Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) expects to increase the life of the Edikan gold operations in Ghana by 18 to 24 months after completing a feasibility study on the nearby Nkosuo Project and adding considerable mineral resources and ore reserves.
The study has outlined indicated resources of 14.5 million tonnes at 0.91 g/t gold for 422,000 ounces and inferred resources of 950,000 tonnes at 0.9 g/t for 27,000 ounces.
Nkosuo measured and indicated mineral resources as at June 30, 2022.
Nkosuo, which is just seven kilometres NNW of the Edikan mine, hosts ore reserves of 10 million tonnes grading 1.04 g/t gold for 332,000 ounces.
The company said that planned processing of the Nkosuo ore reserves in the Edikan mill was expected to increase the life of the operation by 18 to 24 months extending mine life to FY2027.
Nkosuo proved and probable ore reserves as at June 30, 2022.
Further exploration
Perseus managing director and CEO Jeff Quartermaine said: “The addition of mineral resources and ore reserves from the Nkosuo Project adds significantly to the mine life at Edikan Gold Mine, ensuring operations can continue while Perseus conducts further exploration on the recently acquired Agyakusu Exploration Permit and two other adjoining exploration permits that are under option to Perseus.
"We believe that the discovery of additional ore reserves in trucking distance of existing infrastructure is the most cost-effective means available to Perseus of creating value for shareholders.
"With this objective, further exploration on the nearby tenements will be well funded by Perseus and we are optimistic of discovering further deposits of a similar scale to Nkosuo that will further add to the mine life of the Edikan operation.”
Securities have been as much as 4.07% higher intra-day to A$1.665 while the company's market cap is approximately A$2.25 billion.
About Nkosuo
Nkosuo is about 40 kilometres southwest of the regional town of Obuasi, 200 kilometres WNW of the capital Accra and seven kilometres to the NNW north-northwest of Edikan Gold Mine near the town of Ayanfuri.
A feasibility study has been completed on the development of mineralisation discovered by Perseus at Nkosuo resulting in the estimation of an ore reserve of 332,000 ounces producing 272,000 ounces over three years of mining.
All-in-site costs (AISCs) are expected to be in the range of US$870-US$890 per ounce for Nkosuo.
Nkosuo will be mined in a single open pit, with a waste dump located to the west of the pit.
Dedicated haul road
Ore from the pit will be trucked on a dedicated haul road to the Edikan processing plant for co-processing with ores from existing Edikan open pits and stockpiles.
The resource estimate was delineated by 222 drill holes for a total of 36,982 metres comprised of reverse circulation (RC) and diamond core drill holes drilled by Perseus since 2021.
Global resource estimates are informed entirely by Perseus drilling with a breakdown by sample type of 43% RC and 57% diamond. This ratio changes for the resource constrained within the US$1,800 pit optimisation to 22% RC and 77% diamond.
Drill hole collar locations were surveyed by qualified surveyors. Both RC and diamond core holes were downhole surveyed at nominal 30-metre intervals. Coverage generally extends to about 150 metres vertical depth and to a maximum depth of about 380 metres.
Permitting steps
With the completion of the Nkosuo Feasibility Study, an application will be lodged with the Ghanaian Minerals Commission (Mincom) acting on behalf of the Ministry for Lands and Natural Resources.
In parallel, an application will be lodged with the Environmental Protection Agency (EPA) of Ghana which paves the way for community baseline studies and public hearings. These activities culminate in the generation of an Environmental Impact Assessment.
Perseus will then submit an Environmental Impact Statement, which is the final document required for granting of an Environmental Permit for mining at the Nkosuo project.
Conversion of the Agyakusu Prospecting Licence to a Mining Lease and granting of an Environmental Permit for Nkosuo is expected to take 18 to 24 months.