Perseus Mining Limited: Activity Report for September 2018 Quarter

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

PERTH, Western Australia, Oct. 17, 2018 (GLOBE NEWSWIRE) -- Perseus Mining Limited (“Perseus” or the “Company”) (TSX & ASX: PRU) reports on its activities for the three month period ended September 30, 2018 (the “Quarter”). An executive summary is provided below. However, full details of activities in the September Quarter, including reconciled production and all-in site cash costs, are included in the Company’s September 2018 Quarterly Activity Report released to the market on October 18, 2018. The full report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

Stable Operating Performance

• Gold production of 72,477oz for the quarter at an AISC of US$950/oz; and
• On track to achieve guided production and costs for the December 2018 half year.

Table 1:  Consolidated production and sales summary:

Notes:
^1. Gold sales are recognised in Perseus’s accounts when gold is delivered to the customer from Perseus’s metal account.

Strong Cash Flow Generation and Strengthening Balance Sheet

• A$93.8m (US$67.8m) cash and bullion as at September 30, 2018;
• A$27.4m (US$19.8m) operating margin for the quarter; and
• Net cash of A$21.3m (US$15.4m) increased by A$16.5m (US$11.9m) during the quarter after;
  ° Debt repayment of A$14.5m (US$10.6m); and
  ° Reduction of trade creditors by A$20.3m (US$14.9m).

Yaouré Gold Mine Development on track

• Arrangement of debt to fund Yaouré development is progressing on track, confirming the plan to fund development from corporate cash reserves, future cashflows and a debt facility - no additional equity required;
• The Yaouré Front End Engineering and Design (“FEED”) study estimates a capital cost of US$264 million confirming the Definitive Feasibility Study (“DFS”) capital cost estimate;
• Full scale construction is forecast to start early in 2019 with first gold produced in late 2020.

Exploration focusing on expanding Mine Life

• Encouraging exploration results show promise to extend mine life at each of Sissingué, Edikan and Yaouré.

Perseus consistently delivering growth strategy

• With continued on-target production from Edikan and Sissingué, combined with development of Yaouré, Perseus expects to reach ~500,000 ounces per annum of gold production with an AISC of US$850/oz by 2022.

PROGRAM FOR DECEMBER 2018 QUARTER

Edikan

• Produce gold at a total all-in site cost is in line with December 2018 Half Year guidance;
• Negotiate a new single mining contract for the updated LOM, expected to reduce mining costs; and
• Continue drilling of the Esuajah Gap granite, targeting the up-plunge, near surface extensions of the intrusive body. 

Sissingué

• Produce gold at a total all-in site cost in line with December 2018 Half Year guidance;
• Continue to manage wet weather-related impacts on operations as required;
• Update the Sissingué Mineral Resource, Mineral Reserve and LOMP; and
• Recommence auger and air core drilling at the Papara, Fimbiasso and other prospects within trucking distance of Sissingué, with the aim of identifying the potential for additional Mineral Resources that can be processed at the Sissingué processing facility.

Yaouré

• Subject to the granting of an Exploitation Permit, commence negotiation of a Mining Convention for the mine;
• Investigate and implement contracting strategy for the EPC contract;
• Draft execution plan for the development of Yaouré;
• Implement a programme of early work to establish the project site in readiness for a decision to commence full scale construction;
• Update Edikan Mineral Resource, Mineral Reserve and LOMP;
• Investigate the potential for underground mining of the CMA resource;
• Continue air core drilling at the CMA-NE trend with the aim of infilling and extending known mineralization and defining the contact between the volcaniclastic basin and basalt in the area; and
• Commence auger drilling over the Allekran prospect in the southwest of the Yaouré West permit.

Corporate

• Implement the financing plan devised to make sufficient funding available to finance the development of the Yaouré Gold Mine.                        

Jeff Quartermaine
Managing Director and Chief Executive Officer

To discuss any aspect of this announcement, please contact:

 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 and the Sissingué Gold Mine without any major disruption, development of a mine at Yaouré, 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.