Perseus Mining Limited
TSX : PRU
ASX : PRU

Perseus Mining Limited

May 14, 2017 22:22 ET

Perseus Mining Limited: Exploration Success for Perseus Near Sissingue

PERTH, WESTERN AUSTRALIA--(Marketwired - May 14, 2017) -

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

Perseus Mining Limited ("Perseus") (ASX:PRU) (TSX:PRU) wishes to announce significant results from exploration drilling at the Papara prospect, located approximately 20 kilometres north-northwest of the Sissingué Gold Mine ("Sissingué") on Perseus's mining permit in northern Côte d'Ivoire. (Refer to Figure 1.) Development of Sissingué is on target for first gold to be poured in the March 2018 quarter when it will become Perseus's second operating gold mine. The associated JORC Table 1 is included in the release available for download from www.perseusmining.com and www.asx.com.au.

HIGHLIGHTS

Significant initial reverse circulation ("RC") and diamond drilling results returned to date included:

  • Hole PADD019 (799,600E; 1,172,611N) - 11.18m at 4.36g/t Au from 135.82m, including 1m at 24.7g/t Au.
  • Hole PADD017 (799,598; 1,172,495) - 46m at 1.11g/t Au from 109m, including 14m at 2.37g/t Au from 141m (incl 1m at 13.3g/t Au).
  • Hole PRC171 (799,540E; 1,172,500N) - 15m at 1.66g/t Au from 30m.
  • Hole PRC181 (799,793E; 1,1729,72N) - 10m at 1.07g/t Au from 30m.
  • Hole PADD010 (799,598E; 1,172,553N) - 20.1m at 1.02 g/t Au from 20.9m and 20m at 1.23 g/t Au from 66m.
  • Hole PARD012 (799,525E; 1,172,480N) - 3m at 3g/t Au from 45m; 12.7m at 1.84 g/t Au from 60.3m including 1m at 9.32 g/t Au; and 35m at 1 g/t Au from 76m.
  • Hole PRC184 (799,363E; 1,173,222N) - 2m at 4.5g/t Au from 10m.
  • Hole PADD015 (799,627E; 1,172,522N) - 1m at 10.81 g/t Au from 62m.

Perseus's Chief Executive Officer and Managing Director, Mr Jeff Quartermaine said:
"The drilling results at Papara point to the potential for a significant additional inventory of mineable, mineralised material being discovered within trucking distance of Sissingué, the construction of which is currently 53% complete with first gold due to be poured in early 2018.
Assay results from several holes in the current drilling programme are still pending and follow-up drilling is planned once all results are received and fully assessed.
The results from this next phase of drilling, if positive, could lead to an upgrade of the current Life of Mine Plan for Sissingué that currently generates an attractive after tax internal rate of return (IRR) of close to 30% at a gold price of US$1,200 per ounce by processing ore for five years."

1. Drill Results

Recent RC and diamond drilling at the Papara prospect on the Sissingué mining permit in Côte d'Ivoire has returned significant results from primary mineralisation intersected in several holes. Hole PADD019 returned 11.18m at 4.36g/t Au from 135.82m, including 1m at 24.7g/t Au. Hole PADD017, 80m to the southeast, returned 14m at 2.37g/t Au from 141m (including 1m at 13.3g/t Au) within a broader intersection of 46m at 1.11g/t Au from 109m. On the intervening section, PADD010 returned 20.1m at 1.02 g/t Au from 20.9m and 20m at 1.23 g/t Au from 66m, whilst PRC171 on the same section returned 15m at 1.66g/t Au from 30m. PARD012 on the latter section returned three mineralised intervals, 3m at 3g/t Au from 45m, 12.7m at 1.84 g/t Au from 60.3m and 35m at 1.00 g/t Au from 76m. Locations for all drill holes from the current program are provided in Table 1, with details of all results ≥ 0.3g/t Au provided in Table 2.

2. Interpretation

The results reported above are from the first major drilling campaign undertaken at Papara since reconnaissance rotary air blast ("RAB") and RC drilling was performed between 2008 and 2012 returning scattered gold intersections. The latest drilling appears to define a new zone of mineralisation hosted by metasediments along the southern margin of a diorite intrusion (Figure 2 and Figures 3 to 5). The mineralisation consists of quartz veins and sericite-carbonate altered metasediments with associated pyrite and sparse arsenopyrite.

