Quarterly results
Centamin Egypt Limited
31 January 2003
CENTAMIN EGYPT LIMITED
REPORT FOR QUARTER ENDING 31 DECEMBER 2002
HIGHLIGHTS
• Standard Bank London Limited mandated as Sukari Project Finance Arrangers
• Placement of 22, 580,127 Shares to United Kingdom Institutional Investor
• Appointment of Project Manager
• Exercise of 7.7 million November 2002 unlisted options
• 3rd March 2003 Options Fully Underwritten
• Two additional contract drill rigs in operation at Sukari
• Continued excellent results from infill and development drilling at Sukari
SIGNIFICANT NEW INTERSECTIONS(Dec 1/4)
41m @ 2.06g/t Au
54m @ 3.11g/t Au
49m @ 2.10g/t Au
31m @ 2.74g/t Au
120m @ 1.63g/t Au
107m @ 2.42g/t Au
21m @ 2.43 g/t Au
31m @ 2.74 g/t Au
40m @ 2.09 g/t Au
HIGH GRADE INTERSECTIONS
1m @ 75.10 g/t Au (new shoot)
1m @ 567 g/t Au (Hapi Zone)
WIDTH OF MINERALISATION INCREASING
Ra zone mineralisation has averaged 400m in width,
a considerable increase to the 90m experienced in the Amun zone.
PROJECT MANAGER
As stated previously the Company is continuing to source appropriate personnel
with the necessary experience and skills to assist with the development of the
Sukari project through to the production phase.
The Company is therefore pleased to announce the appointment of Mr Harry Michael
as Sukari Project Manager. Harry is a mining engineer with considerable project
development experience whose role will be to manage and supervise the Company's
activities with respect to the Sukari Gold Project, including the preparation of
the upgraded project feasibility to a bankable standard, subsequent key
personnel recruitment, development, construction and operation of the project.
Harry has been involved at a senior level in several mining operations including
the Granny Smith gold mine for Placer in Western Australia, the Porgera
operation in PNG producing over 1.5million ounces per annum and most recently he
held the position of Chief Executive Officer of Geita Gold Mining Limited, the
manager of the Geita gold mine in Tanzania on behalf of the owners, Ashanti
Goldfields and Anglogold.
Whilst at Geita, duties and responsibilities included feasibility, development,
construction and operation of the mine involving a work force of up to 1800
employees, mining 45mtpa, milling 5mtpa to produce over 500,000 ounces per
annum. The project was developed ahead of schedule and under budget with
subsequent gold production targets also being exceeded.
DIAMOND DRILLI NG
As reported in October 2002 the company engaged Stanley Mining Services to begin
drilling the Ra Zone at Sukari with the intention to add to the existing
2,040,000 oz resource of the Amun zone. Two Stanley Rigs were added to the
company's three existing rigs during the period and the company is currently
drilling its 300th Sukari Diamond Drill Hole (SDDH300). Stanley Rig 10 moved
south from 10675N to add reserve ounces to the existing resource, whilst Rig 37
together with Centamin's three rigs stepped out north into the Ra zone to add
resource ounces.
Metres drilled and sample program for, October, November and December 2002.
Description October November December Total
Drilling - metres 2003.68 2872.39 2710.86 7586.93
Core logged - metres 1900 2600 2710 7210
Sample metres - sawn 1072 3468 2986 7526
Samples dispatched - For assaying 1283 2100 3009 6392
The mineralised system has now proven to be continuous from section to section
as the drilling has progressed into the Ra zone, with the mineralisation being
consistent with the mineralisation logged in the Amun Zone
Geological logging of the diamond drill core indicates that the zones of
mineralisation are well defined within the Sukari porphyry. Mineralisation is
related to stockworks, brecciation, quartz veining and contact mineralisation,
these are traceable along the strike and dip of the Sukari porphyry.
Stockworks are broad zones defined by sericitic and chloritic alteration, the
porphyry is highly fractured and jointed, and these are infilled with high
ratios of disseminated fine grained pyrite and arsenopyrite in the altered
porphyry.
Zones of brecciation are well defined within the broader stockwork. The breccia
is characterised by fragments of porphyry supported by fine grained pyrite and
sulphide matrix. Quartz veins and zones of brecciation are easily identified
and indicate an increase in the tenor of the gold mineralisation.
