Name of the Project
Yaouré gold project.

Location
The project is located on the southern edge of Lake Kossou, 35 km north-west of the capital, Yamoussoukro, and 25 km east-north-east of Bouaflé, in central Côte d’Ivoire.

Client
Perseus Mining.

Project Description
A 2017 definitive feasibility study (DFS) has confirmed the high quality of the Yaouré project.

The project comprises two adjacent pits (CMA and Yaouré), with ore also expected to be sourced from three pre-existing heap-leach pads close to the run-of-mine pad.

Proven and probable reserves have been estimated at 26.8-million tonnes grading 1.76 g/t gold for 1.52-million ounces of gold.

The chosen method for the openpit reserves is conventional openpit mining using hydraulic excavators and trucks.

The process plant will comprise a primary crusher with a 6 MW semiautogenous mill and a 6 MW ball mill, pebble crushing, and a gravity and carbon-in-leach circuit with cyanide detoxification.

The processing plant will process up to 3.3-million tonnes a year on average over an 8.5-year mine life, recovering 1.37-million ounces over the period.

The DFS estimated that Yaouré could produce 215 000 oz/y over its first five years of operations.

Potential Job Creation
The project is expected to have a workforce of 257, and 470 contract personnel.

Net Present Value/Internal Rate of Return
Based on a gold price of $1 250/oz, the project has a net present value (NPV), at a 10% discount rate, of $170-million and an after-tax internal rate of return of 27%, with a payback of 32 months.

At a 5% discount rate, the project has an NPV of $259-million.

Value
The estimated development capital cost is $264-million.

Duration
First gold is expected in 2020.

Latest Developments
Perseus Mining has finalised the financing plan for its Yaouré gold mine after accepting a committed letter of offer from a consortium of international banks providing $150-million in corporate debt facilities.

The consortium, comprising Macquarie Bank, South Africa’s Nedbank and The Sociéte Générale of France, has offered Perseus a revolving line of credit, with interest payable being Libor plus a margin that will initially be 425% and will vary in line with the company’s leverage ratio.

Perseus will continue to hedge the sale price of its gold production in line with its applied hedging policy of no more than 30% of the projected gold production in any given year.

In addition to the $150-million corporate debt facility now secured, the $264-million Yaouré gold project will be funded by more than $80-million of cash and bullion currently on hand, as well as additional contributions from future operational cash flows and proceeds from the exercise of warrants that expire later this month.

The final application for the grant of an exploitation permit to develop and operate Yaouré was due for consideration on April 10, and marks the final permit to start developing the mine.

Once the permit is granted, Perseus and the Ivorian Departments of Mining and Geology, and Budget and Finance, will negotiate a mining convention to confirm fiscal stability and other arrangements to apply over the life of the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

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