Qtrly report end 31.3.06
Centamin Egypt Limited
28 April 2006
Centamin Egypt Limited
Quarterly Report for the Quarter Ended 31 March 2006
& April Resource Upgrade
Highlights
* Sukari JORC compliant resource upgrade to 5.76 million ounces of gold;
* Increase of 1.27 million ounces or 28% above the resource statement announced
in December 2005;
* Total drill rigs on site increased to 9 with the addition of 2 new diamond
rigs;
* Cost per ounce discovered for current drilling programme - US$2.60 (US$4.60
to date);
* £20.6m placement successfully completed (approx A$50.4 million);
* Feasibility Study continues;
* New Pharaoh Zone drilling hits Visible Gold 2.2m down hole
* Significant drill intersections for the quarter:-
RCD431 - 4m @ 4.18g/t Au
RCD437 - 66.1m @ 2.18g/t Au
RCD440 - 24m @ 2.03g/t Au
RCD441 - 8m @ 6.80g/t Au (incl. 1m @ 38.5g/t Au from 144m)
DDH455 - 74.84m @ 2.42g/t Au
DDH456 - 19m @ 2.04g/t Au
RCD458 - 24m @ 2.61g/t Au & 76m @ 1.96g/t Au
RCD492 - 18m @ 8.80g/t Au (incl. 5m @ 21.57 g/t Au)
RCD497 - 38m @ 3.57 g/t Au (incl. 17m @ 5.79 g/t Au) & 21m @ 2.50 g/t Au
RCD499 - 40m @ 2.86 g/t Au (incl. 1m @ 12.20, 6m @ 8.09 & 1m @ 8.27 g/t Au)
RCD500 - 56m @ 2.03g/t Au
RCD502 - 38m @ 6.86g/t Au (incl. 9m @ 19.61 g/t & 3m @ 8.09 g/t Au).
SUKARI PROJECT
RESOURCE MODELLING
The Sukari global resource was upgraded during the month of April, utilising all
available assaying as at 25 April 2006 and included initial drilling data from
the Ra and Pharaoh Zones, completed since November 2005 (Table 1). The global
resource now stands at 124.2Mt @ 1.44g/t Au for 5.76 Moz Au, at a 0.5g/t Au cut
off grade, an increase of 1.27 million oz (28%) from December 2005.
Table 1 - April 2006 Resources by Confidence Category - Uncut
Cut-off Measured Indicated Inferred Total TOTAL
Mt g/t Mt g/t Mt g/t Mt g/t Moz
0.5 33.426 1.44 41.503 1.52 49.32 1.4 124.247 1.44 5.76
0.7 25.352 1.71 32.098 1.79 34.75 1.7 92.197 1.74 5.15
1.0 17.085 2.13 21.898 2.23 22.21 2.2 61.192 2.19 4.31
Note to Table: Figures in table may not add correctly due to rounding
The measured resources lie in areas where drilling is available at a nominal
25 x 25 metre spacing, indicated resources in areas drilled at approximately
25 x 50 metre spacing and inferred resources in areas of broader spaced drilling
and that the resources are estimates of recoverable tonnes and grades using
Multiple Indicator Kriging with block support correction. The resource model
extends from 9700mN to 12250mN and to a maximum depth of 600RL (approximately
550 metres below surface).
The resource estimate has been based on the sampling and geological logging
coming from 571 diamond and RC drill holes combining to give approximately
116,500 metres of drilling and 5,271 two-metre surface rock chip samples.
Resource data set comprises approximately 58,125 two-metre down hole composites
and rock chip samples. The December model was based on 41,991 drill hole and
rock chip samples.
Measured and Indicated ounces increased by 15% or 472,379 ounces. The Inferred
resources in the current estimate, compared to the December estimate increased
by 57%, due to the step out drilling programme north of 11000mN, all resources
north of this northing have been categorised as Inferred in this model. Future
infill drilling should, as in the past, elevate these ounces to the Measured and
Indicated categories.
