Perseus Mining Limited - Exploration and Resource Update Ghana

Not for distribution to United States newswire services or for dissemination in the United States

PERTH, Western Australia, March 29, 2012 /CNW/ - Perseus Mining Limited ("Perseus" or the "Company") (TSX & ASX: PRU) is pleased to provide an exploration update from its Edikan and Dunkwa gold projects in Ghana, West Africa as well as details of a resource increase at Esuajah North forming part of the Edikan Gold Mine.

Full details are available in a release that has been filed with SEDAR and is posted on the Company's website at www.perseusmining.com, but highlights include:

• Deeper drilling at the Fetish deposit at Edikan Gold Mine (EGM) in Ghana continues to confirm strong gold mineralisation at depth;
  
  
• Deeper drilling at Esuajah South & Esuajah North at EGM confirmed gold mineralisation at depth;
  
  
• Exploration drilling at EGM returned significant results from multiple prospects; and
  
  
• Measured and Indicated gold resources at the Esuajah North deposit at EGM increased 341,000 oz to 920,000 oz using a 0.4g/t Au cut-off, lifting the Company's global Measured and Indicated resources to more than 6.8 million ounces of gold.
  
  

Perseus Managing Director, Mark Calderwood's Comments

"The recent drill success on some of the lesser known prospects at Edikan is encouraging and can be expected to accelerate as the focus moves from sterilisation and resource drilling to target generation from the extensive exploration database."

"The upgrade of the Esuajah North deposit resource was based on drilling undertaken in 2011and still excludes a number of holes where assays are pending.  Measured and Indicated gold resources at Esuajah North increased by about 50%."

"The next Edikan Gold Mine reserve increase is now expected to be completed in the June Quarter of 2012."

Edikan Gold Mine & Dunkwa Project, Ghana

The Company completed 27,986m of drilling at the Edikan Gold Mine and adjoining Dunkwa Prospecting License during January and February. Four rigs are active, with one rig evaluating district exploration targets at Dunkwa and three rigs engaged on resource infill and extensional drilling at Edikan. Assay turnaround has improved significantly in Ghana, with 3,809 samples from 94 drill holes currently pending.

Drilling is shifting from principally resource/reserve drilling to a larger component of near-mine and district exploration drilling. Resource/reserve drilling will continue at Edikan, with several resource and reserve updates to be released in 2012. However, increasing emphasis on target generation, with continuing (infill and extensional) geochemical sampling, IP geophysical surveys, geological and regolith mapping, data compilation, analysis and interpretation, is expected to result in multiple new targets for ongoing exploration drill testing in 2012.

Resource Upgrade at Esuajah North, EGM

A revised resource estimate for Esuajah North was completed by Runge Limited in March 2012. Measured & Indicated resources at a 0.8g/t Au cut-off increased by 51% to 15.1Mt at 1.2g/t Au and at a 0.4g/t Au cut-off increased 59% to 32.7Mt at 0.9g/t Au containing 920,000oz of gold.  Inferred resources decreased from 9.3Mt at 0.7g/t to 6.3Mt at 0.8 g/t Au containing 168,000oz of gold.

The 400m-long Esuajah North deposit averages more than 100m in width and contains Measured and Indicated resources of 3,400oz per vertical metre for the first 150m below the existing shallow pit.

The Company's global Measured and Indicated resource base is now more than 6.8 million ounces of gold.

Production Update - Edikan Gold Mine, Ghana

The Company is aiming to release its March 2012 Quarter production statistics and cash costs for the Edikan Gold Mine in mid-April.  Previously issued guidance of 35,000-40,000 ounces of recovered gold production at a C1 cash cost of US$950 per ounce of gold remains unchanged.

Mark Calderwood
Managing Director

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.  Perseus recently 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 now also planning the development of its Sissingué Gold Project, part of the Tengrela Gold Project in Côte d'Ivoire, with production targeted for 2013. 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 2013.  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.

The information in this report that relates to the mineral resources is based on information compiled by Mr Aaron Green, who is a Member of The Australian Institute of Geoscientists.  Mr Green is a full-time employee of Runge Limited.  Mr Green 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 Green 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 ore reserves is based on information compiled by Mr Chris Marissen, who is a Charted Professional Member of The Australasian Institute of Mining and Metallurgy.  Mr Marissen is a Mining Engineer and a full-time employee of the Company.  Mr Marissen 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 Marissen 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 exploration results 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 announcement, please contact:
Mark Calderwood at telephone [phone] or email [email protected]
Nathan Ryan at telephone [phone] or email [email protected] (media)
Rebecca Greco at telephone [phone] or email [email protected] (Toronto)