PERTH, WESTERN AUSTRALIA--(Marketwired - March 30, 2017) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Perseus Mining Limited (ASX:PRU)(TSX:PRU) is pleased to announce details of its updated Life of Mine Plan ("LOMP") for the Sissingué Gold Mine in Côte d'Ivoire, West Africa ("SGM").
HIGHLIGHTS
The updated LOMP for the SGM involves mining and processing of ore from three open pit mining areas based on the Sissingué, Bélé East and Bélé West mineral deposits as shown below in Figure 1.
To view Figure 1: SGM layout, please visit the following link: http://media3.marketwire.com/docs/Figure1-PRU.pdf.
Pit optimisation, design and scheduling used a gold price of US$1,200 per ounce and input parameters based on Perseus's operating experience including costs from recently contracted supply contracts. Based on the LOMP, the key forecast operating statistics for the SGM are summarised below in Table 1.
Table 1: Overview Key Parameters of the updated LOMP
Parameter | Units | Average per year | Total |
Ex-Pit Mining | FY18-211,2 | Life of Mine | |
Total ore + waste mined | Mt | 6.7 | 25.0 |
Waste mined | Mt | 5.1 | 19.2 |
Ore mined | Mt | 1.6 | 5.8 |
Head grade | g/t gold | 2.1 | 2.1 |
Strip ratio | t:t | 3.2 | 3.3 |
Processing | |||
Quantity ore processed | Mt | 1.3 | 5.8 |
Head grade processed | g/t gold | 2.2 | 2.1 |
Contained gold | '000 ounces | 91 | 400 |
Gold recovery rate | % | 90.0 | 89.6 |
Gold production | '000 ounces | 82 | 358 |
Parameter | Units | Average per year | Total |
Operating and Capital Costs | FY18-211,2 | Life of Mine | |
Average mining costs | US$/tonne mined | 3.29 | 3.17 |
Average processing costs | US$/tonne processed | 12.27 | 13.16 |
Average general & administration ("G&A") costs | US$/tonne processed | 6.33 | 6.71 |
Production costs | US$/ounce | 541 | 543 |
Royalty | US$/ounce | 50 | 50 |
Sustaining capital | US$/ounce | 33 | 35 |
All-in site costs | US$/ounce | 624 | 628 |
Notes:
The current updated LOMP for the SGM differs from the previous version of the LOMP that was published in April 2015, as shown below in Table 2.
Table 2: Overview Key Parameters
Parameter | Units | Current LOMP |
Previous LOMP | % Change |
Mining | ||||
Total ore + waste mined | Mt | 25.0 | 23.2 | 8 |
Waste mined | Mt | 19.2 | 17.7 | 8 |
Ore mined | Mt | 5.8 | 5.5 | 6 |
Head grade | g/t gold | 2.1 | 2.4 | (12) |
Strip ratio | t:t | 3.3 | 3.2 | 3 |
Processing | ||||
Quantity ore processed | Mt | 5.8 | 5.5 | 6 |
Head grade processed | g/t gold | 2.1 | 2.4 | (12) |
Contained gold | '000 ounces | 400 | 429 | (7) |
Gold recovery rate | % | 89.6 | 89.7 | 0 |
Gold production | '000 ounces | 358 | 385 | (7) |
Average gold production | '000 ounces/ year | 71.6 | 73.4 | (2) |
Operating and Capital Costs | ||||
Average mining costs | US$/tonne mined | 3.17 | 3.70 | (14) |
Average processing costs | US$/tonne processed | 13.16 | 16.75 | (21) |
Average Site G&A costs | US$/tonne processed | 6.71 | 7.70 | (13) |
Production costs | US$/ounce | 543 | 569 | (5) |
Royalty | US$/ounce | 50 | 49 | (2) |
Sustaining capital | US$/ounce | 35 | 14 | 150 |
All-in site costs | US$/ounce | 628 | 632 | (1) |
The updated global Measured and Indicated Mineral Resource for the SGM that combines the Sissingué and Bélé East and West deposits is now estimated as 15.0 Mt grading at 1.7 g/t gold, containing 820 kozs of gold as shown in Table 3. A further 1.4 Mt of material grading at 1.9 g/t gold and containing a further 80 kozs of gold are classified as Inferred Resources. Details of these estimates are shown below in Table 4.
