Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF) (Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF), Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF), Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF)) has made significant progress on its exploration strategy, according to Peel Hunt.
The Sukari gold mine in Egypt has higher-grade zones to support short-term options for mill feed improvements, said analysts at the broker.
Additionally, the mine offers the opportunity for a life of mine (LOM) extension and increased production.
“We believe the underground program demonstrates the continued high-grade nature of the deposits, further supporting not only further LOM extensions but also increased underground production.”
Newly drilled high-grade bonanza zones near existing Sukari infrastructure returned intersects of 10m @ 64g/t, 5m @ 267g/t and 17m @ 10g/t, all of which have the potential to increase flexibility for the Sukari mill feed options.
Further prospects within 10km of Sukari's mill have been explored.
Initial results from two targets have shown the potential to supplement the mill feed in the short-to-medium term.
Centamin has also completed a 100,000m conversion drill program at the Doropo project, with the goal of converting the majority of the inferred resource to the indicated category.
Plant design, metallurgical testing and geotechnical drilling are all in the final phases.
A pre-feasibility study is expected in Q4-2022.
Finally, the broker mentions that exploration has begun at Centamin’s Eastern Desert exploration licenses in Egypt.
The EDX Blocks, awarded in 2021 comprise 3,000km2 of highly prospective greenfield exploration tenements within the Egyptian section of the Arabian Nubian Shield.
Target price has been set at 130p, with a buy rating.