Perseus Mining Updates Edikan Gold Mine’s Mineral Resource & Ore Reserves
PERTH, Feb. 19, 2020 - Perseus Mining Ltd. (“Perseus” or the “Company”) (TSX & ASX: PRU) has updated its estimates of the Mineral Resources and Ore Reserves at its Edikan Gold Mine in Ghana as at December 31, 2019. An executive summary is provided below. Full details of the Edikan Gold Mine resource and reserve updates are included in the Company’s market release dated February 20, 2020 which is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.
- Estimated Measured and Indicated Mineral Resources total 2.699 million ounces of gold at December 31, 2019, and Inferred Mineral Resources were estimated at 0.348 million ounces of gold.
- All Mineral Resource estimations were based on a US$1,800 per ounce gold price.
- Proved and Probable Ore Reserves were estimated at 1.608 million ounces of gold, calculated as follows:
| Proved and Probable Reserves as at June 30, 2019 | 1.390 million ounces | |
| Plus: Net Additions | 0.303 million ounces | |
| Less: Depletions | 0.085 million ounces | |
| Proved and Probable Reserves as at December 31, 2019 | 1.608 million ounces |
- Represents a 22% increase in Proved and Probable Ore Reserves before depletion relative to last reported Ore Reserve estimate or a 16% increase after depletion.
- The Ore Reserve estimates were based on a gold price of US$1,300 per ounce.
- Details of Measured and Indicated Mineral Resources and Ore Reserves are as follows:
Edikan Measured and Indicated Mineral Resources as at December 31, 20199, 10, 11
| Project | Type | Measured Resources | Indicated Resources | M & I Resources | ||||||||
| Quantity | Grade | Gold | Quantity | Grade | Gold | Quantity | Grade | Gold | ||||
| Mt | g/t gold | koz | Mt | g/t gold | koz | Mt | g/t gold | koz | ||||
| AF Gap 1, 2, 3 | Open Pit | 10.2 | 1.00 | 326 | 21.8 | 0.92 | 645 | 32.0 | 0.94 | 971 | ||
| Esuajah North 2, 3, 4 | Open Pit | 3.3 | 0.80 | 85 | 4.8 | 0.74 | 114 | 8.1 | 0.77 | 199 | ||
| Fetish 1, 2, 3, 5 | Open Pit | 7.7 | 1.00 | 248 | 14.1 | 0.92 | 418 | 21.8 | 0.95 | 666 | ||
| Bokitsi South 2, 3, 6 | Open Pit | 1.3 | 1.81 | 73 | 1.6 | 1.30 | 65 | 2.8 | 1.53 | 139 | ||
| Sub-Total | 22.5 | 1.01 | 732 | 42.2 | 0.91 | 1,242 | 64.7 | 0.95 | 1,975 | |||
| Esuajah South 7 | U/ground | 0.0 | 0.0 | 0 | 9.0 | 1.8 | 530 | 9.0 | 1.8 | 530 | ||
| Heap Leach 2, 8 | Stockpile | - | - | - | 3.6 | 0.6 | 75 | 3.6 | 0.6 | 75 | ||
| Stockpiles | Stockpile | 5.9 | 0.63 | 119 | - | - | - | 5.9 | 0.63 | 119 | ||
| Total | 28.4 | 0.93 | 852 | 54.8 | 1.05 | 1,848 | 83.3 | 1.01 | 2,699 | |||
Notes:
| 1. Based on January 2017 Mineral Resource models constrained to US$1,800/oz pit shells. |
| 2. Depleted to December 31, 2019 mining surfaces. |
| 3. 0.4g/t gold cut-off applied. |
| 4. Based on June 2019 Mineral Resource model constrained to US$1,800/oz pit shell. |
| 5. Includes Bokitsi North lode. |
| 6. Based on November 2019 Mineral Resource model constrained to US$1,800/oz pit shell. |
| 7. Based on July 2019 Mineral Resource model, 0.8g/t gold cut-off applied. |
| 8. At zero cut-off grade. |
| 9. All Mineral Resources are current as at December 31, 2019. |
| 10. Mineral Resources are inclusive of Ore Reserves. |
| 11. Rounding of numbers to appropriate precisions may have resulted in apparent inconsistencies. |
Edikan Ore Reserves as at December 31, 20193, 6, 7
| Project | Type | Proved | Probable | Proved and Probable | ||||||||
| Quantity | Grade | Gold | Quantity | Grade | Gold | Quantity | Grade | Gold | ||||
| Mt | g/t gold | koz | Mt | g/t gold | koz | Mt | g/t gold | koz | ||||
| AF Gap1, 4 | Open Pit | 6.8 | 1.14 | 248 | 11.9 | 1.05 | 402 | 18.6 | 1.09 | 650 | ||
| Esuajah North1, 4 | Open Pit | 0.4 | 0.91 | 11 | 0.6 | 0.86 | 17 | 1.0 | 0.88 | 28 | ||
| Fetish1, 4 | Open Pit | 4.4 | 1.18 | 165 | 7.1 | 1.09 | 248 | 11.4 | 1.13 | 414 | ||
| Bokitsi South1, 4 | Open Pit | 0.9 | 2.11 | 58 | 0.4 | 1.70 | 24 | 1.3 | 1.97 | 82 | ||
| Subtotal | 12.3 | 1.22 | 482 | 20.0 | 1.08 | 690 | 32.3 | 1.13 | 1,173 | |||
| Esuajah South | U/ground | - | - | - | 3.8 | 1.96 | 241 | 3.8 | 1.96 | 241 | ||
| Heap Leach5 | Stockpile | - | - | - | 3.6 | 0.6 | 75 | 3.6 | 0.6 | 75 | ||
| Stockpile2 | Stockpile | 5.9 | 0.63 | 119 | - | - | - | 5.9 | 0.63 | 119 | ||
| TOTAL | 18.3 | 1.02 | 601 | 27.4 | 1.14 | 1,007 | 45.7 | 1.10 | 1,608 | |||
Notes:
- Based on December 2019 Mineral Resource estimate which is depleted to December, 31 2019.
