Quarterly report

Centamin Egypt Limited 30 July 2002 CENTAMIN EGYPT LIMITED REPORT FOR QUARTER ENDED 30 JUNE 2002 HIGHLIGHTS • Drilling to increase and upgrade the current 1.7m ounce resource at the Sukari project again highlighted the continuity of the ore body. All drill holes completed to-date intersected significant mineralisation. • Infill drilling within the AMUN zone continues to improve the quality of the resource, converting the inferred and indicated into the measured category. • Drilling currently on 10850N continues to confirm the extension of the AMUN orebody into the Ra zone. Strike length now tested is 850m of the total 2.5km outcrop. • New extension for the high grade Hapi shoot with two holes DDH213 averaging 28m @ 6.85 g/t including 3m @ 56.83g/t and DDH223 which intersected 1m @ 21.00 g/t. • New high-grade discovery, (near to surface) intersected in hole SDDH208 with average 12m @ 11.99 including 2m @ 48.18g/t. • Other significant intersections received to-date are:- 62m @ 2.00g/t Au including 8m @ 4.83g/t Au 16m @ 2.01g/t Au 11m @ 3.19g/t Au 14m @ 2.99g/t Au 11m @ 4.63g/t Au 56m @ 2.32g/t Au 53m @ 2.36g/t Au • Feasibility Study review by SNC Lavalin is expected to be finalised by the end of August. • The Company intends to upgrade the resource figure in the second half of this year so as to include all of the drilling results since the 1.7million resource was published on 29 January 2002.. The new resource should substantially increase the contained ounces. REVIEW OF OPERATIONS • CORPORATE Mr Tom Elder, a geologist resident in the United Kingdom has been appointed to the Board of Directors of the Company. Mr Elder was a senior manager and exploration geologist with Cominco, BP Minerals and Rio Tinto and is a Director of Canadian company Mano River Resources Inc and dual ASX and AIM listed Gold Mines of Sardinia Ltd. He has an extensive background in mineral exploration and will be a valuable addition to the Board. 2,434,114 March 2003 Options have been exercised during the quarter and to date, raising the sum of $486,822.80 EXPLORATION AND DEVELOPMENT The current 1.7 million ounce resource is located in the Amun zone which represents less than 10% of then volume of the mineralised Sukari system, down to approximately 100m below the valley floor. The mineralisation proven up by the extensive drilling to date indicates that not only does the mineralised system continue in to the Ra zone but it also increases substantially in width. Approximately 8000m of drilling have been completed since the March report with 5000m of RC drilling and 3000m of diamond drilling. The Company expects that the aggressive drilling program in 2002 will at least double the current resources enabling a 5 million tonne per annum operation producing in excess of 300,000 ounces of gold per year. Drilling: Approximately 8000m of drilling have been completed since the March report with 5000m of RC drilling and 3000m of diamond drilling. High Grade Hapi Shoot. Following on from the discovery hole SDDH169 (14m @ 94g/t Au), drilling this quarter has also intersected the HAPI shoot. DDH213 with 28m @ 6.85g/t Au including 3m @ 56.83g/t extends the potential strike length of the Hapi shoot 300m north while DDH223 with 1m @ 21.00g/t Au is 225m south of SDDH169 indicating strike length extends south. The shoot remains open at depth. New High Grade Intersections in the RA Zone DDH208 with 12m @ 11.99g/t Au including 2m @ 48.18g/t is a horizontal hole that was one of the initial holes into the RA zone. The mineralisation is high grade, close to the surface and down dip from surface mineralisation. DDH207 with 5m @ 3.51g/t Au which is 25m north of DDH208 is directly down dip from surface trenching samples which have an average of 6m @ 6.55g/t. Drilling is progressing into the northerly RA Zone and is close to reaching the target of 1000 metres per week. The three diamond rigs operated by the Company