Name of the Project
Sissingué gold project.

Location
Côte d’Ivoire.

Client
Perseus Mining.

Project Description
The 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.

Potential Job Creation
Not stated.

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 estimated at 39 months.

Value
Start-up capital costs are estimated at $107-million, including contingency.

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

Latest Developments
Performance tests to verify the construction contractor’s warranted operating capabilities of the crusher and semiautogenous mill at Sissingué have been passed and the plant is now running consistently at or above nameplate run times and throughput rates.
 
Notwithstanding that low-grade oxide ore has been used throughout the commissioning process, gold recovery rates have also consistently exceeded definitive feasibility study estimates.
 
The ramp-up to full scale commercial production is progressing as planned and commercial production is expected to be declared from March 31, 2018.

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

On Budget and on Time?
The estimated capital cost of the full development of the Sissingué mine and infrastructure, excluding early works, but including operations readiness initiatives, was $107-million. Based on current estimates, this budget will not be exceeded.

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