THE BOURSE WHSIPERER: Perseus Mining (ASX: PRU) announced that a Mining Convention has been executed in the city of Abidjan, Côte d’Ivoire by representatives of the State of Côte d’Ivoire and Perseus’s Ivorian subsidiary, Perseus Mining Yaouré SA.
Perseus Mining explained the Convention provides a guarantee of fiscal stability and sets out a range of other rights and obligations that will apply to the company during the life of its Yaouré gold mine located in central Côte d’Ivoire.
“The signing of the Yaouré Mining Convention is a major milestone on the path to bringing the Yaouré gold mine into production,” Perseus Mining managing director and CEO Jeff Quartermaine said in the company’s announcement to the Australian Securities Exchange.
“With the document now signed, we can move forward with confidence in the knowledge that the fiscal laws on which our decision to develop the mine was based, will not change during the life of the mine.”
Construction of the Yaouré gold mine is being completed at a total cost of US$265 million.
Development work started in June 2019 and is progressing on schedule and on budget with first gold is expected to be poured in December 2020, one month ahead of the currently contracted completion date.
When commissioned, Yaouré will become Perseus’s third gold mining operation, joining the Sissingué gold mine, also in Côte d’Ivoire, and the Edikan gold mine located in Ghana, in Perseus’s multi-mine, geopolitically diverse portfolio of mines.
“At this stage, an open pit mine with an expected mine life of 8.5 years has been defined at Yaouré, however, it is considered likely that the life of the mine will be extended well beyond this limit as the very considerable mineral potential of the tenements on which the mine is located, is progressively unlocked,” Quartermaine continued.
“In this regard, work has begun on delineating Mineral Resources that can be mined using underground mining techniques and at this stage the results of this work are encouraging.
“Yaouré will be Perseus’s third gold mine and our second gold mine in Côte d’Ivoire.
“When Yaouré is fully operational, Perseus will be producing in excess of 500,000 ounces of gold per year.
“The average all-in site cost of producing gold at Yaouré over the first five years of the mine is forecast to be US$734 per ounce, meaning that if gold prices are maintained at current levels, then very strong cashflows will be generated and available for funding benefits for our stakeholders.”