Perseus Mining will proceed with development of the Sissingué gold mine

By Rachel Dally-Watkins

29 April, 2015

ASX-listed Perseus Mining has decided to proceed with development of the Sissingué gold mine (SGM) in Ivory Coast, following a positive revised feasibility study.

The study showed the project was technically feasible and economically robust, with measured and indicated resources of 880,000oz of gold and proved and probable reserves of 429,000oz of gold.

The mine would produce about 385,000oz of gold across a 5.25 year life, at an average of 75,000oz of gold per year, at an all-in sustaining cost of US$632 per ounce.

Perseus’ study showed start up capital costs would total US$106 million (including contingency), with funding to be sourced from existing cash and a “modest” amount of third party debt.

“Our revised feasibility study presents a strong case on both technical and economic grounds for proceeding to full-scale development of our second gold mine at Sissingué in Côte d’Ivoire,” Perseus managing director and chief executive Jeff Quartermaine said.

“Equally as important, we believe there is a compelling strategic case to be made for moving into development at a time when many in the gold industry are pulling back from such decisions,” he said.

“Consistent with our corporate strategy, the development of Sissingué will result in a second production source and income stream that will decrease our reliance on the Edikan gold mine in Ghana for liquidity and income and through diversification, improve the consistency of our financial performance.

“It should also serve to materially reduce our overall risk profile because, in addition to reducing economic risk, the second operating mine will provide a spread of geopolitical risk as a result of being in a jurisdiction other than Ghana and a spread of technical risks.”

Perseus would target the start of construction in the September quarter and aim to achieve first gold pour within 14 months.