Perseus Mining Limited

TSX : PRU
ASX : PRU


Perseus Mining Limited

April 29, 2014 01:30 ET

Perseus Mining Limited: Activities Report for March 2014 Quarter

PERTH, WESTERN AUSTRALIA--(Marketwired - April 29, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Perseus Mining Limited ("Perseus" or the "Company") (TSX:PRU)(ASX:PRU) reports on its activities for the three month period ended 31 March 2014 (the "Quarter"). An executive summary is provided below, however the full report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

Full details of activities in the March Quarter, including reconciled production and all-in site cash costs, will be included in the Company's March 2014 Quarterly Activities Report that is scheduled to be released to the market on 29 April 2014.

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

  • The trend of improved operating performance at Perseus's EGM continued during the Quarter as indicated by increases in the run time of the SAG mill (88%) and gold recovery (86% in March 2014);

  • 43,787ozs of gold were produced, reflecting an expected short term decrease in the head grade and quantity of ore processed during the Quarter;

  • The EGM's all-in site cost (including production, royalties, development and sustaining capital) was reduced during the Quarter but given the expected reduction in gold production, unit costs increased slightly to US$1,286/oz;

  • 43,873ozs of gold were sold during the Quarter at an average sales price of US$1,294/oz;

  • A fire occurred in the cyclone cluster in the processing plant during routine maintenance following the end of the Quarter. Processing of ore was interrupted for seven days while repairs to fire damage were completed.

  • The seven day shutdown of gold production due to the fire has contributed materially to a change to gold production and subsequently cost guidance for the six months ending 30 June 2014 ("the June Half Year"):
Parameter Units Six Months to
30 June 2014
Twelve Months to
30 June 2014
Gold Production Ounces 89,000 - 99,000 183,200-193,200
All-In Site Cash Costs US$/oz 1,150 - 1,300 1,200 - 1,300

This represents a decrease in forecast gold production of approximately 10% and an increase in all-in site unit costs of approximately 7%.

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

  • The Ivorian Government granted Perseus a two year extension to the date for completion of the Sissingué development;
  • A new Mining Code introduced by the Ivorian Government provides a sound framework for obtaining fiscal stability for mining projects in the country;
  • Work has started on optimising the Sissingué process route and development plan.

Exploration - Ghana and Côte d'Ivoire

  • Significant drill intercepts from the Bélé Central prospect at the Mahalé Project in Côte d'Ivoire;
  • Ground geophysics survey commenced on the Bélé prospect and 2,094 metres of auger drilling completed 7 kilometres north-east of Bélé.

Corporate

  • Available cash and bullion of $47.6 million as at 31 March 2014 (excluding $49.7 million in escrow and VAT receivable);
  • A placement of about 68.7 million ordinary shares, representing 15% of the Company's existing capital to raise approximately $32 million was successfully completed on 17 February 2014.

Program for the June 2014 Quarter

Edikan Gold Mine

  • Produce gold at a total all-in site cash cost that is in line with amended 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.

Sissingué Gold Mine Development Project

  • Review of project cost structure and development options; and

  • Review project economics and financing alternatives.

  • Continue exploration for Mineral Resources on Mahalé exploration licence and the Sissingué exploitation permit.
Jeffrey A Quartermaine
Managing Director and Chief Executive Officer

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 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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