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Centamin announces the 120,000 metres drill programme in 2018 results

Mining News - Published on Tue, 19 Feb 2019

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Centamin announced the results of the 120,000 metres drill programme in 2018, across the Company's wholly own landholdings, resulted in an increase in mineral resources by more than 100%. A maiden resource has been declared at the ABC Project and the Doropo Project mineral resource has grown by 58%. Building on these results, a further 90,000 metres is budgeted and underway for 2019.

Doropo Project ("Doropo")
· 2.13Moz Indicated and 0.8Moz Inferred mineral resource, at a gold cut-off of 0.5g/t:
50 million tonnes at 1.31 g/t gold in the Indicated category, a 55% increase in resource tonnes YoY;
19 million tonnes at 1.3g/t gold in Inferred category; and
57,000 metres of reverse circulation ("RC") drilling completed in 2018.

· Successfully increased the estimated tonnages at all the previously defined resource structures and discovery of new structures capable of adding further resources;

· Updated mineral resource sits within a 6km radius area, extends from surface to a maximum depth of 250m, suitable for open pit mining and trucking to one central processing facility.

· Doropo licence holding of 2,721km2 remains largely underexplored with numerous targets identified, presenting significant resource upside potential.

· Discovery of Kilosegui, an 8km long surface soils-auger anomaly to be tested with drilling during 2019.

· Further positive results from Chegue (15m @ 8.4g/t Au), Han (7m @ 23.4g/t Au), Kekeda (13m @11.2g/t Au), Hinda (10m @ 5.8g/t Au) and Nokpa (37m @ 6.4g/t Au) with the main resource structures remaining open at depth and along strike. A table of significant drill highlights included within the announcement.

· A 55,000 metre drill programme is budgeted for 2019 to develop the immediate resource extensions and evaluate the resource significance of the major regional Doropo targets.

· Preliminary economic assessment ("PEA") progresses on schedule for completion by H2 2019; Maiden mineral reserve estimation targeted by Q2 2019, supporting the next stage feasibility work ahead of a Board investment decision on development.

ABC Project ("ABC")
· Maiden resource estimate declared at Kona South prospect, at a 0.5 g/t gold cut-off:
19.6 million ore tonnes at 1.03 g/t gold in the Indicated category for 650koz of gold;
16.1 million ore tonnes at 0.87 g/t gold in the Inferred category for approximately 450koz of gold;
The mineral resource area is defined from surface, along a 2.3 km strike, and remains open in all directions; and
Detailed 3D grade modelling indicates there are high-grade plunging shoots within the 50m x 50m broad-spaced drilling.

· Excellent conversion from discovery to defined mineral resource:
Active exploration started Q2 2017, first gold mineralisation discovered Q3 2017, delineating the Lolosso Gold Corridor ("LGC"), a gold anomaly with a 23km strike length;
25,000 metres drilled to date across the ABC landholding, of which 65% was focussed on the Kona South prospect;
Average discovery cost of US$8.50 per Indicated ounce; and
Encouraging drill intercepts returned at the Kona Central prospect; Resource upside potential with further assessment, infill drilling and 3D modelling planned during 2019.

· Preliminary metallurgical test work suggests no major metallurgical issues with high recovery rates expected from conventional CIL processing.

· A 34,000 metres drill programme is budgeted for 2019 focussing on resource development at Kona Central and Kona South, while testing the resource extension potential between the two prospects, drill testing high priority targets along the LGC in addition to airborne magnetic/radiometric surveying and geochemical sampling.

Mineral Resources
The mineral resource data presented in the tables included in this announcement, comprise a summary extract of the of the Doropo and ABC mineral resource report, using drill assay results received up to and including 10 December 2018. For comparative purposes, data for 2017 has been included for Doropo. In the instance of ABC, this is a maiden mineral resource and therefore no previous data has been provided for comparative purposes. Numbers have been rounded and therefore they may be small differences in the totals.

Mr Andrew Pardey, CEO commented "2018 saw a further increase in our investment and level of activity in CDI across our 3,472km² land holding. We have only scratched the surface of the potential of these assets, and we are maintaining an intensive campaign in 2019 to define further quality gold ounces. Doropo continues to demonstrate the potential to be our next organic development project. Ongoing exploration and concurrent viability studies will further unlock the potential future scale of this project as we assess the economics against our internal project value creation criteria. The PEA is progressing well and we look forward to reporting the results to the market at the end of H2 2019. Delivery of a maiden reserve and further feasibility work are critical milestones for 2019, ahead of a Board decision on capital allocated for development. The success and scale of the 2018 ABC discovery results and the reporting of the maiden Kona South resource in less than two years of active exploration, highlights the scale and quality of the Lolosso Gold Corridor and the regional generative potential of the ABC land package. Centamin's core strategy remains on delivering returns using its highly cash generative business which not only delivers a high yield for its shareholders as per our sustainable dividend policy, but also delivering fully funded growth from our exciting exploration portfolio."

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Posted By : Rabi Wangkhem on Tue, 19 Feb 2019
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