Perseus Mining Limited: Activity Report for June 2018 Quarter

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

PERTH, Western Australia, July 12, 2018 (GLOBE NEWSWIRE) -- Perseus Mining Limited (“Perseus” or the “Company”) (TSX:PRU) (ASX:PRU) reports on its activities for the three month period ended June 30, 2018 (the “Quarter”). An executive summary is provided below. However, full details of activities in the June Quarter, including reconciled production and all-in site cash costs, are included in the Company’s June 2018 Quarterly Activity Report released to the market on July, 13, 2018. The full report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

Perseus has produced a record quantity of gold from its two West African mines during the June 2018 quarter at a materially improved All-In Site Cost (“AISC”) and in the process has demonstrated the success of its plan to transform from a single mine gold producer into a successful multi-mine, West African focussed explorer, developer and gold producer. Highlights of the quarter included:

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/80d52e27-d016-477f-a36a-90c41216ef06

• Ramp up of Sissingué successfully completed with quarterly gold production of 26,020 ounces at an AISC of US$520 per ounce.
   
• Group gold production and cost guidance for the December 2018 half year has been set at 130,000 to 150,000 ounces of gold at an AISC of US$950 to US$1,150 per ounce.
   
• The average gold price achieved during the quarter was US$1,312 per ounce, producing a cash margin of US$399 per ounce or US$33.4 million of notional free cash flow from operations.
   
• A net quarterly increase in cash and bullion of A$30.3 million or 51% was recorded, resulting in available cash and bullion at June 30, 2018 of A$89.8 million (US$66.5 million), A$4.8 million (US$3.5 million) more than group debt of A$85 million (US$63 million).
   
• The group’s hedge position at June 30, 2018 included 131,000 ounces of gold sold forward at a weighted average price of US$1,312 per ounce.
   
• Work commenced on front end engineering and design (“FEED”) and execution planning for the Yaouré development in conjunction with engineers Lycopodium.
   
• Implementation of a plan to fund the Yaouré development using debt and internally generated cash reserves also commenced.
   
• Encouraging drill results achieved from exploration drilling programmes at each of the Yaouré, Sissingué and Edikan sites warranting follow up drilling in the September 2018 quarter.

Total production and cost guidance for the Perseus group for the Half Year ending December 31, 2018 is as follows:

Group Production and Cost Guidance

Based on actual operating performance at both Edikan and Sissingué subsequent to the end of the quarter, the December 2018 half year production and cost guidance may be proven to be slightly conservative; however, the Company is yet to process the harder ore types at Sissingué and therefore recoveries and throughput rates for these ores are yet to be confirmed and certain assumptions regarding the potential impact of weather on operating performance also remain to be validated.

PROGRAM FOR SEPTEMBER 2018 QUARTER

Edikan

• Produce gold at a total all-in site cost is in line with December 2018 Half Year guidance;
• Continue to implement practices aimed at optimising and improving mine to mill performance;
• Continue training operating and maintenance staff;
• Continue to implement business improvement initiatives across all departments at Edikan;
• Assess exploration targets and prepare drill programmes for targets identified by the recent review of geological datasets relating to the Edikan mining leases;
• Continue drilling of the Esuajah Gap granite, targeting the up-plunge, near surface extensions of the intrusive body.  An initial three hole, 1000 metre RC pre-collared diamond drilling program is planned; and
• Commence RC drilling at the Dadieso NE and Abreshia prospects, with an initial 1,600 metre program planned.

Sissingué

• Produce gold at a total all-in site cost is in line with December 2018 Half Year guidance;
• Look for business improvement opportunities across all departments at Sissingué; and
• Continue auger and aircore drilling at the Papara, Fimbiasso and other prospects within trucking distance of Sissingué, with the aim of identifying the potential for additional Mineral Resources that can be processed at the Sissingué processing facility. Drilling will continue until wet season conditions make drilling impracticable.

Yaouré

• Subject to the granting of an Exploitation Permit to operate the Yaouré mine, commence negotiation of the terms of a Mining Convention for the mine and implement a programme of early work to establish the project site in readiness for a decision to commence full scale construction;
• Subject to the receipt of assays, re-estimate the Mineral Resources at Yaouré and determine the impact on the Ore Reserve estimate;
• Continue Yaouré FEED study;
• Implement the financing plan devised to fund the Yaouré development; and
• Continue aircore drilling at the CMA-NE trend with the aim of infilling and extending known mineralization and defining the contact between the volcaniclastic basin and basalt in the area.  Three oriented diamond drill holes totalling 500 metres are planned to undercut the better AC and RC intersections on the CMA-NE trend, designed to investigate the geological character of the mineralisation and to gather structural information.                                    

Jeff Quartermaine
Managing Director and Chief Executive Officer

To discuss any aspect of this announcement, please contact:

Managing Director:      
Jeff Quartermaine at telephone +61 8 6144 1700 or email jeff.quartermaine@perseusmining.com;

Media Relations:           
Nathan Ryan at telephone +61 4 20 582 887 or email nathan.ryan@nwrcommunications.com.au (Melbourne)

Competent Person Statement:

All production targets for Edikan and Sissingué 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 in relation to Edikan Mineral Resource and Ore Reserve estimates was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on February 21, 2017 and was updated for depletion in the Financial Statements released on August 30, 2017. The Company confirms that it is not aware of any new information or data that materially affect the information in that market release and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, 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 — Central Ashanti Gold Project, Ghana” dated May 30, 2011 continue to apply.

The information in this report that relates to Mineral Resources for Sissingué was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on December 15, 2016. The information in this report that relates to Mineral Resources for Fimbiasso was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on February 20, 2017. The information in this report that relates to Ore Reserves for Sissingué and Fimbiasso was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on March 31, 2017. The Company confirms that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, 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 May 29, 2015 continue to apply.

The information in this report in relation to Yaouré Mineral Resource and Ore Reserve estimates was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement on November 3, 2017. 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 — Yaouré Gold Project, Côte d’Ivoire” dated December 18, 2017 continue to apply. 

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 and the Sissingué Gold Mine without any major disruption, development of a mine at Yaouré, 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.