Table 3: Measured and Indicated Mineral Resources - March 2017
Deposit | Deposit Type | Measured Resources | Indicated Resources | Measured + Indicated 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 | ||
Sissingué1 | Oxide | 0.78 | 1.9 | 48 | 2.40 | 1.3 | 100 | 3.20 | 1.5 | 150 |
Transitional | 0.59 | 1.9 | 36 | 0.67 | 1.4 | 29 | 1.30 | 1.6 | 66 | |
Fresh | 2.90 | 2.1 | 200 | 5.90 | 1.5 | 280 | 88.0 | 1.7 | 480 | |
Sub-Total | 4.30 | 2.1 | 290 | 8.90 | 1.4 | 410 | 13.00 | 1.6 | 700 | |
Bélé East2 | Laterite | - | - | - | 0.03 | 1.9 | 2 | 0.03 | 1.9 | 2 |
Completely weathered | - | - | - | 0.08 | 2.1 | 5 | 0.08 | 2.1 | 5 | |
Partially weathered | - | - | - | 0.05 | 1.9 | 3 | 0.05 | 1.9 | 3 | |
Weakly weathered | - | - | - | 0.12 | 2.0 | 8 | 0.12 | 2.0 | 8 | |
Fresh | - | - | - | 0.36 | 2.6 | 30 | 0.36 | 2.6 | 30 | |
Sub-Total | - | - | - | 0.65 | 2.3 | 49 | 0.65 | 2.3 | 49 | |
Bélé West2 | Laterite | - | - | - | 0.04 | 1.7 | 2 | 0.04 | 1.7 | 2 |
Completely weathered | - | - | - | 0.08 | 1.7 | 4 | 0.08 | 1.7 | 4 | |
Partially weathered | - | - | - | 0.09 | 1.6 | 5 | 0.09 | 1.6 | 5 | |
Weakly weathered | - | - | - | 0.19 | 1.6 | 10 | 0.19 | 1.6 | 10 | |
Fresh | - | - | - | 0.87 | 2.0 | 57 | 0.87 | 2.0 | 57 | |
Sub-Total | - | - | - | 1.300 | 1.8 | 78 | 1.30 | 1.8 | 78 | |
Grand Total | 4.30 | 2.1 | 290 | 11.00 | 1.5 | 540 | 15.00 | 1.7 | 820 |
Table 4: Inferred Mineral Resources - March 2017
Deposit | Deposit Type | Inferred Resources | ||||
Quantity | Grade | Gold | ||||
Mt | g/t gold | koz | ||||
Sissingué | Oxide | 0.23 | 1.2 | 9 | Notes on Tables 3 and 4: | |
Transitional | 0.06 | 1.0 | 2 | 1. 0.6g/t gold cut-off applied at Sissingué | ||
Fresh | 0.66 | 2.3 | 48 | 2. 0.8g/t gold cut-off grade applied at Bélé | ||
Sub-total | 0.94 | 1.9 | 58 | 3. Mineral Resources are inclusive of any Ore Reserves | ||
Bélé East | Laterite | 0.02 | 1.5 | 1 | 4. Numbers are rounded and may not add up correctly | |
Completely weathered | 0.01 | 1.9 | 1 | |||
Partially weathered | - | - | - | |||
Weakly weathered | 0.02 | 1.5 | 1 | |||
Fresh | 0.24 | 1.8 | 14 | |||
Sub-total | 0.28 | 1.8 | 16 | |||
Bélé West | Laterite | 0.02 | 2.0 | 1 | ||
Completely weathered | 0.02 | 1.7 | 1 | |||
Partially weathered | 0.01 | 1.3 | 1 | |||
Weakly weathered | 0.02 | 1.6 | 1 | |||
Fresh | 0.08 | 2.0 | 5 | |||
Sub-total | 0.14 | 1.8 | 8 | |||
Grand Total | 1.400 | 1.9 | 80 |
The SGM's updated Ore Reserve which is summarised below in Table 5 is estimated at 5.9 million tonnes of ore, grading 2.1 g/t gold and containing 400 kozs of gold and is based on the re-estimated Sissingué Mineral Resource and the Bélé East and West Mineral Resource estimates as at February 2017 and updated pit optimisation, design and scheduling of the open pit resources. Table 5 reports the Ore Reserves by category, deposit and type, above variable cut-off grades. The classification categories of Proved and Probable under the JORC Code are equivalent to the CIM categories of the same name (CIM, 2010).
Table 5: Proved and Probable Ore Reserves - 31 March 2017
Deposit | Deposit Type | Proved | Probable | Proved + 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 | ||
Sissingué3,5 | Open pit | 3.1 | 2.4 | 240 | 1.8 | 1.5 | 86 | 4.8 | 2.1 | 330 |
Bélé East4,5 | Open pit | - | - | - | 0.5 | 2.5 | 39 | 0.5 | 2.5 | 39 |
Bélé West3,4 | Open pit | - | - | - | 0.5 | 2.1 | 35 | 0.5 | 2.1 | 35 |
Total | 3.1 | 2.4 | 240 | 2.8 | 1.8 | 160 | 5.9 | 2.1 | 400 |
Notes:
Proven and Probable Ore Reserves are found within the economic limits of three discrete open pit mining areas that have been designed based on Measured and Indicated Mineral Resources that incorporated all available Resource drilling results, a gold price of US$1,200 per ounce and mining, processing and general and administration costs derived from recent operating experience.
