Perseus Mining Limited
TSX : PRU
ASX : PRU

Perseus Mining Limited

May 17, 2017 19:05 ET

Update on Perseus Mining's Yaoure Gold Project

PERTH, WESTERN AUSTRALIA--(Marketwired - May 17, 2017) -

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Perseus Mining Limited ("Perseus") (TSX:PRU)(ASX:PRU) is pleased to report progress achieved to date on drilling programmes at its Yaouré Gold Project in Côte d'Ivoire, West Africa ("Yaouré"). Yaouré is expected to become Perseus's third operating mine when it is developed and will make a significant contribution towards Perseus's target of producing in excess of 500,000 ounces of gold from its West African mines by 2021. The recently completed drilling programmes will provide critical information on which to base a Definitive Feasibility Study ("DFS") at Yaouré that is now scheduled to be finalised in the December 2017 quarter. The associated JORC Table 1 is included in the release available for download from www.perseusmining.com and www.asx.com.au.

HIGHLIGHTS

  • Approximately 33,700m of resource definition drilling has been completed in the proposed CMA and Yaouré open pits. (Refer to Figure 1 below.) A further 12,200m of trial grade control drilling has been completed in the Yaouré pit. Approximately 63% of assays have been returned from the combined drilling programmes.

  • Interpretation of the mineralisation in the higher grade CMA pit is in line with previous interpretations made by Yaouré's previous owners, Amara Mining plc ("Amara") and assay results received from the CMA pit are in line with the tenor of grades from previous drilling programmes.

  • Perseus's understanding of the mineralisation in the Yaouré pit has been significantly improved from the results returned from the latest drilling. The mineralisation is more tightly constrained than previously estimated by Amara and this is expected to impact on re-estimation of Mineral Resources and Reserves by Perseus.

  • Structural reinterpretation has highlighted the potential for additional mineralisation to be defined, particularly to the north west of the Yaouré pit.

  • A new Mineral Resource estimate for the deposits is expected to be released in August 2017 after all assays have been returned, thorough QA/QC applied, interpretation of the mineralisation completed, modelling carried out and the final estimate reviewed externally.

  • A new Ore Reserve estimate for the deposit is expected to be released as part of the DFS during the December 2017 quarter.

Perseus's Chief Executive Officer and Managing Director, Mr Jeff Quartermaine said:

"We are very pleased to have successfully completed this current phase of drilling at Yaouré with the consent and cooperation of our host community. The results of the drilling programmes are providing our DFS team with a comprehensive understanding of the known mineralisation and the potential for further discoveries at Yaouré which is essential if we are to prepare a Definitive Feasibility Study for an affordable and highly profitable project on which we can confidently base a positive investment decision later this year."
  1. Overview

Previous mining at Yaouré exploited oxide gold mineralisation in two adjacent pits, namely, the Yaouré pit and, to the east, the CMA pit. The CMA pit has been backfilled with waste material from the Yaouré pit.

The CMA deposit comprises gold mineralisation hosted by a north-striking shear zone up to 40 metres true thickness and dipping consistently at 25-30 degrees to the east. Gold is associated with pyrite in ankerite-quartz veins and adjacent altered basalt.

Mineralisation in the Yaouré pit is more complex, with gold mineralisation hosted variously by east-dipping structures similar to the CMA lode ("Y-type" structures), steep east, north-east and south-east striking faults ("S-type" structures) and as sheeted vein arrays hosted by a granodiorite intrusive body. Similar to CMA, gold is associated with pyrite within, and adjacent to, quartz and quartz-carbonate veins.

In the northern part of the mine area the distance between the two mineralised systems diminishes and it is projected that future open pits may merge in a "Bridge" area.

In late December 2016 Perseus commenced a program of infill resource definition drilling, totalling approximately 33,700 metres of reverse circulation percussion ("RC") and diamond core drilling. A further 12,200 metres of RC drilling was undertaken in a trial grade control program over portions of the Yaouré open pit in order to determine the spatial continuity of gold grades immediately below the existing pit. Those programs are now complete.

At Yaouré pit, resource definition drilling was designed to provide consistent 25 x 25 metre drill coverage of mineralisation likely to be exploitable by open pit mining. Infill drilling at CMA now provides consistent 25 x 50 metre coverage of mineralisation to a maximum 200 metres below surface. It is considered that those drill spacings will permit reliable estimation of Measured and Indicated Mineral Resources.

Figure 1 shows a synopsis of geology, mineralised structures and drill hole locations.

  1. Drill Results

Currently assays have been received for approximately 29,300 samples and results remain outstanding for approximately 17,000 samples. Results received to date confirm the tenor of mineralisation in holes drilled previously. Figures 2, 3 and 4 show representative drill cross-sections through the CMA pit, the Yaouré pit and the Bridge area, (locations A-A', B-B' and C-C' respectively on Figure 1). Table 1 summarises the drill intercepts in the holes in the three cross sections.

  1. Synopsis

Results received to date for CMA drilling confirm the tenor of previous intercepts and the continuity of mineralisation. It is anticipated that the relatively straightforward structural architecture of the CMA mineralisation will result in a robust Mineral Resource estimate, which is important because CMA is expected to contribute the majority of the economic mineralisation underpinning Yaoure's DFS.

