AMN - EGYPT: Lower Q2 gold production at Sukari

Gold production during the June quarter at Centamin's Sukari Gold Project in Egypt was 124,641 ounces, 11% lower than the same period of 2016 but 14% higher than the previous quarter. The UK-listed company has maintained full-year production guidance of 540,000 ounces.

The company achieved record quarterly throughput of 3.056 million tonnes at the process plant, a 5% increase on the March quarter.

Open pit total material movement of ore plus waste increased by 2% on the previous quarter to 17.493 million tonnes and open pit ore production increased 23.5% to 3.06 million tonnes at an average mined grade of 0.76 g/t. This included 222,000 tonnes @ 0.25g/t delivered to the dump leach pads. The average head grade to the plant from the open pit was 0.81 g/t.

The run of mine ore stockpile balance increased by 152,000 tonnes to 538,000 tonnes at the end of the period.

The underground operation delivered 293,000 tonnes of ore at an average mined grade of 8.8 g/t. Ore from stoping was 174,000 tonnes at 11.0 g/t and ore from development was 119,000 tonnes at 5.6 g/t.

Centamin's CEO Andrew Pardey said the lower year-on-year production was owing to mining on the cut back of the east wall with correspondingly low ore grades reported from these sectors.

He said that in the latter part of the quarter, higher grade was accessed from the open pit in line with the mine plan. "Mining of higher grades from the open pit was expected to continue for the balance of 2017.

"Consequently, gold production was 14% higher on a quarter-on-quarter basis". He said excellent grades had been achieved from Sukari’s underground section.

“With the processing also continuing to deliver very strong levels of productivity, we remain on course to meet our full year 2017 production guidance of 540,000 ounces at a cash operating cost of $580/ounce and all-in sustaining cost of $790 per ounce."

www.centamin.com