Perseus Mining Limited - Ore Reserve Update - Edikan Gold Mine, Ghana

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PERTH, Western Australia, Aug. 14, 2012 /CNW/ - Perseus Mining Limited ("Perseus" or the "Company") (TSX & ASX:PRU) is pleased to release an updated Ore Reserves estimate for the Edikan Gold Mine ("EGM" or "Edikan") in Ghana, West Africa.

Highlights

• Ore Reserves for the 4 deposits modelled at Edikan estimated to be 93.8Mt containing 3.38Moz of gold as at June 30 2012
• Perseus's total Ore Reserves (which includes the Sissingué Ore Reserve of 9.7mt @ 2.1g/t), stand at 103.5Mt containing 4.04Moz of gold
• Edikan Ore Reserves only estimated for deposits where mining is planned in next 4 years
• Measured and Indicated Mineral Resources (inclusive of Ore Reserves) at Edikan total 156.3Mt, containing 5.4Moz of gold
• Inferred Mineral Resources at Edikan total 50.6Mt containing 1.7Moz of gold
• Deposits at Edikan where Ore Reserves are yet to be estimated contain Indicated Mineral Resources of 7.1Mt for 379,000oz and 20.4Mt of Inferred Mineral Resources for 709,000oz of gold
• Next Ore Reserve update at Edikan planned for first half of 2013 will include additional deposits
• Ore Reserve update at Sissingué, Côte d'Ivoire, planned for late in 2012

Mark Calderwood, Managing Director's Comments

"Ore Reserves from the initial four deposits have increased by 3.2% in terms of total contained ounces and 22.4% in terms of contained proven ounces, net of processing depletion of 3.7Mt of ore containing 164,800 ounces of gold."

"There were a number of reasons for the modest Ore Reserve increase.  Allowance for mining cost increases of approximately 10% since the previous Ore Reserve estimate and more conservative pit slopes than the DFS resulted in minimal changes to projected pit depths at this stage, while extra drilling is required to upgrade Inferred Mineral Resources before calculating Ore Reserves for new pits."

"It  is expected that a reassessment of the life of mine plan and ore reserve upgrade scheduled for first half 2013 will incorporate results from the ongoing drilling, a review of mining methods, processing improvements and a better understanding of geotechnical  and hydrological controls across the site.  Until then we have taken a conservative view on pit designs and haven't looked beyond the first 12 years of mine life at this stage."

"Our principal long term opportunity at Edikan is to reduce unit mining cost given that we already have one of the lowest processing costs in the industry."

"The Company also plans to update the Sissingué Ore Reserve estimate before the end of 2012."

Mineral Resources

Measured and Indicated Mineral Resources for six deposits at Edikan total 156.3Mt, containing 5.6Moz of gold.  Total Inferred Mineral Resources are 50.6Mt containing 1.7Moz of gold, from nine deposits.  Details of the Edikan Mineral Resources are contained in the stock exchange release dated 29 March 2012.

Ore Reserve Estimate Edikan Gold Mine

New pit designs have been completed for the Abnabna-Fobinso, Esuajah North, Esuajah South and Fetish deposits.  Mining is currently taking place at Abnabna-Fobinso and all four deposits are likely to be subject to mining during the next four years.  The limits of the pit designs were nominally based on US$1,200 gold price optimisation shells using revised, more conservative engineering parameters and updated unit costs.   An increased waste to ore strip ratio from 2.8 to 3.4 is a function of inter-ramp slope angles being reduced to 37 degrees for oxide and 53.5 degrees for fresh material. Provision for blasting in oxides has however reduced significantly based on current practice.

Ore Reserves are reported at a 0.4g/t Au cut-off for Abnabna-Fobinso and 0.5g/t Au for Esuajah South, Esuajah North and Fetish.   Due to the relatively low marginal processing cost at Edikan, material between 0.2g/t and 0.4g/t Au is currently stockpiled for future treatment but is not recorded as Ore Reserves.

Further resource and reserve work is being undertaken on the Bokitsi, Chirawewa, Chirawewa South, Mampong, Dadieso deposits amongst others. The underground potential of the Esuajah South and the Fetish deposits is also being assessed.

The Company is continuing to work on long-term initiatives to improve open pit mining methods and equipment selection with the aim of reducing mining unit costs.

Details of the Ore Reserve estimates are contained in Table 1 and Appendix 1.

Table 1:  Edikan, Ore Reserve Estimate Summary

Notes

1     0.4g/t Au cut-off applied to Abnabna-Fobinso and 0.5g/t Au cut-off applied to other deposits.
2     Inferred Mineral Resources totalling 1.41Mt at 1.2g/t Au is considered as waste.

Mark Calderwood
Managing Director

About Perseus Mining Limited

Perseus Mining Limited (ASX/TSX: PRU) has forged a reputation as one of West Africa's most successful gold explorers focused on under-explored gold belts in West Africa.  In August 2011 Perseus became a producer at its Edikan Gold Mine (previously known as the Central Ashanti Gold Project) in Ghana.   Details of the project and mine plan are set out in the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 30, 2011.

Perseus is also planning the development of its Sissingué Gold Mine, part of the Tengrela Gold Project in Côte d'Ivoire, with production targeted for late 2013 or early 2014. Tengrela has the potential to become a significant contributor to the Company's goal to develop into a 400,000-ounce per annum gold producer during 2014.   Details of the project are set out within "Technical Report - Tengrela Gold Project, Ivory Coast" dated December 22, 2010.

Competent Person Statements

The information in this report that relates to the Abnabna-Fobinso, Esuajah South, Esuajah North and Fetish ore reserves is based on information compiled by Mr Chris Marissen, who is a Chartered Professional Member of The Australasian Institute of Mining and Metallurgy.  Mr Marissen is a Mining Engineer and a full-time employee of the Company.  Mr Marissen has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 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").  Mr Marissen consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to exploration results, mineral resources and ore reserves is based on information compiled by Mr Mark Calderwood, who is a Chartered Professional Member of The Australasian Institute of Mining and Metallurgy.  Mr Calderwood is a Director and full-time employee of the Company.  Mr Calderwood has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 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").  Mr Calderwood consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

For a description of Perseus's data verification process, quality assurance and quality control measures, the effective date of the mineral resource and mineral reserve estimates contained herein, details of the key assumptions, parameters and methods used to estimate the mineral resources and reserves set out in this report and the extent to which the estimate of mineral resources or mineral reserves set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues, readers are directed to the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 30, 2011 and the technical report entitled "Technical Report - Tengrela Gold Project, Ivory Coast" dated December 22, 2010 in respect of the Edikan Gold Mine (formerly the Central Ashanti Gold Project) and the Tengrela Gold Project, respectively.

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 Tengrela, 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.

Table 2: Total Mineral Resources (Including Ore Reserves)

Notes

1     Last updated in March 2012.
2     Last updated in December 2010. 
3     Primary reported above a 0.4g/t Au cut-off, oxide/transition report above a 0.2g/t Au cut-off.
4     Last updated in November 2010.
5     The Company holds 90% of EGM (formally CAGP), 90% of Grumesa and 85% of Tengrela after allowing for Government equity at mining stage.

Table 3: Total Ore Reserves

Notes

1     >0.4g/t Au cut-off for Abnabna-Fobinso, >0.5g/t Au cut-off for all other deposits.
2     Last updated in August 2012.
3     Last updated in November 2010, does not allow for material mined.

APPENDIX 1:

Notes on the Abnabna-Fobinso, Esuajah South, Esuajah North and Fetish Ore Reserve Estimates, EGM, Ghana

SOURCE Perseus Mining Limited