Geological logging and assays received to date from drilling in the Yaouré pit are providing a much clearer view of structural controls on mineralisation in that pit. Indications are that the 25 x 25 metre spaced drill coverage is likely to be sufficient to permit the application of tight controls on the mineralisation in the planned Mineral Resource estimate, particularly when combined with the knowledge gained from the closely spaced grade control drilling. The increased understanding of the controls on mineralisation will impact on Mineral Resource and Ore Reserve estimates for the Yaouré pit.

A potentially important outcome of the 2017 work programme is the recognition of possible extensions of both the Yaouré and CMA mineralised systems, particularly to the northwest of current drill coverage. Drill testing of those areas is beyond the scope of the DFS and they remain targets for future near-mine exploration.

  1. Update on DFS

Completion of the DFS was scheduled to take 10 months from commencement of the drilling program, which began at the end of December 2016 following the extension of Yaouré's Exploration Licences 168 and 397 for two years on 1 December 2016. Information associated with progress of the DFS will be progressively released with the next milestone being the publication of a new Mineral Resource estimate in the September 2917 Quarter. The full study including a new Ore Reserve estimate is expected to be completed in the December 2017 Quarter.

To view Figure 1: Recent drill hole locations and mineralised structures, please visit this link: http://media3.marketwire.com/docs/PerseusMining_Fig1.jpg

To view Figure 2: CMA drill section 777185N, please visit this link: http://media3.marketwire.com/docs/PerseusMining_Fig2.jpg

To view Figure 3: Yaouré pit drill section 777185N, please visit this link: http://media3.marketwire.com/docs/PerseusMining_Fig3.jpg

To view Figure 4: Bridge area drill section 777585N, please visit this link: http://media3.marketwire.com/docs/PerseusMining_Fig4.jpg

Table 1: Table of drill intercepts (0.6 g/t Au cut-off, maximum 2m included waste)
Grid coordinates and azimuths refer to UTM Zone 30N, WGS 84 datum
Hole ID Year E N Elev Dip Azi Total Depth metres From metres To metres Length metres Au g/t Estimated True Width metres
YDD0031 2012 220925 777586 237 -60 270 310.26 0
28.5
42
8.5
35.5
53.35
8.5
7
11.35
1.02
3.69
1.05
4.7
3.9
6.2
YDD0039 2012 221037 777587 242 -60 270 308.65 24.67 33.47 8.8 2.49 8.8
YDD0048
including
2012 221087 777587 242 -60 270 343.55 58.77
61.46
67.9
62.32
9.13
0.86
7.88
69.7
9.13
0.86
YDD0141 2013 221476 777188 282 -60 270 291.89 157 176 19 4.37 19
YDD0148 2013 221576 777189 276 -60 270 320.36 208 213 5 2.87 5
YDD0166 2014 220751 777184 215 -60 270 183.1 7.7
48
13
53
5.3
5
1.31
2.01
5.3
5
YDD0170 2014 220680 777180 220 -60 270 151.6 16.7 21.2 4.5 1.47 4.5
YDD0185 2014 220814 777184 211 -60 270 214.9 13
38
56
78
28
41
61
83
15
3
5
5
2.15
4.28
3.77
1.44
15
3
5
5
YDD0199 2014 220857 777180 211 -60 270 283.97 15
44
54
64
101
20
47
56
71
106
5
3
2
7
5
1.71
1.27
3.15
1.58
1.01
5
3
2
7
5
YDD0201 2014 221296 777185 285 -60 270 433.6 86 103 17 2.81 17
YDD0258 2014 221385 777185 285 -60 270 164 119
136
152
122
141
155
3
5
3
1.66
3.02
1.38
3
5
3
YDD0267 2014 220716 777184 218 -60 270 229.4 0
32
10
38
10
6
1.88
1.49
10
6
YDD0333 2014 221417 777182 296 -60 270 202.7 144
161
148
163
4
2
7.05
2.67
4
2
YDD0416 2015 220676 777184 220 -45 270 212.2 14 17 3 5.28 3
YRC0399 2012 220965 777586 237 -60 270 60 7 13 6 1.34 6
YRC0696 2014 221485 777186 281 -65 270 200 162 177 15 3.31 15
YRC0705 2014 221527 777183 279 -65 270 240 186 193 7 9.00 7
YRC0838D 2017 221357 777185 285 -60 270 150.2 105 120 15 3.28 15
YRC0839D 2017 221326 777185 285 -60 270 126.2 93
104.85
111
100
108
119
7
3.15
8
5.19
7.90
1.43
7
3.15
8
YRC0840D 2017 221274 777185 285 -60 270 99.3 75.2 90 14.8 6.94 14.8
YRC0878
including
2017 220949 777585 238 -60 270 115 31
33
42
37
36
48
6
3
6
11.8
22.5
3.21
3.3
1.7
3.3
YRC0879 2017 221017 777585 239 -60 270 70 16 23 7 4.05 7
YRC0880 2017 221062 777583 241 -60 270 75 28
45
58
31
54
66
3
9
8
4.89
1.35
1.85
3
9
8
YRC0900 2017 220740 777185 215 -55 270 70 14
46
30
52
16
6
1.48
1.09
16
6

Competent Person Statement:

The exploration results presented in this report were compiled by Mr Gary Brabham, F AusIMM, MAIG, an employee of the Company. Mr Brabham has sufficient experience which is relevant to the mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and as a Qualified Person as defined in NI 43-101. Mr Brabham consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of the technical and scientific information in this report.

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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