Perseus Mining Limited
TSX : PRU
ASX : PRU

Perseus Mining Limited

October 21, 2015 22:03 ET

Perseus Mining Limited: Activity Report for September 2015 Quarter

PERTH, WESTERN AUSTRALIA--(Marketwired - Oct. 22, 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 September 30, 2015 (the "Quarter"). An executive summary is provided below. However, full details of activities in the September Quarter, including reconciled production and all-in site cash costs, are included in the Company's September 2015 Quarterly Activity Report released to the market on October 22, 2015. The full report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

OPERATIONS - EDIKAN GOLD MINE, GHANA ("EDIKAN")

Sound operating performance continued at Edikan during the Quarter. Highlights included:

  • On track to achieve December 2015 Half Year cost and production guidance;
  • Quarterly gold production of 44,267ozs consistent with Half Year production guidance;
  • Trend of strongly improving operating costs continued during the Quarter, with quarter-on-quarter reductions of 45% in unit mining costs and 15% of processing costs;
  • All-in site costs (including development and sustaining capital) of US$1,060/oz, 4% below bottom end of Half Year cost guidance range;
  • Gold sales of 45,344ozs at an average sales price of US$1,291/oz;
  • Waste stripping for the new Fetish and Chirawewa open pits accelerated to mitigate impact on production schedule of delayed access to Eastern Pits mining areas;
  • Infrastructure works for housing to relocate former residents of the Eastern Pits mine take area is on schedule and under budget. Housing construction scheduled to start early in the December 2015 quarter.

DEVELOPMENT - SISSINGUÉ GOLD MINE, CÔTE D'IVOIRE ("SISSINGUÉ")

  • Signed a Mining Convention with the Ivorian government;
  • Commenced early works programme and advanced plans for a decision on full-scale construction to be taken in the December 2015 Quarter, pending implementation of satisfactory financing plans;
  • Started implementing integrated security and community development programs in the Sissingué area.

CORPORATE

At September 30, 2015, Perseus's working capital of A$191.2M included:

  • Immediately available cash and bullion of A$131.8M, an increase of A$4.5M during the Quarter;
  • Gold forward sales contracts for 149,100ozs of gold, sold forward at an average price of US$1,240/oz, and valued at A$26.5M; and
  • No third party debt (other than accounts payable in the ordinary course of business).

PROGRAM FOR DECEMBER 2015 QUARTER

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;
  • Continue to implement business improvement initiatives across all departments at Edikan;
  • Commence construction of houses to relocate former residents of the Eastern Pits mine take area;
  • Complete a feasibility study for mining the Esuajah South deposit using a selective underground mining method in preference to the currently planned open pit mining method; and
  • Complete the current re-assessment of geological datasets with the aim of formulating near mine exploration programmes targeting high grade mineralisation that can be mined using either underground mining or open pit mining methods.

Sissingué Gold Mine Development Project

  • Complete early works programme including but not limited to certain site works at Sissingué;
  • Continue to engage with all national, regional and local government and community security stakeholders to ensure that peace and security is maintained in the vicinity of Sissingué;
  • Review development plans and take a decision regarding the timing of the development of Sissingué. Subject to an affirmative development decision being taken:
    • 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.

Corporate

  • Formulate and implement an approved financing plan to ensure that Perseus is adequately funded to undertake all planned capital expenditure without exerting undue pressure on the Company's balance sheet in a volatile gold market.

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.

Contact Information