are working at full capacity on a twenty-four hour roster, apart from maintenance and relocation. The contract rigs experienced some initial operational delays due to mechanical problems and as a consequence they were mainly used mainly in their RC capacity to pre-drill collars ready for diamond tailing. When the diamond tailing was subsequently carried out through expected mineralised zones significant assays were returned including hole DDH213 (19m @ 2.19g/t Au including 3m @ 56.83g/t) and hole DDH242 (62m @ 2.00g/t Au including 8m @ 4.83g/t). Drill holes either drilled or assayed to date are listed in Table 1 with significant intersections noted in Table 2. Table 1 Sukari Diamond Drilling Holes SDDH 206 to SDDH 258 Hole Collars and Length Hole Length Bearing Inclin'n North East RL No m degrees degrees m m m D206 275.92 270 -60 10650 10618 1206 D207A 18.37 270 -60 10650 10618 1206 D207 199.14 270 -25 10650 10618 1206 D208 119.02 90 -3 10625 10428 1136 209RC 100.00 - -90 10000 9300 1070 D210A 11.27 90 -1 10725 10335 1125 D210 294.75 90 -1 10726 10338 1123 211RC 22.00 270 -60 9975 10525 1114 D212 141.09 270 -20 10600 10620 1197 213RC 184.00 270 -70 10700 10574 1210 213RCD Total Depth 308.70 D214 178.32 90 -2 10650 10413 1136 215RC 147.30 270 -55 10700 10574 1210 215RCD Total Depth 288.10 216RC 113.00 270 -60 9975 10475 1112 217RC 112.00 270 -60 9975 10520 1113 D218 385.02 270 -88 10600 10620 1197 219RC 92.00 270 -60 10000 10521 1112 220RC 94.00 270 -60 10000 10475 1111 221RC 178.00 270 -75 10250 10224 1170 222RC 178.00 270 -65 10200 10440 1162 223RC 184.00 270 -55 10175 10475 1155 224RC 178.00 275 -60 10146 10465 1153 225RC 141.00 270 -60 10125 10447 1148 226RC 197.00 270 -70 10100 10430 1143 D227 14.49 90 -3 10800 10358 1118 228RC 124.00 270 -60 9900 10450 1112 D229 190.21 90 -3 10850 10381 1123 230RC 136.00 270 -60 9900 10485 1113 231RC 133.30 270 -60 10000 10500 1113 232RC 106.00 270 -60 9975 10425 1111 233RC 106.00 270 -60 9975 10375 1110 234RC 101.00 270 -60 9975 10325 1109 235RC 154.00 270 -60 9975 10550 1116 236RC 58.00 - -90 9975 10480 1112 237RC 149.00 - -90 9965 10480 1112 238RC 120.00 - -90 10200 10346 1129 239RC 110.00 - -90 10262 10333 1129 240RC 130.00 - -90 10425 10332 1133 241RC 113.00 - -90 10345 10309 1131 242RC 184.80 270 -80 10750 10604 1203 242.RCD Total Depth 354.00 243RC 158.00 270 -60 10750 10604 1203 243RCD Total Depth 299.40 244RC 142.00 270 -70 10500 10413 1123 245RC 120.00 270 -60 10500 10390 1120 D246 48.22 90 -80 10649 10402 1132 247RC 145.00 90 -90 10290 10310 1126 248RC 145.00 90 -90 10345 10309 1131 D249 264.72 270 -30 10775 10650 1187 250RC 195.00 270 -80 10850 10720 1185 250RCD Total Depth 349.20 251RC 171.00 270 -60 10850 10720 1185 251RCD In progress D252 136.22 90 -20 10649 10402 1132 253RC 177.00 270 -60 10910 10880 1213 254RC 4.00 270 -55 10900 10750 1212 D255 In progress 90 -15 10800 10358 1118 256RC 195 270 -60 10455 10693 1129 256RCD Total Depth 368.50 D257 In progress 270 -15 10750 10650 1187 D258 In progress 270 -25 10750 10600 1202 NOTE SDDH=Diamond Drill Hole, SRC=Reverse Circulation Drill Hole, Abd=Abandoned. (Tail) denotes First section of hole is RC with Diamond continuing from final RC Depth. Bearing=Sukari grid (Grid north nominally 020degrees Magnetic) Inclination=Below horizontal (-ve); Above horizontal (+ve) RL=arbitrary 1100m at grid origin 10,000N 10,000E. Mineralised intersections Further significant assays were intersected along the strike of the Hapi Shoot DDH213: 3m @ 56.83 (236-239m) DDH223: 1m @ 21.00 (164-165m) Assaying of the visible gold section of DDH208 returned 12m @ 11.99 (66-78m). This is a horizontal hole in the top section of the hill. Significant intersections since the March report are listed below: Table 2 Sukari Gold Mine Selected Gold Assays Diamond Drill Holes SDDH205 to SDDH 246 Hole From To Interval Grade (m) (m) (m) Au g/t DDH205 237 244 7 2.75 DDH207 123 128 5 3.51 DDH208 66 78 12 11.99 incl 69 