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QUARTERLY REPORT For the period ending September 30 2012 (the"Quarter")
PERTH, Western Australia, Oct. 16, 2012 /CNW/ - Perseus Mining Limited ("Perseus" or the "Company") (TSX & ASX:PRU) advises that its Activity Report for the quarter ended September 30, 2012 has been issued under the rules of the Australian Securities Exchange ("ASX"). Highlights of the Activity Report are set out below, and the full text of the report is available on the Company's website www.perseusmining.com and under the Company's profile at www.sedar.com
Operations - Edikan Gold Mine ("EGM"), Ghana
|Key Operating Metrics||Units||September 2012 Quarter||June 2012 Quarter|
|Cash costs (1)||US$/oz||475||575||676||690|
|Cash costs including royalties||US$/oz||569||-||782||-|
|Average gold sales price(2)||US$/oz||1,463||-||1,504||-|
|1)|| Cash costs are C1 cash costs as per Brook Hunt definition, plus adjustments for
US$18.0M of costs of deferred waste stripping and ore inventory movements.
|2)||Includes realised price of both spot and forward sales of gold.|
- Gold production of 52,610 oz during the September 2012 Quarter (the "Quarter") in line with June 2012 Quarter (the "June Quarter") production but 4% under forecast production guidance range of 55-60,000 oz for the Quarter;
- Cash costs reduced to US$475/oz, 30% lower than June Quarter cash costs and 17% lower than cost guidance;
- Guidance for the December 2012 Quarter and the full financial year remains unchanged;
- Total ore and waste movements (4,119,664 bcm) 12% above target;
- Head grade (1.46 g/t) 5% above target and total plant recovery (87.7%) in line with target;
- Average hourly mill throughput rate (761 dry tonnes per hour ("dtph")) equates to annual throughput of 6.0Mt at 90% plant availability;
- SAG mill utilisation rate (76%) largely reflects impact of unexpected non-mechanical issue in primary crusher early in the Quarter.
Development - Sissingué Gold Project, Côte d'Ivoire
- Exploitation Licence for the Sissingué Gold Project granted on 8 August 2012;
- Detailed review of mine plan, capital and operating cost budgets completed indicating moderate changes to October 2010 Feasibility Study economics;
- Early development works approved and underway;
- Full scale development decision on hold pending clarification of the fiscal regime applicable to the project.
Exploration - Ghana and Côte d'Ivoire
- 23,719m of drilling completed including 5,115m in Ghana and 18,604m in Côte d'Ivoire;
- Significant drill intercepts from multiple deposits.
- Available cash balance of $108.758M (excludes $8.641M in escrow) plus 2,929 oz of gold on hand and a further 5,332 oz of gold at the refinery at 30 September 2012.
- US$85M project debt facility restructured into a revolving line of credit with the facility limit increased to US$100M;
- Facility currently drawn to US$54M with associated hedging of 230,000 oz at US$1,365/oz.
About Perseus Mining Limited
Perseus Mining Limited (ASX/TSX: PRU) has forged a reputation as one of West Africa's most successful gold explorers focused on under-explored gold belts in West Africa. In August 2011 Perseus became a producer at its Edikan Gold Mine (previously known as the Central Ashanti Gold Project) in Ghana. Details of the project and mine plan are set out in the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 30, 2011.
Perseus is currently considering the development of its Sissingué Gold Project, part of the Tengrela Gold Project in Côte d'Ivoire, with potential production from the end of 2013. Tengrela has the potential to become a significant contributor to the Company's goal to develop into a 400,000-ounce per annum gold producer during 2014. Details of the project are set out within "Technical Report - Tengrela Gold Project, Ivory Coast" dated December 22, 2010.
Perseus will continue its strategy of rapidly increasing its resource and reserve base during the ramp-up of the Edikan Gold Mine and development of the Sissingué Gold Project.
Competent Person Statement: The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Mark Calderwood, who is a Charted Professional Member of The Australasian Institute of Mining and Metallurgy. Mr Calderwood is a Director and full-time employee of the Company. Mr Calderwood has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'") and to qualify as a "Qualified Person" under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr Calderwood consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. For a description of Perseus's data verification process, quality assurance and quality control measures, the effective date of the mineral resource and mineral reserve estimates contained herein, details of the key assumptions, parameters and methods used to estimate the mineral resources and reserves set out in this report and the extent to which the estimate of mineral resources or mineral reserves set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues, readers are directed to the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 30, 2011 and the technical report entitled "Technical Report - Tengrela Gold Project, Ivory Coast" dated December 22, 2010 in respect of the Edikan Gold Mine (formerly the Central Ashanti Gold Project) and the Tengrela Gold Project, respectively.
Caution Regarding Forward Looking Information: This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Edikan Gold Mine without any major disruption, development of a mine at Tengrela, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE: Perseus Mining Limited
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