Perseus Mining Limited - Activities Report For June 2013 Quarter

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

PERTH, Western Australia, July 15, 2013 /CNW/ - Perseus Mining Limited ("Perseus" or the "Company") (TSX & ASX:PRU) reports on its activities for the three month period ended 30 June 2013 (the "Quarter") and in doing so, also references the six month period ended 30 June 2013 (the "Half Year"). 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

Executive Summary

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

• Gold production of 104,744oz in the Half Year, including 47,565oz of gold in the Quarter, was in line with the Half Year production guidance of 105,000 to 125,000 ounces;
  
  
• Total all-in site cash costs (including production, royalties, development and sustaining capital) of US$1,256/oz in the Half Year, including all-in costs of US$1,405/oz during the Quarter. This Half Yearly all-in site cost exceeded the Half Year cost guidance of US$1,100/oz;
  
  
• Material improvements were recorded in the availability of and metallurgical performance by the process facility as the Quarter progressed;
  
  
• Efficiency improvement programmes are being implemented across the EGM site targeting a material improvement in the cost base of the operation;
  
  
• Short term production plans for the EGM have been revised to maximise net cash flow in the next eighteen months and provide capacity to withstand further falls in the gold price; and
  
  
• Production guidance for the financial year ending 30 June 2014 ("FY2014") has been set at 190,000 to 210,000 ounces of gold at a total all-in site cash cost of US$1,000 to US$1,200/oz.

Development - Sissingué Gold Project ("Sissingué"), Côte d'Ivoire

• Discussions with the Ivorian government on applicable fiscal terms and stability undertakings are advancing very positively. Notwithstanding this progress, Perseus has decided not to commit to the development of Sissingué until its financing plan can be confirmed.

Exploration - Ghana and Côte d'Ivoire

• Significant drill intercepts were recorded at multiple prospects in Côte d'Ivoire, including one very significant RC hole from the Mbengué Prospect that returned 28m at 8.1g/t gold plus 27m at 3.7g/t gold, ending in mineralisation.

Corporate

• Available cash balance of $35.5M (excludes $10.3M in escrow) and 9,859oz of bullion on hand at 30 June 2013 valued on that date at $12.8M;
  
  
• Gold price hedging commitment of 170,000oz at a weighted average price of US$1,408/oz was "in the money" by approximately US$29.5M at 30 June 2013; and
  
  
• Cost reduction programme implemented at corporate head office targeting a 16% reduction in overheads to $10M in FY2014 including a 15% reduction in salaries paid to all executive and non-executive directors.

Jeff Quartermaine
Managing Director and Chief Executive Officer
15 July 2013

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 Kevin Thomson, who is a Professional Geoscientist with the Association of Professional Geoscientists of Ontario.  Mr Thomson is an employee of the Company.  Mr Thomson 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 Thomson 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' 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 - Tengréla Gold Project, Côte d'Ivoire'' dated December 22, 2010 in relation to the Edikan Gold Mine (formerly the Central Ashanti Gold Project) and the Tengréla Gold Project respectively.

The information in this report that relates to Mineral Resources for the Edikan Gold Mine (Table 1, Attachment 2 of this Report) is based on information compiled by Mr Trevor Stevenson a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy and a CP Geo. Mr Stevenson is a full time employee of RungePincockMinarco. Mr Stevenson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Minerals 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 Stevenson consents to the inclusion in the report of the matters based on his information in the form and context that the information appears.

The information in this report that relates to Mineral Resources for the Sissingue Gold Project is based on information compiled by Mr Lynn Widenbar a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Widenbar is a full time employee of Widenbar and Associates Pty Ltd. Mr Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a Competent Person as defined in the 2004 edition of the 'Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves'. Mr Widenbar consents to the inclusion in the report of the matters based on his information in the form and context that the information appears.

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 Tengréla, 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.

SOURCE: Perseus Mining Limited

To discuss any aspect of this announcement, please contact:

Managing Director:
Jeff Quartermaine at telephone [phone] or email
[email protected] (Perth);

Investor Relations: 
Nathan Ryan at telephone [phone] or email
[email protected] (Melbourne); or

Rebecca Greco at telephone [phone] or email
[email protected] (Toronto)