Issue link: http://resourceworld.uberflip.com/i/807573
54 www.resourceworld.com A P R I L / M A Y 2 0 1 7 Australian Update by Greg Barns I n these turbulent political times, gold miners are getting a more intense focus from investors. Western Australian- based Perseus Mining Ltd. [PRU-ASX, TSX] is no exception, having recently presented at the prestigious annual BMO Capital Markets Global Metals and Mining Conference in Florida. Perseus had a good story to tell investors at the conference in terms of adding produc- tion ounces. Its Ghanaian flagship Edikan Project is moving into what it calls the "cash harvesting" phase and there was news on the Sissingué gold project in Côte d'Ivoire and the nearby earlier stage Yaouré gold project. Mining in Africa is not always easy and Perseus Mining has placed great emphasis on ensuring it has a social licence to oper- ate in both Ghana and Côte d'Ivoire. In the former it has commissioned a 201-structure housing estate. In both nations it is dealing with the issue of illegal mining and security. The Edikan Project is an open cut, multi-pit operation in southern Ghana. It is expected to produce its millionth gold ounce shortly and between July and December 2016 a total of 3.2 million tonnes grading 0.89 g/t gold with 75,999 oz were recovered. The project's updated global measured and indicated resource estimate is 155.8 million tonnes grading at 1.0 g/t gold, containing 5,011,000 oz gold. A further 30 million tonnes grading 0.9 g/t containing 899,000 oz are inferred. Edikan has a 6.5-year mine life from July 1 this year with estimated production of 214,000 oz/year (estimated remaining life-of-mine production of 1,388,000 oz) at a weighted average AISC of US $864/ oz. Over the first five years, average annual production has been 240,000 oz at a weighted average AISC of US $875/oz. At its BMO Presentation, Perseus CEO, Jeff Quartermaine, said Edikan is "strongly cash positive with US $403 million after-tax cash flow forecast over remaining life-of-mine from January 1" this year. A plant upgrade in October last year improved performance. Perseus is also focusing on the Sissingué gold project, which includes the Bélé Project, northern Côte d'Ivoire. The com- pany hopes to start full scale project development shortly and be in production by the March 2018 quarter. The combined Sissingué + Bélé measured and indicated resource is 14.9 Mt at 1.7 g/t gold for 0.83 M oz. Ore reserves are being estimated but the company says the number is expected to be slightly lower than previous estimate of 0.43 M oz. Total forecast project cost is US $115.3 M and Perseus has spent US $42M to date. Previously, the company announced average annual production of 75,000 oz with an expected mine life of 5.25 years. In central Côte d'Ivoire, Perseus has the Yaouré gold project with non-JORC mea- sured and indicated resources of 5.2 M oz. A Definitive Feasibility Study is near completion. Perseus is aiming for full scale construction mid-2018. To finance growth, the company has formally accepted letters of offer from Macquarie Bank to provide US $60 mil- lion of debt finance. US $440 million will be used to finance Sissingué and US $20 million to provide working capital "while production at Edikan is ramping up" for more funding for Sissingué. n Perseus Mining building production in Africa