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Perseus Mining Limited - Mechanical challenges temporarily hold back production growth at Edikan


Perseus Mining Limited - Mechanical challenges temporarily hold back production growth at Edikan

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

QUARTERLY REPORT For the period ending December 31 2012

PERTH, Western Australia, Jan. 21, 2013 /CNW/ - Perseus Mining Limited ("Perseus" or the "Company") (TSX & ASX:PRU) advises that its Activity Report for the quarter ended December 31, 2012 has been issued under the rules of the Australian Securities Exchange ("ASX").  Highlights of the Activity Report are set out below, and the full text of the report is available on the Company's website www.perseusmining.com and under the Company's profile at www.sedar.com

Highlights

Operations - Edikan Gold Mine ("EGM"), Ghana


                                                                

Key Operating      Units  December 2012 Quarter September 2012 Quarter
Metrics
                          Actuals    Guidance   Actuals     Guidance
                                                                  

Gold produced         oz  51,090    58,500 -    52,610     55-60,000
                                   61,750((1))                 -

Gold sold             oz  48,080           -    50,785           -
                                                                  

Gold on hand          oz  11,785           -     8,248            
                                                                  

Average gold sales US$/oz  1,581           -     1,463           -
price((2))
                                                                  

Production cash    US$/oz    588         575       475          575
cost((3))
                                                                  

Total site cash    US$/oz  1,060           -     1,027           -
cost((4))
                                                                  

1) Revised down from 65-70,000 on 23 November 2012

2) Includes realised price of both spot and forward sales of gold.

3) Cash cost of gold production excluding royalty

4) Total Site Cash Cost includes production cost plus royalty plus cash
   invested in excess waste removal, build up of inventories of high
   and low grade ore stockpiles, gold in circuit and gold bullion hand,
   and expenditure on development and sustaining capital but excluding
   exploration costs.
    --  December 2012 Quarter (the "Quarter") gold production of
        51,090oz was below September 2012 Quarter (the "September
        Quarter") production of 52,610oz by 3% and 13% below revised
        production guidance range for the Quarter;
    --  Production cost for the Quarter of US$588/oz, was 2% higher
        than production cost guidance and 24% higher than the
        abnormally low September Quarter production cost of US$475/oz;
    --  Total ore and waste movements (4,056,246bcm) was 9% above
        target for the Quarter;
    --  Head grade (1.39 g/t) was 6% below target and total plant
        recovery (84.2%) was 4% below target;
    --  Average hourly mill throughput rate of 811 dry tonnes per hour
        ("dtph") equates to annual throughput of 6.4Mt at 90% plant
        availability and represents an increase of 6.6% from the
        previous Quarter;
    --  SAG mill utilisation rate of 76% was the same as the previous
        quarter and largely reflects the impact of unexpected
        availability issues in the primary crusher in November and
        December 2012.

Development - Sissingué Gold Project, Côte d'Ivoire
    --  Full scale development decision for the Sissingué Gold Project
        remained on hold during the Quarter pending clarification of
        the fiscal regime applicable to the project.
    --  Following representations to the Ivorian Government by the gold
        industry about a proposed "super profits tax", legislation for
        the new tax did not receive Presidential approval and was
        therefore not passed into law (contrary to media reports in
        December 2012).
    --  Proposals regarding alternative fiscal measures representing a
        potential "win-win" for the Ivorian government and gold
        companies are currently being negotiated and are due to be
        announced shortly.
    --  Negotiations of a Mining Convention documenting fiscal
        arrangements applicable for the duration of the Sissingue Gold
        Mine have resumed following confirmation of the government's
        intention to amend the Mining Code to include for the provision
        of Mining Conventions to cover the exploitation of Mineral
        Reserves.
    --  The Ivorian government granted the Mbengué, Napié and Mahale
        Exploration licences to a subsidiary company of Perseus on
        December 19, 2012.

