Companies: CEY   

Mining company Centamin Egypt reports bonanza gold grades of 21.83 and 58.58 grammes per tonne of ore at its Sukari project.

The star-performing AIM concern, which is developing the first large-scale modern gold mine in Egypt, says it has discovered another new mineralised zone at the Amun Deeps, where assay results vary from 104 metres at only 1.59 grammes a tonne to 22 metres at 21.83 and, within that, eight metres at 58.58 grammes a tonne. Western Australia-based Centamin says this discovery is outside the deposit where it has already established a measured and indicated gold resource of 6.84 million oz, with another 3.6 million oz inferred.

The company, headed by Australian entrepreneur Josef El-Raghy, says its strategy is to drill the Amun Deeps further to add 'significant ounces' to that gold resource. First recommended by Growth Company Investor at 10.25p in 2004, Centamin shares hit 69p earlier this month and now trade at 60.75p, valuing the company at £460 million.

Partial profit taking could be appropriate, though the shares should still outperform several sector peers.

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