13th Feb 2008 11:35
Centamin Egypt Limited13 February 2008 CENTAMIN EGYPT LIMITED SECOND QUARTER REPORT December 31, 2007 REPORT TO SHAREHOLDERS QUARTERLY HIGHLIGHTS - Sukari mineral resource upgraded to 7.46 million ounces of gold Measured and Indicated, and 3.7 million ounces of gold Inferred at 0.5 g/t cut off grade - Measured and Indicated resources account for 67% of the total resource - An increase of 0.62 Moz Measured and Indicated ounces and 0.04 Moz Inferred ounces above the mineral resource announced in September 2007 - Amun Deeps discovery continues to add significant high grade ounces - New high grade structure discovered below Hapi zone - 25,195.86m of drilling completed during the quarter - Initial regional exploration drilling at Kurdeman returned significant assay results - Grade control drilling continues - Initial mining fleet commissioned - Blast hole drilling commences - Delivery of Process Plant from Bolivia to Sukari site completed - Delivery of 28MW Power Plant from Turkey to Sukari site completed - Completion of C$134.4m equity raising - Significant intersections received for the quarter include: Amun Deeps (9900N - 10700N) • RCD1221 - 22m @ 21.83g/t Au • RCD1224 - 10.3m @ 36.09g/t Au • RCD1225 - 83m @ 1.95g/t Au • RCD1228 - 61m @ 4.35g/t Au • RCD1263 - 65m @ 3.96g/t Au • RCD1264 - 30m @ 2.69g/t Au • D1271 - 42m @ 2.75g/t Au • RCD1279 - 2m @ 59.77g/t Au from 629m Ra - Gazelle (10700N - 11200N) • D1240 - 58m @ 4.32g/t Au and 43m @ 5.01g/t • D1251 - 18m @ 3.30g/t Au • D1281 - 123m @ 1.86g/t Au RESOURCE ESTIMATION AND DRILLING PROGRAMME In the December quarter, the Sukari Mineral Resource was upgraded to 7.46 MozMeasured and Indicated, plus 3.7 Moz Inferred at a 0.5g/t cut off grade. TheMeasured and Indicated Mineral Resource has increased by 0.62 Moz and by 9% to7.46 Moz, from 6.84 Moz (20 September 2007) showing the effectiveness of theinfill drilling programme (Table 1). Measured and Indicated resources accountfor 67% of total resource. The majority of the resource growth occurred withinthe Amun Deeps and Ra - Gazelle Zones, both testing the Hapi Zone and parallelmineralized structures. Table 1 - December 2007 Resource Calculation Measured Indicated Total Inferred (Measured + Indicated) Cut-off Mt g/t Mt g/t Mt g/t Moz Mt g/t Moz 0.5 60.10 1.41 99.87 1.48 159.96 1.45 7.46 64.0 1.8 3.7 0.7 43.01 1.73 72.25 1.81 115.26 1.78 6.61 47.6 2.2 3.3 1.0 27.66 2.22 47.20 2.33 74.86 2.29 5.52 32.9 2.8 2.9 Note to Table: Figures in table may not add correctly due to rounding http://www.rns-pdf.londonstockexchange.com/rns/8953n_-2008-2-13.pdf Figure 1 - Resource growth at Sukari from April 1997 to December 2007 The resources are estimates of recoverable tonnes and grades using MultipleIndicator Kriging ("MIK") with block support correction. Typically, Measuredresources lie in areas where drilling is available at a nominal 25 x 25 metrespacing, Indicated resources occur in areas drilled at approximately 25 x 50metre spacing and Inferred resources exist in areas of broader spaced drilling.The resource model extends from 9700mN to 12200mN and to an approximate depth of350mRL (approximately a maximum depth of 950 metres below the crest of theSukari hill) and is based on all assay data available (117,774 two metre downhole composites and surface rock chip samples) at 12 December 2007. DRILLING PROGRAMME The drilling programme during the quarter was concentrated in the Amun Deepsarea. This resulted in added resource ounces down dip of the current geologicaldata, infilling resource block and geological data gaps at and beneath the pitmargins and increased the understanding of the mineralization trends. Strongzones of mineralization were intersected relating to the high grade Hapi Zoneand deeper parallel structures. As mineralisation remains open, drilling willcontinue in this area. In the Ra-Gazelle Zone drilling tested open zones along the Hapi Zone structurewith several high grade intersections returned, this zone is not fully tested tothe north and there is further potential to add significant resources alongstrike and at depth. Studies commenced of the underground mining potential onthe Hapi Zone structure. Amun Deeps (9900 - 10700N) The Amun Deeps system has been intersected over 700m along strike from 9950N,drilling continues to define the extent of the mineralization. Several holesreturned strong assays over significant widths (Table 2); most have visible goldin the high grade Hapi Zone quartz veins, strongly disrupted geological contactsand areas of higher intensity arsenopyrite and pyrite mineralisation. http://www.rns-pdf.londonstockexchange.com/rns/8953n_2-2008-2-13.pdf Figure 2 - Long section of Sukari showing the high grade mineralized structures (Main and Hapi Zone) and highlighting the drill intercepts through the Amun Deeps. High grade gold assay results were returned for RCD1221, the hole was drilled asa step-out hole to test the down dip extension of the porphyry in the Amun zoneon northing 10525N (Figure 3). This hole intersected a high grade zone of 22m @21.83g/t Au from 