Last checked at 2 Oct 2020 07:00
2 October 2020
Centamin plc
("Centamin" or "the Company")
(LSE:CEY, TSX:CEE)
SUKARI OPERATIONAL UPDATE
Centamin plc announces that it has detected movement in a localised area of waste material in the Sukari open pit Stage 4 West wall and has decided to immediately defer open pit mining operations in this zone. This decision is a preventative measure to safeguard the health and safety of our workforce and the long-term potential of Sukari. As a consequence, 2020 guidance will be reduced and an updated mine plan for future years will be included in the life of asset ("LOA") review.
Measures to stabilise movement in the affected area have already been implemented. In addition, the Company has commenced a detailed geotechnical assessment, which is focused on developing a plan to mine the impacted area.
The high-grade Stage 4 West wall was scheduled to be mined during Q4 2020 and 2021. The area contains circa 90,000 ounces of gold ("Au") in situ at grades of up to 2.0g/t Au. Mining of the impacted high-grade material will be rescheduled.
Open pit mining at Stage 4 North and Stage 5 North will continue, albeit at grades of
Preliminary gold production for the three months ended 30 September 2020 ("Q3") was circa 120,000 ounces, bringing production for the nine months to circa 375,000 ounces. While the precise impact has yet to be fully determined, the Company's preliminary estimate is that production for the fourth quarter will be reduced to circa 70,000 ounces.
Centamin will release its Q3 Quarterly Report on 21 October 2020, and further updates will be provided at that time. Furthermore, the Company will publish the preliminary conclusions of the LOA review by year end.
Martin Horgan, CEO, commented: "The safety of our employees is paramount. The use of the slope radar system has facilitated pro-active management of geotechnical risks and we have decided to defer production from this higher-grade area in order to protect our workforce and preserve the value of Sukari. As previously disclosed, we are undertaking a LOA review of Sukari. This is well advanced and any rehabilitation requirements and implications for long term geotechnical stability will be incorporated into this initiative."
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014.
FOR MORE INFORMATION please visit the website www.centamin.com or contact:
Centamin plc Alexandra Carse, Investor Relations +44 (0) 7700 713 738 investors@centamin.je |
Buchanan Bobby Morse + 44 (0) 20 7466 5000 centamin@buchanan.uk.com |
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Forward-looking Statements
This announcement (including information incorporated by reference) contains "forward-looking statements" and "forward-looking information" under applicable securities laws (collectively, "forward-looking statements"), including statements with respect to future financial or operating performance. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expects", "expected", "budgeted", "forecasts" and "anticipates". Although Centamin believes that the expectations reflected in such forward-looking statements are reasonable, Centamin can give no assurance that such expectations will prove to be correct. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Centamin about future events and are therefore subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. In addition, there are a number of factors that could cause actual results, performance, achievements or developments to differ materially from those expressed or implied by such forward-looking statements; general business, economic, competitive, political and social uncertainties; the results of exploration activities and feasibility studies; assumptions in economic evaluations which prove to be inaccurate; currency fluctuations; changes in project parameters; future prices of gold and other metals; possible variations of ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; climatic conditions; political instability; decisions and regulatory changes enacted by governmental authorities; delays in obtaining approvals or financing or completing development or construction activities; and discovery of archaeological ruins. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements. Forward-looking statements contained herein are made as of the date of this announcement and the Company disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.