Perseus Progresses Nyanzaga GOLD Project
31 MAY 2024
NEWS RELEASE
PERSEUS MINING LIMITED
Level 2, 437 Roberts Road, Subiaco WA 6008
ABN: 27 106 808 986
1
PERSEUS PROGRESSES NYANZAGA GOLD PROJECT
Perth, Western Australia/ May 31, 2024 /Perseus Mining Limited (“Perseus” or the “Company”)
(ASX/TSX:PRU) is pleased to provide an update on its recently acquired Nyanzaga Gold Project in Tanzania.
HIGHLIGHTS
• The compulsory acquisition process of the remaining OreCorp shares completed on May 20, 2024 and
Perseus now owns 100% of the shares in OreCorp Limited.
• Perseus is implementing three concurrent work streams, namely implementation of the Resettlement
Action Plan (RAP), additional drilling of the Nyanzaga mineralisation, and Front-End Engineering and
Design (FEED).
• Perseus is commencing Feasibility level mining studies on the Nyanzaga Gold Project with the intention
of releasing Perseus’s first Mineral Resources and Ore Reserves estimates during the December
quarter of 2024.
• Drilling to increase Perseus’s understanding of the Nyanzaga Mineral Resources will commence as
soon as possible, taking into account Tanzanian local procurement regulations.
• FEED studies across the project are underway in order to optimise engineering and capital cost
estimates for the project.
• A Final Investment Decision (FID) for the Nyanzaga Gold Project is expected by year end, enabling
project development to commence in the new year with the aim of first gold production during the
first quarter of 2027.
NEWS RELEASE | PERSEUS PROGRESSES NYANZAGA GOLD PROJECT
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Perseus’s Chairman and CEO Jeff Quartermaine said:
“Perseus is pleased to have completed the acquisition of the Nyanzaga Gold Project through the takeover of
OreCorp Limited. The Nyanzaga Project represents an exciting growth opportunity for Perseus that aligns with
our strategy of upgrading the size, quality and geographic distribution of our asset portfolio. We have hit the
ground running with the various work streams and are working diligently towards the target of taking a final
investment decision for the project by the end of the year.
Perseus now has three operating mines currently producing gold at a rate of more than 500,000 ounces per
year and two high-quality development projects that when brought on stream, should ensure that Perseus
can maintain or exceed its targeted production level well into the next decade.
With the objective of operating at least four mines simultaneously, Perseus is well advanced towards
confirming its place as a highly profitable, well managed, pan-African gold company that consistently creates
benefits for all stakeholders.”
OVERVIEW OF WORK PROGRAMS
Perseus has commenced its review of the geology, mining engineering and mineral processing studies of the
Nyanzaga Gold Project. A comprehensive review of all aspects of the project is planned to produce Perseus’s
Mineral Resource estimate and Ore Reserve estimate for Nyanzaga prior the end of December this year.
Geotechnical and Mineral Processing testwork and analysis is also under review to ensure optimal value is
extracted during development of the project by Perseus.
Drilling is planned to commence as soon as possible for the purposes of resource definition, exploration
drilling and sterilisation for key infrastructure.
The FEED work program is focussed on right sizing the process plant throughput to align with the resource
technical interpretation from the Perseus feasibility work, incorporating the Perseus lessons learnt from our
existing operations and detailed project execution planning.
Perseus is also continuing work under the RAP in the impacted villages. The RAP provides a comprehensive
and widely consulted framework and strategy for the resettlement of people and households affected by
Project land acquisition. The resettlement planning has been finalised, including the development of a
valuation report and compensation schedules, in compliance with Tanzanian legislation and approved by the
Chief Valuer. Compensation agreements have been signed with about 93% of project-affected persons so
far. Critical next steps include finalising building permits, commencing construction of replacement housing,
finalising the planning for the relocation of a cemetery, layout and design of a school and health dispensary
as well as the continuation of livelihood restoration training activities.
