28th Jul 2005 10:37
Centamin Egypt Limited28 July 2005 CENTAMIN EGYPT LIMITED ("Centamin" or the "Company") ACN 007 700 352 QUARTERLY REPORT FOR PERIOD ENDING 30 JUNE 2005 • New drilling confirms continuity of mineralisation and indicates an increase in the 2.94m oz Sukari Resource • DDH 326 - 46 metres @ 2.00 g/t (including 11 metres @ 3.11 g/t and 3 metres @ 9.39 g/t), DDH 329 - 12 metres @ 2.27 g/t, DDH 336 - 20 metres @ 2.43 g/t and 11 metres @ 2.36 g/t, DDH 338A - 5 metres @ 14.02 g/t • Ausenco Limited appointed to prepare Sukari Project Feasibility Study to a Bankable Standard • Minister visits Sukari Site, Egyptian Government fully supportive of the development of the Sukari Project • SUKARI PROJECT Drilling recommenced on 15 May 2005 and was initially focused on elevating theinferred category of the first stage 1.8 million ounce optimised pit shellcontained within the Amun zone and part of the Ra zone, to the measured andindicated resource categories. Drill assays received to date support thisprogramme of conversion whilst also increasing the overall contained ounceswithin the proposed stage 1 pit itself. Drilling within this area hashighlighted that mineralisation remains continuous at depth. Five of the sevendrill rigs on site are currently drilling and it is planned to have all sevenoperational during August. The current measured, indicated and inferred geological resource of 2.94 millionounces has been calculated from 322 drill holes for 66,000m, predominantly inthe southern 800m (Amun and Ra zones) of the mapped 2.5km Sukari granodioriteporphyry outcrop. This resource has been calculated independently by Hellman andSchofield to JORC standards. Geological logging of the diamond drill core indicates that the zones ofmineralisation are well defined within the Sukari porphyry. Mineralisation isrelated to stockworks, brecciation, quartz veining and contact mineralisation,these are traceable along the strike and dip of the Sukari porphyry. Themineralised system has now proven to be continuous from section to section asthe drilling has progressed into the Ra zone, with the mineralisation beingconsistent with the mineralisation logged in the Amun Zone. In the Ra, Gazelle and Pharaoh zones from northing 11000N to 12200N (1200mstrike) rock chip sampling has been completed on 100m spacing to 12200N andinfilled on 50m spacing to 10450N, the purpose of the sampling was to test andmap the Sukari outcrop where there currently is no drill access. Rock chipsampling and mapping during the quarter has demonstrated that mineralisationcontinues north of the area containing the current 2.94 million ounce resource. • SIGNIFICANT DRILL INTERSECTIONS See attached schedule for significant gold intersections. Drill holes 312 and 314 have tested mineralisation below the floor of thecurrent pit shell and down to the lower footwall contact of the porphyry. Bothholes display that there is significant mineralisation along strike and at depthfrom the Amun zone into the Ra zone. Drill hole 323C successfully tested and highlighted zones of gold mineralisationbelow the existing pit shell. Drill hole 326 revealed robust grades over significant widths together withareas of high grade mineralisation and will contribute additional ounces to theresource on a section that was previously categorised as being un-mineralised.Visible gold was noted on the contact and this may be an extension of the highgrade Hapi shoot, which is further south than expected. A series of tracks have been planned for the eastern side of the hill to givegood access for drilling up to 12200N. Two rock breakers continued developmentof tracks along the Upper and Lower Gazelle zone. In order to appreciate the potential at Sukari it is important to understandthat the Amun and Ra zones are the same continuous mineralisation containedwithin the Sukari outcrop, with the differentiation being made purely for easeof reference rather than being separate structures. As such Sukari has thepotential to host a multi million ounce single pit deposit, with much of the Razone yet to be included in the resource calculation and the Gazelle and Pharaohzones yet to be tested by drilling. • FEASIBILITY STUDY At the time activities at Sukari were interrupted, the company had completed ascoping study and had commenced work on a Feasibility Study to a bankablestandard (BFS) into the development of a 4 to 5 million tonne per annumprocessing facility, forecast to produce an initial 250,000 oz of gold perannum. This study recommenced during late May and is being prepared by Ausenco Limited.Metallurgical testwork is now underway and is focussing on 3 key areas: - additional comminution analysis for optimal grinding circuit sizing;- flotation testwork at various grind sizes;- whole of ore leach at various grind sizes. Variability tests will also be conducted on a variety of ore types. Asignificant