Exploration - Ghana and Côte d'Ivoire
    --  35,356m of drilling completed including 10,792m in Ghana and
        24,564m in Côte d'Ivoire;
    --  Significant drill intercepts from multiple prospects including
        new discoveries at Pokukrom near Edikan in Ghana and at Mbengué
        and Napié in Côte d'Ivoire.

Corporate
    --  Available cash balance of $39.7M (excludes $9.1M in escrow);
    --  11,785oz of bullion on hand at 31 December 2012 valued at
        $18.9M;
    --  US$100.0M revolving line of credit available for drawdown;
    --  Hedging commitment reduced to 216,000oz at a weighted average
        price of US$1,373/oz.

About Perseus Mining Limited

Perseus Mining Limited (ASX/TSX: PRU) has forged a reputation as one of West 
Africa's most successful gold explorers focused on under-explored gold belts 
in West Africa.  In August 2011 Perseus became a producer at its Edikan Gold 
Mine (previously known as the Central Ashanti Gold Project) in Ghana.   
Details of the project and mine plan are set out in the technical report 
entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 
30, 2011.

Perseus is currently considering the development of its Sissingué Gold 
Project, part of the Tengrela Gold Project in Côte d'Ivoire, with potential 
production in 2014. Tengrela has the potential to become a significant 
contributor to the Company's goal to develop into a 400,000-ounce per annum 
gold producer during 2014.   Details of the project are set out within 
"Technical Report - Tengrela Gold Project, Ivory Coast" dated December 22, 
2010.

Perseus will continue its strategy of rapidly increasing its resource and 
reserve base during the ramp-up of the Edikan Gold Mine and development of the 
Sissingué Gold Project.

Competent Person Statement: The information in this report that relates to 
exploration results, mineral resources or ore reserves is based on information 
compiled by Mr Mark Calderwood, who is a Charted Professional Member of The 
Australasian Institute of Mining and Metallurgy.  Mr Calderwood is a Director 
and full-time employee of the Company.  Mr Calderwood has sufficient 
experience, which is relevant to the style of mineralisation and type of 
deposit under consideration and to the activity which he is undertaking, to 
qualify as a Competent Person as defined in the 2004 Edition of the 
'Australasian Code for Reporting of Exploration Results, Mineral Resources and 
Ore Reserves'") and to qualify as a "Qualified Person" under National 
Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 
43-101").  Mr Calderwood consents to the inclusion in this report of the 
matters based on his information in the form and context in which it appears. 
For a description of Perseus's data verification process, quality assurance 
and quality control measures, the effective date of the mineral resource and 
mineral reserve estimates contained herein, details of the key assumptions, 
parameters and methods used to estimate the mineral resources and reserves set 
out in this report and the extent to which the estimate of mineral resources 
or mineral reserves set out herein may be materially affected by any known 
environmental, permitting, legal, title, taxation, socio-political, marketing 
or other relevant issues, readers are directed to the technical report 
entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 
30, 2011 and the technical report entitled "Technical Report - Tengrela Gold 
Project, Ivory Coast" dated December 22, 2010 in respect of the Edikan Gold 
Mine (formerly the Central Ashanti Gold Project) and the Tengrela Gold 
Project, respectively.

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 Edikan Gold Mine without any major disruption, development 
of a mine at Tengrela, 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 and 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 any forward-looking information, except in accordance with 
applicable securities laws.

 

 

To discuss any aspect of this news release, please contact:

Mark Calderwood (CEO) or Jeff Quartermaine (CFO) at telephone +61 8 6144  1700 
or email mark.calderwood@perseusmining.com 
or jeff.quartermaine@perseusmining.com respectively; or

Nathan Ryan at telephone +61 3 9622 2159 or 
email nathan.ryan@nwrcommunications.com.au (media) Rebecca Greco at telephone 
+1 416 822 6483 or email fighouse@yahoo.com (Toronto)

SOURCE: Perseus Mining Limited

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/January2013/21/c7289.html

CO: Perseus Mining Limited
NI: MNG 

-0- Jan/21/2013 12:57 GMT

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