Centamin to launch Doropo gold feasibility study

Centamin PLC (CEE-TSX, LON-CEY) said Tuesday it will conduct a definitive feasibility study at its Doropo Project in northeast Cote d’Ivoire after a pre-feasibility study showed “an economically robust project.’’

The pre-feasibility study estimated average production of 173,000 ounces annually during a 10-year mine life. The construction capital expenditure is estimated at $349 million, including a 10% contingency, with a 2.3-year payback period at a gold price of US$1,600 an ounce.

The pre-feasibility study was based on a maiden reserve estimate of 1.9 million ounces of probable mineral reserves at an average grade of 1.44 g/t gold. The definitive study and environmental and social impact assessment are scheduled to be completed in the first half of 2024.

A production rate of 175,000 ounces annually at an all-in-sustaining-cost (AISC) over 10 years delivering an IRR at 26% in a well-established mining jurisdiction represents an “excellent outcome,” said Centamin CEO Martin Horgan. He said the company has identified opportunities to further optimise the project which well be assessed as part of the definitive feasibility study (DFS).

The mine plan assumes conventional open pit mining of a sequence of shallow pits. Mineral processing is envisaged via a 4.0 to 5.5 million tonnes per year semi-autogenous grinding mill, ball mill, and crusher circuit and a conventional carbon-in-leach circuit for an average life of mine metallurgical recovery rate of 92%.

Centamin shares advanced in early trading Tuesday, edging up 0.654% or $0.01 to $1.54. The 52-week range is $2.05 and $1.5.

Centamin Plc is a mineral exploration and development mining company with a dual listing on the London and Toronto stock exchanges.

Centamin’s principal asset, the Sukari Gold Mine, is located in Egypt. It began production in 2009 and is the first large scale modern mine in Egypt. Base case production is 500,000 ounces per year, with the potential to exceed this level as optimisation of the mining and processing operations continues.

The company previously said it hoped to achieve “first mover advantage in Egypt” through a two-year exploration program scheduled from the first quarter of 2022, with targets generated across 3,000 square kilometres of exploration ground in Egypt’s highly prospective Arabian Nubian Shield.

The company’s other key asset is the Doropo Project, which is located in northeast Cote d’Ivoire between Comoe National Park and the international border with Burkina Faso, 480 kilometres north of the capital, Abidjan and 50 kilometres north of the city of Bouna.

The Doropo Project covers 13 deposits over an area of 1,874 square kilometres.

The company has said it sees the potential for additional resource conversion and further resource growth. It said several exploration targets have been identified across the license holding, which have the potential to increase the resource and reserve base.

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