As part of its mid-quarter update Perseus Mining, the ASX-listed West African gold miner, announced that it has awarded approximately 50% of the scope of work for the Sissingué mine development to the “experienced and highly regarded” international engineering group Lycopodium.
The balance of the Sissingué scope of works will be supervised by Perseus Mining’s in-house development team and procurement for this portion of the works is also well underway.
According to Perseus Mining, the company is progressing towards obtaining final credit approval and documentation of a US$60 million project financing facility for Sissingué which, together with $40 million of Perseus’s cash, will fully fund the approximately $100 million cost to complete the development of Sissingué.
The intensive work programme implemented earlier this year to improve operating performance at the Ghana-based Edikan continues to generate the required results with materially improved operating performance continuing during the September 2016 quarter.
Gold production up to 12 August 2016 is ahead of target with approximately 21 000 oz of gold recovered for the quarter-to-date.
This level of production is consistent with guidance for the December 2016 half year of 80 – 100 000 oz of gold.
A $120 million contract for the mining of the Esuajah North (ESN) open pit has been awarded to African Mining Services (AMS), a Ghanaian contract mining subsidiary of mining services company Ausdrill.
AMS is currently contracted to mine both the Fetish and Chirawewa open pits at Edikan, with construction of housing needed to accommodate former residents of the mine take area proceeding on track and grade control drilling in ESN under way.
Preparations for the start of full scale mining by AMS in ESN in early October 2016 are well in hand.
A contract for 42 000 m of diamond and reverse circulation (RC) infill drilling and 40 000 m of rotary air blast (RAB) sterilisation drilling has been signed with drilling contractor Geodrill.
By month end, Perseus Mining expects four drill rigs to be mobilised to the Yaouré site.
In addition, all key consultants are well advanced on Stage 1 of the definitive feasibility study (DFS) which involves a comprehensive review of all existing data related to Yaouré in each discipline and the selection of specific options for evaluation as part of the DFS.
This stage of the DFS is expected to be completed on schedule by the end of August 2016.
Perseus Mining’s Baomahum gold project
Meanwhile, Perseus has been advised by the Sierra Leone National Minerals Agency that the Minister for Mines and Mineral Resources has cancelled mineral right ML 02/08 on which the Baomahun gold deposit is located.
This action has been taken following Perseus’s advice to the minerals advisory board that development of the Baomahun gold project as defined by Amara Mining, which was acquired by Perseus in April 2016, is not economically feasible at current gold prices.
Further exploration success and a positive feasibility study would be required before Perseus could consider committing to development.