Centamin grows Sukari gold reserves for third straight year

Egypt-focused Centamin (TSX: CEE; LSE: CEY) has grown its resource and reserve base at its Sukari gold mine for the third year in a row.

The company said Sukari’s reserves have increased 10% to 5.8 million oz. over the 5.3-million oz. estimate in the new life of mine plan published in October.

Centamin also said it had exceeded its target by achieving a 3.5 million-oz. increase in proven and probable reserves since 2020, prior to depletion. The growth, it noted, was primarily driven by the expansion of reserves at Sukari and the inclusion of initial reserves at Doropo in Côte d’Ivoire.

“Our improved geological understanding at Sukari has enabled a 500,000-oz. increase in reserves over the 5.3-million oz. reserve estimated in the recently published life of mine plan,” CEO Martin Horgan said in the statement.

The news from Sukari comes as gold continues to reach historic highs, with the price hitting US$2,036 per oz. on Tuesday afternoon. 

The gold miner said that proven and probable reserves by the end of 2023 were 28% higher than the previous year, totaling 194 million tonnes at an average grade of 1.23 grams per tonne for 7.7 million oz. of contained gold.

Measured and indicated resources also showed growth, Centamin said, with 392 million tonnes at an average grade of 1.06 grams per tonne for 13.4 million ounces of contained gold, inclusive of reserves.

The company plans to continue expanding resources and reserves in the new year as it has budgeted 285,000 metres of drilling at Sukari, with a focus on grade control and infill drilling.

Another key element would be completing the definitive feasibility study for Doropo, which would involve 10,200 metres of sterilization drilling to confirm infrastructure locations, with results expected in mid-2024.

The company also expects to release full assay results from the 16,000-metre, Eastern Desert Exploration (EDX) drill campaign in the first quarter, which would guide future work programs.

Sukari is Egypt’s largest and first modern gold operation, as well as one of the world’s largest producing mines. Since production began in 2009, it has churned out over 5 million oz. of gold and has a projected mine life of 14 years.

Centamin shares traded at $1.70 apiece in Toronto on Tuesday afternoon, valuing the company at $1.9 billion. Its shares traded in a 52-week window of $1.31 and $2.05.