Centamin Egypt much greater gold reserves?

Discussion in 'Stocks' started by hotto, Apr 17, 2009.

  1. hotto


    Tipped by the Daily Telegraph newspaper on Wed 8 April stating Centamin Egypt had 3.5m/oz inferred.

    The very next day I noticed the following news (below) has come out of Centamin. It seems to suggest very much greater reserves of gold than previously believed (almost double).

    Can anyone who knows about gold/mines agree if this sounds as good as it seems to?

    RNS Number : 4068Q

    Centamin Egypt Limited

    09 April 2009

    Immediate Release 09 April 2009

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



    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 Au Tonnes Au Tonnes (Mt) Au Cont Au
    (Mt) (g/t) (Mt) (g/t) (g/t) (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