Name and Location
Yaouré gold project, Côte d’Ivoire.

Client
Amara Mining was acquired by Pereus Mining in April 2016.

Project Description
An optimised prefeasibility study (PFS) has confirmed a compelling gold development project in the current capital-constrained market.

Based on the updated mineral reserve estimate announced in January, the study delivers an increased head grade, a reduced upfront capital cost and robust economics at a conservative gold price.

The optimised PFS is based on a smaller 4.5-million-tonne-a-year processing plant, with production for years one to five estimated at 248 000 oz/y and average production at 203 000 oz/y over a 15-year life-of-mine from a single openpit containing 3.2-million ounces.

Net Present Value/Internal Rate of Return
The optimised PFS estimates a post-tax net present value (NPV), at an 8% discount rate, of $555-million and an internal rate of return (IRR) of 38% at a gold price of $1 200/oz.

A post-tax NPV, at an 8% discount rate, of $281-million and an IRR of 25% are estimated at a gold price of $1 000/oz.

Value
The optimised PFS estimates an upfront capital cost of $334-million, including a $44-million contingency and $60-million for an owner-operated mining fleet.

Duration
Construction is expected to take 18 months.

Latest Developments
Perseus intends to complete a feasibility study on the Yaouré project, including a National Instrument 43-101 technical report, as soon as possible, with completion expected 12 to 15 months from its start in April 2016.

The study will focus on increasing geological information by conducting closer-spaced drilling in targeted areas than has been completed historically.

Further, significant additional metallurgical testwork will be undertaken, with a specific focus on comminution.

The new information will be used to better define controls on mineralisation and, thereby, determine the tonnes and grade of the deposit with greater reliability and develop a geometallurgical model.

The mining method for the deposit can then be optimised along with the mining and processing rates.

The process plant design and associated infrastructure will then be finalised.
Quotes will be sought from suitably experienced mining contractors to fully evaluate the option of contract mining, compared with owner mining.

The feasibility will be funded through operating cash flow.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Amara Mining head of investor relations Katharine Sutton, tel +44 20 7398 1420, fax +44 20 7398 1421 or email ir@amaramining.com.