1.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------
RCD788 11975 10825 -90 0 411.2 222 226 4 2.28
---------------------------------------------------------------------------
288 299 11 1.93
---------------------------------------------------------------------------
Note: Intervals shown in the table are down hole intercepts, drilled at
high angles relative to the internal mineralized structures and the
Sukari Porphyry; true widths do not apply or are not used in drilling
the stockwork style mineralization at Sukari
Centamin (TSX:CEE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Centamin (TSX:CEE)
Historical Stock Chart
From Jul 2023 to Jul 2024