Stacked east dipping structures (breccia) normally contain the high grade with
medium to low grade mineralization occurring in the quartz and sulphide
stockwork in between these structures.
Contact mineralisation with the footwall is in close proximity to the porphyry
and found in association with highly foliated metavolcanics, these display a
high ratio of pyrite and quartz veinlets. Along the foot wall contact, an
extremely high grade zone, the 'Hapi Zone', is present and continues to be
intersected
The extensiveness of the system is best demonstrated by SDDH 284 which
encountered the mineralised porphyry 9m from surface with an intersection of 1m
@ 75 g/t Au, and continued in mineralisation for over 400m down hole. Drill
hole data and assays are included in the tables below with some assays still to
be received.
Holes drilled and assayed to date show continuity along strike and will add
significant ounces in areas previously undrilled. For Example:
SDDH 275, 100m @ 1.71 g/t incl. 41m @ 2.06 g/t
is 25m along strike from
SDDH 278, 120m @ 1.63 g/t incl. 38m @ 2.27 g/t
which is 50m along strike from
SDDH 282, 107m @ 2.42 g/t. incl. 40m @ 3.37 g/t.
The development program to move one of the Stanley rigs and Centamin's 3 rigs
north into the Ra zone and add resource ounces has been a resounding success,
with significant mineralisation encountered in every hole.
It must be stressed that the Amun and Ra zones are continuous and contained
within the Sukari outcrop, with the division between zones made purely for ease
of reference rather than being separate structures. As such, Sukari has the
ability to be a multi million ounce single pit deposit, with the Ra zone yet to
be included in the resource calculation and the Gazelle and Pharaoh zones yet to
be tested by drilling.
Drilling is continuing and further results will be released as they are received
from the laboratory.
Drill Hole collar positions and depths.
Northing and Easting are Local Grid coordinates.
Azimuth is Grid bearing: Grid North = 20degrees Magnetic north.
Dip, is degrees below horizontal
Hole No. Northing Easting RL Azimuth Dip Depth
RC266 11250 10948 1104 270 -60 70.00
RC267 11302 10923 1101 270 -60 82.00
RC268 11353 10877 1102 270 -60 100.00
RC268A 11353 10877 1102 270 -60 4.00
RC269 10176 10563 1119 270 -90 6.00
DDH270 10842 10718 1181 267.5 -15 153.63
RC271 10255 10429 1169 90 -85 4.00
DDH272 10771 10651 1190 267 -44 303.72
DDH273 10850 10700 1185 270 -45 85.62
DDH274 10791 10742 1170 270 -65 437.40
DDH275 10675 10611 1210 270 -75 372.30
DDH276 10801 10678 1183 270 -5 162.00
DDH276B 10801 10678 1183 270 -5 107.22
DDH277 10575 10642 1178 270 -65 317.92
DDH278 10650 10618 1209 270 -80 442.60
DDH279 10791 10742 1170 270 -45 167.90
DDH279A 10791 10742 1170 270 -45 403.70
DDH280 10847 10718 1181 270 -40 138.82
DDH281 10625 10606 1210 270 -80 370.70
DDH282 10611 10610 1197 270 -70 384.80
DDH283 10600 10560 1220 270 -45 25.02
DDH283A 10600 10560 1220 270 -45 176.77
DDH284 10900 10740 1215 270 -60 494.00
DDH285 10675 10610 1210 270 -55 301.10
DDH286 10575 10640 1190 270 -80 433.00
DDH287 10900 10800 1210 270 -70 695.00
DDH288 10550 10619 1182 270 -80 431.70
DDH289 10800 10677 1183 270 -15 10.30
DDH289A 10801 10678 1182 270 -15 202.45
DDH290 10675 10612 1210 270 -45 254.62
DDH291 10846 10532 1203 00 -90 55.42
