A new life of mine plan for the Sukari gold mine in Egypt will deliver long-term increased gold production, lower operational costs, reduced operational risk and significantly reduced carbon emissions, according to owner Centamin.
The company announced the new plan today, flagging average gold production from Sukari of 506,000 oz/y for the next nine years (2024-2032); and 475,000 oz/y for life of mine (2024–2034), reflecting a 5% increase in life of mine gold production compared to 2022 (441,000 oz).
The main contributors to this increase was an improved open-pit schedule, which included a 40% improvement to the life of mine strip ratio (6.5 times) compared to full year 2022 (10.8 times); an increased underground schedule, including a 75% increase in average life of mine ore mining rates (1.4 Mt/y) compared to FY22 (800,000 t); and the integration of a gold gravity circuit to the processing plant, driving a 2% increase in life of mine gold recoveries (89.8%) compared to FY22 (88.2%).
When it comes to the cost and emissions outlook, Centamin flagged connection to the Egyptian national grid, which would deliver an estimated $41 million of annual cost savings based on current diesel prices. The company also flagged the potential for increasing the capacity of its existing solar power plant, going from the existing 30 MW to 45-50 MW.
The optimisation of the open pit involves several parts – the aforementioned strip ratio changes, deferred processing of stockpiles and an optimised fleet strategy. The latter will see Centamin purchase an additional five trucks in 2024 to support the life of mine plan, at an approximate cost of $13 million taking the Sukari fleet capacity from some 90 Mt/y to 110 Mt/y.
The gold gravity circuit, meanwhile, will be added to the processing facility to improve the recovery of the coarse gold found in the higher grade ore from both the underground and open pit. Construction of this is expected to be completed in the first half of 2025 for an estimated capital cost of up to $20 million.
Centamin also mentioned further upside opportunities to this life of mine plan, including an expansion of dump leach operations, further open pit and plant optimisation, and resource and reserve growth.
Martin Horgan, CEO, said: “Today’s new life of mine plan firmly reestablishes Sukari as a global tier one gold asset, with long-term production above 500,000 oz per annum at all-in sustaining costs below $1,000/oz, underscoring our dedication to maximising free cash flow generation. This plan is not only a substantial improvement on what was previously published but, importantly, it incorporates significantly lower operational risk and delivers improved carbon abatement.
“This revised plan underpins our strategy to maximise the value of Sukari as the foundation for growth and diversification balanced with stakeholder returns.”