Perseus downgrades guidance on lower Edikan output
PERTH (miningweekly.com) – Dual-listed gold miner Perseus Mining has reported a slight decline in production at its Edikan gold mine, in Ghana, owing to lower gold grades during the three months to March.
Perseus reported that gold production for the quarter under review declined to 43 787 oz, compared with the 48 360 oz delivered in the previous corresponding period.
In response to the weak gold prices, Perseus took the decision to employ a new strategy at the Edikan mine, focused on exercising austerity by minimising capital outlays and focusing on productivity improvements and cost reductions.
An element of this strategy entailed reducing waste stripping activities to conserve capital, which resulted in the deferment of access to fresh ore, and requiring low-grade stockpiled ore to be blended with higher-grade fresh ore to achieve targeted mill feed volumes.
Perseus expected the situation to reverse in the June quarter, and mined grades were forecast to increase.
Meanwhile, ASX- and TSX-listed Perseus has downgraded its production expectations for the six months to June and the full-year ended June, following a fire at Edikan.
In April this year, a fire started during scheduled maintenance work at the site, prompting Perseus to halt processing activities at the operation for a period of seven days.
The miner has now reported that following an assessment of the consequences of the fire in the processing plant, gold production for the six months to June was expected to reach between 89 000 oz and 99 000 oz, as opposed to the initial estimate of between 99 000 oz and 109 000 oz.
For the full year, gold production expectations have been decreased to between 183 000 oz and 193 000 oz, as opposed to the initial full-year estimate of between 190 000 oz and 210 000 oz.
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