Sukari mine produces 124.3K ounces in Q1

CAIRO – 9 April 2018: Gold production at Sukari mine recorded 124,296 ounces during the first quarter of 2018, with an increase of 14 percent compared to the same quarter of 2017, according to Centamin Company.

Centamin said that in a quarter-on-quarter basis, the gold production decreased 19 percent.

CEO of Centamin Andrew Pardey attributed the decrease of the production in a quarter on quarter basis to the transitional zone of the open pit delivering lower than expected grades.

The company added that total ore processed during the quarter increased 6 percent on a year-on-year basis to reach 3.07 million tons.

Open pit total material movement recorded 18.5 million tons with a 1 percent increase in material, and quarterly open pit ore mined reached 6.05 million tons, at an average mined grade of 0.50 gram per ton, according to the Company.

Pardey added that the company maintains a full year production guidance of 580,000 ounces.

“The fourth secondary crusher has been installed and commissioning is underway, further lifting throughput capacity in line with increased underground tonnage. Building on the strong plant performance this quarter, we look forward with confidence to delivering on our production guidance throughout 2018,” he added.

Two companies are operating in Egypt right now to produce gold, which are Australian Pharaonic Company (Centamin) that operates in the Sukari mine and Cyprus-based Mats Holdings, which operates in the Hamsh mine.

For exploration and drilling of gold, other two gold companies are operating in Egypt, which are Canadian Aton Mining and UAE’s Thani Dubai.

Sukari Gold Mine, the country's sole gold-exporting mine, produced around 100 tons of gold since it started operations in January 2010, with an average monthly production of 1.2-1.5 tons of gold.

Petroleum Minister Tarek el-Molla said in late December that the Sukari Gold Mine has contributed a total of $250 million in revenues to the government since it started production in 2009.

The government said that it aims to increase the mining sector's contribution to the GDP to more than five percent. It currently contributes around 0.5 percent of the GDP.

Molla said that the government is working to identify the challenges facing the sector and that his ministry aims to boost investments by amending the sector's administrative and legislative systems.

Located in the south-easternmost region of the Eastern Desert, Sukari mine is the first large-scale modern gold mine in Egypt, with a base case production rate of about 500,000 ounces per annum, according to the official website of Centamin.