Perseus Mining Updates Life of MINE Plan FOR Sissingué GOLD MINE & Satellite Deposits
MARCH 28, 2022
NEWS RELEASE
PERSEUS MINING LIMITED
Level 2, 437 Roberts Road, Subiaco WA 6008
ABN: 27 106 808 986
1
PERSEUS MINING UPDATES LIFE OF MINE PLAN FOR SISSINGUÉ
GOLD MINE & SATELLITE DEPOSITS
Perth, Western Australia/March 28, 2022/Perseus Mining Limited (ASX/TSX: PRU) has updated its Life of Mine Plan
(“LOMP”) for its Sissingué Gold Mine (“SGM”) and satellite deposits, Fimbiasso and Bagoé, in Côte d’Ivoire (collectively
“Sissingué”).
HIGHLIGHTS
• The mine life for Sissingué has been extended to March 2026 with potential for further extension by processing
low grade ore stockpiles.
• Average annual gold production is currently forecast at 72,000 ounces at an average all-in site cost (ASIC) of
US$1,261 per ounce.
• Updated Mineral Resources are estimated at 7.2 million tonnes grading 1.7 g/t gold containing 394,000 ounces of
gold at December 31, 2021.
• Proved and Probable Ore Reserves1 total 5.0 million tonnes of ore grading 1.8g/t gold and containing 282,000
ounces of gold with ore drawn from pits at Sissingué, Fimbiasso and Bagoé deposits.
• Key Sissingué LOMP2 parameters include:
KEY PARAMETERS UNITS UPDATED
LIFE OF MINE PLAN
ANNUAL AVERAGE
FY2023 – FY2025
Total Ore + waste mined Mt 24.1 7.4
Strip ratio t:t 4.6:1 4.4:1
Ore processed Mt 5.5 1.5
Head grade g/t gold 1.6 1.7
Gold recovery rate % 91.2 91.4
Gold production ‘000 ozs 252 72
Production costs US$/oz 1,164 1,173
Royalty1 US$/oz 63 63
Sustaining capital US$/oz 25 25
Average All-in site costs US$/oz 1,253 1,261
Notes:
1 Assumes a gold price of US$1,500 per ounce for Ore Reserve and royalty calculations.
2 LOMP commences on July 1, 2022.
Perseus’s Managing Director and CEO Jeff Quartermaine said:
“The Sissingué Gold Mine has been an important part of Perseus’s geopolitically diversified asset portfolio since
commencing commercial production in 2018 with an estimated 4.5-year mine life. Since then, the mine has consistently
produced gold in excess of forecasts and importantly, generated significant amounts of free cashflow. This updated
LOMP incorporates the processing of ore from satellite deposits at Fimbiasso and Bagoé as well as the Sissingué Gold
Mine, and results in the life of the Sissingué operation being extended out till at least March 2026 which enables
NEWS RELEASE | PERSEUS MINING UPDATE S LIFE OF MINE PLAN FOR
SISSINGUÉ GOLD MINE & SATEL LITE DEPOSITS
PERSEUSMINING.COM
2
Perseus to continue generating material benefits for all of our stakeholders, including the residents of our host
communities at Fimbiasso and Bagoé.”
OVERVIEW OF SISSINGUÉ
Sissingué is located in northern Cote d’Ivoire in the West African Craton where gold is mined in Paleoproterozoic
(Birimian) rocks of the southern extension of the Syama Greenstone Belt and the western margin of the Senoufo
Greenstone Belt. Gold deposits at Sissingué are orogenic, greenstone hosted.
The SGM main pit mineralisation is structurally controlled and mainly hosted within a granitic stock associated with a
network of quartz-carbonate veins and veinlets with associated pyrite and arsenopyrite dissemination. Gold-bearing
veins have a dominant NNW to NS trend and are steeply dipping. Disseminated mineralisation is also located in the
alternation envelops of the mineralised quartz veins.
SGM commenced commercial gold production at the end of March 2018 and by 30 June 2022 approximately 367,500
ounces of gold are forecast to have been produced at the mine. The sources of ore to be processed at Sissingué
during the remaining 3.7 years of mine life, as currently defined, are SGM, Fimbiasso and Bagoé deposits. Each
deposit consists of multiple pits and the ore feed will be supplemented with stockpiles at SGM as detailed in Table 3.
