SUKARI GOLD PROJECT - RESERVE

RNS Number : 4068Q

Centamin Egypt Limited

09 April 2009

 



Immediate Release

09 April 2009

 

Centamin Egypt Limited ('Centamin' or 'the Company') 

(TSX:CEE, ASX:CNT, AIM:CEY)

SUKARI GOLD PROJECT - RESERVE UPGRADE

Centamin is pleased to announce an increase in total reserves at the Sukari Gold Mine in Egypt.

The total reserves have increased to 6.4 million ounces, an increase of 2.7 million ounces (72%) from the previously reported 3.7 million ounces as announced in March 2007. The new mineral reserves are based on drilling up to 25 January 2009 and utilized a gold price of US$700 per ounce. Details of the new reserves calculated for Sukari as at April 2009 and the previous reserves as at March 2007 are listed in the table below.

Sukari Open Pit Mineral Reserve Estimate as at April 2009 (reported at a cut-off grade of 0.4 g/t Au for oxide and sulphide material and 0.5 g/t for transitional)
	Proven		Probable		Mineral Reserve
	Tonnes  (Mt)	Au  (g/t)	Tonnes  (Mt)	Au  (g/t)	Tonnes (Mt)	Au  (g/t)	Cont Au  (Moz)
New Reserve	64	1.38	78	1.43	142	1.4	6.4
Previous Reserve	34.1	1.5	44.2	1.5	78.3	1.5	3.7

The current reserve has been calculated from a Measured and Indicated resource of 191Mt at 1.5g/t Au for 9.39 million ounces (as disclosed in the press release dated 12 February 2009) compared to the previous reserve that was calculated from a Measured and Indicated resource of 121Mt at 1.4g/t for 5.42 million ounces. A total Measured and Indicated resource increase of 3.97 Million ounces (72%) corresponds directly with the percentage increase in total reserves.

The Sukari pit will be developed in a number of stages and the mining and processing schedule developed for Sukari uses an elevated cutoff grade through the early years to increase the head grade to the processing plant. It is currently assumed that the material between this elevated cutoff grade and the cutoff grade used for the Mineral Reserve estimate is stockpiled and treated at the end of the project life.  

Josef El-Raghy, Managing Director/CEO of Centamin commented: 'This increase in the reserves at Sukari is an excellent result and is in line with our targets. The ongoing drilling program has been very encouraging and the Company is confident that this will result in further additions to the reserve and resource inventory. With this reserve increase and the plant soon to be in operation, the Company is pushing forward with its objective of significant growth and thus shareholder value.'

For further information please refer to our website www.centamin.com.

For Centamin Egypt Limited

Josef El-Raghy

Managing Director/CEO

09 April 2009

For more information please contact:

Centamin Egypt Limited + 61 (8) 9316 2640 Josef El-Raghy  www.centamin.com

Buchanan Communications Limited + 44 (0) 207 7466 5000 Ben Willey Mobile: + 44 (0) 7718 771513

Ambrian Partners Limited + 44 (0) 207 7634 4700 Richard Brown Richard Greenfield

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 Technical Report which was filed in March 2007 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.

 

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