Name and Location
Central Ashanti gold project (CAGP), Ghana.

Project Description
The project is centred on two mining leases in the Ashanti gold belt 25 km to 65 km from the 60-million-ounce Obuasi gold deposit.

The definitive feasibility study (DFS) completed on the project in July 2009, estimated initial proven and probable gold reserves of 2,13-million ounces; production averaging 220 000 oz/y in the first four years; and cash costs (including government royalties) of $494/oz.

The DFS 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 current reserves only.

The project has significant upside for further resource growth and current reserves total 3,3-million ounces, with additional resources. Perseus Mining expects further resource and reserve increases in 2011 and currently has eight drill rigs in operation.

Value
$147,9-million.

Duration
First gold production is scheduled to start in the September 2011 quarter. A production rate of 200 000 oz/y is expected in 2012, and will be ramped up to full output of 300 000 oz/y by 2013.

Client
Perseus Mining.

Key Contracts and Suppliers
African Mining Services and Total Petroleum Ghana Limited.

Latest Developments
Perseus Mining has announced that the 10,4-m-diameter semiautogenous grinding (SAG) mill and primary crusher, the largest components of the process facility at the CAGP, are now in place. Recent construction activities include the lift and assembly of the SAG mill shell, heads and main drives, which have a total 14 MW of installed power. Ring gear segments for the SAG mill will be installed shortly.

The installation of the 54 inch gyratory primary crusher is nearly complete, with the installation of the mechanical, electrical and piping components advancing throughout the rest of the plant. Dam earthworks have also progressed, with the process water and cyanide tailings storage facility dam embankments at full height.

On Budget and on Time?
Construction at the project is progressing as planned and Central Ashanti Gold is well positioned for the start of mining in the September 2011 quarter.

Contact Details for Project Information
Perseus Mining MD Mark Calderwood, tel +61 8 9240 6344, fax +61 8 9240 2406 or email calderwoodm@perseusmining.com.