71 2 48.15 incl 76 77 1 16.10 DDH210 99 101 2 4.78 DDH213 197 216 19 2.19 incl 202 213 11 3.39 incl 202 206 4 6.03 230 258 28 6.85 incl 236 239 3 56.83 RC221 57 110 53 2.36 incl 76 107 31 3.25 incl 93 103 10 5.59 incl 101 103 2 10.65 RC222 96 114 18 1.46 RC223 10 11 1 36.00 92 102 10 2.03 164 165 1 21.00 RC224 74 130 56 2.32 incl 110 124 14 4.95 incl 110 112 2 11.60 RC225 71 79 8 2.19 100 111 11 4.63 incl 104 105 1 21.20 RC226 97 110 13 2.69 incl 108 110 2 7.92 DDH227 162 176 14 2.99 incl 168 174 6 4.06 DDH229 88 93 5 6.09 RC231 71 75 3 3.37 RC235 114 123 9 1.59 RC237 75 81 6 3.13 131 138 7 2.57 incl 136 138 2 5.40 RC238 7 8 3 3.81 DDH242 192 254 62 2.00 incl 208 216 8 4.83 incl 252 254 2 5.57 299 315 16 2.01 incl 310 311 1 11.80 DDH243 33 39 6 2.85 228 247 19 2.08 incl 234 240 6 3.35 RC244 26 41 15 2.6 incl 30 41 11 3.19 DDH246 5 7 2 5.87 Field Operations Geological mapping continued over the northern area of the Sukari Hill with numerous structural observations being taken. One mineralised zone has been mapped over a length of 1500m and ancient Pharaonic/Roman diggings are common. In addition to the east dipping structures of the Amun Zone, mapping has also recognised west dipping structures and well defined north dipping structures with well developed alteration halos. Taking into consideration that the surface expressions of mineralisation in the RA Zone are much stronger and wider (greater than 400m wide as opposed to the 70-90m width in the Amun Zone) there is every confidence of intersecting much stronger mineralisation in the RA Zone. Feasibility The review of the 2 million tonne per annum base case feasibility study being carried out by SNC Lavalin is anticipated to be completed by the end of August. It is intended that the base case study together with the new resource will constitute the basis of a new study to determine the economics of developing a plant to process in excess of 5 million tonne per annum. Australia: No exploration or mining activities were carried out in Australia during the quarter and none are expected to occur in the next quarter. Yours faithfully S. El-Raghy Managing Director ASX Listing Rules 5.10 1 Information in this report which relates to exploration, geology, sampling and drilling is based on information compiled by consulting geologist Mr M Kriewaldt who is a corporate member of the Australasian Institute of Mining and Metallurgy with more than five years experience in the fields of activity being reported on and is not a full time employee of the Company. His written consent has been received by the Company for this information to be included in this report in the form and context which it appears. Mr Kriewaldt declares an interest in shares of the Company. Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entity Centamin Egypt Limited ABN Quarter ended ('current quarter') 86 007 700 352 30 June 2002 Consolidated statement of cash flows Current quarter Year to date Cash flows related to operating activities (...12....months) $A'000 $A'000 1.1 Receipts from product sales and related debtors 1.2 Payments for: (a) exploration and evaluation (890) (5,030) (b) development (c) production (d) administration (107) (1,814) 1.3 Dividends received 1.4 Interest and other items of a similar nature 29 142 received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid (16) 1.7 Other (provide details if material) Net Operating Cash Flows (968) (6,718) Cash flows related to investing activities 1.8 Payments for purchases of: (a)prospects (b)equity investments (c) other fixed assets (17) (70) 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows (17) (69) 1.13 Total operating and investing cash flows (carried forward) (985) (6,787) 1.13 Total operating and investing cash flows (brought forward) (985) (6,787) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 378 8,128 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings (156) (156) 