NYANZAGA GOLD PROJECT
The Nyanzaga Gold Project is located in north-western Tanzania, south of Lake Victoria within the Sengerema
District of the Mwanza Region, approximately 60 kilometres southwest of Mwanza (Tanzania’s second largest
city).
The Project is located on the north-eastern flank of the Sukumaland Archaean Greenstone Belt of the Lake
Victoria Goldfield, approximately 60 km east of the Geita Gold Mine and 35 km northeast of the Bulyanhulu
Gold Mine. The Project area covers Nyanzian greenstone volcanic rocks and sediments typical of the
greenstone belts of the central craton.
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The Nyanzaga Gold Project’s Mineral Resource Estimates1 consist of a Measured and Indicated resource of
24.2Mt grading 3.64g/t Au for 2.8Moz Au and an Inferred Resource of 5.8Mt grading 2.4g/t Au for 0.5Moz
Au. It has a Probable Ore Reserve Estimate1 of 40.1Mt grading 2.01g/t Au for 2.6Moz Au.
The above-mentioned estimates were released by OreCorp in ASX releases dated 12 September 2017 titled
“MRE Update for the Nyanzaga Project Increasing Category and Grade”, 5 May 2022 titled “DFS Completion
and Kilimani Mineral Resource Estimate update within the Nyanzaga Special Mining Licence – Tanzania”, and
22 August 2022 titled “Nyanzaga DFS Delivers Robust Results ”, available on https://perseusmining.com/.
Perseus is conducting an independent review of these estimates and the Nyanzaga Gold Project as a whole.
Perseus’s estimates will be completed in the December 2024 quarter.
This announcement was approved for release by the Jeff Quartermaine, Chairman and CEO of
Perseus Mining Limited.
1 NI43-101 disclosure: The Historical Estimates have been prepared in accordance with JORC (2012 edition) and have not been reported in
accordance with NI43-101. A Qualified Person has not done sufficient work to classify the resource estimate as current in accordance with NI43-
101. Please refer to further disclosure required by NI43-101 together with a more detailed resource table at the conclusion of this announcement.
OreCorp Mineral Reserve and Mineral Resource estimates are stated on 100% basis.
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CAUTION REGARDING FORWARD LOOKING INFORMATION:
This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of
its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company
believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Yaouré Gold
Mine, the Edikan Gold Mine and the Sissingué Gold Mine without any major disruption, the receipt of required governmental approvals, the accuracy
of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company
to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and
assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company an d the
expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate.
Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such
forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual
results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's
publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable.
Assumptions have been made regarding, among other things, the Company’s ability to carry on its exploration and development activities, the timely
receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the
Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information.
Perseus does not undertake to update forward-looking information, except in accordance with applicable securities laws.
ASX/TSX CODE: PRU
REGISTERED OFFICE:
Level 2
437 Roberts Road
Subiaco WA 6008
Telephone: +61 8 6144 1700
ABN: 27 106 808 986
WWW.PERSEUSMINING.COM
CONTACTS:
Jeff Quartermaine
Executive Chairman & CEO
Stephen Forman
Investor Relations
Nathan Ryan
Media Relations
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Competent Person Statement ASX Listing Rules
All information on the Nyanzaga Mineral Resource and Ore Reserve estimates has been extracted from the OreCorp ASX
announcements dated 12 September 2017 titled “MRE Update for the Nyanzaga Project Increasing Category and Grade”, 5 May
2022 titled “DFS Completion and Kilimani Mineral Resource Estimate update within the Nyanzaga Special Mining Licence –
Tanzania”, and 22 August 2022 titled “Nyanzaga DFS Delivers Robust Results” available on www.perseusmining.com. Perseus
confirms that it is not aware of any new information or data that materially affect the information included in the original ASX
announcements and that all material assumptions and technical parameters underpinning the estimates in the ASX
announcements continue to apply and have not materially changed. Perseus confirms that the form and context in which the
Competent Person’s findings are presented have not been materially modified from the original ASX announcements.
