Name and Location
Ayanfuri gold project, Ghana.

Project Description
The project comprises the development of an opencut mining operation, a process plant and related infrastructure to mine and process ore from defined reserves from a number of associated gold deposits.

The definitive feasibility study (DFS) for the project has as its basis an 18-million-ton-a-year contract mining operation and a process plant with a processing capacity of 5,5-million tons a year, which provides an estimated ten-year mine life based on the current reserves only. Only 2,5-million ounces of measured and indicated resources from three of the eight deposits at Ayanfuri was considered for the estimation of the maiden 2,1-million ounces proven and probable reserves. A Phase 2 feasibility study is now under way to incorporate the remaining 3,2-million ounces of resources with the view to increasing reserves, the mine life and the project economics.

Value
$147,9-million.

Duration
Construction is expected to start in the first quarter of 2010, with gold production expected to start in the third quarter of 2011.

Client
Perseus Mining.

Key Contracts and Suppliers
Corporate Mining Resources (feasibility study coordination); Runge (geology and resources, pit optimisations); Coffey Mining (geotechnical, hydrogeology, hydrology, TFS designs, mining costs and scheduling); John Nolan Consulting (pit, waste dump and haul road design); Metallurg (metallurgical management); AMMTEC (metallurgical testwork); Motessura Holdings (metallurgical review and specialist float, crusher designs); BEC Engineering (electrical engineering); Tagit Consult (environmental baseline and scoping); Southern Mining Consultants (preparation of financial models and economic assessment); and DRA Mineral Projects and Group Five Projects joint venture (JV) (lump sum turnkey contract).

Latest Developments
Perseus Mining has announced details of a $58,5-million capital raising that will underpin development of the Ayanfuri gold project.

Further, Perseus Mining has issued a letter of intent to a JV between DRA Mineral Projects and Group Five Projects, agents for Group Five Construction, on a lump-sum turnkey basis for the construction of a 5,5-million-ton-a-year processing facility at the project. The JV has committed to project completion for the first quarter of 2011; however, the company is still currently allowing for completion at the end of the third quarter of 2011, as predicted in the DFS. The award provides for incentives for early completion and penalties for late completion. Meanwhile, the government approval process is progressing and the company expects to be able to provide access to site for the JV in the first quarter of 2010. Perseus Mining has agreed to fund up to $30-million for immediate expenditure requirements related to initial design, long lead items and site construction commencement.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Perseus Mining, tel +61 8 9240 6344, fax +61 8 9240 2406 or email info@perseusmining.com.
Iamgold, tel +1 416 360 4710 or email info@iamgold.com.
AngloGold Ashanti, tel + 27 11 637 6000.