To ensure the mill is run at full capacity in the last seven months of mine life, reducing processing and general
administration (G&A) unit rate costs, stockpiled mineralised waste will be used to supplement ore feed. Ore from
Fimbiasso and Bagoé will be stockpiled temporarily on site then transported to Sissingué for process plant feed as per
milling schedule. Waste material will be taken to the waste dump located near the pits. Tailings from the process
plant will be stored in a single, plastic high-density polyethylene (HDPE) lined, tailings storage facility located near the
Sissingué process plant.
Many of Sissingué’s operational workforce live in the communities located near the existing mine and processing
facility, and the satellite deposits. An on-site camp has been constructed at SGM to accommodate members of the
workforce who are not local residents.
Figure 1: Sissingué Mine Layout
Stage 4
NEWS RELEASE | PERSEUS MINING UPDATE S LIFE OF MINE PLAN FOR
SISSINGUÉ GOLD MINE & SATEL LITE DEPOSITS
PERSEUSMINING.COM
3
Figure 2: Fimbiasso Mine Layout
Figure 3: Bagoé Mine Layout – Antoinette and Juliette deposits
Figure 4: Bagoé Mine Layout – Veronique deposit
NEWS RELEASE | PERSEUS MINING UPDATE S LIFE OF MINE PLAN FOR
SISSINGUÉ GOLD MINE & SATEL LITE DEPOSITS
PERSEUSMINING.COM
4
MINERAL RESOURCES AND ORE RESERVES SUMMARY
For a comprehensive description of SGM Mineral Resources and Ore Reserves estimates, refer to the JORC tables
included in Appendix 1, and to the news release titled “Perseus Mining Updates Mineral Resources and Ore Reserves”
dated 26 August 2020 for all reference to the Fimbiasso Deposits and to the news release titled “Perseus Mining
Updates Mineral Resources and Ore Reserves” dated 24 August 2021 for the Bagoé Deposits. Table 1, 2 and 3 below
summarise the currently estimated Mineral Resources and Ore Reserves at Sissingué.
Table 1: Sissingué Measured and Indicated Mineral Resources – 31 December 2021 1,2
PROJECT DEPOSIT
TYPE
MEASURED RESOURCES INDICATED RESOURCES MEASURED + INDICATED
RESOURCES
Quantity
Mt
Grade
g/t gold
Gold
'000 oz
Quantity
Mt
Grade
g/t gold
Gold
'000 oz
Quantity
Mt
Grade
g/t gold
Gold
'000 oz
Sissingué 3,4,5 Open Pit 1.2 1.4 50 1.3 1.4 56 2.4 1.4 107
Fimbiasso 6,7 Open Pit 1.7 1.7 95 0.4 1.8 23 2.1 1.7 118
Bagoé 8,9 Open Pit 0.7 2.2 53 1.0 2.3 73 1.7 2.3 126
Sub Total 3.6 1.7 198 2.7 1.8 152 6.2 1.8 351
Stockpiles 0.7 1.3 30 - - - 0.7 1.3 30
Total 4.3 1.6 227 2.7 1.8 152 7.0 1.7 379
Table 2: Sissingué Inferred Mineral Resources – 31 December 2021 2
PROJECT DEPOSIT
TYPE
INFERRED RESOURCES
Quantity
Mt
Grade
g/t gold
Gold
'000 oz
Sissingué 3,4,5 Open Pit 0.1 1.1 2
Fimbiasso 6,7 Open Pit 0.1 1.8 6
Bagoé 8,9 Open Pit 0.1 2.2 6
Sub Total 0.3 1.5 14
Stockpiles - - -
Total 0.3 1.8 15
Notes:
1. Measured and Indicated Mineral Resources are inclusive of Ore Reserves.
2. Rounding of numbers to appropriate precisions may have resulted in apparent inconsistencies.
3. Based on February 2022 Mineral Resource model constrained to US$1,800/oz pit shell.
4. Depleted to 31 December 2021 mining surface.
5. 0.6g/t gold cut-off applied to in situ material.
6. Based on March 2020 Mineral Resource models constrained to US$1,800/oz pit shells.
7. 0.8g/t gold cut-off applied.
8. Based on May 2021 Mineral Resource models constrained to US$1,800/oz pit shells.
9. 0.8g/t gold cut-off applied to oxide, 1g/t applied to transition, 1.2g/t applied to fresh (Veronique deposit only).
