Name of the Project
Sissingué gold project.

Location
Côte d’Ivoire.

Client
Perseus Mining.

Project Description
The Sissingué project, including the nearby Belé East and West deposits, has total proven and probable reserves estimated at 5.9-million tonnes grading at 2.1 g/t gold.

Measured and indicated mineral resources for the project have been estimated at 15-million tonnes grading at 1.7 g/t gold.

A further 1.4-million tonnes of material grading 1.9 g/t gold is classified as inferred mineral resources.

The updated life-of-mine (LoM) plan envisages production of 358 000 oz of gold, including about 80 000 oz/y for the first 3.25 years of production, and about 70 000 oz/y over the full five-year mine life. This compares with envisaged production of 385 000 oz in the previous LoM.

The Sissingué plant will process a range of ore types – oxide, transition and primary porphyry, granite and sediment ores – with variable ore characteristics, gold grades and metallurgical treatment requirements.

The primary ores are significantly more competent than the oxide ores and require a longer leach time to optimise gold recovery.

Ores will be mined so that predominantly oxide/transition ore will be processed in two phases.

Net Present Value/Internal Rate of Return
Based on a total estimated construction cost of $107-million, the ungeared after-tax internal rate of return from the project has been estimated at 28%, with a payback of estimated at 39 months.

Value
Start-up capital costs are estimated at $106-million, including contingency.

Duration
First gold from Sissingué is expected in the March 2018 quarter.

Latest Developments
Sissingué was 42% complete by March 31, and remains on track to produce first gold in the March 2018 quarter.

Perseus spent $12-million on development activities during the quarter, bringing total expenditure, including the early works, to date, to $55-million.

The contractor’s construction team has progressed with the bulk concrete works associated with the plant and installation of underground services well under way. On-site work on the construction of the airstrip, tailings dam and mine camp has also continued to progress in line with the project’s master schedule during the quarter and is expected to be completed in the June quarter.

Key Contracts and Suppliers
Lycopodium (engineering, procurement and construction management contract).

On Budget and on Time?
The project is running on schedule and slightly under budget.

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