Centamin PLC Regulatory News (CEY)

Centamin plc ("Centamin" or "the Company")

(LSE:CEY, TSX:CEE)

Significant Côte d'Ivoire Resource Increase

Centamin is pleased to announce 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.

HIGHLIGHTS

Doropo Project ("Doropo")

· 2.13Moz Indicated and 0.8Moz Inferred mineral resource, at a gold cut-off of 0.5g/t:

o 50 million tonnes at 1.31 g/t gold in the Indicated category, a 55% increase in resource tonnes YoY;

o 19 million tonnes at 1.3g/t gold in Inferred category; and

o 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:

o 19.6 million ore tonnes at 1.03 g/t gold in the Indicated category for 650koz of gold;

o 16.1 million ore tonnes at 0.87 g/t gold in the Inferred category for approximately 450koz of gold;

o The mineral resource area is defined from surface, along a 2.3 km strike, and remains open in all directions; and

o 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:

o 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;

o 25,000 metres drilled to date across the ABC landholding, of which 65% was focussed on the Kona South prospect;

o Average discovery cost of US$8.50 per Indicated ounce; and

o 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.

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."

Qualified Person and Quality Control

Information of a scientific or technical nature in this document, including but not limited to the mineral resource estimates, was compiled by Group geologists, Pierrick Couderc and Fidele Kakou, under the supervision of Group Qualified Person, Norman Baillie, Group Exploration Manager, and independent Qualified Person, Rupert Osborn of H&S Consultants Pty Ltd. A Qualified Person is as defined by the National Instrument 43-101 of the Canadian Securities Administrators.

Named Qualified Persons have verified the data disclosed, including sampling, analytical, and test data underlying the information or opinions contained in this announcement in accordance with standards appropriate to their qualifications. Each Qualified Person consents to the inclusion of the information in this document in the form and context in which it appears.

Investors should be aware that the figures stated are estimates and no assurances can be given that the stated quantities of metal will be produced.

Mineral resource estimates contained in this document are based on all available data as at 10 December 2018, in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definition standards and incorporated into National Instrument 43-101 "Standards of Disclosure for Mineral Projects" (NI-43101), at a gold cut-off grade of 0.5g/t.

For further information, please visit www.centamin.com or contact:

Background

DOROPO PROJECT

The Doropo Project, located in the northeast Cote d'Ivoire, consists of nine permits, over a 2,721km2 highly prospective landholding that lies between the Boromo-Batie and the Hounde-Tehini greenstones belts.

The Company began extensive exploration at Doropo in late 2014, leading to maiden resource declared in 2017. The Company's experienced exploration team have achieved year-on-year resource growth. The team applies a systematic approach to prioritise resource-focussed target generation and ranking to fast-track the most prospective target.  

Geology

The Doropo landholding lies entirely within the granitic domain, bounded on the eastern side by the Boromo-Batie greenstones belt, in Burkina Faso, and on the western side by the Tehini-Hounde greenstones belt.

At the project scale, the geology consists of a granite-gneiss terrain, the granite being mostly of coarse granodioritic composition, bound by major bimodal greenstone belts, which express progressive assimilation and strain gradients at the margins, evidenced by the presence of pyroxenites and amphibolites in the volcanic suites and migmatites in the granitoids (mostly on the western side).

Gold mineralisation occurs late in the regionally-extensive, reactivating compressional shear networks, framed by intense silica-sericite-carbonate alteration haloes. The main structural hosts are cross-cutting quartz veins with diffuse overprinting with fine to medium grained pyrite sulphide selvages. Gold grade correlates with the density of pyrite and high grades are correlated with native gold within the structural laminations and contacts of the quartz veining. The veins range up to several metres. Late regional, post-gold, doleritic dykes intrude along a number of the gold-bearing shear structures.

Exploration

In 2018, nearly 100,000 metres were drilled across Doropo. Over 56,000 metres of RC drilling focusing on mineral resource definition and exploration targeting; 36,000 metres of aircore and auger drilling defining new strong surface anomalies and follow up targets; and approx. 2,800 metres of diamond drilling for metallurgical test work samples as part of the PEA study.

Assay results received in 2018 significantly extended Chegue Main, Chegue South and Enioda deposits, defined new high-grade shoots at Souwa, Han and Nokpa and discovered the new Tchouahinin resource. The Doropo mineral resource grew to 2.13Moz at 1.31g/t in the Indicated category, and 760koz at 1.3g/t in the Inferred category, using a 0.5g/t cut-off grade.

The currently defined mineral resource deposits lie within a 6km radius. Souwa, Nokpa, Chegue Main and Chegue South, which hosts 75% of the total mineral resource, are clustered within 3km radius of a proposed plant location. Han, Kekeda Tchouahinin are satellite deposits located 4 to 6km to the southeast and Enioda sits 12km to the east.

The Souwa deposit currently hosts the largest resource and remains structurally open in all directions. Mineralisation extends over a 2.6km strike and dips 25o west to greater than 250m vertical depth. Drilling in 2019 will target the down-plunge extensions of the composite high-grade shoots and the northern strike extension of the resource to where it intersects the Nokpa-Chegue structure.

The Nokpa deposit returned some excellent intercepts, including: 37m at 6.4g/t, 9m at 14.0g/t, 2m at 19g/t. Nokpa is centred on a high-grade WNW moderately plunging shoot. The high-grade core sits in a 200m long dilational jog created at the intersection of 3 major structures; the major Nokpa-Chegue Main shear, the Souwa shear and a third major fault infilled by late dykes. Mineralisation extends to 300m vertical depth and remains open. 2019 drilling will chase the high-grade plunge of the core Nokpa lode and similar structural analogs within the proximal district.

