Perseus Mining Limited - Sissingue Development Update, Tengrela Gold Project, Côte d'Ivoire


PERTH, Western Australia, Sept. 19, 2011 /CNW/ - Perseus Mining Limited (ASX/TSX: PRU) is pleased to advise that good progress has been made towards the development of the Sissingue gold deposit on its Tengrela Gold Project in northern Côte d'Ivoire.

Progress highlights include:

  • Lodgement of an Environmental and Social Impact Assessment (ESIA) with Ivorian authorities in September

  • Awarding of a design contract for the Sissingue processing facility to GR Engineering Services Pty Ltd (GRES)

  • Exploration and resource drilling is continuing with six drill rigs expected to be operating in October

Following lodgement of the ESIA in early September, community consultation meetings will be held later in the month as part of the approvals process.  The Company is anticipating environmental permit approval by the end of 2011, assuming no delays in the process.  When the permit is obtained, Perseus can engage the Ivorian Government in negotiations for the mining convention with the view to building the plant and achieving first production in 2013.

To enable an early start to construction when the permitting is in place, the process facility design contract has been awarded to Perth-based engineering group GRES.  The detailed design is expected to take about 30 weeks, and it is anticipated that orders for long lead plant items will be placed during that period.

Extensional drilling to the Sissingue deposit and exploration drilling across the Tengrela Gold Project area are continuing with five drill rigs on site and a sixth on schedule to arrive in October.  An update to the Sissingue resource and reserve estimate is expected to be released during the June Quarter 2012.

Based on the 2010 feasibility study, gold production from Sissingue is estimated to an average of 170,000 ounces per annum in the first two years.

Mark Calderwood, Managing Director's Comments

"Tengrela is the next mine in the pipeline for Perseus now that we have brought our Edikan Gold Mine into production in Ghana."

"Lodgement of the environmental assessment document with the Ivorian authorities and awarding the process facility design contract to GRES are significant pre-construction milestones for the project, which we plan to fast track to achieve first production in 2013."

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, Perseus has now joined gold producer ranks at its Edikan Gold Mine (EGM) in Ghana.  The Company plans to produce at the initial rate of about 220,000 ounces of gold in the first 12 months of commercial production and to increase this to about 280,000 ounces per annum in the following year.

Perseus is now also planning the development of its Tengrela Gold Project in Côte d'Ivoire, with production targeted for 2013. Tengrela has the potential to become a significant contributor to the Company's goal to develop into a 400,000-ounce per year gold producer in 2013.

Perseus will continue its strategy of rapidly increasing its resource and reserve base during the development of Edikan and Tengrela.

Caution Regarding Forward Looking Information: This report contains forward-looking information which is based on assumptions and judgments of management regarding future events and results. Such forward-looking information, includes but is not limited to information with respect to future exploration and drilling, procurement of financing, procurement of necessary regulatory approvals, the development of the Edikan Gold Mine, and development of a mine at Tengrela. 

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

For further information:

To discuss any aspect of this announcement, please contact:
Mark Calderwood at telephone +61 8 9240 6344 or email
Nathan Ryan at telephone +61 420 582 887 or email
Rebecca Greco at telephone +1 416 822 6483 or email (Toronto)

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