NEWS RELEASE | PERSEUS MINING UPDATE S LIFE OF MINE PLAN FOR
SISSINGUÉ GOLD MINE & SATEL LITE DEPOSITS
PERSEUSMINING.COM
5
Table 3: Proved and Probable Ore Reserves as at 31 December 2021 5, 7
DEPOSIT DEPOSIT
TYPE
PROVED PROBABLE PROVED + PROBABLE
Quantity
Mt
Grade
g/t gold
Gold
‘000 oz
Quantity
Mt
Grade
g/t gold
Gold
‘000 oz
Quantity
Mt
Grade
g/t gold
Gold
‘000 oz
Sissingué1,2,3,4 Open Pit 1.0 1.3 40 0.9 1.3 37 1.9 1.3 78
Fimbiasso2,4 Open Pit 1.1 2.0 70 0.2 2.2 13 1.3 2.0 83
Bagoé2,3,4 Open Pit 0.5 2.6 40 0.6 2.6 51 1.1 2.6 91
Sub Total 2.6 1.8 150 1.7 1.9 101 4.3 1.8 251
Stockpiles6 0.7 1.3 30 - - - 0.7 1.3 30
Total 3.3 1.7 181 1.7 1.9 101 5.0 1.8 282
Notes:
1 Depleted to 31 December 2021 mining surface.
2 Based on February 2022 Mineral Resource model constrained to US$1,800/oz pit shell and depleted to 31 December 2021 mining surface.
3 Based on February 2022 Ore Reserve estimation.
4 Variable gold grade cut-off for each material type, ranging from 0.40 g/t to 1.00 g/t at Sissingué deposits, from 0.80 g/t to 1.50 g/t at Fimbiasso
deposits and from 1.00 g/t to 3.00 g/t at Bagoé deposits.
5 Inferred Mineral Resource is considered as waste.
6 Based on EOM December 2021 stockpile balance report.
7 Rounding of numbers may result in apparent mathematical inconsistencies.
LIFE OF MINE PLAN
Based on detailed mining and processing schedules recently prepared as part of the life of mine planning process, the
key forecast operating parameters for Sissingué are summarised in Table 4. To illustrate the changes to the FY23
LOMP from the previous FY22 LOMP published in August 2021, equivalent data is tabulated below. It should be noted
that the FY23 LOMP commences 1 July 2022 and accounts for actual depletion of Ore Reserves between July 2021 to
December 2021 and forecast depletion between 1 January 2022 and 30 June 2022.
Mining cost estimates in the updated LOMP are based on projected costs using the current contract with mining
contractors, SFTP, who have been conducting mining activities on site since mining operations started. SFTP is
expected to perform the full mining, drilling and grade control service required at Sissingué. Explosive costs are based
on the projection of current contract prices provided by contractor, Maxam, a leading explosives manufacturer and
distributor.
Gold recovery rates and processing costs are based on actual results achieved in the last 12 months and combined
with forward projections based on a comprehensive metallurgical test work program for areas with no experiential
data. Processing costs include costs associated with all consumables including maintenance, electricity, fuel, labour,
and other processing overheads.
G&A and other costs are based on actuals and budget projections. G&A operating costs include all labour costs,
Abidjan regional office costs, HR administration costs as well as all costs associated with the management of the
environment, OH&S, security, government and community relations, general administration including insurances and
other contracts.
Sustaining capital costs include stage lifting of the tailings storage facility (TSF), closure costs, progressive clearing,
contractor demobilisation, and plant modifications. The total estimate of sustaining capital is US$7.6M million which
over the current life of mine equates to US$30/oz of gold produced. Sustaining capital does not include any capital
costs estimated for the delineation of additional Mineral Reserves and Ore Reserves or the establishment of new open
pit or underground mining operations. Any such developments will be regarded as development capital and disclosed
accordingly.
