Centamin PLC Share News (CEY)

(Sharecast News) - Centamin announced a substantial increase in its proven and probable (P&P) mineral reserves on Tuesday.

The FTSE 250 company said Sukari's reserves reach 5.8 million ounces - a 10% boost compared to the 5.3 million ounce estimate in the new life of mine plan.

It also said it had exceeded its target by achieving a 3.5 million ounce increase in P&P mineral reserves since 2020, prior to depletion.

At the end of 2023, the group's P&P mineral reserves showed a 28% increase compared to the prior year, totalling 194 million tonnes at an average grade of 1.23 grams per tonne for 7.7 million ounces of contained gold.

The growth was primarily driven by the expansion of reserves at Sukari and the inclusion of maiden mineral reserves at Doropo in Côte d'Ivoire.

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

Looking ahead, Centamin said its 2024 geological programme would continue expanding resources and reserves.

Key elements would include 285,000 metres of drilling budgeted at Sukari for 2024, focusing on grade control, infill drilling, and extensional drilling for short and medium-term planning.

Additionally, a definitive feasibility study for Doropo would involve 10,200 metres of sterilisation drilling in 2024 to confirm infrastructure locations, with results expected in mid-2024.

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

"Our improved geological understanding at Sukari has enabled a 500,000 ounce increase in reserves over the 5.3 million ounce reserve estimated in the recently published life of mine plan," said chief executive officer Martin Horgan.

"Since 2020 we have delivered 3.5 million ounces of Mineral Reserve growth, before mining depletion, exceeding our 3 million ounce target.

"This has been driven by reserve growth of almost 1.6 million ounces at Sukari and a maiden 1.9 million ounce reserve at Doropo."

Horgan put the progress made down to the "geological opportunity" within Centamin's portfolio, the quality of its geological leadership team and investment in its orebodies.

"During the first half of 2024, we will release the results of the maiden drilling campaign across our Egyptian exploration portfolio and will also aim to publish the updated reserve numbers for Doropo as part of the ongoing definitive feasibility study."

At 0859 GMT, shares in Centamin were up 1.51% at 100.9p.

Reporting by Josh White for Sharecast.com.