Drilling has successfully connected both Chegue Main and Nopka, along a 2.4km strike mineralised structure. Drilling started and will be ongoing in 2019, testing the potential to close the mineral resource gap between the two defined deposits.

Similar in origin to Nokpa, Chegue South hosts a significant resource immediately south of the Nokpa-Chegue Main shear zone. Drilling and exploration in 2018 drilling solidified the high-grade shoots within the resource and extended on plunge and towards the south.

Infill drilling at Kekeda and Han satellite deposits will continue into 2019 with the objective of improving the resource confidence classification. Tchouahinin, located centrally within the resource area, 3km between Souwa and Kekeda, is a new satellite deposit. The mineralisation is currently defined along 700m strike and open in all directions. 2019 drilling will continue to develop the new Tchouahinin structural setting.

At Enioda deposit, drilling successfully bridged two smaller shoots into a coherent 2.2km long surface deposit which strikes north to south and dips 40° west. Enioda forms the southernmost section of a continuous 7km regional mineralised shear. Drilling in 2019 will continue to develop the Enioda resource on strike and down dip.

Mineral Resources, by deposit

(0.5g/t gold cut-off)

Outside of the 6km radius mineral resource area, regional Doropo exploration focused generative geochemical surveys on Tehini 1, 2 and 3 permits, Gogo and Bouna. The most significant discovery of 2018 was the Kilosegui anomaly, a coherent 8km long gold in soils-auger anomaly with strong subjacent magnetic structure, located 35km south-west of Souwa, straddling the Tehini 1 and 2 permit boundary. Further new additional target anomalies were defined in Kalamon, Danoa and Gogo permits. First pass drilling will commence on the Kilosegui target imminently and the prioritised new targets will be drilled throughout H1 2019.

2018 Significant Drill Intercepts (0.3g/t cut-off)

ABC PROJECT

The ABC Project, located in northwest Côte d'Ivoire, approximately 600km west of Doropo, the Company's advanced exploration project. ABC is a greenfield exploration project, consisting of two permits, Kona and FarakoNafana, covering a 750km2 highly prospective landholding along the underexplored contact zone between the Archean and Birimian cratons. The Company has an additional four permits under application.

Geology

The LGC is characteristically 300m to 800m wide, hosting a greenschist to low amphibolite grade, Birimian volcano-sedimentary greenstone package thrusted between an earlier granitoid of Archaean age inferred from structural position to the west and a paragneiss on the east. The eastern footwall contact is a major structural and metamorphic feature and it controls the regional setting of the gold mineralisation along the corridor. The paragneiss is interpreted to be the stratigraphic continuity of the detrital sediments but at higher granulite facies.

Surface geochemistry clearly maps the core of the LGC along a 23km strike which runs axially through the Kona permit. The two main prospects, identified by the initial mapping and rock chip sampling, were subdued silicified ledges in the topography. These anomalous ridges developed into the Kona South and Kona Central Prospects. On a regional scale, mapping and remote sensing of the LGC defined a 60km structural feature.

Exploration

After the permits were granted, greenfield exploration began in early 2017 with reconnaissance mapping and initial rock chip sampling of the Kona permit area.

Geochemical sampling identified the LGC, at the time as an outcropping 12km gold mineralised structure. Further detailed fieldwork, including GAIP survey and c.5,900 metre RC drill programme was carried out in 2017, returning the first significant mineralised intercepts on some wide spaced and shallow drill sections.

In 2018, exploration activities successfully focussed on developing the Kona South prospect by RC and Diamond drilling, while extending the understanding of surface geochemistry through a c.20,000 metre auger drilling programme to cover the whole of the LGC length in the Kona permit. The auger results have highlighted the strike continuity in mineralisation, plus multiple sub parallel zones along the +23km strike of the LGC. Surface geochemistry sampling also began on the FarakoNafana permit that overlays the northern extend of the Lolosso structure.

In 2018, an 18,500 metre drill programme was completed (including c.13,400 RC metres and 5,100 diamond drill metres). Significant drill intercepts are reported quarterly as part of our detailed Quarterly Results, which can be found on the Company's website. The table at the end of this announcement shows 2018 highlight drill intercepts, including new intercepts published for Q4, clearly annotated. The primary objective of 2018 was the delivery of a maiden resource estimate for Kona South. The Kona South maiden resource stands at 650koz at 1.03 g/t Indicated category and 450koz at 0.87g/t Inferred category, at a 0.5 g/t cut off. The table below shows how the resource behaves at higher cut-offs.

Beyond the Kona South and Central ridges that have been tested by some drilling, the LGC is totally virgin from any other exploration work other than the surface work (mapping, geochemistry, geophysics). Geochemistry results (auger) successfully delineated the anomalous contacts and internal plumbing of the LGC, highlighting several new resource potential targets along it.

Modelling

To support the rapidly growing resource, a detailed 4D geological modelling exercise was conducted reviewing the core logging and the regional context of the macro-structure hosting the deposits. Detailed geological interpretations were compiled from prospect mapping, satellite imagery and geophysical imagery. These district geological models were integrated with the evolving drill database to produce sophisticated resource models, based on detailed structural modelling and direct deeper plunge drill targeting.

The Kona South resource remains open in all directions and detailed 3D grade modelling indicates there are higher-grade, plunging shoots within the broad-spaced resource drilling. Additional resource quality intercepts were identified at wide spacing in Kona Central, which require closer examination, infill drilling and 3D modelling in 2019.

2019

Building on the success of 2018, exploration continues, including a 34,000 metre drill programme 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, airborne magnetic/radiometric surveying, and geochemical sampling.

2018 Significant Drill Intercepts (0.3g/t cut-off)

Drill assays received in Q4 2018 and subsequently not previously reported are highlighted with the annotation "Q4" in the final column, titled "NEW RESULTS (Q4 2018)".