Name and Location
Edikan gold project, Ghana.

Client
Perseus Mining.

Project Description
The Edikan gold mine produced its first gold in August 2011 and achieved commercial production in January 2012. Expected mine life from July, 2015, has been estimated at eight years.

The project has measured and indicated resources as at March 2016, were estimated at 144.8-million tonnes grading 1.1 g/t of gold, and proven and probable reserves of 58.4-million tonnes grading 1.2 g/t of gold. Inferred resources have been estimated at 61.4-million tonnes grading 1 g/t of gold.

The updated life-of-mine plan (LOMP) for Edikan involves mining and processing of ore from six openpits. The updated LOMP results in a total of 1.89-billion ounces of gold being contained in the ore delivered to the mill during the remainder of its life, including a partial eighth year of production, which is within 2% of the previous version of the LOMP.

Assuming a life-of-mine recovery factor of 88.1%, 1.66-billion ounces of gold will be recovered during the remaining years of the mine. This compares favourably to the previous forecast of 1.74-billion ounces, aside from the exclusion of the Esuajah South deposit from the LOMP.

Esuajah South was forecast to deliver 6.6-million tonnes of ore at a grade of 1.7 g/t of gold into the mine plan, with mining of the deposit originally scheduled to begin in late 2017.

Perseus has indicated that development of the Esuajah South deposit using under-ground mining techniques remains an attractive option subject to the gold price.
Net Present Value/Internal Rate of Return

The LOMP has increased the net present value from $278-million to $287-million in the previous LOMP, at a 10% discount rate, based on a gold price of $1 200/oz.

Value
Perseus expects a $31-million decrease in sustaining capital, with $44-million now required, compared with the $75-million estimated in the previous LOMP.

Edikan forecasts an improved operating cost profile for the remaining years of Edikan’s mine life and a reduction in required capital expenditure,

Duration
About eight years.

Latest Developments
Perseus has reported that operating efficiencies at Edikan over the past three years will be maintained and further works are planned to deliver incremental efficiency improvements, enhancing Perseus’s ability to execute the updated LOMP.

These include the progressively removing bottlenecks in the processing plant to improve operability and plant run time, reducing operating costs and frequency of maintenance shutdowns, and completing the installation of a diesel-fired power station to provide flexibility of generating power internally or drawing power from the national power grid to mill run time.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Perseus Mining, tel +61 8 6144 1700, fax +61 8 6144 1799 or email info@perseusmining.com.