Companies: CEY   

Centamin Egypt says drilling has revealed bonanza grades in part of its Sukari gold project in Egypt’s Eastern Desert.

Headed by West Australian entrepreneur Josef El-Raghy, the Perth-based company says drilling at the Amun Deeps within the project has intersected 48 metres at a modest 2.47 grammes of gold per tonne of ore, with two metres at an impressive 49.65 grammes a tonne and 35 metres at an eye-catching 164.09 grammes a tonne. One three-metre intersection showed no fewer than 1,842.57 grammes of gold per tonne of ore and another one metre showed an even more outstanding 5,420 grammes a tonne.

AIM-quoted Centamin points out that this newly identified mineralised intersection sits outside that part of Sukari for which it recently announced increased gold resource estimates of 2.73 million oz measured, 7.46 million oz measured and indicated, and 3.7 million oz inferred. The company says it intends to drill the Amun Deeps further to ‘add significant ounces’ to the gold resource at Sukari, which it hopes to develop into ‘the first large-scale modern gold mine in Egypt’.

Floated at a mere 6p in late 2001 and recommended by Growth Company Investor at 10.25p in 2004, Centamin shares have now reached 70p, up 6p today, valuing the company at £613 million. Partial profit taking might be prudent, but if the company continues to produce results like these and gold stays in favour, they should continue to outperform.

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