Centamin Egypt Limited

Centamin Egypt Limited

September 13, 2010 07:00 ET

Centamin Egypt Limited Production Update

TORONTO, ONTARIO--(Marketwire - Sept. 13, 2010) - Centamin Egypt Limited ("Centamin" or "the Company") (TSX:CEE)(LSE:CEY), the gold mining group with operations in Egypt, announces a downward revision to its 2010 guidance. The Company now expects gold production for 2010 to be in the range of 160-170,000 ounces of gold, due to the following combination of factors:

  • In the process plant, intermittent SAG mill liner and lifter failures have continued throughout the quarter impacting steady state production. The Company remains on track to change the polymetallic liner and lifter system to steel in October.
  • Initial grade reconciliations against the original reserve model in the sulphide ore are indicating 10% higher ore tonnes however at 10% lower grade. Whilst overall resource and reserve ounces remain intact, in the short term this has reduced expected gold production. An updated pit optimisation is currently nearing completion using a slightly revised resource model developed by consultants, Hellman and Schofield.
  • Whilst the supply of additional air and hydrogen peroxide into the flotation and leach circuits has been successful in increasing metallurgical recoveries to design level of 90%, the implementation of these measures on a consistent and controlled basis is taking longer than anticipated and, as such, recoveries have been marginally lower.
  • The reduction in production will have an expected commensurate increase in cash cost per ounce particularly in the current (3rd) quarter. However unit costs remain in line with management forecasts and the Company remains confident of returning a total cost of around $400 per ounce in the final quarter of 2010.
  • The Company's expansion projects remain on schedule and budget and the target for a 500,000 oz production rate in 2012 remains unchanged.

Commenting on the revision, Josef El-Raghy, Chairman of Centamin, said:

"The short term impediments to production performance highlighted above are well understood and are being progressively removed or resolved. Further adjustments to the production plant will be made throughout September, and we believe that the final quarter of 2010 will provide a more accurate demonstration of the normalised run rate of Sukari".

For Centamin Egypt Limited

Josef El-Raghy, Chairman

13 September 2010

ABN 86 007 700 352

Contact Information

  • Centamin Egypt Limited
    Josef El-Raghy
    + 203 5411 259 or + 61 8 9316 2640
    + 203 5226 350 or + 61 8 9316 2650 (FAX)
    Buchanan Communications Limited
    Bobby Morse
    + 44 (0) 207 466 5000
    Buchanan Communications Limited
    Katharine Sutton
    + 44 (0) 207 466 5000