Perseus Mining Limited: Activity Report for March 2016 Quarter

April 28, 2016

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PERTH, WESTERN AUSTRALIA–(Marketwired – April 28, 2016) –


Perseus Mining Limited (“Perseus” or the “Company”) (ASX:PRU)(TSX:PRU) reports on its activities for the three month period ended March 31, 2016 (the “Quarter”). An executive summary is provided below. However, full details of activities in the March Quarter, including reconciled production and all-in site cash costs, are included in the Company’s March 2016 Quarterly Activity Report released to the market on April 28, 2016. The full report is available for download from, and


An offer to acquire all of the outstanding shares in Amara Mining plc (“Amara”) by a scheme of arrangement was made during the Quarter. The scheme was approved by Amara’s shareholders following the end of the Quarter and took effect on April 18, 2016;
As part of the acquisition, Perseus acquired one of West Africa’s highest quality development stage projects, the Yaouré Project in Cote d’Ivoire (“Yaouré”), as well as the Baomahun Project in Sierra Leone (“Baomahun”);
Perseus now has a development pipeline that will provide opportunity for geopolitical diversity and significant corporate growth in the short to medium term;
Perseus’s financial position remained strong at the end of the Quarter with $105.91M of working capital that included:
º Immediately available cash and bullion of $72.3M;
º Gold forward sales contracts for 133,000ozs of gold sold forward at an average price of US$1,258/oz;
º No third party debt (other than accounts payable in the ordinary course of business);


An intensive work programme was implemented at the Edikan Gold Mine in Ghana (“Edikan”) to adjust grade control techniques to suit geological conditions, and improve the grade of ore delivered to the mill for processing;
Work resulted in a 15% improvement in gold production relative to the prior Quarter with quarterly gold production of 37,150ozs;
A reduction in tonnes of material mined plus increased blasting due to the transition to mining fresh material and additional one off expenditure on grade control activities resulted in unit mining costs increasing to US$3.14/tonne mined, which was partially offset by a decrease in unit processing costs to US$9.11/tonne milled and on-site G&A to US$0.95M/month respectively;
Total unit production costs reduced 15% to US$1,034/oz, while sustaining capital expenditure increased, in line with plan, from US$118/oz to US$322/oz resulting in quarterly All-In Site Costs (“AISC”)2 of US$1,441/oz;
Quarterly gold sales increased 11% from 32,616ozs at an average sales price of US$1,247/oz to 36,355ozs at an average sales price of US$1,190/oz;
Infrastructure works for housing to relocate former residents of the Eastern Pits and Esuajah North mine take areas is on schedule and under budget with first houses due for occupation in June 2016;
Production and cost guidance for the six months ending June 30, 2016 has been revised to 75-90,000ozs of gold at an AISC of US$1,350-1,550/oz due to high capital expenditure on relocation housing and plant modifications, grade control issues, and the need to substitute fresh ore of a lower grade for higher grade transitional ore, and more recently, unscheduled maintenance shutdowns at Edikan;
Subsequent to the end of the Quarter, an updated Life of Mine Plan (“LOMP”) for Edikan was published indicating materially improved cash flows based on a 7.5 year mine life during which production averages 222,000ozs of gold per annum at a weighted average AISC of US$865 per ounce.


Sissingué Gold Project (“Sissingué”)

Spent US$3.7M on an early works programme, pending decision on full-scale project construction. Total expenditure to date on the project totals US$8.8M with cost to complete estimated at approximately US$99.0M including a contingent sum of US$9.0M;
Full-scale development decision pending following negotiation of an appropriately structured funding package. A development decision is now expected in the June 2016 Quarter;
Implementation of integrated security and community development programs in the Sissingué area to maintain social licence to operate is on-going.
1 All dollar amounts are expressed in Australian dollars unless notified otherwise.
2 All-In Site Costs include all production, royalties, development and sustaining capital.


Edikan Gold Mine

  • Produce gold at a total all-in site cost that is in line with Half Year guidance;
  • Continue to implement improved grade control practices and investigate potential opportunities for improvements in grade estimation;
  • Continue to fine-tune plant metallurgical performance and maximise SAG mill throughput;
  • Continue training of operating and maintenance staff;
  • Continue to implement business improvement initiatives across all departments at Edikan including the installation of a power plant on site at Edikan;
  • Continue construction of houses to relocate former residents of the Eastern Pits mine take area;
  • Complete the current re-assessment of geological datasets with the aim of formulating near mine exploration programmes targeting high grade mineralisation that can be mined using either underground mining or open pit mining methods.

Sissingué Gold Project

  • Finalise funding arrangements for the Sissingué development and commence full scale construction of the mine and associated infrastructure;
  • Continue to engage with all national, regional and local government and community security stakeholders to ensure that peace and security is maintained in the vicinity of Sissingué;
  • Publish a Mineral Resource and Ore Reserve statement for the Bélé deposit, which is located within trucking distance of the proposed Sissingué mill site; and
  • Continue exploration on the Mahalé exploration licence and at Sissingué.

Yaouré Gold Project

  • Start work on preparing a bankable DFS for Yaouré, commencing with the planning and execution of a 42,000 metre drilling programme designed to confirm Mineral Resoure estimates as a basis for mine optimisation;
  • Obtain an approved ESIA for Yaouré

Baomahun Gold Project

  • Undertake a thorough review of existing data associated with the Baomahum Gold Project, including an extended site visit by Perseus’s exploration team, to assess the potential of the Project and commence planning the way forward.


  • Finalise the acquisition of Amara and integrate the two companies;
  • Undertake an investor relations programme to ensure that the market is fully informed of the details of Perseus’s strategy and the growth potential of the enlarged Perseus group; and
  • Examine the merits of listing Perseus’s shares on the London Stock Exchange to service investors who have joined the Perseus share register following the acquisition of Amara.

Jeffrey A Quartermaine, Managing Director and Chief Executive Officer

Competent Person Statement:

All production targets for the EGM referred to in this report are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code. The Company confirms that all material assumptions underpinning those production targets, or the forecast financial information derived from those production targets, in the market release dated 19 April 2016 continue to apply and have not materially changed.

Caution Regarding Forward-Looking Information:

This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Edikan Gold Mine without any major disruption, development of a mine at Sissingué and/or Yaouré, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company’s publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company’s ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Category: General