number of these tests have been carried out previously however moreneed to be as both potential process flow sheets (flotation and CIL) requireoptimisation to determine which capital/operating cost profile provides the besteconomics. This work is scheduled to take up to 9 weeks from samplepresentation. The completion of the Feasibility Study is targeted for first quarter 2006. Ausenco Limited is a multi-disciplined engineering company specialising in thedesign and construction of mineral treatment plants. Ausenco's experience in thedesign, construction and commissioning of mineral processing plants provides thecompany with the required expertise to progress the development of Egypt's firstmodern gold mining operation. Ausenco has undertaken projects involving similarunit operations to those proposed in the Sukari Gold Project feasibility studyand has prepared numerous feasibility studies to the level of accuracy requiredfor project financing. These projects include:- • Sepon Gold Project, Laos• North Mara Gold Project, Tanzania• Chatree Gold Project, Thailand• Tolukuma Gold Project, PNG• Granites Gold Project, NT Australia• Alumbrera Copper Project Gravity Circuit• Porgera Gold Project Gravity Circuit• Bronzewing Gold Project Gravity Circuit • CORPORATE As previously announced, agreement was reached with the Egyptian MineralResource Authority (EMRA) for a return to work at Sukari. A new environment ofco-operation exists between the parties, together with a joint desire to beginto develop the vast mineral wealth of Egypt. During July, his Excellency, Engineer Sameh Fahmy, the Minister for Petroleumand Mineral Resources, the Deputy Minister, Eng Amghad Ghonem, and the entireEMRA Board, together with a large media entourage visited the Sukari Projectsite where the Minister stated on national television that the project has his,and the Egyptian Government's full support. For Centamin Egypt Limited Josef El-RaghyManaging Director28 July 2005 ASX Listing Rules 5.10 Information in this report which relates to exploration, geology, sampling anddrilling is based on information compiled by geologist Mr R Osman who is a fulltime employee of the Company, and is a member of the Australasian Institute ofMining and Metallurgy with more than five years experience in the fields ofactivity being reported on, and is a 'Competent Person' for this purpose. Hiswritten consent has been received by the Company for this information to beincluded in this report in the form and context which it appears. The information in this report that relates to mineral resources is based oninformation compiled by Mr Gary Brabham, a member of the Australasian Instituteof Mining and Metallurgy. Mr Brabham was employed by Hellman & Schofield Pty Ltda consultancy primarily concerned with estimation of mineral resourcesworldwide. Mr Brabham is a Competent Person under the meaning of the J.O.R.C.code with respect to the mineralisation being reported in this report. MrBrabham has more than five years' experience in the mining industry and hasgiven his consent to the public reporting of this information in the sectionheaded Resource Increase. For this report, measured resources lie in areas where drilling is available atnominal 25 x 25 metre spacing, indicated resources in areas drilled atapproximately 25 x 50 metre spacing and inferred resources in areas of broaderspaced drilling. The resource model extends to 750RL (approximately 400 metresbelow surface), and resources are estimates of recoverable tonnes and gradesusing Multiple Indicator Kriging with block support correction. Appropriate check sampling has been undertaken to verify the gold assays used inthis estimate. SUKARI GOLD PROJECT SIGNIFICANT MINERALISED INTERSECTIONS DIAMOND DRILL HOLES 312-339 Hole Northing From To Interval Grade CommentNumber (m) (m) (m) DDH312 10900 0 395 Reported March 2003 456 460 4 4.22 465 468 3 2.97 526 531 5 2.50 565 566 1 37.50 Sheared footwall contact DDH314 10975 188 195 7 1.74 267 269 2 2.44 405 406 1 5.47 424 429 5 2.47 442 447 5 2.91 451 455 4 2.43 486 489 3 3.51 587 589 2 3.27 598 599 1 20.50 DDH319 10900 204 207 3 2.08 DDH322 10350 16 18 2 2.18 75 85 10 2.24 DDH323C 10125 123 125 2 4.08 130 132 2 4.05 138 180 42 1.90including 138 145 7 4.67 183 188 5 2.54 198 213 15 1.77 224 242 18 1.81 258 261 3 2.36 275 292 17 1.76including 280 285 5 2.88 DDH325 10800 45 52 7 2.26 DDH326 10075 170 216 46 2.00 196 207 11 3.11 230 233 3 4.56 240 245 5 2.00 262 264 2 4.31 303 306 3 9.39 Visible gold, highly sheared, brecciated DDH327 10675 211 212 1 21.20 DDH328 10125 15 16 1 3.00 46 47 1 4.14 DDH329 10150 185 191 6 2.94 199 203 4 3.81 207 209 2 4.42 249 261 12 2.27 272 279 7 3.96including 276 277 1 13.30 300 303 3 15.83 Visible gold related to brecciationincluding 302 303 1 29.70 DDH331 10650 196 201 5 6.68 198 199 1 15.60 212 213 1 4.54 DDH332 10100 99 101 2 4.06 DDH334 10225 