AMN - GHANA: Second best quarter for Edikan gold mine

Perseus Mining has produced a quarterly record of 83,881 ounces of gold from its two operating West African gold mines during the June 2018 quarter with the majority coming from the Edikan operation, which is in Ghana.

The Edikan mine produced 57,861 ounces, which was the second-best quarter in the mine’s 6.5-year history of commercial production.

The other contributor, Sissingue in Côte d’Ivoire, began operating in the March quarter and produced

26,020 ounces in its first full quarter of production to June 30.

The combined production total was 31% more than the prior March quarter and results in annual production of 255,916 ounces, 45% higher than FY2017.

The start of Sissingue production demonstrates the company’s strategy to diversify into a multi-mine West African gold producer.

Perseus’ CEO and managing director Jeff Quartermaine said: “Over the last 18 months, Perseus has been steadily improving its production performance at Edikan.

“With our second mine, Sissingué, successfully coming on stream earlier this year, we have been able to move our production to another level, allowing us to achieve a number of production records and strong operating cash flows this quarter.”

Over the next four years, the company aims to increase annual production to around 500,000 ounces with three operating mines in West Africa by 2020.

Perseus completed a positive definitive feasibility study (DFS) for the third mine, Yaouré in Côte d’Ivoire, in October 2017.

Quartermaine said: “This strong performance is important for Perseus in the context of our next development, the Yaouré gold mine, which we plan to start developing later this year.

“Based on current market conditions, it is expected that Yaouré will be financed from internally generated cash reserves and debt that is in the process of being arranged.”

The company is targeting the end of December 2018 to have funding and execution plans in place to allow a decision on the start of full-scale construction.

It is expected to have an 18-month full-scale construction period with first production forecast for 2020.

The on time, within budget Sissingué development demonstrates management’s ability to deliver on their multi-mine strategy.

The record June quarter delivered June half production of 147,908 ounces of gold and June annual production of 255,916 ounces.

Both production figures were comfortably inside the company’s previously provided guidance ranges of 140,000 to 160,000 ounces for the half and 250,000 to 285,000 ounces for the full year.

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