Economic assumptions used for Ore Reserve Estimation
Table 6: Operating costs (US$)
Deposit | Mining | Processing1,5 | G&A | Selling cost2 | Royalty |
Sissingué3,4 | 3.22/t mined | 14.77/t processed | 6.24/t processed | 1.00 per ounce sold | 4.5% |
Bélé East3,4 | 2.96/t mined | 16.91/t processed | 6.85/t processed | 1.00 per ounce sold | 4% |
Bélé West3,4 | 2.96/t mined | 16.91/t processed | 6.85/t processed | 1.00 per ounce sold | 4% |
Notes:
Mining parameters
Table 7: Cut-off Grades
Deposit |
Cut-Off Grade by Ore Type (g/t gold) | ||||
Oxide/Laterite | Transition | Granite/ Porphyry |
Sediment | Mafic | |
Sissingué | 0.45 | 0.85 | 0.85 | 1.05 | NA |
Bélé East | 0.65 | 1.00 | 1.05 | NA | 1.20 |
Bélé West | 0.65 | 1.00 | 1.05 | NA | 1.20 |
Processing Parameters
Table 8: Recoveries
Deposit |
Cut-Off Grade by Ore Type (g/t gold) | ||||
Oxide/Laterite | Transition | Granite/ Porphyry |
Sediment | Mafic | |
Sissingué | 91 | 91 | 90 | 831 | NA |
Bélé East | 94 | 93 | 91 | NA | 91 |
Bélé West | 94 | 93 | 91 | NA | 91 |
Notes:
Classification
With the aim of maximising the return on funds employed at the SGM, the mining sequence of the pits along with mill feed profile has been optimised and scheduled. The result of this scheduling is that the gold production profile and resulting cash flows from the SGM remain strong for the remainder of the mine life. (Refer to Figures 2, 3 and 4 below.)
To view Figure 2: Sissingué Gold Mine - scheduled monthly material movement ex-pit (tonnes), please visit the following link: http://media3.marketwire.com/docs/Figure2-PRU.pdf.
To view Figure 3: Sissingué Gold Mine - Monthly tonnes and grade to Mill, please visit the following link: http://media3.marketwire.com/docs/Figure3-PRU.pdf.
To view Figure 4: Sissingué Gold Mine - Gold Production by Pit, please visit the following link: http://media3.marketwire.com/docs/Figure4-PRU.pdf.
Based on the LOM gold production and cost parameters, the net after tax cash flows forecast to be generated by the SGM from 1 March 2018, at US$1,200 per ounce gold price, are estimated to total US$104 million or approximately A$0.13 per share (assuming an A$:US$ exchange rate of 0.75).
The sensitivity analysis shown below in Table 9 summarises the sensitivity of the SGM's net after tax cash flows to movements in the gold price. Within an expected short term trading range of US$1,100 per ounce to US$1,300 per ounce, the projected cash flows of the mine remain robust and together with strong cash flows from Perseus's producing Edikan Gold Mine in Ghana, is capable of materially contributing to the development funding of Perseus's third project, namely the Yaouré Gold Mine, also located in Côte d'Ivoire.
Table 9: Sensitivity of SGM's After Tax Cash flow and IRR to gold price movements
Gold Price | ||||
US$1,100/ounce | US$1,200/ounce | US$1,300/ounce | ||
After Tax Cash Flow | USD million | 77 | 104 | 130 |
Internal Rate of Return (IRR) | % | 21 | 28 | 33 |
Payback Period | Months | 40 | 39 | 38 |
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.
Competent Person Statement
All production targets for the Sissingué 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. 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 Company confirms that it is not aware of any new information or data that materially affects the information in those market announcements and that all material assumptions and technical parameters underpinning the estimates in that market announcement 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.
Mr Joe McDiarmid, who is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy, and is an employee of RungePincockMinarco Limited has compiled and reviewed the information in this release and Appendix 1 which relate to the Sissingué Ore Reserves. Mr Joe McDiarmid 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 NI 43-101. Mr McDiarmid 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 and has approved the inclusion of technical and scientific information in this report.
Mr Paul Thompson, who is a Fellow of the Australasian Institute of Mining and Metallurgy and is an employee of Perseus Mining Limited has compiled and reviewed the information in this release and Appendix 2 which relates to the Bélé Ore Reserves. 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.
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