The reserve estimate at Centamin Egypt's Sukari gold mine, in Egypt, has been increased by 72%, the company reported on Thursday.
The proven and probable reserves at Sukari are now estimated at 6,4-million ounces, compared with a March 2007 estimated of 3,7-million ounces.
The new reserve calculations were based on drilling conducted up to January 25, and at a gold price of $700/oz.
The reserves were calculated from a measured and indicated resource of 191-million tons, at 1,5 g/t, for 9,39-million ounces, which was announced on February 12.
"This increase in the reserves at Sukari is an excellent result and is in line with our targets,” said CEO Josef El Raghy.
“The ongoing drilling program has been very encouraging and the Company is confident that this will result in further additions to the reserve and resource inventory.”
The Sukari pit will be developed in a number of stages and the mining and processing schedule developed for Sukari uses an elevated cutoff grade through the early years to increase the head grade to the processing plant.
It is currently assumed that the material between this elevated cutoff grade and the cutoff grade used for the mineral reserve estimate is stockpiled and treated at the end of the project life.
Centamin started mining operations at Sukari in February 2009.