ASX-listed Perseus Mining said on Thursday in an update on its West African production and project development activities that the capital investment programme that it has undertaken at the Edikan gold mine in Ghana during the last two years is now largely complete.
Further, notwithstanding recent improvements in mill and crusher performance, the shortfall of gold production due to the extended plant shutdown in October 2016 and lower than expected head grades, has not been recovered.
Gold production from Edikan for the December 2016 half year is now expected to be between 70 80 000 oz, while all in site costs for the period are now expected to be between US$1 550 to $1 650 per ounce.
Perseus Mining said further that work on the Yaouré gold project definitive feasibility study currently remains on track for completion in mid-2017. Discussions with landowners have been constructive to date and a mutually satisfactory solution is expected to be reached in time for mineral resource confirmation drilling to start by the end of December 2016.
At the Sissingue gold project, Snowden Mining Industry Consultants has completed a re-estimate of the project’s mineral resource and maiden mineral resource estimates for the Bélé mineral deposits that are located within trucking distance of Sissingué. The re-estimated measured and indicated mineral resource at Sissingué contains approximately 180 000 oz or 20% less gold than previously estimated as a result of discounting a quantity of reverse circulation drill results.
“Depending on the conversion rate of Bélé’s inferred mineral resource into measured and indicated categories, the combined measured and indicated mineral resource for Sissingué and Bélé may be very similar to the original Sissingué estimate of 880 000 oz of gold,” said Perseus Mining.
The company intends to reduce the level of project debt finance sought to finance the construction of Sissingué and increase the proportion of development funding from cash flow and cash reserves, pending the confirmation of the total Sissingué and Bele measured and indicated resource.
In fact, Perseus Mining has implemented a plan to align Sissingué’s project development expenditure more closely with available funding capacity. As a result, the projected date of production of first gold from Sissingué has been moved back approximately four months, from October 2017 to the end of February 2018.