JOHANNESBURG (miningweekly.com) – Gold miner Centamin’s flagship Sukari mine, in Egypt, produced 148 674 oz of gold in the third quarter of the year, a 6% increase on that produced in the second quarter.
Output was also 41% higher year-on-year.
Production cash costs for the quarter were $466/oz and all-in sustaining costs (AISC) $644/oz.
“Operational performance, together with a continuation of the low operating costs delivered in the second quarter and a further increase in realised gold prices, resulted in a strong $85-million increase in our cash and liquid assets balance to $417-million,” CEO Andrew Pardey said in a statement on Monday.
The company’s Sukari underground mine, in Egypt, delivered 255 000 t of ore at a grade of 8.97 g/t while openpit mine material movement was 16.19-million tonnes with milled grades of 1.14 g/t.
Development of a new exploration decline within the north-eastern Cleopatra zone of Sukari Hill started in August.
The project is aimed at testing the potential for further reserve growth and additional underground production of up to one-million tonnes a year. Initial expenditure is expected to be $11.5-million over nine months.
Full-year production is expected towards the upper end of guidance of between 520 000 oz and 540 000 oz, while costs for the full year are expected to be at the lower end of guidance, with cash cost of production at $530/oz to $550/oz and AISC at $720/oz to $750/oz.
“Ore throughput rates at the processing operation were stable, consolidating the improvements delivered over previous quarters and remaining above our base case forecast rate of 11-million tonnes a year,” Pardey said.
He noted that the company continued to see potential for sustained production rates in excess of its base case.
Recoveries of 89.7% were comparable with the previous quarter and almost 2% above Centamin’s forecast for the full year.
“Work continues on developing the potential to improve and sustain recoveries at the 90% level at increasing throughput rates,” he said.