Centamin CEO Martin Horgan
The results of a definitive feasibility study (DFS) on London- and Toronto-listed gold miner Centamin's Doropo project, in Côte d'Ivoire, have demonstrated that it is a robust project that meets the company's investment criteria, says CEO Martin Horgan.
"The project shows a strong first five years with production in excess of 200 000 oz/y at an all-in sustaining cost (AISC) below $1 000/oz, delivering an accelerated payback on investment. The DFS has resulted in a plan with significantly lower execution risk, relative to the prefeasibility study, reflecting a reconfiguration of the project to reduce its social impact on local communities," he adds.
Centamin points out that the eight relatively shallow deposits at Doropo will be mined using a conventional drill, blast, and load and haul openpit operation.
The basis for the DFS is a contract mining operation, mining a maximum of 28-million tonnes a year of material and delivering up to 4.9-million tonnes a year of ore to the run-of-mine pad and stockpiles.
The project's mineral reserve estimate of 1.88-million ounces of probable mineral reserves, at an average grade of 1.53 g/t gold, supports a ten-year life-of-mine (LoM).
The mine is expected to produce about 167 000 oz/y of gold over the LoM, with an average of 207 000 oz/y estimated for the first five years of operation.
All-in sustaining cost (AISC) is estimated at $1 047/oz over the LoM, with an average AISC of $971/oz expected for the first five years of operation.
Construction capital expenditure is estimated at $373-million, while the DFS estimates a post-tax net present value of $425-million, a 34% internal rate of return and a 2.1-year payback period.
Centamin says it received an environmental permit for Doropo in June. It will soon proceed to filing a mining licence application for the project.
"Financing options for the project are well advanced, supported by a clear roadmap for early works that will mitigate completion risks. This study underlines our confidence in Doropo's potential to become a commercially viable project, bringing substantial investment and employment opportunities to north-eastern Côte d'Ivoire," Horgan says.
SUKARI
Meanwhile, at the company's Sukari mine, in Egypt, contractor Capital has completed a 120-million-tonne waste stripping programme early. The contractor had entered into a four-year fixed-term contract with Centamin for the programme in January 2021.
This has enabled Centamin to further retain Capital to mine up to ten-million tonnes of waste until September, with two-million to three-million tonnes being incremental to the planned total yearly volume at Sukari, equating to a 1% to 2% increase.
"This additional capacity will support the construction of a new dump leach pad, as well as facilitating the early completion of limited waste stripping scheduled for 2025 ahead of the delivery of the new 785C dump trucks. The net result is expected to be a small increase in total openpit material mined above the planned annual volume for 2024," says Horgan.
"We are glad to be able to work with our long-term partners Centamin to leverage our fleet on site, having completed our 120-million-tonne waste mining contract six months ahead of requirements.
"We will continue to mine waste through the third quarter, covering a delay in [Centamin's] new trucks, as well as allowing it to accelerate the construction of its new dump leach facility," Capital CE Peter Stokes says.