DDH292 10525 10575 1170 270 -80 266.00
DDH293 10980 10800 1217 270 -45 461.60
DDH294 10500 10572 1170 270 -80 362.00
DDH295 10577 10495 1167 270 -60 159.82
DDH296 10894 10712 1215 270 -5 144.29
DDH297 10942 10832 1212 270 -45 506.70
DDH298 10498 10575 1170 270 -65 339.00
DDH299 11000 10850 1202 270 -50 in progress
DDH300 10525 10490 1156 270 -70 in progress
DDH301 10475 10580 1164 270 -88 in progress
DDH302 10850 10532 1203 00 -90 in progress
Significant Intersections in drill holes
Hole No. From (m) To (m) Width (m) Assay (g/t)
RC266 9 10 1 2.37
RC268 45 46 1 2.51
49 50 1 2.94
58 59 1 2.93
DDH270 84 100 16 2.24
Incl 98 100 2 4.85
DDH272 70 82 12 2.02
120 121 1 2.77
125 126 1 2.39
198 199 1 3.32
216 217 1 5.06
264 265 1 4.42
DDH273 38 40 2 2.69
59 66 7 3.03
DDH274 110 120 10 1.92
197 199 2 2.35
355 376 21 1.78
Incl 369 370 1 5.95
Incl 374 375 1 5.47
384 385 1 6.15
413 414 1 11.80
428 431 3 10.20
DDH275 221 228 7 2.05
231 232 1 3.55
253 254 1 2.78
259 359 100 1.71
Incl 259 300 41 2.06
Incl 266 267 1 15.30
306 313 7 2.60
Incl 310 311 1 7.97
328 337 9 2.86
330 332 2 5.88
343 345 2 4.32
354 359 5 2.71
DDH276A 11 12 1 2.66
38 39 1 8.25
DDH276 63 66 3 2.23
81 82 1 6.12
92 96 4 3.48
99 100 1 4.96
113 114 1 3.45
122 131 9 2.18
DDH 276B 92 96 4 3.58
DDH277 223 231 8 3.72
237 238 1 4.77
242 245 3 2.61
277 280 3 3.14
DDH278 134 135 1 5.80
317 437 120 1.63
Incl 318 322 4 2.62
Incl 341 348 7 3.29
Incl 365 367 2 3.42
Incl 385 423 38 2.27
Incl 413 414 1 10.10
DDH279A 178 181 3 2.00
187 193 6 2.39
293 304 11 2.27
319 373 54 3.11
Incl 326 328 2 5.03
Incl 336 342 6 7.91
Incl 353 356 3 11.80
DDH280 28 29 1 2.60
66 115 49 2.10
Incl 75 81 6 4.88
Incl 99 100 1 8.65
Incl 109 114 5 4.89
DDH281 275 287 12 1.82
314 317 3 2.90
339 345 6 5.25
368 394 26 1.65
Incl 368 375 7 3.34
Assays awaited
DDH282 184 185 1 2.59
194 195 1 2.75
210 317 107 2.42
Incl 210 232 22 2.55
Incl 264 266 2 8.77
Incl 275 315 40 3.37
319 320 1 567.00
320 327 7 5.11
DDH283A Assays to come
DDH284 9 10 1 75.10
12 16 4 1.93
100 101 1 11.70
139 160 21 2.43
Incl 144 149 5 5.79
183 216 31 2.74
274 277 3 5.11
292 296 4 2.29
299 300 1 4.40
312 352 40 2.09
Incl 316 320 4 4.22
Incl 348 349 1 10.60
Incl 351 352 1 7.15
378 385 7 1.97
395 412 17 1.93
Assays to come
DDH285 118 122 4 2.93
133 134 1 3.02
DDH286 308 311 3 2.18
338 341 3 4.00
348 360 12 3.47
387 389 2 3.95
DDH287 Assays to come
DDH287 Assays to come
DDH288 Assays to come
DHH289 Assays to come
DDH290 Assays to come
SUKARI PROJECT DEVELOPMENT
Hellman and Schofield have been instructed to carry out a resource upgrade
utilising all the latest drill data. This upgrade is expected to significantly
increase the tonnes and ounces and move the boundary of the current pit shell
further north into the southern end of the Ra zone. The revised resource will
assist the Company both in evaluating the current drilling program and planning
the continuing drilling program with the intention of developing a processing
facility capable of handling up to five million tonnes per annum.
A metallurgical testwork program is currently being carried out by Lakefield
Oretest with results within the next quarter.
CORPORATE ACTIVITIES
Standard Bank London Limited has been mandated as project finance arrangers for
a limited recourse project loan for the development of the Sukari Gold Project.
