Perseus Mining Limited
TSX : PRU
ASX : PRU

Perseus Mining Limited

January 19, 2015 17:00 ET

Perseus Mining Limited: Activity Report for December 2014 Quarter

PERTH, WESTERN AUSTRALIA--(Marketwired - Jan. 19, 2015) -

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 December 31, 2014 and six month period ended December 31, 2014 (the "Quarter" and the "Half Year" respectively). An executive summary is provided below. However, full details of activities in the December Quarter, including reconciled production and all-in site cash costs, are included in the Company's December 2014 Quarterly Activity Report released to the market on January 20, 2015. The full report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

Overview

Perseus's Edikan Gold Mine in Ghana ("Edikan" or "EGM") has delivered another quarter of solid operating performance resulting in continued strengthening of the Company's financial position. Perseus's strategy of pursuing sustainable efficiency improvements in its operations is taking effect. Key processing plant operating parameters now either exceed or are approaching targets and further material mining cost reductions will take effect in 2015.

Operations - Edikan, Ghana

  • Gold production for the Quarter and Half Year of 48,487ozs, and 100,016ozs respectively is in line with the mid-point of the production guidance range of 95-105,000ozs for the Half Year;

  • All-in site costs for the Quarter and Half Year of US$1,019/oz and US$988/oz respectively, approximately 15% below the bottom of the cost guidance range of US$1,160-1,280/oz;

  • Mining contract awarded for Fobinso Stage 3 pit and evaluation of tenders for mining the Fetish, Bokitsi and Chirawewa Pits (the "Eastern Pits") is advanced. The new mining contracts will materially reduce Edikan's unit mining costs;

  • Gold sales for the Quarter and Half Year totalled 46,666ozs and 96,369ozs respectively at average sales prices of US$1,283/oz and US$1,310/oz for the respective periods;

  • Production and cost guidance for the six months to June 30, 2015 ("June 2015 Half Year") and financial year ending June 30, 2015 ("FY2015") are 115,000-125,000oz at all-in cash cost of $1,125-$1,225/oz- and 215,000-225,000oz at all-in cash cost of $1,050-$1,150/oz respectively.

Exploration - Ghana and Côte d'Ivoire

  • High grade drill intercepts from resource in-fill drilling programmes on the Mampong and Chirawewa deposits confirm potential for improving the grade of ore processed by the EGM;

Development - Sissingué Gold Project, Côte d'Ivoire

  • Updated Sissingué Feasibility Study is nearing completion and results are scheduled to be published after Board consideration in the March 2015 Quarter;

Corporate

  • Available cash and bullion of $57.8M as at December 31, 2014 (excluding $11.6M of funds in escrow), an increase of $4.6M during the Quarter;

  • Gold forward sales including 71,000ozs of gold sold forward at an average price of US$1,595/oz, valued at $35.5M (US$29.0M) at December 31, 2014;

  • No third party debt other than accounts payable in the ordinary course of business and net working capital totalling $121.1M as at December 31, 2014.

Program for the March 2015 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;
  • Award a contract for the mining of the Eastern Pits and oversee the commencement of this contract as well as the contract to mine Fobinso Stage 3.
  • Continue training of operating and maintenance staff;
  • Complete current drilling programmes to delineate potential higher grade mill feed; and
  • Continue to implement business improvement initiatives across all departments of the EGM.

Sissingué Gold Mine Development Project

  • Update Feasibility Study for the SGP based on preferred development configuration and flow sheet;
  • Continue discussions with the Ivorian government about a Mining Convention covering the revised SGP;
  • Continue exploration on the Mahalé exploration licence and the Sissingué exploitation permit.

Jeffrey A Quartermaine, Managing Director and Chief Executive Officer

Competent Person Statement: All production targets for the Edikan Gold Mine (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.

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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