21st Apr 2005 09:56
Centamin Egypt Limited21 April 2005 CENTAMIN EGYPT LIMITED ("Centamin" or the "Company") ACN 007 700 352 CENTAMIN DISPUTE RESOLVED AND IMMEDIATE RETURN TO WORK AT SUKARI * Security Permits granted for return to work at Sukari * New 30 year Sukari Mining (Exploitation) Lease of 160km2 * Tax exemptions and royalty arrangements unchanged * Drilling to Recommence Immediately Centamin is delighted to report that agreement has been reached with theEgyptian Mineral Resource Authority (EMRA) for an immediate return to work atthe Sukari Gold Project in the Eastern Desert of Egypt. EMRA has signed theSecurity Permits required to re-commence work and the Company is also pleased toadvise that a new environment of co-operation now exists between the parties,together with a joint desire to begin to develop the vast mineral wealth ofEgypt. His Excellency Engineer Sameh Fahmy, the Minister for Petroleum and MineralResources, states "The Egyptian Government looks forward to a long andsuccessful partnership with Centamin and its subsidiary Pharaoh Gold Mines NL.The mineral resource industry in Egypt has a very positive future which to datehas not been fully appreciated. I will be fully supportive of the company'sdevelopment and exploration activities in order to fast track Egypt's firstmodern gold operation. All the problems of the past are behind us and the futureis very exciting for the Sukari project." The Company will re-commence operations on a new Mining (Exploitation) Leasecovering an area of 160 km2 that contains the proposed Sukari mine site andsurrounding prospects. This lease is issued under the existing Law 222 of 1994,which was enacted by the Egyptian Government specifically to accommodate thecompany's exploration and mining activities in the Eastern Desert. Law 222 remains unchanged and as such the Company has title for a period of 30years commencing immediately and which is renewable at the company's electionfor a further period of 30 years. All tax and royalty arrangements remainunchanged. This new Mining Lease is issued under the regulation of the Ministry forPetroleum and it is the Company's intention to make application for additionallease areas at the appropriate time. From the Company's contact with the Ministry, it is apparent that there is agenuine interest to attract mining investment. The Ministry has soughtindependent advice from international authorities with the intention to enactnew mining legislation that will provide for an exploration and mininglegislative framework similar to that which is in effect elsewhere in Africa. All Legal actions and the proceedings before the Centre for Arbitration thatwere initiated by the Company are now in the process of being withdrawn. • Sukari Project - Status Report The Sukari project is the most advanced gold project in Egypt. The Companyremains fully committed to helping develop a significant gold mining industry inthe country and fast tracking the development of the Sukari project. Seven drill rigs are on site at Sukari and infill and extension drilling willresume immediately. The Sukari Gold deposit is an outcropping GranodioritePorphyry with a mapped strike extent of 2.5km. To date, the Company has drilled322 holes for 66,000m, predominantly in the southern 800m of this outcrop. Thecurrent measured, indicated and inferred resource defined in this area is 2.94Moz. This resource has been calculated independently by Hellman and Schofield toJORC standards. Two tonnes of metallurgical samples have been assembled and are ready forshipment to Australia as part of the Bankable Feasibility Study into thedevelopment of a 4 to 5 million tonne per annum processing facility, which isprojected to produce an initial 250,000 oz of gold per annum. For Centamin Egypt Limited Josef El-RaghyManaging Director21 April 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Centamin PLC