PERTH (miningweekly.com) – An updated life-of-mine (LoM) plan for dual-listed Perseus Mining’s Edikan gold project, in Ghana, has extended the project’s life by nearly one year, to 2024, based on updated ore reserves.
The ASX- and TSX-listed miner said on Tuesday that the revised L0M plan was based on seven openpits, containing a mineral resource of 162.5-million tonnes, grading 1.1 g/t gold for 5.7-million ounces of gold.
A further 77.4-million tonnes of material, grading 1 g/t gold, for 2.4-million ounces of gold was classified as inferred resource.
The new LoM plan would see the volume of ore and waste moved at the Edikan project decline by 15%, compared with the previous plan, which would also result in 6% less gold than the previous plan.
In 2014, the Edikan operation was expected to deliver about 200 000 oz of gold, at an all-in cash cost of $1 100/oz. Production was expected to increase to 240 000 oz/y between 2015 and 2018, at cash costs of around $1 050/oz.
The LoM plan estimated that average gold production would reach 230 000 oz/y, at a cost of $937 between 2014 and 2024.
“The revised LoM plan for the Edikan gold mine represents a robust and financially attractive way forward for our flagship operation. The plan clearly indicates that at a gold price of $1 200/oz a significant amount of cash flow can be generated at Edikan; and at even lower gold prices the operation remains viable, based on our assumptions,” said Perseus MD Jeff Quartermaine.
He noted that the company’s financial performance would continue to be leveraged to the gold price and operational improvements, adding that the revised LoM plan represented an important element in Perseus’ ongoing efforts to improve operating performances at Edikan.