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PERTH, Australia, March 3 /CNW/ - Perseus Mining Limited (ASX/TSX: PRU) is pleased to announce that it has entered into an agreement to take a 19.9% stake in and enter into a strategic alliance with Burey Gold Limited ("Burey") an exploration company with a focus in Guinea, West Africa.
Perseus will initially subscribe for 10.4m shares in Burey at a cost of A$418,700, with 10.4m attaching options. Subsequently and, subject to Burey receiving the necessary regulatory approvals, Perseus will subscribe for a further 24.3m shares at a cost of A$973,300 with 24.3m attaching options.
Burey has several projects with gold and gold, uranium and copper mineralisation, these include:
At the Balatindi project (part of the Kerouane group), Burey and previous explorers have identified a primary Au, U, Cu mineral occurrence which Burey believes is of IOCG affinity.
The Mansounia project contains a low grade, near surface laterite/saprolite gold deposit with indications of higher grade source zones. The last round of RC drilling completed at Mansounia in 2008 included intercepts of 67m at 2.03g/t, 53m at 1.07g/t and 39m at 1.11g/t Au at a new prospect called Intermediate Creek. Limited diamond drilling below the main laterite/saprolite profile included intercepts of 7m at 4.17g/t and 13m at 3.00g/t Au.
Burey has a strong geological team with extensive experience in Guinea and neighbouring countries in West Africa and Burey is well positioned to take advantage of the improving political stability in Guinea. For Perseus the investment allows exposure to the prospectivity of Guinea without distracting the Company's exploration management and the agreement gives Perseus the first right of refusal in relation to the sale or farm-out of Burey's mineral interests in West Africa. The investment will enable Burey to step up plans for drilling, regional exploration and project acquisition.
Perseus Managing Director, Mark Calderwood's said "Guinea covers a significant part of one of the most prospective gold regions in West Africa. Burey has several prospective projects and the 'in country' experience required to enhance and grow the portfolio. In addition to the cash investment Perseus will provide high level personnel support and a sounding board for technical initiatives."
Guinea is one of the most prospective countries in Africa for gold, covering the large Birimian Siguri Basin and the northern margin of the Archean Kenema-Man craton. It is currently the fourth largest gold producer in Africa (23.4t in 2008). The country also is the fifth largest producer of bauxite in the world (18Mt in 2008), hosts the largest bauxite resources and reserves in the world and has two large, undeveloped, high grade iron ore deposits.
Guinea has recently experienced a period of political instability after the death of President Lansana Conte who ruled for 24 years. On January 18 2010, the military leaders appointed Jean-Marie Doré, a veteran opposition figure, as prime minister, a critical step in the transition to elections and civilian government planned for later in the year.
SOURCE Perseus Mining Limited
For further information: For further information: Perseus Mining Limited, ABN 27 106 808 986, 30 Ledgar Road, Balcatta, Western Australia, 6021, PO Box 717, Balcatta, WA, 6914, Telephone: (618) 9240 6344, Facsimile: (618) 9240 2406, Email address: firstname.lastname@example.org, Website: www.perseusmining.com