Centamin (LSE:CEY)(TSX:CEE) has obtained positive outcomes from a pre-feasibility study (PFS) at its Doropo Gold Project in north-eastern Côte d’Ivoire.
The results include a maiden Mineral Reserves Estimate, detailed project parameters and economics, with identified upside opportunities for evaluation during the definitive feasibility study (DFS).
“The results from the Doropo PFS demonstrate an economically robust project that meets Centamin’s hurdle rates to proceed with a definitive feasibility study,” CEO, Martin Horgan, said.
“A life of mine average production rate of approximately 175kozpa at US$1,000/oz AISC over 10 years delivering an IRR of 26% at a gold price of US$1,600/oz in a well-established mining jurisdiction represents an excellent outcome. We have identified opportunities to further optimize the project which will be assessed as part of the DFS which is scheduled for completion in mid-2024.
“A substantial part of the DFS fieldwork has already been completed in 2023 which derisks the timeline to completion and further confirms our faith in the potential of Doropo to support a commercially viable project which will bring significant investment and job creation to north-eastern Côte d’Ivoire.”
Highlights
- Maiden Mineral Reserve Estimate of 1.87 million ounces (Moz) of Probable Mineral Reserves, at an average grade of 1.44 grams per tonne of gold (g/t Au), supporting a 10-year life of mine (LOM)
- Average annual gold production of 173koz over the LOM, with an average of 210koz in the first five years
- All-in sustaining costs (AISC) of US$1,017 per ounce sold over the LOM, with an average AISC of US$963/oz for the first five years
- The mine plan assumes conventional open pit mining of a sequence of shallow pits
- Mineral processing via a 4.0 to 5.5 million tonnes per annum (“Mtpa”) semi-autogenous grinding (SAG) mill, ball mill and crusher (SABC) circuit, and conventional carbon-in-leach (CIL) circuit for an average LOM gold metallurgical recovery rate of 92%
- Total construction capital expenditure (capex) of US$349M, inclusive of a 10% contingency, with a 2.3 year payback at a US$1,600/oz gold price
- Robust economics with a post-tax net present value of US$330M and internal rate of return (IRR) of 26%, using 5% discount rate (NPV5%) and US$1,600/oz gold price (Discount rate and gold price sensitivity table available below)
- Definitive feasibility study (DFS) and environmental and social impact assessment (ESIA) completion expected in H1 2024 ahead of mining license submission deadline
- Upside opportunities identified for potential resource and reserve growth and improvements to capital and operating expenditure estimates
For further information please visit: https://www.centamin.com/