Historical Estimates – clarifying statements as required by Canadian National Instrument 43-101
The information in this section relating to the Nyanzaga Gold Project is extracted from the OreCorp ASX announcements dated 12
September 2017 titled “MRE Update for the Nyanzaga Project Increasing Category and Grade”, 5 May 2022 titled “DFS Completion
and Kilimani Mineral Resource Estimate update within the Nyanzaga Special Mining Licence – Tanzania”, and 22 August 2022 titled
“Nyanzaga DFS Delivers Robust Results” available on www.perseusmining.com. A Qualified Person has not done sufficient work to
classify the Historical Estimates as current. As such, any Mineral Resource and Mineral Reserve estimates included in this section are
Historical Estimates as defined in Canadian National Instrument 43-101 and are not reported as current Perseus estimates. The
OreCorp Feasibility Study includes key assumptions for commodity prices, gold mining and processing costs, and there have been no
material changes in assumptions. The OreCorp Feasibility Study in its current form is considered to be a comprehensive compilation
of all available data applicable to the estimation of Mineral Resources and Mineral Reserves.
Table 1: Nyanzaga Project Measured and Indicated Mineral Resources 6,7
DEPOSIT DEPOSIT TYPE
MEASURED RESOURCES INDICATED RESOURCES
MEASURED & INDICATED
RESOURCES
QUANTITY GRADE GOLD QUANTITY GRADE GOLD QUANTITY GRADE GOLD
Mt
g/t
gold
‘000
oz Mt
g/t
gold
‘000
oz Mt g/t gold ‘000 oz
Nyanzaga1,3 Open Pit
/Underground 4.6 4.96 738 16.2 3.80 1,977 20.8 4.06 2,715
Kilimani2,4,5 Open Pit - - - 3.4 1.09 119 3.4 1.09 119
TOTAL 4.6 4.96 738 19.6 3.33 2,096 24.2 3.64 2,834
Table 2: Nyanzaga Project Inferred Mineral Resource 6,7
DEPOSIT DEPOSIT TYPE
INFERRED RESOURCES
QUANTITY GRADE GOLD
Mt g/t gold ‘000 oz
Nyanzaga1,3 Open Pit/Underground 2.9 3.8 358
Kilimani2,4,5 Open Pit 2.9 1.0 94
Total 5.8 2.4 452
Notes for Table 1 and Table 2:
1) Based on September 2017 Mineral Resource estimate by CSA Global Pty Ltd.
2) Based on May 2022 Mineral Resource estimate by CSA Global UK Ltd.
3) Reported at a 1.5 g/t Au cut-off.
4) Reported at a 0.4 g/t Au cut-off.
5) Open pit resources constrained to US$1,500/oz pit shell.
6) Rounding of numbers to appropriate precision may result in summary inconsistencies.
7) Mineral Resources are reported inclusive of Mineral Reserves.
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Table 3: Nyanzaga Proven and Probable Mineral Reserves1,5,6
DEPOSIT DEPOSIT TYPE
PROVEN PROBABLE PROVEN + PROBABLE
QUANTITY GRADE GOLD QUANTITY GRADE GOLD QUANTITY GRADE GOLD
Mt g/t gold ‘000 oz Mt g/t gold ‘000 oz Mt g/t gold ‘000 oz
Nyanzaga2,3 Open Pit - - - 25.7 1.35 1,110 25.7 1.35 1,110
Kilimani3 Open Pit - - - 2.04 1.05 70 2.04 1.05 70
Sub-Total - - - 27.7 1.32 1,180 27.7 1.32 1,180
Nyanzaga4 Underground - - - 12.4 3.57 1,420 12.4 3.57 1,420
TOTAL - - - 40.1 2.01 2,600 40.1 2.01 2,600
Notes for Table 3:
1) Based on Mineral Reserve Statement 22 August 2022.
