Name of the Project
Edikan gold project.

Location
Ghana.

Client
Perseus Mining.

Project Description
The Edikan gold mine produced its first gold in August 2011 and achieved commercial production in January 2012. Expected mine life from July, 2015, has been estimated at eight years.

The project has measured and indicated resources as at March 2016, were estimated at 144.8-million tonnes grading 1.1 g/t of gold, and proven and probable reserves of 58.4-million tonnes grading 1.2 g/t of gold. Inferred resources have been estimated at 61.4-million tonnes grading 1 g/t of gold.

The updated life-of-mine plan (LOMP) for Edikan involves mining and processing of ore from six openpits. The updated LOMP results in a total of 1.89-billion ounces of gold being contained in the ore delivered to the mill during the remainder of its life, including a partial eighth year of production, which is within 2% of the previous version of the LOMP.

Assuming a life-of-mine recovery factor of 88.1%, 1.66-billion ounces of gold will be recovered during the remaining years of the mine. This compares favourably to the previous forecast of 1.74-billion ounces, aside from the exclusion of the Esuajah South deposit from the LOMP.

Esuajah South is forecast to deliver 6.6-million tonnes of ore at a grade of 1.7 g/t of gold into the mine plan, with mining of the deposit scheduled to begin in late 2017.

Perseus has indicated that development of the Esuajah South deposit using underground mining techniques remains an attractive option subject to the gold price.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
The LOMP has increased the net present value from $278-million to $287-million in the previous LOMP, at a 10% discount rate, based on a gold price of $1 200/oz.

Value
Perseus expects a $31-million decrease in sustaining capital, with $44-million now required, compared with the $75-million estimated in the previous LOMP.

Edikan forecasts an improved operating cost profile for the remaining years of Edikan’s mine life and a reduction in required capital expenditure,

Duration
About eight years.

Latest Developments
Perseus Mining’s reinvestment into its Edikan mine will tip at more than $40-million at the end of the 2018 financial year, MD and CEO Jeff Quartermaine has said.

Speaking at the Africa Downunder conference in Perth on September 7, he said that as of the June quarter, an estimated $14.1-million had been spent at the gold mine, with a further $20.9-million earmarked for 2017 and $5.4-million for 2018.

The bulk of the spending this year will go towards gaining access to new mining areas, providing housing and road infrastructure, and completing the build on a new power station to supplement grid power in case of an outage.

Funding will also go towards rectifying issues that were identified at the Edikan plant during its early operation.

“This exercise will take place over the next couple of months and would result in very substantial improvements at Edikan,” Quartermaine has said.

Over its remaining seven-and-a-half-year mine life, the Edikan mine is expected to produce an average of 222 000 oz/y of gold at an all-in sustaining cost of $865/oz.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Perseus Mining, tel +61 8 6144 1700, fax +61 8 6144 1799 or email info@perseusmining.com.