Gold mining company Centamin has announced a new life of mine (LOM) plan for the Sukari gold mine located in Egypt to re-establish it as a global tier one gold asset.

According to the company, the new LOM plan will deliver long-term increased gold production, reduced operational costs, lower operational risk as well as significantly reduced carbon emissions.

The new LOM plan envisages an average gold production of 506,000 ounces per annum for the next nine years and 475,000 ounces per annum for LOM of the Egyptian gold mine.

Centamin has identified multiple opportunities to expand the present 11-year LOM within the Sukari underground, surface satellite deposits, and EDX Nugrus exploration licences near the mine to further boost resource and reserves.

According to the gold mining company, its new LOM plan for the Sukari gold mine has incorporated four major workstreams.

It includes the optimisation of the open pit, expansion of the underground mine,  processing facility optimisation, and full replacement of the use of diesel for stationary power generation.

Centamin CEO Martin Horgan said: “Today’s new life of mine plan firmly reestablishes Sukari as a global tier one gold asset, with long-term production above 500,000 ounces per annum at all-in sustaining costs below US$1,000 per ounce, underscoring our dedication to maximising free cash flow generation.

“This plan is not only a substantial improvement on what was previously published but, importantly it incorporates significantly lower operational risk and delivers improved carbon abatement.

“This revised plan underpins our strategy to maximise the value of Sukari as the foundation for growth and diversification balanced with stakeholder returns.”

The Sukari gold mine commenced production in 2009. It is estimated to produce nearly 5.2Moz in addition to the 5.5Moz produced since its first production.

Last year, based on an independent option study, Centamin confirmed that the expansion of underground operations at the Sukari gold mine had the potential to increase its ore mining rates by 31%.