Recent exploration programmes undertaken at ASX-listed Perseus Mining’s Sissingué gold mine, in Côte d’Ivoire, West Africa, has increased ore reserves and bolstered life-of-mine (LoM) production.
Effectively replacing the ore that has been processed since the mine was commissioned earlier this year, the LoM reserves as at August 31 totalled 380 000 oz of gold, up 9% from the reported reserves in June.
“Going forward, we expect that this pattern will be repeated, with incremental increases in mineral resources and ore reserves being achieved through the drill-out of satellite deposits, [which is] resulting in an extension of Sissingué’s mine life well beyond the originally envisaged five-year period,” says Perseus MD Jeff Quartermaine.
The upgraded mineral resources and ore reserves statements, released last week, show measured and indicated mineral resources for the Sissingué gold deposit of 7.7-million tonnes grading 1.7 g/t gold and containing 423 000 oz of gold at a 0.6 g/t cut-off.
Inferred resources total 100 000 t, grading 0.9 g/t gold and containing 3 000 oz of gold at a cut-off of 0.6 g/t.
“Including the Fimbiasso east and west deposits, estimated measured and indicated mineral resources total 9.6-million tonnes, grading 1.8 g/t and containing 538 000 oz of gold, and inferred mineral resources total 400 000 t grading 1.7 g/t and containing 20 000 oz of gold,” he says.
The mineral resources include ore reserves of 5.8-million tonnes grading 2.1 g/t, within 380 000 oz of gold.
Sissingué’s LoM production totals 357 000 oz, averaging 78 000 oz/y over the current 4.6 years of mine life, including 86 000 oz/y for the first three years production.
The exploration drilling results of both the Sissingué mining lease and the nearby Fimbiasso exploration licence show the potential to increase the remaining mine life beyond 4.6 years.
Meanwhile, the updated forecast places LoM all-in sustainable costs, including all direct production costs royalties, waste stripping costs and sustaining capital expenditure, at an estimated $739/oz during the first three years of production, and about $756/oz over the current LoM.
The LoM plan forecasts a strong positive aftertax cash flow of $165-million, assuming a flat spot gold price of $1 200/oz for unhedged ounces over the LoM, starting from July 1, and assuming existing designated hedges for 64 000 oz at a weighted average price of $1 300/oz.