HomeGoldAnother resource increase for Centamin

Another resource increase for Centamin

The Centamin camp at
the Sukari Hill gold
project in Egypt
Perth, Australia — MININGREVIEW.COM — 15 July 2009 – Centamin Egypt Limited (Centamin) “’ the Australian company which holds the only mining licence for gold or precious metals in Egypt “’ has announced an increase in gold resource estimates at its flagship Sukari project in Egypt.

The company revealed in a news release issued here that the resource estimate had been upgraded by about 520 000 ounces, or 6%, from its February statement to 9.91 million oz on a measured and indicated basis, and contained about 3.3 million oz of inferred resources.

The AIM-listed company went on to say that drilling indicated that mineralisation continued further north of the existing reserve, with continuous high grades in the deeper zones.

Centamin moved into production at the end of June. It is seen as a possible takeover target by one of the large gold producers once it ramps up output and successfully exports its gold.

“While the stock may continue to be driven by a takeover premium, we reiterate that Centamin is still attractive, given the blend of more than 10 years of reserves, low technical risk, low political risk and no debt,” said Ambrian Capital analyst Julian Emery.