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows 222 7,972 Net increase (decrease) in cash held 1,185 (763) 1.20 Cash at beginning of quarter/year to date 4,646 3,060 1.21 Exchange rate adjustments to item 1.20 71 (291) 1.22 Cash at end of quarter 3,954 3,954 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 64 1.24 Aggregate amount of loans to the parties included in item 1.10 1.25 Explanation necessary for an understanding of the transactions (a) A Director of the Company, Mr. S. El-Raghy, is also a Director and Shareholder of Nordana Pty Ltd ('Nordana'). Nordana provides consulting and management services, including the provision of office premises, to the Company and its subsidiaries. All dealings with Nordana are in the ordinary course of business and on normal terms and conditions. Fees paid to Nordana during the current quarter, including reimbursement of expenditure, were $52,500 ($318,741 for the year to date). From 1 January 2002, Mr. S. El-Raghy became an employee of the Company. However, his salary continued to be paid to Nordana at his request. (b) Mr. S. El-Raghy is also a Director and Shareholder of El-Raghy Kriewaldt Pty Ltd ('El-Raghy Kriewaldt'). El-Raghy Kriewaldt provide office premises to the Company. All dealings with El-Raghy Kriewaldt are in the ordinary course of business and on normal terms and conditions. Fees paid to El-Raghy Kriewaldt during the current quarter amounted to $12,000 ($16,000 for the year to date). (c) Directors Fees Directors fees and superannuation paid during the quarter were $20,250 ($86,125 for the year to date). (D) Audit Committee The Company has a formally constituted Audit Committee of the Board of Directors. Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Nil Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used $A'000 $A'000 3.1 Loan facilities 887 Nil 3.2 Credit standby arrangements Estimated cash outflows for next quarter $A'000 4.1 Exploration and evaluation 1,000 4.2 Development Total 1,000 Reconciliation of cash Reconciliation of cash at the end of the quarter (as Current quarter Previous quarter shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. $A'000 $A'000 5.1 Cash on hand and at bank 521 (8) 5.2 Deposits at call - 5.3 Bank overdraft - 5.4 Other (term deposits) 3,433 4,654 Total: cash at end of quarter (item 1.22) 3,954 4,646 Changes in interests in mining tenements Tenement Nature of interest Interest at Interest at reference beginning of end of quarter (note (2)) quarter 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total number Number quoted Issue price per Amount paid up per security (see note security (see note 3) 3) (cents) (cents) 7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions 7.3 +Ordinary 359,839,016 359,839,016 securities 7.4 Changes during quarter (a) Increases 1,888,067 1,888,067 20c 20c through issues (b) Decreases through returns of capital, buy-backs 7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) Exercise price Expiry date 7,700,000 Nil 20c 30.11.2002 111,791,226 111,791,226 20c 03.03.2003 49,999,744 Nil 20c 09.11.2003 7.8 Issued during quarter 7.9 Exercised during 1,888,067 1,888,067 20c 20c quarter 7.10 Expired during quarter 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) Note: The Company has agreed to broker's submission , that if any of their clients proceed with an early exercise of options for AUD20c the Company will, grant to the participating broker a 5% transaction fee for substantial conversions. Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4). 2 This statement does give a true and fair view of the matters disclosed. Notes 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The 'Nature of interest' (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. This information is provided by RNS The company news service from the London Stock Exchange

Companies

Centamin (DI) (CEY)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today