The bank and its independent technical advisors will now be actively involved
with Centamin in the upgrading of the current two million tonne per year
feasibility study to a five million tonne operation. The five million tonne
study is planned for completion during June with project loan draw down
available during July.
The Company placed 22,580,127 million ordinary shares with a United Kingdom
institutional investor at a price of 9 pence (Sterling), raising a total of
£2.03million (AUD5.65 million). The proceeds of this placement will be used as
working capital to fund both the intensive drilling program currently being
carried out at the Sukari Gold Project and also the upgrading of the current two
million tonne per year mining study.
The entire 7.7 million November 2002 unlisted options were exercised raising
additional working capital of A$1.54 million
The Company has entered into Underwriting Agreements with Williams de Broe Plc
(WdeB) of London, Argonaut Capital Limited (ACL) of Perth and Southern Cross
Equities Limited (SCE) of Sydney, to individually underwrite the exercise of
50%, 25% and 25% respectively of the total amount of the 3rd March 2003 Options
that remain unexercised as notified by the Company in writing to the
Underwriters as at 6pm WST on the 3rd February 2003. The underwriters will
receive an underwriting fee of 5% of the underwritten amount.
In the event of any shortfall in the exercise of these options, the underwriters
have undertaken to either procure sub-underwriters or subscribe themselves for
any shortfall shares resulting from options that are not exercised by the 3rd
March 2003.
When either the option holders or the underwriters apply for shares then the
Company will have raised an additional A$22,248,889 which will provide capital
for the development of the Sukari project and additional working capital to
commence preliminary exploration of other project opportunities contained within
the 4,600 km2 Eastern Desert Concession, in particular those projects within
economic distance of Sukari.
____________________________
Josef El Raghy
Managing Director
For more information please contact:
Josef El Raghy Leesa Peters
Centamin Egypt Ltd Capital PR
Tel: + 61 (0) 8 9316 2640/ 0418 333 444 Tel: +44 (0)20 7618 7889/07812 159 885
josef@centamin.com.au leesa@capitalww.com
Louis Castro
Williams de Broe Plc
Tel: + 44 (0) 20 7588 7511
Louis.castro@wdebroe.com www.centamin.com.au
ASX Listing Rule 5.10
Information in this report which relates to exploration, geology, sampling and
drilling is based on information compiled by economic geologist Mr M Kriewaldt
who is a full time employee of the Company, and is a corporate 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. 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. Mr Kriewaldt declares an interest in shares of the Company.
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
CENTAMIN EGYPT LIMITED
ABN Quarter ended ('current quarter')
86 007 700 352 31 DECEMBER 2002
Consolidated statement of cash flows
Current quarter Year to date (6.months)
Cash flows related to operating activities $A'000 $A'000
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration and (824) (1,828)
evaluation
(b) development
(c) production
(d) administration (302) (517)
1.3 Dividends received
1.4 Interest and other items of a similar nature 23 55
received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other (provide details if material)
(1,103) (2,290)
Net Operating Cash Flows
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments
(c) other fixed assets (36) (58)
1.9 Proceeds from sale of: (a)prospects
(b)equity investments
(c)other fixed assets
1.10 Loans to other entities
1.11 Loans repaid by other entities
1.12 Other (provide details if material)
(36) (58)
Net investing cash flows
1.13 Total operating and investing cash flows (carried (1,139) (2,348)
forward)
1.13 Total operating and investing cash flows (brought (1,139) (2,348)
forward)
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 1,540 1,649
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings (325)
1.18 Dividends paid
1.19 Other (provide details if material)
Net financing cash flows 1,540 1,324
Net increase (decrease) in cash held 401 (1,024)
1.20 Cash at beginning of quarter/year to date 2,734 3,954
1.21 Exchange rate adjustments to item 1.20 11 216
1.22 Cash at end of quarter 3,146 3,146
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related
entities
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 135
1.24 Aggregate amount of loans to the parties included in item 1.10
1.25 Explanation necessary for an understanding of the transactions
(a) Mr Sami El-Raghy, a director and employee of the Company received salary for the
quarter amounting to $48,000 ($100,800 for the year to date).
(b) Mr Josef El-Raghy, a director and employee of the Company received salary and
superannuation for the quarter amounting to $32,228 ($73,125 for the year to date).