Drilling Programmes
Resource and Exploration drilling during the March quarter focused on:
1. Initial drilling in the Ra Zone
2. Infill drilling within the AmunZone
3. Step out drilling to the north in the Pharaoh Zone
Ra Zone
The aim of the Ra Zone drilling was to confirm continuity of the Sukari
mineralised system to the north of the Amun Zone, outline inferred resources
for further delineation and start opening up the northern parts of the Sukari
Hill (Pharaoh Zone) for systematic evaluation. The Ra zone from 10975N to
11200N has been infill drilled on 50m spaced sections, in some areas to 25m.
Results show continuity of mineralisation through the northern part of the Amun
zone, into the Ra Zone and onwards into the Pharaoh Zone, and are extremely
encouraging for resource base expansion, future infill drill testing and
resource modelling.
The Ra Zone is characterised by the presence of large volumes of the red,
porphyritic, haematitic altered porphyry. Geological and assay data shows
mineralisation continuing strongly along strike to the north, mainly confined to
the eastern half of the hill as accessible now. Mineralisation zones are
controlled by a series of sheeted, moderate (30 - 50o) east and west dipping
structures, related to extensional quartz veining and alteration of the
porphyry, with sericite, silica, kaolinite, ankerite and pyrite the main
alteration minerals.
Amun Zone Infill
The aims of this drilling programme were to:
• Convert as much inferred resources lying inside the current pit shells as
possible to Indicated and Measured, thereby maximising resource ounces for
the Feasibility Study, reserve calculations and detailed mine design work, as
well as improving geological understanding and the 3D model;
• Maximise pit shell volume on geological information, not have pit shells
bottoming on a lack of drill data;
• Infill identified gaps in the resource model, particularly at the footwall
contact in areas where it starts to flatten and have potential for higher Au
grades; as well as test hangingwall porphyry units which are variably
mineralised but poorly tested, particularly around 10500N;
• Define the extent and geology of mineralised porphyry to the south and at
depth, close off if possible to the south for infrastructure requirements and
mine planning.
At quarter's end, assays were beginning to be returned for the first few holes
in the Southern Amun Zone. All RC pre-collar assays have been returned for the
Amun Main Zone programme holes, most DD tail assays are awaited.
Pharaoh Zone Drilling
RC pre-collar drilling is currently underway in the Pharaoh Zone, following
strong near surface indications of mineralisation from previous mapping, rock
chip sampling and drilling. The aim of the drilling programme is to define
mineralisation continuity north to the end of the Sukari Hill, initially on
50 - 100m spaced sections, to an inferred resource category and for preliminary
economic studies.
Assay results are encouraging as they indicate economic gold values near surface
and visible gold has also been sighted in drill core. These correspond well
with Au anomalous rock chip samples taken in early 2005 and the quartz
vein-shear-alteration zone striking grid north from about 11600N to the northern
margin of the porphyry hill at 12200N.
FEASIBILITY STUDY
During the quarter, work continued with Ausenco on the Bankable Feasibility
Study into the development of a 4 to 5 million tonne per annum processing
facility.
Current indications are that the study should be completed by the end of the
second quarter.
CORPORATE ACTIVITIES
Share Placement
The company successfully placed 75 million new ordinary shares at a price of
27.5p per share, raising approximately £20.6 million (A$50.4 million), before
expenses, via the Company's nominated adviser, Williams de Broe Plc. The funds
raised from the placing will be used to secure long lead time items and to cover
pre-mining costs in relation to the development of the Company's Sukari mine.
Funds will also be used to provide general working capital.
The new shares were placed with institutional investors and other financial
institutions including Ambrian Partners Limited who acted as sub-agent to the
placing. The new shares represent approximately 13.0% of the Company's expanded
issued share capital immediately following the placing.
