UPDATE 2-Centamin ups Sukari gold resource estimates

* Sukari upgraded 6 pct on a measured and indicated basis

* Drilling indicates mineralization continues further north

(Adds share price, analyst comment, background)

By Julie Crust

LONDON, July 14 (Reuters) - Centamin Egypt Ltd (CEY.L) on Tuesday announced an increase in gold resource estimates at its flagship Sukari project in Egypt.

The company (CNT.AX)(CEE.TO) said the resource estimate was upgraded by about 520,000 ounces, or 6 percent, from its February statement to 9.91 million on a measured and indicated basis, and contains about 3.3 million ounces of inferred resources.

The AIM-listed company said drilling indicates that mineralization continues further north of the existing reserve, with continuous high grades in the deeper zones.

Centamin moved into production at the end of June. It is seen as a possible takeover target by one of the large gold producers once it ramps up output and successfully exports its gold. [ID:nLJ324240]

"While the stock may continue to be driven by a takeover premium, we reiterate that Centamin is still attractive given the blend of more than 10 years of reserves, low technical risk, low political risk and no debt," said Julian Emery, an analyst at Ambrian Capital.

At 0926 GMT, the shares were up 1.9 percent at 81.45 pence, They rose to a record 92.50 pence on June 29, helped by takeover speculation. (Reporting by Julie Crust; editing by Victoria Bryan)