Perseus re-estimates Edikan Reserves

THE BOURSE WHISPERER: Perseus Mining has updated the Ore Reserves estimate for the company’s Edikan gold mine in Ghana, West Africa.

The company has had new pit designs completed for the Abnabna-Fobinso, Esuajah North, Esuajah South and Fetish deposits at Edikan.

 

Edikan gold mining leases and deposits. Source: Company announcement

 

Ore Reserves for the four deposits are estimated to be 93.8 million tonnes containing 3.38 million ounces of gold as at June 30 2012.

Perseus’s total Ore Reserves, including the 9.7 million tonnes at 2.1 grams per tonne Ore Reserve at the Sissingué gold deposit, stand at 103.5 million tonnes containing 4.04 million ounces of gold.

Mining is currently taking place at Abnabna-Fobinso and Perseus anticipates the other three deposits will most likely be mined during the next four years.

The Edikan Ore Reserves have only been estimated for these four deposits where the company plans to mine in this time.

“Ore Reserves from the initial four deposits have increased by 3.2 per cent in terms of total contained ounces and 22.4 per cent in terms of contained proven ounces, net of processing depletion of 3.7 million tonnes of ore containing 164,800 ounces of gold,” Perseus Mining managing director Mark Calderwood said in the company’s announcement to the Australian Securities Exchange.

“There were a number of reasons for the modest Ore Reserve increase.

“Allowance for mining cost increases of approximately 10 per cent since the previous Ore Reserve estimate and more conservative pit slopes than the DFS resulted in minimal changes to projected pit depths at this stage, while extra drilling is required to upgrade Inferred Mineral Resources before calculating Ore Reserves for new pits.”

Measured and Indicated Mineral Resources for six deposits at Edikan total 156.3Mt, containing 5.6Moz of gold.

Total Inferred Mineral Resources are 50.6Mt containing 1.7Moz of gold, from nine deposits.

Perseus is carrying out further resource and reserve work on the Bokitsi, Chirawewa, Chirawewa South, Mampong, Dadieso deposits amongst others.

It is also assessing the underground potential of the Esuajah South and the Fetish deposits.

The company said it is continuing to work on long-term initiatives to improve open pit mining methods and equipment selection with the aim of reducing mining unit costs.

“It is expected that a reassessment of the life of mine plan and ore reserve upgrade scheduled for first half 2013 will incorporate results from the ongoing drilling, a review of mining methods, processing improvements and a better understanding of geotechnical and hydrological controls across the site,” Calderwood said.

“Until then we have taken a conservative view on pit designs and haven’t looked beyond the first 12 years of mine life at this stage.

“Our principal long term opportunity at Edikan is to reduce unit mining cost given that we already have one of the lowest processing costs in the industry.

“The company also plans to update the Sissingué Ore Reserve estimate before the end of 2012.”