Perseus Mining Limited

Perseus Mining Limited

July 19, 2015 18:30 ET

Perseus Mining Limited: Activity Report for June 2015 Quarter

PERTH, WESTERN AUSTRALIA--(Marketwired - July 19, 2015) -


Perseus Mining Limited ("Perseus" or the "Company") (TSX:PRU)(ASX:PRU) reports on its activities for the three month period ended June 30, 2015 (the "Quarter"). An executive summary is provided below. However, full details of activities in the June Quarter, including reconciled production and all-in site cash costs, are included in the Company's June 2015 Quarterly Activity Report released to the market on July 20, 2015. The full report is available for download from, and


Achieved record operating performance at Edikan during the Quarter with specific highlights including:

  • Gold production of 64,669ozs, a 36% increase relative to the March 2015 quarter (47,450ozs) and 52% more than in the corresponding quarter in 2014. Half-year gold production of 112,119ozs, was 2% above the top end of the production guidance range for the period of 100-110,000ozs;

  • All-in site costs of US$685/oz, approximately 24% lower than in the March 2015 quarter (US$903/oz). Half year all-in site costs of US$777/oz were 32% below the bottom end of the cost guidance range for the June 2015 Half Year;

  • Gold sales of 63,308ozs at an average sales price of US$1,307/oz resulted in an average cash margin of US$622/oz;

  • Successfully implemented initiatives to access sufficient power for continuous operations at Edikan by April 19, 2015;

  • Received regulatory approval to mine the Eastern Pits mining area enabling clearing and waste stripping of the Fetish and Chirawewa pits to start;

  • Awarded contract for the first stage of civil works on the Eastern Pits and Esuajah North Housing Relocation Project, with civil works starting in July 2015.


  • Negotiated a Mining Convention with the Ivorian government. Document finalised subject to final Ministerial review;

  • Advanced documentation of Project Execution Plan and on track to start early works in the September 2015 Quarter, with full-scale construction to start in December 2015 Quarter.


At June 30, 2015, Perseus's working capital of A$177.7M included:

  • Immediately available cash and bullion of A$127.3M, an increase of A$43.6M (52%) during the Quarter and A$78.6M (161%) over the last twelve month period;

  • Gold forward sales contracts for 63,000ozs of gold, sold forward at an average price of US$1,432/oz, and valued at A$21.3M; and

  • No third party debt (other than accounts payable in the ordinary course of business).


During the course of the 12-month period ending June 30, 2016 ("FY2016"), mining activities will be undertaken by Edikan's two mining contractors, AMS and Rocksure, in four separate pits as follows:

  • AG Pit - Stage2: Relatively high grade ore will be mined from the bottom of the AG pit in the months of July and August 2015, after which time mining activities in this pit will temporarily cease. In July and August, the AG Pit will be the major source of fresh ore supply for the processing plant.

  • Fobinso Pit - Stage 3: During the September 2015 quarter mining in the Fobinso Pit will mainly involve waste stripping, but by the December 2015 quarter, ore quantities will increase as the ore zones are progressively accessed. However, higher grade ore will not be accessed in the Fobinso pit until late in the December quarter.

  • Fetish Pit - Stage 1: In the December 2015 Half Year, mining in the Fetish Pit will mainly involve waste stripping with relatively minor quantities of ore being mined. Late in the December quarter, both the quantity and grade of ore will materially increase and for the balance of FY2016, Fetish will be the principle source of fresh ore supply for the processing plant.

  • Chirawewa - North and South Pits: In the September 2015 quarter, quantities of relatively high grade ore will be mined in the Chirawewa pit, immediately below the old pit floor. As the year progresses, waste stripping activities will exceed mining of ore as access to larger quantities of relatively high grade ore in the latter part of the financial year is pursued.

The mining schedule described above has been largely dictated by the later than anticipated receipt of the EPA's approval of the company's SEIS (refer to full report for detail). As a result of this schedule for a period of several months towards the end of 2015 fresh ore mined from the Fetish, Chirawewa and Fobinso pits will need to be supplemented by lower grade ore drawn from existing ore stockpiles to ensure that sufficient ore is available to feed the processing plant. Gold production will therefore temporarily reduce relative to current levels as the lower grade stockpile ore is processed, but once sufficient supplies of fresh ore are available towards the end of 2015, production will once again increase back to current levels.

Also as noted above, in the six month period to December 31, 2015 waste stripping activities as well as relocation housing construction activities will be in full swing, which means that capital expenditure during this period will be materially higher than in recent periods. Combined with the impact of lower gold production, this will result in a temporary increase in Edikan's unit all-in site cash costs.

Given the above, Perseus's production guidance for the period ending June 30, 2016 is shown below.

Table 4: FY 2016 Production and Cost Guidance
Parameter Units December 2015
Half Year
June 2016
Half Year
Financial Year
Gold Production Ounces 90,000-100,000 100,000-110,000 190,000-210,000
All-In Site Cash Costs US$/oz 1,150-1,300 1,050-1,150 1,100-1,200


Edikan Gold Mine

  • Produce gold at a total all-in site 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;
  • Complete current drilling programmes to delineate potential higher grade mill feed; and
  • Continue to implement business improvement initiatives across all departments at Edikan.

Sissingué Gold Mine Development Project

  • Finalise negotiation of a Mining Convention for Sissingué;
  • Appoint an EP or EPC contractor and commence early works on site at Sissingué;
  • Appoint key members of staff needed for the development and operation of Sissingué; and
  • Continue exploration on the Mahalé exploration licence and at Sissingué.


  • Advance the structuring of a financing facility to supplement existing cash resources to fund capital works programmes across the Perseus group.

Jeffrey A Quartermaine, Managing Director and Chief Executive Officer

Competent Person Statement: All production targets for the Edikan Gold Mine 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 Sissingué, 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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