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Centamin (OTCPK:CELTF) has announced its intention to apply for a mining license for the Dropo gold project in Côte d’Ivoire following a definitive feasibility study that affirmed the mine’s potential.
The study revealed that the project is projected to yield over 200,000 ounces per year during the initial five years of production, with an expected all-in sustaining cost of $1,047 per ounce sold over the 10-year mine life. The average all-in sustaining cost for the first five years is anticipated to be $971 per ounce, slightly higher than previous estimates.
The study also confirmed the probable mineral reserve estimate of 1.88 million ounces, indicating a higher average grade of 1.53 g/t of gold compared to the previous estimate of 1.44 g/t. Additionally, Centamin has increased its capital spending estimate for the Dropo project to $373 million from $349 million in the previous study.
Insight:
Centamin’s decision to proceed with the application for a mining license highlights its confidence in the potential of the Dropo gold project. The positive findings of the feasibility study, including the higher mineral reserve estimate and average gold grade, reinforce the attractiveness of this venture for the company. Furthermore, the increased capital spending reflects Centamin’s commitment to fully unlock the project’s value and maximize its long-term benefits.
