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.
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