Perseus Mining Limited – Mid-Quarter Update
Perseus Mining Limited (ASX/TSX: PRU) (“Perseus”) is pleased to provide the following update on
progress towards the implementation of its corporate growth strategy designed to transform
Perseus within five years into a producer of more than 500,000 ounces of gold per year from three
operating mines in West Africa.
OPERATIONS
Edikan Gold Mine – Ghana (“Edikan”)
? The intensive work programme implemented earlier this year to improve operating
performance at Edikan, continues to generate the required results with materially improved
operating performance continuing during the September 2016 quarter (the “Quarter”);
? Gold production up to the 12th August 2016 is ahead of target with approximately 21,000
ounces of gold recovered Quarter-to-date. This level of production is consistent with guidance
for the December 2016 half year of 80-100,000 ounces of gold;
? A US$120 million contract for the mining of the Esuajah North (“ESN”) open pit has been
awarded to African Mining Services (“AMS”), a Ghanaian contract mining subsidiary of mining
services company Ausdrill Limited. AMS is currently contracted to mine both the Fetish and
Chirawewa open pits at Edikan. With construction of housing needed to accommodate former
residents of the mine take area proceeding on track and grade control drilling in ESN under
way, preparations for the start of full scale mining by AMS in ESN in early October 2016 are
well in hand.
DEVELOPMENT
Sissingué Gold Project – Côte d’Ivoire (“Sissingué”)
? Contracts related to approximately 50% of the scope of work for the Sissingué mine
development have been awarded to Lycopodium, the experienced and highly regarded
international engineering group. The balance of the Sissingué scope of works will be supervised
by Perseus’s in-house development team. Procurement for this portion of the works is also
well underway. First gold is forecast to be poured at Sissingué in the December 2017 quarter;
? Work is progressing towards obtaining final credit approval and documentation of a US$60
million project financing facility for Sissingué which, together with US$40 million of Perseus’s
cash, will fully fund the approximately US$100 million cost to complete development of
Sissingué.
Yaouré Gold Project – Côte d’Ivoire (“Yaouré”)
? A contract for 42,000 metres of diamond and reverse circulation (“RC”) infill drilling and 40,000
metres of rotary air blast (“RAB”) sterilisation drilling has been signed with drilling contractor
Geodrill Limited. By month end, four drill rigs are expected to be mobilised to the Yaouré site;
? All key Consultants are well advanced on Stage 1 of the definitive feasibility study (“DFS”)
which involves a comprehensive review of all existing data related to Yaouré in each discipline
and the selection of specific options for evaluation as part of the DFS. This stage of the DFS is
expected to be completed on schedule by the end of August 2016.
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EXPLORATION
Baomahum Gold Project (Sierra Leone)
? Perseus has been advised by the Sierra Leone National Minerals Agency that the Minister for
Mines and Mineral Resources has cancelled Mineral Right ML 02/08 on which the Baomahun
gold deposit is located. This action has been taken following Perseus’s advice to the Minerals
Advisory Board that development of the Baomahun Gold Project as defined by Amara Mining
plc, which was acquired by Perseus in April 2016, is not economically feasible at current gold
prices and that further exploration success and a positive feasibility study would be required
before Perseus could consider committing to development.
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