Perseus Mining Limited’s (ASX:PRU) (TSE:PRU) exploration has not only replaced ore processed since the Sissingué Gold Project in Côte d’Ivoire was commissioned earlier this year but has modestly increased the inventory.
Life of mine ore reserves at 31 August 2018 totalled 380,000 ounces, a 9% increase compared to reserves as at 30 June 2018.
Annual production is estimated at 78,000 ounces for the remaining 4.6 years of mine life including 86,000 ounces annually for the next three years.
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Perseus managing director Jeff Quartermaine said, “Going forward we expect that this pattern will be repeated with incremental increases in mineral resources and ore reserves.
“This is expected to be achieved through the drill out of satellite deposits resulting in an extension of Sissingué’s mine life well beyond the originally envisaged five-year period.”
Measured and indicated resources total 7.7 million tonnes, grading 1.7 g/t gold and containing 423,000 ounces at a cut-off grade of 0.6 g/t.
Inferred resources total 100,000 tonnes, grading 0.9 g/t and containing 3,000 ounces at a cut-off grade of 0.6 g/t.
Resources for the Sissingué deposit have been independently estimated by MPR Geological Consultants Pty Ltd and reported outside the 31 August 2018 mining surface.
Resources and reserves for the neighbouring deposits of Fimbiasso East and West have not been updated.
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Including these deposits, estimated measured and indicated resources total 9.6 million tonnes at 1.8 g/t and containing 538,000 ounces and inferred resources total 400,000 tonnes at 1.7 g/t for 20,000 ounces.
Ongoing exploration
Recent exploration drilling on the Sissingué mining lease and nearby Fimbiasso exploration licence, all within trucking distance of the processing facility, have potential to further increase the mine life.
Forecast average weighted all in sustaining costs (AISC) are estimated at about US$739 per ounce in the first three years of production and US$756 per ounce over the current life of mine.
These include direct production costs, royalties, waste stripping costs and sustaining capital expenditure
Total sustaining capital cost estimate of US$21 million is included in the estimated AISC.
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The life of mine plan forecasts strong positive after-tax cash flow totalling around US$165 million.
This assumes a flat spot gold price of US$1,200 per ounce for unhedged ounces over the life of the mine starting from 1 July 2018 and assuming existing designated hedges for 64,000 ounces at a weighted average price of US$1,300 per ounce.
As well as Sissingué, the company has the operating Edikan mine in Ghana and is on the development path at the Yaouré project, also in Côte d’Ivoire.