Table 4: Overview Key Parameters4
UNITS
FY23 LOMP
Total
FY23-26
Annual Average
FY23-25
Mining
Total ore + waste mined Mt 24.11 7.4
Waste mined Mt 19.81 6.0
Ore mined Mt 4.31 1.4
Mined grade g/t gold 1.81 1.7
Strip ratio t:t 4.6:11 4.4:1
NEWS RELEASE | PERSEUS MINING UPDATE S LIFE OF MINE PLAN FOR
SISSINGUÉ GOLD MINE & SATEL LITE DEPOSITS
PERSEUSMINING.COM
6
UNITS
FY23 LOMP
Total
FY23-26
Annual Average
FY23-25
Processing
Quantity ore processed Mt 5.5 1.5
Head grade processed g/t gold 1.6 1.7
Contained gold ‘000ozs 277 79
Gold recovery rate % 91.2 91.4
Gold production ‘000ozs 252 72
Operating Costs2
Average mining costs US$/t mined 5.822 5.96
Average processing costs US$/t processed 15.96 16.47
Average general & administration costs US$/t processed 12.02 12.11
Production costs US$/oz 1,164 1,173
Royalty3 US$/oz 63 63
Sustaining capital US$/oz 25 25
All-in site costs US$/oz 1,253 1,261
Notes:
1 Includes all ore and waste mined ex-pit but excludes rehandle movement.
2 Excludes pre-strip costs that have been capitalised.
3 Assumes a gold price of US$1,500/oz for Ore Reserve and Royalty calculations, and US$1,250/oz for the DFS.
4 LOMP commences 1 July 2022.
MINING AND PROCESSING SCHEDULES
Based on the estimated Ore Reserves summarised in Table 2: Sissingué Inferred Mineral Resources – 31
December 2021 2
PROJECT DEPOSIT
TYPE
INFERRED RESOURCES
Quantity
Mt
Grade
g/t gold
Gold
'000 oz
Sissingué 3,4,5 Open Pit 0.1 1.1 2
Fimbiasso 6,7 Open Pit 0.1 1.8 6
Bagoé 8,9 Open Pit 0.1 2.2 6
Sub Total 0.3 1.5 14
Stockpiles - - -
Total 0.3 1.8 15
Notes:
10. Measured and Indicated Mineral Resources are inclusive of Ore Reserves.
11. Rounding of numbers to appropriate precisions may have resulted in apparent inconsistencies.
12. Based on February 2022 Mineral Resource model constrained to US$1,800/oz pit shell.
13. Depleted to 31 December 2021 mining surface.
14. 0.6g/t gold cut-off applied to in situ material.
15. Based on March 2020 Mineral Resource models constrained to US$1,800/oz pit shells.
16. 0.8g/t gold cut-off applied.
17. Based on May 2021 Mineral Resource models constrained to US$1,800/oz pit shells.
18. 0.8g/t gold cut-off applied to oxide, 1g/t applied to transition, 1.2g/t applied to fresh (Veronique deposit only).
, the mining production profile for Sissingué is forecast to be as shown in Error! Reference source not found. below.
No Inferred Mineral Resources have been included as mill feed in the updated LOMP.
NEWS RELEASE | PERSEUS MINING UPDATE S LIFE OF MINE PLAN FOR
SISSINGUÉ GOLD MINE & SATEL LITE DEPOSITS
PERSEUSMINING.COM
7
Ore and waste will be mined from all Sissingué pits. Ore from the Fimbiasso and Bagoé deposits will be stockpiled
temporarily on their respective sites then transported to SGM for processing as per the mill feed schedule. Mill feed
will be complimented with the remaining ore stockpiles at Sissingué, with additional feed supplement coming from
mineralised waste material to ensure the mill runs full capacity in the final seven months of mine life, minimising the
processing and G&A unit rate costs.
Mining is currently expected to be complete within four years of operation from 1 July 2022. Mining will start at SGM
and Fimbiasso deposits in the first 18 months, the majority of ore feed will come from Fimbiasso. At this time mining
at SGM will be mostly from satellite pits and waste stripping of the main pit, during which time mining will be
accelerated at the Fimbiasso deposit. Current ore stockpiles will supplement mill feed as required. After mining at
Fimbiasso is complete, Bagoé mining is scheduled to start following equipment relocation. Mining of the SGM deposit
will continue while the Bagoé deposit is being mined. In this period, mining at SGM Main pit will be sufficiently
advanced to mine high-grade ore and complement lower feed grade ore from Bagoé. This will result in higher gold
production in FY25 compared to previous years.
Figure 5: Sissingué - Scheduled monthly ex-pit material movement by deposit.
Gold production in FY23 will mainly be derived from ore sourced from Fimbiasso deposit, oxide ore from SGM satellite
deposits and existing stockpiles at SGM. Meanwhile, the pre-strip in the SGM main pit will be undertaken to access the
ore zone. Pre-stripping at SGM main pit is expected to take 18 months before access into the main ore zone is
achieved.