272 277 5 2.34 DDH335 10150 90 91 1 9.23 122 126 4 3.34 DDH336 10175 174 194 20 2.43 201 212 11 2.36 203 206 3 5.03 244 248 4 3.79 285 288 3 3.26 DDH338A 10459 39 44 5 2.20 87 90 4 2.30 132 137 5 14.02 147 150 3 2.44 DDH339 10275 182 200 17 1.97 192 196 4 4.09 202 207 5 3.58 217 218 1 8.74 278 284 6 2.77 Mineralisation related footwall shear Rule 5.3 Appendix 5B Mining exploration entity quarterly report Introduced 1/7/96. Origin : Appendix 8. Amended 1/7/98, 30/9/2001. Name of EntityCentamin Egypt Limited ABN Quarter ended ("current quarter")86 007 700 352 30 June 2005 Consolidated statement of cash flows Centamin Egypt LimitedPharaoh Gold Mines NL (100%)Viking Resources Ltd (100%)North African Resources (100%) ----------- ----------Cash flows related to operating activities Current Quarter Year to date $A'000 (12 months) $A'000 ----------- -----------1.1 Receipts from product sales and related -debtors1.2 Payments for (a) exploration and evaluation (1,090) (2,675)(b) development (136) (137)(c) production - -(d) administration (234) (699)1.3 Dividends received - -1.4 Interest and other items of a similarnature received 255 1,0461.5 Interest and other costs of finance paid - -1.6 Income taxes paid - -1.7 Other (provide details if material) - - ----------- -----------Net Operating Cash Flows (1,205) (2,465)------------------------------- ----------- ----------- Cash flows related to investing activities 1.8 Payment for purchases of (a) prospects - -(b) equity investments - -(c) other fixed assets (143) (260)1.9 Proceeds from sale of (a) prospects - -(b) equity investments - -(c) other fixed assets - 31.10 Loans to other entities *(Refer Note 1) (1,369) (3,060)1.11 Loans repaid by other entities - -1.12 Other (provide details if material) - - ----------- -----------Net investing cash flows (1,512) (3,317) ----------- -----------1.13 Total operating and investing cash flows(carried forward) (2,717) (5,782) ----------- ----------- 1.13 Total operating and investment cash flows (broughtforward) (2,717) (5,782)------------------------------- ----------- ---------- Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. - 351.15 Proceeds from sale of forfeited shares - -1.16 Proceeds from borrowings *(Refer Note 1) 1,369 3,0601.17 Repayment of borrowings - -1.18 Dividends paid - -1.19 Other (provide details if material) - - ----------- ----------Net financing cash flows 1,369 3,095------------------------------- ----------- ---------- Net increase (decrease) in cash held (1,348) (2,687) 1.20 Cash at beginning of quarter/year to date 19,413 21,1081.21 Exchange rate adjustments to item 1.20 (119) (475) ----------- ----------1.22 Cash at end of quarter 17,946 17,946------------------------------- ----------- ---------- *Note 1 - From the March 2004 Quarter onwards, the funding of explorationexpenditure by the Holding Company to its subsidiaries will be disclosed as aninter-entity loan under sections 1.10 and 1.16 respectively. ----------Payments to directors of the entity and associates of the Current quarterdirectorsPayments to related entities of the entity and associates of $A'000the related entities ----------- 1.23 Aggregate amount of payments to the parties included initem 1.2 358 ----------- 1.24 Aggregate amount of loans to the parties included in item -1.10 --------------------------------------------------- 1.25 Explanation necessary for an understanding of the transactions - Salaries, superannuation contributions, consulting and directors fees paid to Directors amounted to $344,993 for the quarter. - Mr S El-Raghy and Mr J El-Raghy are Directors and shareholders of El-Raghy Kriewaldt Pty Ltd ("ELK"), which provides office premises to the Company. All dealings with ELK are in the ordinary course of business and on normal terms and conditions. Rent paid to ELK during the quarter amounted to $13,001. Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a materialeffect on consolidated assets and liabilities but did not involve cash flows - 2.2 Details of outlays made by other entities to establish or increase theirshare in projects in which the reporting entity has an interest - Financing facilities available Add notes as necessary for an understanding of the position. ----------- ----------- Amount available Amount used $A'000 $A'000 ----------- ----------- 3.1 Loan facilities - - ----------- ----------- 3.2 Credit standby arrangements - -------------------------------- ----------- ----------- Estimated cash outflows for next quarter $A'000 ---------- 4.1 Exploration and evaluation 2,800 ----------- 4.2 Development 480------------------------------------------------------------ ----------- Total 3,280 -------------------------------------------- ----------- Reconciliation of Cash------------------------------- ----------- ----------Reconciliation of cash at the end of the Current quarter Previous quarterquarter (as