For Centamin Egypt Limited
Josef El-Raghy
Managing Director/CEO
28 April 2006
For more information please contact:
Centamin Egypt Limited Bishopsgate Communications Ltd
Tel: +61 8 9316 2640 Fax: +61 8 9316 2650 Tel: +44 (0) 2074 301 600
Josef El-Raghy (josef@centamin.com.au) Maxine Barnes +44 (0) 7860 489 571
Heidi Brown (heidi@centamin.com.au) Dominic Barretto +44 (0) 7930 450 156
www.centamin.com www.bishopsgatecommunications.com
Information in this report which relates to exploration, geology, sampling and
drilling is based on information compiled by geologist Mr R Osman who is a full
time employee of the Company, and is a 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 a 'Competent Person' for this purpose. 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.
The information in this report that relates to mineral resources is based on
work completed by Mr Nicolas Johnson, who is a Member of the Australian
Institute of Geoscientists. Mr Johnson is a full time employee of Hellman and
Schofield Pty Ltd and has sufficient experience which is relevant to the style
of mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the 2004
edition of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Johnson consents to the inclusion in the report
of the matters based on his information in the form and context in which it
appears.
Significant Assay Intersections Returned for the March 2006 Quarter
Hole Northing EOH (m) From To Width Assay g/t
RCD420 11077 387 367 382 15 2.41
RCD421 11125 431.3 373 387 14 2.22
RCD427 11075 370.4 284 318 34 1.58
incl. 304 305 1 6.15
339 340 1 6.07
RCD428 11075 602.8 215 222 7 1.91
incl. 221 222 1 6.65
504 550 46 1.28
RCD431 11075 320.3 110 170 60 1.15
175 179 4 4.18
incl. 175 176 1 13.90
RCD433 11125 276.5 204.6 206 1.4 8.13
230 234 4 2.85
RCD434 11175 284.5 180 181 1 5.22
247 254 7 2.29
incl. 247 248 1 9.49
RCD436 11200 312.7 294 295 1 6.37
RCD437 11175 365.1 299 365.1 66.1 2.18
incl. 319 331 12 4.64
incl. 350 361 11 3.58
incl. 356 358 2 12.38
RCD440 11125 296 50 52 2 22.73
110 111 1 6.84
123 147 24 2.03
incl. 124 125 1 18.40
incl. 137 138 1 8.28
RCD441 11175 306.9 138 146 8 6.80
incl. 144 145 1 38.50
RCD444 11600 245.6 143 180 37 1.41
incl. 169 170 1 8.36
RCD445 11700 263.9 216 222 6 3.74
incl. 220 221 1 11.20
D447 10400 115.59 113 115.59 2.59 5.50
RCD454 10950 503.1 182 191 9 2.10
incl. 182 183 1 10.80
252 253 1 6.20
281 282 1 8.47
332 421 89 1.39
incl. 399 406 7 4.59
incl. 404 405 1 23.70
D455 11025 300.84 194 207 13 2.46
226 300.84 74.84 2.42
incl. 252 287 35 3.70
incl. 261 265 4 8.00
incl. 274 279 5 6.46
incl. 284 287 3 9.11
D456 11075 324.47 217 241 24 1.61
incl. 233 238 5 4.81
251 270 19 2.04
RCD458 10975 595 166 167 1 8.70
328 329 1 8.33
415 439 24 2.61
incl. 415 419 4 6.10
472 548 76 1.96
incl. 473 474 1 42.10
incl. 509 510 1 6.13
incl. 515 519 4 3.95
incl. 546 547 1 10.60
554 588 34 1.33
incl. 561 562 1 13.40
incl. 561 567 6 3.19
incl. 577 578 1 10.00
D464 11125 266.6 169 172 3 7.13
incl. 170 171 1 14.70
RCD467 11800 268 50 76 26 1.66
incl. 67 69 2 6.71
RCD471 11600 386.8 0 12 12 1.86
57 66 9 2.25
316 323 7 3.77
RCD478 11800 368 15 16 1 7.68
15 23 8 2.67
90 91 1 14.80
RCD479 11700 380 0 11 11 1.97
59 101 42 1.26
incl. 62 73 11 3.19
294 306 12 2.17
300 301 1 7.43
RCD480 11700 320 26 30 4 2.48
