Centamin PLC (LSE:CEY, TSX:CEE, OTC:CELTF) has revealed that there is potential to expand production at the Sukari gold mine in Egypt to 1.5mln tonnes per year of total ore mined.
This is at the upper end of the previously indicated range and represents a 31% increase in ore mining rates from the current life of mine average of 1.1mln tonnes per year.
“Expansion of the Sukari underground mining capacity is a significant step towards delivering on our commitment to consistently produce 500,000 ounces per annum from the Sukari gold mine,” said Centamin chief executive Martin Horgan.
“The ability to expand the underground is a result of our transformed approach to mineral resource management which delivered a doubling of the underground reserve in 2021, coupled with the productivity and cost benefits that are being realised following the transition to owner-mining. The expansion option that we are taking forward to the next phase of mine planning offers both low capital intensity and a lower level of execution risk."
It is estimated that between US$25mln and US$35mln in additional capital expenditure will be required to complete the expansion.
The next step is to deliver a fully engineered mining schedule by mid-2023, incorporating the upcoming 2022 Sukari mineral resource estimate, scheduled for publication in December 2022.
Given lead times for equipment delivery and infrastructure implementation, it is estimated that underground mining rates will now gradually ramp up throughout 2024 and reach the planned increased rate in 2025.