shown in the consolidatedstatement of cash flows) to the relateditems in the accounts is as follows. $A'000 $A'000 ------------------------------- ----------- ----------- 5.1 Cash on hand and at bank 319 286 ----------- ----------- 5.2 Deposits at call 1,356 380 ----------- ----------- 5.3 Bank overdraft - - ----------- ----------- 5.4 Term deposits 16,271 18,748------------------------------- ----------- ----------- Total: cash at end of quarter (item 1.22) 17,946 19,414------------------------------- ----------- ----------- Changes in interests in mining tenements --------- --------- ---------- --------------- Tenement Nature of Interest at Interest at end reference interest beginning of quarter (note (2)) of quarter --------- ---------- ---------- --------------- ---------------6.1 Interest in During the quarter the company reached an agreement to begin mining tenements working on an area of 160km2 as a mining lease as defined byrelinquished, law 222 of 1994. Negotiations are continuing with the Egyptian reduced or Mineral Resource Authority (EMRA) on other areas.lapsed ---------------------------------------------------------- ---------6.2 Interestsin miningtenementsacquired orincreased ---------------------------------------------------------- --------- Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rightstogether with prices and dates. ------ ---------- ---------- -------------- Total Number Issue price Amount paid up number quoted per security per security (see note 3) (see note 3) (cents) (cents) ---------------- ------ ---------- ---------- --------------7.1 Preference+securities(description)---------------- ------ ---------- ---------- --------------7.2 Changesduring quarter(a) increasesthrough issues(b) decreasesthrough returnsof capital,buy-backs,redemptions---------------- ------- ---------- ---------- ---------------7.3 +Ordinarysecurities 502,060,369 502,060,369---------------- ---------- ---------- ---------- ---------------7.4 Changesduring quarter(a) increasesthrough optionsexercise(b) decreasesthrough returnsof capital,buy-backs --------------- ---------- ---------- ---------- --------------7.5 +Convertibledebt securities(description)---------------- ---------- ---------- ---------- --------------7.6 Changesduring quarter(a) increasesthrough issues(b) decreasesthroughsecuritiesmatured,converted---------------- ---------- ---------- ---------- ---------------7.7 Options Employee Option Exercise Expiry date(description Plan 2002 priceand conversion 250,000 Nil 29.00 cents 11/11/2005factor) 1,010,000 Nil 23.10 cents 12/11/2006 130,000 Nil 23.10 cents 17/11/2006 750,000 Nil 35.49 cents 15/12/2006 775,000 Nil 28.04 cents 04/02/2008 410,000 Nil 28.04 cents 17/02/2008 ---------- ---------- ---------- -------------- 7.8 Issued duringquarter ---------- ---------- ---------- --------------7.9 Exercisedduring quarter ---------- ---------- ---------- --------------7.10 Expired/lapsed during quarter---------------- ---------- ---------- ---------- --------------7.11 Debentures(totals only)---------------- ---------- ---------- ---------- --------------7.12 Unsecurednotes(totals only)---------------- ---------- ---------- ---------- -------------- Compliance statement 1. This statement has been prepared under accounting policies which comply withaccounting standards as defined in the Corporations Act or other standardsacceptable to ASX (see note 4). 2. This statement does give a true and fair view of the matters disclosed. Sign here: Company Secretary Date: 28 July 2005 Print name: Heidi Brown Notes 1. The quarterly report provides a basis for informing the market how theentity's activities have been financed for the past quarter and the effect onits cash position. An entity wanting to disclose additional information isencouraged to do so, in a note or notes attached to this report. 2. The "Nature of interest" (items 6.1 and 6.2) includes options in respect ofinterests in mining tenements acquired, exercised or lapsed during the reportingperiod. If the entity is involved in a joint venture agreement and there areconditions precedent which will change its percentage interest in a miningtenement, it should disclose the change of percentage interest and conditionsprecedent in the list required for items 6.1 and 6.2. 3. Issued and quoted securities The issue price and amount paid up is notrequired in items 7.1 and 7.3 for fully paid securities. 4. The definitions in, and provisions of, AASB 1022: Accounting for ExtractiveIndustries and AASB 1026: Statement of Cash Flows apply to this report. 5. Accounting Standards ASX will accept, for example, the use of InternationalAccounting Standards for foreign entities. If the standards used do not addressa topic, the Australian standard on that topic (if any) must be complied with. == == == == == This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Centamin PLC