116 121 5 2.32
RCD492 10000 271.1 97 113 16 1.46
incl. 98 99 1 9.81
181 198 18 8.80
incl. 188 193 5 21.57
incl. 196 197 2 12.18
RCD493 10025 223.5 30 37 7 2.55
incl. 34 35 1 6.62
RCD497 10075 380.00 206 244 38 3.57
incl. 227 244 17 5.79
incl. 233 237 4 13.70
263 284 21 2.50
RCD498 10100 308.3 75 78 3 2.87
99 138 39 2.60
incl. 135 138 3 11.50
RCD499 10000 371.30 279 319 40 2.86
incl. 287 288 1 12.20
incl. 292 298 6 8.09
incl. 301 302 1 8.27
RCD500 10150 277.6 65 121 56 2.03
incl. 104 105 1 10.10
incl. 109 111 2 5.65
129 141 12 2.32
D501 11175 128.4 66 67 1 6.88
118 127 9 5.29
incl. 125 127 2 19.50
RCD502 10200 348.1 108 146 38 6.86
incl. 108 117 9 19.61
incl. 137 140 3 8.09
RCD504 10300 321.2 192 197 5 2.00
206 212 6 5.29
incl. 210.5 212 1.5 19.40
234 239 5 4.84
278 283 5 3.32
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin : Appendix 8. Amended 1/7/98, 30/9/2001.
Name of Entity
Centamin Egypt Limited
ABN Quarter ended ('current quarter')
86 007 700 352 31 March 2006
Consolidated statement of cash flows
Centamin Egypt Limited
Pharaoh Gold Mines NL (100%)
Viking Resources Ltd (100%)
North African Resources (100%)
Cash flows related to operating activities Current Year to date
Quarter (9 months)
$A'000 $A'000
1.1 Receipts from product sales and related debtors
1.2 Payments for (a) exploration and evaluation (2,884) (7,425)
(b) development (424) (643)
(c) production - -
(d) administration (253) (687)
1.3 Dividends received - -
1.4 Interest and other items of a similar nature received 159 564
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
----------- -----------
Net Operating Cash Flows (3,402) (8,191)
------------------------------- ----------- -----------
Cash flows related to investing activities
1.8 Payment for purchases of (a) prospects - -
(b) equity investments - -
(c) other fixed assets (347) (596)
1.9 Proceeds from sale of (a) prospects - -
(b) equity investments - -
(c) other fixed assets - (6)
1.10 Loans to other entities *(Refer Note 1) (3,366) (8,376)
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -
----------- -----------
Net investing cash flows (3,713) (8,978)
----------- -----------
1.13 Total operating and investing cash flows
(carried forward) (7,115) (17,169)
----------- -----------
1.13 Total operating and investment cash flows (brought
forward) (7,115) (17,169)
------------------------------- ----------- -----------
Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. 73 203
1.15 Proceeds from sale of forfeited shares - -
1.16 Proceeds from borrowings *(Refer Note 1) 3,366 8,376
1.17 Repayment of borrowings 158 316
1.18 Dividends paid - -
1.19 Other (provide details if material) - -
----------- ----------
Net financing cash flows 3,597 8,895
------------------------------- ----------- ----------
Net increase (decrease) in cash held (3,518) (8,274)
1.20 Cash at beginning of quarter/year to date 13,156 17,946
1.21 Exchange rate adjustments to item 1.20 111 77
----------- ----------
1.22 Cash at end of quarter 9,749 9,749
------------------------------- ----------- ----------
*Note 1 - From the March 2004 Quarter onwards, the funding of exploration
expenditure by the Holding Company to its subsidiaries is also disclosed as an
inter-entity loan under sections 1.10 and 1.16 respectively.
