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For the second year in a row, Centamin (LSE: CEY) (TSX: CEE) has managed to grow its mineral resource and reserve base at Sukari, further underpinning its status as a Tier 1 gold mine.
Sukari is currently Egypt’s largest and first modern gold mine, as well as one of the world’s largest producing mines. Since production began in 2009, it has produced over 5 million oz. of gold, and today has a projected mine life of 14 years.
In an update on Tuesday, the company reported that the Sukari proven and probable reserves have increased by 5% to 6 million oz. at 1.1 g/t after 12 months of mining depletion. This included adding 800,000 oz. of mineral reserves before mining depletion.
Of the additional reserves, 400,000 oz. were added within the open pit at an average gold grade of 1.0 g/t. Another 400,000 oz. were added within the underground at an average gold grade of 3.9 g/t, representing an 11% improvement and further supporting Centamin’s plan to increase the underground mining rate to 1.5Mtpa.
“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 1.2 million oz. represents a threefold increase since 2020, net of mining depletion, which further supports the planned underground expansion project,” Centamin’s CEO Martin Horgan commented in a news release.
Regarding the company’s growth strategy, Horgan added that the company has an “aggressive drilling campaign” across known targets within the underground and elsewhere in the Sukari concession area.
“We have added nearly 2 million oz. 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,” he added.
Inclusive of the mineral reserves, Sukari’s measured and indicated mineral resources have now grown by 1.3 million oz. to 11.1 million oz. at 1.08 g/t, representing a 13% increase in ounces after a year of mining depletion.
Still, Centamin believes there exists multiple opportunities to grow the Sukari mineral resource and reserve base further. Approximately 280,000 metres of drilling have been budgeted for 2023, focusing on open-pit resource-to-reserve conversion at depth, underground exploration and delineation of known targets, and testing surface targets across the Sukari concession.
The company is expecting to announce an updated Sukari life-of-mine plan during hte first half of 2023, incorporating the fully engineered Sukari underground expansion plan.
Centamin’s stock rose by 3.9% as of 12:10 p.m. ET following the latest resource update. The company has a market capitalization of C$2.17 billion ($1.6bn).
