Quarterly report for the period ending March 31 2013 - Perseus Mining on track with record quarterly production at Edikan

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

PERTH, Western Australia, April 22, 2013 /CNW/ - Perseus Mining Limited ("Perseus" or the "Company") (TSX & ASX:PRU) advises that its Activity Report for the quarter ended March 31, 2013 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

Executive Summary

Operations - Edikan Gold Mine ("EGM")

• Remediation work on the EGM primary crusher shaft and core was successfully completed as scheduled during the March 2013 Quarter (the "Quarter");
  
  
• Despite throughput limitations caused by the defective crusher, 57,179oz of gold were produced, setting a new quarterly production record and exceeding December 2012 Quarter (the "December Quarter") production of 51,090oz by 12%;
  
  
• In March  2013, the average SAG mill throughput rate of 934 dry tonnes per hour ("dtph"), equated to an annual throughput of 7.5Mt at 91.7% plant availability, indicating that plans to achieve a throughput rate of 8.0Mtpa by mid-year are progressing well;
  
  
• The total site cash cost¹ for the Quarter of US$1,132/oz, was 7% higher than in the December Quarter due to costs of crusher repairs plus several other one-off costs;
   
  
• Production and cost guidance for the six months ending 30 June 2013 of 105-125,000 ozs of gold at an all-in site production cost of US$1,100/oz remains unchanged;

^1 Includes production cost, royalty, development and sustaining capital but not exploration, taxes or corporate overheads.

Development - Sissingué Gold Project

• Perseus is well prepared to start development of the Sissingué Gold Mine when fiscal stability arrangements with the Ivorian Government are finalised;
  
  
• The Ivorian Ministry of Mines and Petroleum, in consultation with the mining industry, has drafted a new Mining Code and associated legislation. Based on media reports, the President of Côte d'Ivoire is understood to be planning to sign an executive order giving force to the new law in the June 2013 Quarter;
  
  
• Negotiation of a Mining Convention that guarantees stability of fiscal arrangements for the duration of the Sissingué Gold Mine has advanced and is expected to be completed after the new Mining Code becomes law;

• An updated Mineral Resource estimate for the Sissingué gold deposit prepared by consultants Widenbar and Associates contains a slightly greater number of ounces of total contained gold (i.e. 925,000oz of gold in the Measured and Indicated categories plus a further 291,000oz in the Inferred category) than the previous Mineral Resource estimate;

Exploration - Ghana and Côte d'Ivoire

• 40,882m of drilling completed including 7,944m in Ghana and 32,938m in Côte d'Ivoire;
  
  
• Significant drill intercepts from multiple prospects;

Corporate

• Available cash balance of $38.4M (excludes $9.054 in escrow) and 16,237oz of bullion on hand at 31 March 2013 valued on that date at $25.1M, giving a total of $63.5M;
  
  
• US$100.0M revolving line of credit available for drawdown. Hedging commitment linked to debt financing reduced to 193,000oz at a weighted average price of US$1,389/oz at 31 March 2013;
  
  
• Transitional change of senior management of Perseus was successfully completed with Jeff Quartermaine assuming the roles of Managing Director and Chief Executive Officer from predecessor, Mark Calderwood.

Jeff Quartermaine
Managing Director and Chief Executive Officer

19 April 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 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:

Jeff Quartermaine at telephone [phone] or email [email protected]
Nathan Ryan at telephone [phone] or email [email protected]
Rebecca Greco at telephone [phone] or email [email protected] (Toronto)