JOHANNESBURG (miningweekly.com) – London- and Toronto-listed Centamin on Monday reported a 20% quarter-on-quarter and 13% year-on-year decline in total gold production from its Sukari gold mine, in Egypt, for the first quarter of 2017.

In line with Centamin's forecast, preliminary total gold production for the three months to March 31, was 109 187 oz, compared with 136 787 oz in the fourth quarter of 2016 and 125 268 oz achieved in the first quarter of 2016.

“As previously outlined in the 2016 full year results, production rates were forecast to decrease in the first quarter owing to a planned reduction in average grade from the openpit,” explained Centamin CEO Andrew Pardey in an update to shareholders.

However, the group maintained its 2017 full year guidance of 540 000 oz at a cash operating cost of $580/oz and an all-in-sustaining cost of $790/oz.

“During the second quarter, we expect to see ore grades increase towards the reserve average as the cutback in the east wall of the pit is further progressed. With the processing and underground mining operations also continuing to deliver strong levels of productivity, we remain on course to meet our full year 2017 production guidance,” he added.

During the March quarter, throughput at the mine’s process plant decreased 1% quarter-on-quarter to 2.9-million tonnes, in line with the 2017 yearly forecast of 11.75-million tonnes milled.

Sukari’s openpit total material movement increased 8% quarter-on-quarter to 17.1-million tonnes, while the openpit ore production increased 14% to 2.47-million tonnes at an average mined grade of 0.47 g/t.

The average head grade to the plant from the openpit was 0.58 g/t.

“This was below both the reserve grade and our forecast average grade for the full 2017 year, as the openpit continued to develop a low-grade cutback in the east wall of the pit in line with the mine plan,” said Pardey.

Sukari’s run-of-mine ore stockpile balance decreased by 191 000 t to 386 000 t by March 31.

The underground operation delivered 252 000 t of ore at an average mined grade of 7.44 g/t, the company said.

“On an annualised basis, the productivity rate was in line with our 2017 forecast of one-million tonnes at 7.26 g/t. Ore from stoping was 153 000 t at 6.9 g/t and ore from development was 99 000 t at 8.3 g/t.”