The diorite underlies a zone of intensive artisanal workings extending over an area approximately 1.2 kilometres by 450m. The artisanal workings largely exploit mottled zone mineralisation at the base of the laterite duricrust, with some workings extending deeper into higher-grade primary quartz vein mineralisation. The drilling and some of the deeper artisanal workings indicate the presence of narrow granodiorite dykes that appear to have a close spatial association with gold mineralisation.

Results are pending from diamond holes PADD023, 024 and 025 on the south-eastern side of the zone. These holes also display strong alteration, veining and pyrite-arsenopyrite mineralisation. Based on results to date and the visual mineralisation in the pending holes, it appears that the zone is currently open to the east, west and at depth.

Perseus is currently awaiting receipt of all outstanding results prior to planning further drilling. This drilling will likely focus on investigating the contact of the diorite body to the east and north-west as well as investigating areas where intensive deep artisanal mining indicates potentially significant bedrock mineralisation.

3. Further Exploration Opportunities

More broadly within the Papara area, Perseus is conducting auger drilling over widespread gold-in-soil anomalism associated with extensive artisanal mining within an 8 kilometre by 6 kilometre area. As at Papara, many of the artisanal sites exploit concentrations of gold in the mottled-zone at the base of the duricrust, and therefore likely represent dispersion from primary bedrock sources. Historical RAB and shallow RC drilling of the highest tenor soil anomalies failed to provide categorical indications of significant underlying bedrock mineralisation. However, the soil anomalies in many cases do not coincide with known artisanal workings, and it is now suspected the anomalies may be offset from their bedrock sources. Auger drilling is required to more closely define the source of the surface anomalism, and particularly the extent and source of the mottled zone mineralisation being exploited artisanally.

Elsewhere on the Sissingué licence, Perseus has commenced a 1,150m RC pre-collared, diamond drilling program at the Katara prospect, located approximately 25 kilometres south of Sissingué (Figure 1). Historical RAB and RC drilling following-up gold-in-soil anomalies intersected significant bedrock mineralisation at this site. Subsequent reviews of these results in light of structural information gained from post-drilling artisanal mining, indicates the original drilling was not optimally oriented to intersect the mineralised structures, and the current program has been designed to rectify this deficiency.

To view Figure 1: Sissingué Project regional geology and gold occurrences, please visit this link: http://media3.marketwire.com/docs/Fig-1.jpg

To view Figure 2: Papara drill hole locations, please visit this link: http://media3.marketwire.com/docs/fig-2.jpg

To view Figure 3: Cross-section - Papara Line 3-40m, please visit this link: http://media3.marketwire.com/docs/fig-3.jpg

To view Figure 4: Cross-section - Papara Line 3+00m, please visit this link: http://media3.marketwire.com/docs/Fig-4.jpg

To view Figure 4: Cross-section - Papara Line 3+40m, please visit this link: http://media3.marketwire.com/docs/Fig-4b.jpg

To view Table 1: Locations of All Holes Covered by this Announcement, please visit this link: http://media3.marketwire.com/docs/table-1.pdf

To view Table 2: All assays results ≥ 0.3g/t, please visit this link: http://media3.marketwire.com/docs/table-2.pdf

Competent Person Statement

The information in this report and the attachments that relates to drilling results is based on, and fairly represents, information and supporting documentation prepared by Dr Douglas Jones, a Competent Person who is a Chartered Professional Geologist. Dr Jones is the Group General Manager Exploration of the Company. Dr Jones has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'") and to qualify as a "Qualified Person" under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Dr Jones consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. All production targets for Sissingué 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. The information in this report that relates to Mineral Resources for Sissingué was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 15 December 2016. The information in this report that relates to Mineral Resources for Bélé was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 20 February 2017. The information in this report that relates to Ore Reserves for the Sissingué and Bélé was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 31 March 2017. The Company confirms that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, in those market releases continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in "Technical Report - Sissingué Gold Project, Côte d'Ivoire" dated 29 May 2011 continue to apply.

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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