Perseus Mining Limited

Perseus Mining Limited

January 27, 2014 21:49 ET

Perseus Mining Limited: Activities Report for December 2013 Quarter

PERTH, WESTERN AUSTRALIA--(Marketwired - Jan. 27, 2014) -


Perseus Mining Limited ("Perseus" or the "Company") (TSX:PRU)(ASX:PRU) reports on its activities for the three month period ended 31 December 2013 (the "Quarter"). An executive summary is provided below, however the full report is available for download from, and

Full details of activities in the December Quarter, including reconciled production and all-in site cash costs, will be included in the Company's December 2013 Quarterly Activities Report that is scheduled to be released to the market on 28 January 2014.

Operations - Edikan Gold Mine ("EGM"), Ghana

  • Gold production of 48,360oz in the Quarter, 6% higher than the previous quarter. For the six months to December 2013 (the "Half Year"), gold production totalled 94,190oz, in line with production guidance of 91,000oz to 101,000oz for the period;

  • Total all-in site unit costs (including production, royalties, development and sustaining capital) were US$1,228/oz during the Quarter, 8.5% less than the prior quarter. For the Half Year; all-in site unit costs were US$1,283/oz, 2.6% higher than the upper end of cost guidance of US$1,250/oz;

  • Material improvements continued to be achieved during the Quarter in the availability and metallurgical performance of the process plant, as well as the unit costs of gold production;

  • Gold production guidance for the six months ending 30 June 2014 ("the June Half Year") is unchanged at 99,000oz to109,000oz at an all-in site cost in the range of US$1,050 to US$1,250/oz. For the full financial year ending 30 June 2014, gold production guidance is also unchanged at 190,000oz to 210,000oz at an all-in site cost in the range of US$1,050 to US$1,250/oz;

  • A total of 44,617oz of gold was sold during the Quarter at an average sales price of US$1,318/oz;

Development - Sissingué Gold Project ("Sissingué"), Côte d'Ivoire

  • Perseus remains committed to its decision to defer development of Sissingué pending an assessment of the mineral potential of the nearby Mahalé prospect and / or more favourable market conditions;

Exploration - Ghana and Côte d'Ivoire

  • 28,568m of drilling completed in Côte d'Ivoire;

  • Significant drill intercepts from multiple prospects at the Mahalé Project in Côte d'Ivoire;


  • Available cash and bullion of $28.2M as at 31 December 2013 (excluding $10.6M in escrow and VAT receivable);

  • Forward sales contracts for 124,000oz of gold at a weighted average price of US$1,463/oz were "in the money" by approximately US$31.6M at 31 December 2013;

  • Material progress made towards resolution of an outstanding VAT liability of GHC93.0M (or US$39.4M) owed to Perseus Mining (Ghana) Limited by the Ghanaian Government.

Program for the March 2014 Quarter

Edikan Gold Mine

  • Produce gold at a total all-in site cash cost that is in line with Half Year guidance;

  • Continue to fine tune plant metallurgical performance and maximise SAG mill throughput;

  • Continue training of operating and maintenance staff; and

  • Continue to implement business improvement initiatives across all departments of the EGM and realise projected cost savings.

Sissingué Gold Mine Development Project

  • Review of project cost structure and development options; and

  • Review project economics and financing alternatives.

Tengréla Gold Exploration Project

  • Continue exploration for Mineral Resources on Mahalé, Mbengué and Napié exploration licences.

Jeffrey A Quartermaine

Managing Director and Chief Executive Officer

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 Tengréla, 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.

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