2) Variable gold grade cut-offs depending on rock type, ranging from 0.44 g/t to 0.52 g/t.
3) Pit designs are based on US$1,500/oz gold metal price.
4) Based upon cut-off of 0.5 g/t Au for development and 2.0 g/t Au for stoping.
5) Mineral Reserves were prepared in accordance with the JORC Code (2012 edition). See item d) below.
6) Rounding of numbers to appropriate precisions may have resulted in apparent inconsistencies.
a) The information provided in relation to these Historical Estimates is extracted from the OreCorp Feasibility Study which was
prepared in accordance with the JORC Code (2012 edition) and announced on 22 August 2022.
b) The OreCorp Feasibility Study includes key assumptions for commodity prices, gold mining and processing costs, and there has
been no material changes in assumptions. The OreCorp Feasibility Study in its current form is considered to be a comprehensive
compilation of all available data applicable to the estimation of Mineral Resources and Mineral Reserves. A summary of key
assumptions and methods used to prepare the Historical Estimate include:
- Resource Estimation calculated using Ordinary Kriging and Localised Uniform Conditioning methods.
- Economic assumptions include (i) a US$1,500/oz gold price, (ii) US$896/oz gold average total cash cost, (iii) US$954/oz
gold average all in sustaining cost, (iv) 88% metallurgical recoveries, and (v) a 7.3% government royalty including inspection
fee and service levy.
- The estimates are based on 269,116 metres of RC and core drilling in 2,027 drill holes across both the Nyanzaga and
Kilimani projects.
c) As at the date of this announcement, the Historical Estimates reported by OreCorp and referenced by Perseus herein have not
been superseded by any later estimates and Perseus is not in possession of any new information.
d) Perseus believes the resource classification categories reported in line with the JORC Code (2012 edition) are similar to categories
for CIM compliant Mineral Resource and Mineral Reserve estimates to be reported under NI 43-101. Perseus considers the
Historical Estimates to be material to Perseus, given its intention, through the acquisition of OreCorp, to contribute funding to
continued exploration activity and advancement of the asset through additional drilling, future mineral resource estimation
updates and economic studies.
e) Perseus also believes that the Historical Estimates are relevant to Perseus shareholders as they provide an indication of the
current mineralisation and the potential of the Nyanzaga Gold Project at this date.
f) Based on the information received by Perseus to date in relation to the Nyanzaga Gold Project, physical inspection of the project
sites, discussions with OreCorp’s technical and administrative personnel and assessment of the key criteria, the reliability of the
Historical Estimates has been addressed in the due diligence completed by Perseus. Perseus therefore believes that the Historical
Estimates are sufficiently reliable with estimation methodologies and data compilation work acceptable for methodologies used
at the time of their estimation to provide the basis for a decision to assess the property to have merit for further exploration
expenditure.
g) It is Perseus’s intention to undertake an evaluation of the data and initiate further exploration work planned for the Nyanzaga
Gold Project to underpin a Mineral Resource estimate and Mineral Reserve estimate in accordance with NI 43-101 that will
include selective infill drilling to increase confidence in Mineral Resources. Future Mineral Reserve estimates will include an
updated mine plan (optimisation, design and scheduling).
h) It is Perseus’s intention to undertake a review of the capital and operating costs to be consistent with latest market conditions,
complete additional geotechnical, hydrological and comminution studies to further optimise infrastructure and mine design,
review water supply and power options, including the use of renewable solar energy, complete further tailings storage facilities
studies to optimise design and maximise water recovery, optimise grind size and CIL recovery methods, complete further
sterilisation drilling in the areas of infrastructure as part of a FEED Study to reduce risk and/or improve technical and financial
outcomes.
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i) The Mineral Resource and Mineral Reserve work in items g) and h) will take approximately 6 months to complete. The Mineral
Resource work can be completed simultaneously with the FEED study leading to a FID expected in the December Quarter of
2024.