- Based on stockpile balance as at December 31, 2019.
- All Ore Reserves current as at December 31, 2019.
- Variable gold grade cut-off based on recovery of each material type in each deposit: Oxide 0.35 – 0.40 g/t, Transition 0.50 – 0.70 g/t and Fresh 0.50 – 0.55 g/t.
- Based on 0.40 g/t gold grade cut-off.
- Inferred Mineral Resource is considered as waste, t : t.
- Rounding of numbers to appropriate precisions may have resulted in apparent inconsistencies.
| Perseus’s Managing Director and CEO, Jeff Quartermaine, commented as follows: “Since the last release of Edikan’s Mineral Resources and Ore Reserves in June 2019, the gold price has consolidated at a higher level than that recorded in prior years and several key operating initiatives identified as part of ongoing continuous improvement programmes, have been successfully implemented at Edikan, including a revised mining strategy and initiatives to improve processing plant throughput and performance reliability. Perseus has identified that at the slightly higher gold price of US$1,300 per ounce and lower cost base than previously assumed, two of its open pits, namely the AFG and Fetish pits can be significantly increased in size and provide the cash margin consistent with our overall strategy of cash generation. The reconciliation between contained metal forecast by our block models and the metal we recover continues to be robust and is certainly within the limits of normal operating practice. The demonstrated predictive reliability of our Mineral Resource and Ore Reserve models continues to provide a sound basis on which to plan our future. The Esuajah South deposit has been included in previous Ore Reserve estimates, but not in prior Life of Mine forecasts for Edikan. Following an update of the Feasibility Study for the deposit, the Ore Reserve estimate has been updated and risks associated with mining of the deposit have now been sufficiently reduced for the underground mine to proceed with development and therefore an underground mining operation at Esuajah South will be included in the next Edikan Life of Mine forecast. The inclusion of the increased open pit Ore Reserves and the Esuajah South Underground Mine will result in an increase in the expected mine life of the Edikan Gold Mine. Details of the updated Life of Mine Plan for Edikan are planned to be released by the end of the March 2020 quarter.” |
To discuss any aspect of this announcement, please contact:
| Managing Director: | Jeff Quartermaine at telephone +61 8 6144 1700 or email |
| jeff.quartermaine@perseusmining.com; | |
| General Manager BD & IR: | Andrew Grove at telephone +61 8 6144 1700 or email |
| andrew.grove@perseusmining.com | |
| Media Relations: | Nathan Ryan at telephone +61 4 20 582 887 or email |
| nathan.ryan@nwrcommunications.com.au (Melbourne) |
Competent Person Statement:
The December 2019 re-estimate of Esuajah South underground Mineral Resources at Edikan was undertaken by Mr Gary Brabham, FAusIMM, MAIG. Mr Brabham is Group Geologist for Perseus Mining Ltd. and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and a Qualified Person as defined in NI43-101. 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 technical and scientific information in this report. Mr Brabham also compiled and reviewed the consolidated information in this report concerning the Mineral Resources at the Edikan Gold Mine.
The December 2019 estimate of Bokitsi South open pit Mineral Resources at Edikan was undertaken by Mr Nicolas Johnson MAIG, of MPR Geological Consultants Pty Ltd. Mr Johnson has sufficient experience, that 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 JORC Code 2012 and a Qualified Person as defined in NI43-101. Mr Johnson has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
The December 2019 estimate of Esuajah South underground Ore Reserve at Edikan was undertaken by Mr Andrew Gasmier BEng (Mining) MAusIMM, of Mining Plus Pty Ltd. Mr Gasmier has sufficient experience, that 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 JORC Code 2012. Mr Gasmier has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
Mr Paul Thompson FAusIMM and an employee of Perseus Mining Ltd. has compiled and reviewed the consolidated information on the Ore Reserves of the Bokitsi South, Fetish and AFG deposits at the Edikan Gold Mine in this report. Mr Thompson has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and a Qualified Person as defined in NI43-101 and 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 technical and scientific information in this report. Mr Thompson also compiled and reviewed the consolidated information in this report concerning the Ore Reserves at the Edikan Gold Mine.
The information in this report that relates to Mineral Resources and Ore Reserves for the Esuajah North deposit was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement entitled “Perseus Mining Updates Mineral Resources & Ore Reserves” released on 29 August 2019. The information in this report that relates to the Mineral Resources for the Edikan deposits (other than the Bokitsi South, Esuajah North and Esuajah South deposits) was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 29 August 2018. The information in this report that relates to Ore Reserves for the Edikan deposits (other than the Fetish, AFG, Bokitsi South, Esuajah North and Esuajah South deposits) was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement entitled “Perseus Mining Updates Mineral Resources & Ore Reserves” released on 29 August 2018.
This report includes an update for mining depletion as at 31 December 2019. The Company confirms that it is not aware of any new information or data that materially affect the information in those market releases and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The Company confirms that material assumptions underpinning the estimates of Mineral Resources and Ore Reserves described in “Technical Report — Central Ashanti Gold Project, Ghana” dated 30 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 and the Sissingué Gold Mine without any major disruption, development of a mine at Yaouré, 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.