----------
Payments to directors of the entity and associates of the Current quarter
directors
Payments to related entities of the entity and associates of $A'000
the related entities -----------
1.23 Aggregate amount of payments to the parties included in
item 1.2 227,510
-----------
1.24 Aggregate amount of loans to the parties included in item -
1.10 -----------
1.25 Explanation necessary for an understanding of the transactions
- Salaries, superannuation contributions, consulting and directors fees
paid to Directors during the quarter amounted to $200,370.
- Mr S El-Raghy and Mr J El-Raghy are Directors and shareholders of
El-Raghy Kriewaldt Pty Ltd ('ELK'), which provides office premises to the
Company in Australia. All dealings with ELK are in the ordinary course of
business and on normal terms and conditions. Rent paid to ELK during the
quarter amounted to $13,395.
- Mr S El-Raghy provides office premises to the Company in Alexandria,
Egypt. All dealings are in the ordinary course of business and on normal
terms and conditions. Rent paid during the quarter amounted to $4,704.
- Mr C Cowden, a non-executive director, is also a director and shareholder
of Cowden Limited, which provides insurance broking services to the
Company. All dealings with Cowden Limited are in the ordinary course of
business and on normal terms and conditions. Insurance premiums paid to
Cowden Limited during the quarter amounted to $9,041.
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
-
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
-
Financing facilities available
Add notes as necessary fro an understanding of the position.
----------- ----------
Amount available Amount used
$A'000 $A'000
----------- -----------
3.1 Loan facilities - -
----------- -----------
3.2 Credit standby arrangements - -
------------------------------- ----------- -----------
Estimated cash outflows for next quarter
$A'000
----------
4.1 Exploration and evaluation 3,300
----------
4.2 Development 700
---------------------------------------- ----------
Total 4,000
---------------------------------------- ----------
Reconciliation of Cash
Reconciliation of cash at the end of the Current quarter Previous
quarter (as shown in the consolidated quarter
statement of cash flows) to the related items $A'000 $A'000
in the accounts is as follows.
------------------------------- ----------- -----------
5.1 Cash on hand and at bank 1,072 940
----------- -----------
5.2 Deposits at call 473 931
----------- -----------
5.3 Bank overdraft - -
----------- -----------
5.4 Term deposits 8,204 11,285
------------------------------- ----------- -----------
Total: cash at end of quarter (item 1.22) 9,749 13,156
------------------------------- ----------- -----------
Changes in interests in mining tenements
------------- ---------- ------------ -----------
Tenement Nature of Interest at Interest at
reference interest beginning of end of
(note (2)) quarter quarter
------------- ---------- ------------ -----------
6.1 Interest
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 Issue price Amount paid
quoted per security up per
(see note 3) security
(cents) (see note 3)
(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
securities 502,850,369 502,850,369
------------- ---------- ------------ -----------
7.4 Changes
during quarter 290,000 290,000 (See 7.9 below) (See 7.9 below)
(a) increases
through
options
exercise
(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 Employee Exercise price Expiry date
Option Plan
2002
(description
and conversion 600,000 Nil 23.10 cents 12/11/2006
factor) 50,000 Nil 23.10 cents 17/11/2006
750,000 Nil 35.49 cents 15/12/2006
775,000 Nil 28.04 cents 04/02/2008
410,000 Nil 28.04 cents 17/02/2008
4,200,000 Nil 35.00 cents 31/10/2010
1,500,000 Nil 43.55 cents 08/12/2008
------------- ---------- ------------ -----------
7.8 Issued during
quarter ------------- ---------- ------------ -----------
7.9 Exercised
during quarter 160,000 Nil 23.10 cents 12/11/2006
80,000 Nil 23.10 cents 17/11/2006
50,000 Nil 35.00 cents 31/10/2010
------------- ---------- ------------ -----------
7.10 Expired/
lapsed during
quarter ------------- ---------- ------------ -----------
7.11 Debentures
(totals only) ------------- ---------- ------------ -----------
7.12 Unsecured
notes(totals
only) ------------- ---------- ------------ -----------
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.
Sign here: Company Secretary Date: 28 April 2006
Print name: Heidi Brown
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
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