In FY24, mining in Fimbiasso will be completed in the first half of the year and will be replaced by Bagoé deposit as the
main ore source. By second half of FY24, the main ore zone in the SGM main pit will be exposed. Stockpiled material
will sustain mill feed at full capacity.
The highest production year in the LOMP is FY25. In this period, high grade ore will be mined from both the SGM main
pit and the Bagoé deposit. Ore from Bagoé will provide the main source of high-grade mill feed ore. Mining at the
SGM main pit will be completed by the third quarter of FY25, requiring ore from Bagoé deposit to be supplemented
with remaining stockpiles available at SGM during the fourth quarter.
Based on the LOM schedule, mining and processing at SGM will be completed in FY26. Mining will be finished in
February 2026 and processing will be completed the following month, March 2026. In this period the mill feed will be
supplied from Bagoé deposit supplemented with stockpiled mineralised waste. The use of mineralised waste will
enable the mill to operate at full capacity, resulting in lower unit processing costs and G&A. By the end of March 2026,
approximately 650,000 tonnes of mineralised waste stockpiles will remain. This material may be processed at a later
date subject to it being economically viable.
-
100
200
300
400
500
600
700'000 BCM
Expit Movement
SIS FIM BAG
NEWS RELEASE | PERSEUS MINING UPDATE S LIFE OF MINE PLAN FOR
SISSINGUÉ GOLD MINE & SATEL LITE DEPOSITS
PERSEUSMINING.COM
8
The processing rate is forecast to average 1.4 million tonnes per year over the 3.7 years of mine life. The processing
rate in this LOM has been increased from the previous LOM from 220tpoh to 260tpoh and is based on experiential
knowledge and current milling rates experienced at SGM.
The forecast average gold production for the remaining mine from 1 July 2022, is estimated at approximately 72,000
ounces at an average head grade of 1.7g/t and an average metallurgical recovery of 91.4%. A total of 252,000 ounces
of gold are forecast to be recovered over the life of operation.
Figure 6: Sissingué – Annual Tonnes and Grade to SGM Mill
This announcement was approved for release by Perseus Mining Limited’s Managing Director and CEO,
Jeff Quartermaine.
COMPETENT PERSON STATEMENT:
All production targets referred to in this report are underpinned by estimated Ore Reserves which have been prepared by competent persons
in accordance with the requirements of the JORC Code.
The information in this report that relates to Mine ral Resources for Sissingué is based on information compiled by Ms Christine Shore, a
Competent Person who is a Fellow of The Australian Institute of Mining and Metallurgy. Ms Shore is a full-time employee of Perseus Mining,
and she has no economic, financial or pecuniary interest in the company. Ms Shore has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activities which she is undertaking to qualify as a Competent Person as
defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and a Qualified
Person as defined in NI43-101. Ms Shore consents to the inclusion in this report of the matters based on his information in the form and context
in which it appears.
The information in this report that relates to Mineral Reserves for the Sissingué deposit is based on information compiled by Mr Craig Fawcett,
FAusIMM CP, who is a full-time employee of Perseus Mining. Mr Faw cett has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activities which he is undertaking to qualify as a Competen t Person as
defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and a Qualified
Person as defined in NI43-101. Mr Fawcett consents to the inclusion in this report of the matters based on his information in the form and
context in which it appears.
The information in this report that relates to Mineral Resource and Ore Reserve estimates for the Fimbiasso deposits was first reported by the
Company in a market announcement “Perseus Mining Updates Mineral Resources and Ore Reserves” released on 26 Aug ust 2020. The
information in this report that relates to Mineral Resource and Ore Reserve estimates for the Bagoé deposits was first reported by the Company
in a market announcement “Perseus Mining Updates Mineral Resources and Ore Reserves” released on 2 4 August 2021. The Company
confirms that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived
therefrom, in that market release continue to apply and have not materially changed. The Company further confirms that material
assumptions underpinning the estimates of Ore Reserves described in “Technical Report — Sissingué Gold Project, Côte d’Ivoire” dated 18
December 2017 continue to apply.
-
0.50
1.00
1.50
2.00
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY23 FY24 FY25 FY26
Au g/t
'000 tonnes
Feed
Annual tonnes Head Grade