549m, containing a higher grade zone of 8m @ 58.58g/t Au from559m. The intersection is a high grade structure parallel to and below the HapiZone. This deeper structure correlates to 6m @ 15.21g/t Au in hole RCD521 from542m, 25m north on 10550N and an adjacent extremely high grade looking zonecontaining visible gold and sulphide, intersected in hole RCD1280 (assay resultsare awaited) (Figure 4). http://www.rns-pdf.londonstockexchange.com/rns/8953n_3-2008-2-13.pdf Figure 3 - Geological Section 10500N and hole D1221 http://www.rns-pdf.londonstockexchange.com/rns/8953n_4-2008-2-13.pdf Figure 4 - D1280 558 - 559m; massive milky quartz vein, gold veinlets and galena, zone beneath Hapi Zone Hole RCD1279, a further 100m north on 10650N, intersected, mineralised porphyrywith quartz veins containing several visible gold grains in a similar zone atdepth intersected 2m @ 59.77g/t from 629m. This is consistent with thecontinuity along strike of the high grade Amun Deeps mineralization and thepossible presence of another significant high grade structure beneath the HapiZone. At the southern end of the Amun Deeps Zone hole RCD1263 on section 10050Nintersected a thick high grade zone (65m @ 3.96g/t Au from 283m) correlatingwell with adjacent hole RCD1189. The zone contained several narrow, high gradequartz vein/shears including 1m @ 147g/t Au from 347m. On section 10125N RCD1225 intersected an 80m wide zone of porphyry as predictedby the model, 83m @ 1.95g/t Au from the hangingwall (HW) contact at 366m withthe expected higher grade zones at the HW and footwall (FW) contact zones. TheHW contact Hapi Zone returned 3m @ 15.83g/t Au from 380m. RCD1228 on section 10275N intersected very strong mineralised Hapi Zone, withmultiple specs of visible gold from 323 - 327m (2m @ 103.2g/t from 324m).Overall porphyry mineralisation returned 61m @ 4.35g/t from the HW contact at298m, also intersected a very high grade zone of 4m @ 36.62g/t Au from 434m, ina block of porphyry in the FW. Ra - Gazelle Zone - 10700N - 11200N Results from infill holes all returned with significant mineralisation D1251 on11050N infilling the Hapi and lower zones intersected 18m @ 3.30g/t from 661m.D1281 on 11150N hit some very high grades around the predicted Hapi Zone area,within a massive zone of 123m @ 1.86g/t Au. This hole also successfullyinfilled a zone with high grade blocks in the resource model (Figure 5). D1240on section 11200N intersected several high grade zones, particularly the nearfootwall contact up-dip part of the Hapi zone of 58m @ 4.32g/t Au from 462m.There exists further potential to add resource ounces to the north in this area. http://www.rns-pdf.londonstockexchange.com/rns/8953n_5-2008-2-13.pdf Figure 5 - Geological Section 11150N, high grade thick zone in D1281 REGIONAL EXPLORATION Regional and near mine exploration continued, drilling at Kurdeman and SamiSouth intersected high grade and anomalous gold mineralization resultsrespectively. Follow up drilling, detailed mapping and sampling continued atSukari North, Sami South and Kurdeman (Figure 6). http://www.rns-pdf.londonstockexchange.com/rns/8953n_6-2008-2-13.pdf Figure 6 - Regional map of prospects and the current 160km2 licence area. Kurdeman The initial 5 hole drill program (KRC001 to KRC005) at the Kurdeman prospectintersected the targeted quartz vein-shear zone, which was worked by ancient andcolonial miners, hosted in felsic to intermediate volcanic and intrusive rocks.The high grade gold mineralisation intersected is associated with smoky greyquartz veins and sulphides. Hole KRC002 returned a high grade intercept ofdownhole thickness 9m @ 9.29g/t Au from 27m, including 2m @ 32.2g/t Au from 32min the smoky quartz vein. The shallow high grade interval was in a wider 30mzone of Au anomalous, hydrothermally altered and sheared felsic to intermediaterock. Hole KRC005, drilled 140m south along strike of KRC002, intersected similarzones involving smoky, massive quartz veining in sheared and altered felsicrocks. Two high grade zones were returned, 3m @ 4.56g/t Au from 18m (including1m @ 8.54g/t from 19m) and 2m @ 11.92g/t from 26m, with a similar halo ofmineralisation in altered and sheared rock. The intersections are open alongstrike and down dip. Follow up holes, detailed geological mapping and sampling are in progress toassess the depth, thickness, strike and nature of the Kurdeman Shear Zone andquartz vein, results are awaited. The area beneath the historical undergroundworkings has yet to be tested. Sami South Numerous anomalous gold samples associated with quartz veining, shear zones andalteration in sedimentary and volcanic rocks, were returned from three RC drillholes and surface rock chip samples. The data is currently being assessed. Sukari North Detailed geological mapping and rock chip sampling is underway, following up onhistoric work to fully define the felsic intrusive unit and the weaklymineralised quartz veins. Adjacent to the felsic unit are several thicker (up to3m), yet short strike length (Related Shares:
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