Centamin has announced the potential to expand the underground operation at its flagship Sukari Gold Mine in Egypt to 1.5 Mt/y of total ore mined, as supported by an independent option study. This is at the upper end of the previously indicated range and represents a 31% increase in ore mining rates from the current life of mine average of 1.1 Mt/y. Total material movement (ore + waste) for the expanded underground mine would be approximately 2 Mt/y.
Martin Horgan, CEO, commented: “Expansion ofthe Sukari underground mining capacity is a significant step towards delivering on our commitment to consistently produce 500,000 oz per annum from the Sukari Gold Mine. The ability to expand the underground is a result of our transformed approach to mineral resource management which delivered a doubling of the underground reserve in 2021, coupled with the productivity and cost benefits that are being realised following the transition to owner mining. The expansion option that we are taking forward to the next phase of mine planning offers both low capital intensity and a lower level of execution risk.”
The next step is to fully engineer and schedule the expansion in H1 2023. The company has completed an independent option study carried out by Entech, the mining consultants specialising in resource geology, mining engineering, geotechnical and ventilation services based out of Perth, Australia, and supported by site management. The study included extensive scenario modelling assessing cut-off grade analysis; optimal ore mining rates ranging from 1 Mt/y to 2 Mt/y; geotechnical risk analysis; orebody geometry; mining methods; existing infrastructure and fleet capacity requirements.
Using the current cut-off grade of 2.2 g/t of gold, the study recommended increasing ore mining rates to 1.5 Mt/y as the optimal expansion-cost-risk trade off, with no material change to mining method. The expansion is facilitated through the use of portals into the open pit which will significantly reduce haulage distances and improve productivity. This will allow the trucking fleet requirement to remain reasonably consistent even as mining continues to depth, and from a safety perspective it provides an additional means of egress.
The capital investment is estimated to be between $25-35 million and will primarily be spent on ventilation upgrades, underground development, additional fleet items (two trucks, one development drill rig and a loader) and potential increases to the paste-fill plant capacity. As part of the study, a base case mining and development schedule was produced for the expanded 1.5 Mt/y mining rate utilising the 2021 underground resource model.
The next step is to deliver a fully engineered mining schedule by mid-2023, incorporating the upcoming 2022 Sukari mineral resource estimate, scheduled for publication in December 2022. Given lead times for equipment delivery and infrastructure implementation, it is estimated that underground mining rates will gradually ramp up throughout 2024 and reach the increased steady state for 2025.