Centamin Egypt (CEE-T, CNT-A, CEY-L) has poured its first gold from the Sukari Hill gold mine in Egypt’s eastern desert, about 23 km southwest of the Red Sea coastal town of Marsa Alam.
Sukari is Egypt’s first modern gold mine. Centamin, which has been exploring for gold in Egypt since 1995, acquired the Sukari project in 2005.
The company has constructed a 4 million tonne-per-year operation that should produce 200,000 oz. gold per year, over a 15-year mine life. Centamin says it will likely ramp up to the 4-million-tonne rate by the end of this year. Right now the company is stockpiling ore in anticipation of the ramp up.
The project has reserves of 142 million tonnes grading 1.4 grams gold per tonne totaling 6.4 million oz.
There are also measured and indicated resources are 191 million tonnes grading 1.53 grams gold per tonne for 9.39 million oz. gold, and another 3.5 million oz. in the inferred category.
Centamin continues to drill on the property – it recently reported having eight drill rigs in action – so it can expand the resource.
The feasibility study put construction costs at US$216 million and estimated that cash operating costs would be about US$365 per oz. gold.
Centamin shares were trading at $1.69 per share around mid-day, up 2¢ from Friday, on a trading volume of 3.9 million shares.
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