(c) Mr Sami El-Raghy is also a Director and Shareholder of El-Raghy Kriewaldt Pty Ltd
('El-Raghy Kriewaldt'). El-Raghy Kriewaldt provide office premises to the Company. All
dealings with El-Raghy Kriewaldt are in the ordinary course of business and on normal terms
and conditions. Rent paid to El-Raghy Kriewaldt during the current quarter amounted to
$8,000 ($20,000 for the year to date).
(d) Directors Fees-Directors Fees and superannuation paid during the quarter amounted
to $26,686 ($30,395 for the year to date).
Mr Sami El-Raghy $6,812
Mr Brian Speechly $6,812
Mr Colin Cowden $6,812
Mr Tom Elder $6,250
(e) Insurance
Mr Colin Cowden, a director of the Company, is also a director and controlling
shareholder of Cowden Limited, Insurance Brokers. All dealings with Cowden Limited are in
the ordinary course of business and on normal terms and conditions An amount of $20,347 was
paid during the quarter to Cowden Limited for workers compensation and general insurance.
(f) Audit Committee
The Company has formally constituted Audit Committee of the Board of Directors.
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated
assets and liabilities but did not involve cash flows
NIL
2.2 Details of outlays made by other entities to establish or increase their share in projects in which
the reporting entity has an interest
NIL
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used
$A'000 $A'000
3.1 Loan facilities
920 NIL
3.2 Credit standby arrangements
Estimated cash outflows for next quarter
$A'000
4.1 Exploration and evaluation 1,500
4.2 Development
Total
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as Current quarter Previous quarter
shown in the consolidated statement of cash flows)
to the related items in the accounts is as follows. $A'000 $A'000
5.1 Cash on hand and at bank 323 502
5.2 Deposits at call 1,826 493
5.3 Bank overdraft (3)
5.4 Other (provide details)
Term Deposits
1,000 1,739
Total: cash at end of quarter (item 1.22) 3,146 2,734
Changes in interests in mining tenements
Tenement Nature of interest Interest at Interest at
reference beginning of end of
(note (2)) quarter quarter
6.1 Interests in mining
tenements relinquished,
reduced or lapsed
6.2 Interests in mining
tenements acquired or
increased
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights
together with prices and dates.
Total number Number quoted Issue price per Amount paid up per
security (see note security (see note 3)
3) (cents) (cents)
7.1 Preference
+securities
(description)
7.2 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through returns
of capital,
buy-backs,
redemptions
7.3 +Ordinary 368,085,796 368,085,796
securities
7.4 Changes during
quarter
(a) Increases
through issues
(b) Decreases 7,700,733 733 20 CENTS 20 CENTS
through returns
of capital,
buy-backs
7.5 +Convertible debt
securities
(description)
7.6 Changes during
quarter
(a) Increases
through issues
(b) Decreases
through
securities
matured,
converted
7.7 Options Exercise price Expiry date
(description and
conversion
factor)
111,244,446 111,244,446 20 CENTS 3/03/2003
49,999,744 NIL 20 CENTS 9/11/2003
7.8 Issued during
quarter
7.9 Exercised during 7,700,733 733 20 CENTS 20 CENTS
quarter
7.10 Expired during
quarter
7.11 Debentures
(totals only)
7.12 Unsecured notes
(totals only)
Compliance statement
1 This statement has been prepared under accounting policies which
comply with accounting standards as defined in the Corporations Act or other
standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters
disclosed.
Sign here:
............................................................ Date:
(Director)
Print name: JOSEF EL-RAGHY................................
Notes
1 The quarterly report provides a basis for informing the market how
the entity's activities have been financed for the past quarter and the effect
on its cash position. An entity wanting to disclose additional information is
encouraged to do so, in a note or notes attached to this report.
2 The 'Nature of interest' (items 6.1 and 6.2) includes options in
respect of interests in mining tenements acquired, exercised or lapsed during
the reporting period. If the entity is involved in a joint venture agreement
and there are conditions precedent which will change its percentage interest in
a mining tenement, it should disclose the change of percentage interest and
conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is
not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 1022: Accounting for
Extractive Industries and AASB 1026: Statement of Cash Flows apply to this
report.
5 Accounting Standards ASX will accept, for example, the use of
International Accounting Standards for foreign entities. If the standards used
do not address a topic, the Australian standard on that topic (if any) must be
complied with.
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