Process plant acqn
Centamin Egypt Limited
10 October 2006
10 October 2006
Centamin Egypt Limited
('Centamin')
Sukari Gold Project - Process Plant Acquisition
Centamin Egypt Limited is pleased to announce that it has entered into a binding
agreement with a subsidiary of Newmont Mining Corporation, to acquire the Kori
Kollo CIL process plant for US$11m. The acquisition will be funded out of
existing cash reserves.
The Kori Kollo plant is located in Bolivia and was built and commissioned by
Minproc Engineers in 1993. The plant operated for ten years and on-site
inspections from Centamin representatives have shown the key plant components to
be in excellent condition due to the site altitude providing a non-corrosive
environment and the high standard of maintenance practices during operation.
Payment for the plant is to be on a structured basis, pending the satisfactory
completion of certain events occurring with title to pass once the plant is
delivered into Chile.
The plant is ideally suited to the Sukari orebody and key equipment sizing is
well matched to the 4-5mtpa processing rate currently envisaged for the Sukari
project. The acquisition represents a key step forward in bringing the Sukari
project into production.
Scope of the Acquisition
The purchase includes:
• Crushing circuit - primary gyratory crusher, rock breakers, stockpile feed
conveyor
• Grinding and classification circuit - 28' Fuller SAG mill , 2 x 16'6''
Fuller ball mills, mill inching drive, mill liner handling machine
• CIL (Leach and Adsorption) circuit and carbon recovery equipment
• Thickening and process water area - Enviro Clear 75' diameter thickener
• Reagent plant - flocculant plant, caustic dosing system
• Gravity separation circuit
• Sulphur dioxide cyanide destruction plant
• Engineering design and construction drawings
• Operating and maintenance manuals
• Spares inventory
Overview photographs of the plant are provided on Centamin's website, http://
www.centamin.com .
Relocation Plan
Roche Mining (JR) Pty Ltd has been appointed to manage the dismantling,
transportation and refurbishment of the plant.
The plant is currently being electrically isolated to allow for dismantling.
This process will be completed sequentially over the next two months, during
which time dismantling will commence. The plant will be trucked to the port of
Arica in Chile, shipped to Alexandria in Egypt and then trucked to Sukari.
The purchase of this plant represents an opportunity to materially reduce the
cost of development of the Sukari project and also accelerate the construction
timetable. By necessity, the completion of the Feasibility Study will be delayed
whilst a thorough review of the impact of the purchase of this process plant on
capital and operating costs is carried out.
Enquiries:
Centamin Egypt
Josef El-Raghy +61 (8) 9316 2640
Evolution Securities
Frank Moxon / Simon Edwards +44 (20) 7071 4300
This information is provided by RNS
The company news service from the London Stock Exchange
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