Perseus Mining Limited (“Perseus” or the “Company”) (TSX & ASX: PRU) is pleased to announce details of its updated Life of Mine Plan (“LOMP”) for its Edikan Gold Mine in Ghana, West Africa.

  • The LOMP covers the period from July 1, 2020 and is based on the Company’s revised mining strategy that was implemented in January 2019 involving use of a single mining contractor, mining at a reduced rate of total material movement.  Costs, recoveries, mill throughput rates and run times have been updated to reflect recent performance.
  • The LOMP is based on the revised Ore Reserves reported on February 20, 2020 which included Proved and Probable Ore Reserves as at December 31, 2019 of 45.7 million tonnes of ore, grading 1.10 g/t gold and containing 1,608 kozs of gold.
  • Ore loss and dilution included in the estimate of Ore Reserves is based on recent mine to mill reconciliation results. Comparisons of ore tonnes and grade by Edikan’s Mineral Resource models relative to ore tonnes and grade delineated by grade control, indicate that the Mineral Resource estimates on which the Ore Reserves are based are reliable predictors of ore tonnes and grades.
  • The Esuajah South Underground mine has been included in the LOMP, employing a sub-level stoping under rock fill (“SURF”) mining method. Development capital of US$31 million has been assumed.
  • Gold production averages 212,000 ounces/annum over Edikan’s currently estimated mine life of 6.2 years from July 1, 2020, including gold production of approximately 231,000 ounces/annum on average over the next 4 years.  The altered production profile relative to the previous LOMP is largely due to the addition of Esuajah South Underground and a significantly larger AG Open Pit.
  • Total estimated gold production of 1,307,000 ounces over the life of mine is 95% higher than the amount estimated for the corresponding period in the previous LOMP. The substantial increase is largely due to the addition of Esuajah South Underground and a much larger AG Open Pit.
  • Forecast weighted average all-in site costs, including all direct production costs, royalties, waste stripping costs and sustaining capital expenditure (“AISC”), are in the range of US$870-US$890 per ounce over the remaining life of mine. This represents a 5% decrease in average AISC relative to the previous LOMP, over the corresponding period. Forecast sustaining capital costs (including the cost of site rehabilitation) of US$37 million or US$28 per ounce are included in the AISC estimate.
  • Edikan’s revised LOMP forecasts strong positive after-tax cash flows totalling approximately US$356 million (or A$0.51per share at an A$:US$ exchange rate of 0.60), assuming a flat spot gold price of US$1,300 per ounce for the remaining mine life.
  • The revised LOMP should be read in conjunction with, and added to, previously published production and cost guidance for the Half Year ending June 30, 2020.