Company Centamin Egypt Limited TIDM CEY Headline Drilling Report Released 10:22 7 Jan 2003 Number 8521F
Centamin Egypt Limited
SUKARI GOLD PROJECT DRILLING UPDATE
SIGNIFICANT NEW INTERSECTIONS
(detailed table attached)
41m @ 2.06g/t Au
54m @ 3.11g/t Au
49m @ 2.10g/t Au
31m @ 2.74g/t Au
120m @ 1.63g/t Au
107m @ 2.42g/t Au
21m @ 2.43 g/t Au
31m @ 2.74 g/t Au
40m @ 2.09 g/t Au
HIGH GRADE INTERSECTIONS
1m @ 75.10 g/t Au (new shoot)
1m @ 567 g/t Au (Hapi Zone)
WIDTH OF MINERALISATION INCREASING
Ra zone mineralisation has averaged 400m in width,
a considerable increase to the 90m experienced in the Amun zone.
As reported in October 2002 the company engaged Stanley Mining Services to begin drilling the Ra Zone at Sukari with the intention to add to the existing 2,040,000 oz resource of the Amun zone. Two Stanley Rigs were added to the company’s three existing rigs on October 13th and the company expects to drill its 300th (Sukari Diamond Drill Hole, SDDH300) this month. Stanley Rig 10 moved south from 10675N to add reserve ounces to the resource, whilst Rig 37 together with Centamin’s rigs stepped out north into the Ra zone to add resource ounces.
The mineralised system has now been proven to be continuous from section to section as the drilling has progressed into the Ra zone, with the mineralisation being consistent with the mineralisation logged in the Amun Zone
Geological logging of the diamond drill core indicates that the zones of mineralisation are well defined within the Sukari porphyry. Mineralisation is related to stockworks, brecciation, quartz veining and contact mineralisation, these are traceable along the strike and dip of the Sukari porphyry.
Stockworks are broad zones defined by sericitic and chloritic alteration, the porphyry is highly fractured and jointed, these are infilled with high ratios of disseminated fine grained pyrite and arsenopyrite in the altered porphyry.
Zones of brecciation are well defined within the broader stockwork. The breccia is characterised by fragments of porphyry supported by fine grained pyrite and sulphide matrix. Quartz veins and zones of breccitaion are easily identified and indicate an increase in the tenor of the gold mineralisation.
Stacked east dipping structures (breccia) normally contain the high grade with medium to low grade mineralization occurring in the quartz and sulphide stockwork in between these structures.
Contact mineralisation with the footwall is in close proximity to the porphyry and found in association with highly foliated metavolcanics, these display a high ratio of pyrite and quartz veinlets. Along the foot wall contact an extremely high grade zone, the ‘Hapi Zone’, is present and continues to be intersected
The extensiveness of the system is best demonstrated by SDDH 284 which encountered the mineralised porphyry 9m from surface with an intersection of 1m @ 75 g/t Au, and continued in mineralisation for over 400m down hole. Drill hole data and assays are included in the tables below with some assays still to be received.
Holes drilled and assayed to date show continuity along strike adding significant ounces in areas previously undrilled. For Example:
SDDH 275, 100m @ 1.71 g/t incl. 41m @ 2.06 g/t is 25m along strike from
SDDH 278, 120m @ 1.63 g/t incl. 38m @ 2.27 g/t which is 50m along strike from
SDDH 282, 107m @ 2.42 g/t. incl. 40m @ 3.37 g/t.
The development program to move one of the Stanley rigs and Centamin’s 3 rigs north into the Ra zone and add resource ounces has been a resounding success, with significant mineralisation encountered in every hole.
It must be stressed that the Amun and Ra zones are continuous and contained within the Sukari outcrop, with the division between zones made purely for ease of reference rather than being separate structures. As such Sukari has the ability to be a multi million ounce single pit deposit, with the Ra zone yet to be included in the resource calculation and the Gazelle and Pharaoh zones yet to be tested by drilling.
Drilling is continuing and further results will be released at the time of the resource upgrade which is planned for February 2003.
Drill Hole collar positions and depths.
Northing and Easting are Local Grid coordinates.
Azimuth is Grid bearing: Grid North = ~20° Magnetic north. Dip, is degrees below horizontal
