9th Apr 2014 06:57
LONDON (Alliance News) - Centamin PLC Wednesday saw total gold production from its Sukari Gold Mine in Egypt declined in the first quarter of 2014 from the previous quarter, hit by a temporary reduction in underground average grade.
However, the FTSE 250 miner maintained its production guidance for 2014 at 420,000 ounces of gold.
Centamin reported total gold production for the quarter to end-March of 74,241 ounces, down 14% compared to the previous year and down 19% from the fourth quarter of 2013.
Open pit ore production was 2,325 kilotons, down from 3,161 kilotons in the preceding quarter, due to a shift in focus towards waste stripping activities in line with its mine plan, Centamin said. Underground ore production increased slightly to 206 kilotons from 174 kilotons.
Process plant throughput rose to 1,486 kilotons from 1,400 kilotons.
The company said that its primary challenge during the quarter had been poor mining equipment availability within the high-grade stoping areas of the underground mine, which limited its ability to mine the high-grade stopes, which is where extraction takes place. However, Centamin said that the issues with equipment availability had been resolved late in the quarter.
The company is currently commissioning its stage-four expansion plan for the site, which it hopes to improve the overall throughput and gold production levels at the plan throughout the rest of the year.
"Although underground performance has impacted Q1, we are pleased to confirm commissioning of Stage 4 is proceeding as planned, with Sukari achieving a major milestone towards the end of Q1 as first ore was fed through the new circuit," said Chairman Josef El-Raghy in a statement.
Shares in Centamin closed Tuesday at 53.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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