Debt repayment leaves Perseus debt free and Edikan production update
Monday, Nov 26, 2012PERTH, Western Australia, Nov. 23, 2012 /CNW/ - Perseus Mining Limited
("Perseus" or the "Company") (TSX & ASX: PRU) provides an update on activities at its Edikan Gold Mine (EGM) in Ghana.
Production Update - Edikan Gold Mine, Ghana
A record 22,502 ounces of gold produced from EGM in October 2012 was ahead of budget and total costs for the month were below budget.
Gold production for November has been on budget except for a 10 day period between November 8 and 17, when primary crusher issues restricted production.
The crusher down time was caused by the failure of the couplings on the drive shaft. The last failed coupling was repaired and a new replacement shaft and couplings are now on site. Representatives of the crusher manufacturer are currently also on site reviewing all aspects of the crusher and crusher operation.
The oxide feed circuit has been successfully commissioned and has been operating at up to 300wmt/hr which is in excess of the Company's budget. For the month to 21 November the oxide circuit has fed 52,000wmt of ore to the mill.
At current production rates it is estimated that total gold produced from Edikan for the December 2012 Quarter may be between 5% and 10% below the lower end of December Quarter guidance of 65,000 to 70,000 ounces of gold. Every effort is being made to recover the projected shortfall.
On 16 November 2012, the Perseus Group repaid the outstanding balance of $54 million from its restructured project debt facility. The debt repayment resulted in the Group being debt free and having an undrawn line of credit of $100M available for drawdown at the Group's discretion. The Group has available cash of A$43.46 million in addition to approximately 14,000 ounces of gold bullion held in metal accounts and at the refinery.
Perseus Managing Director, Mark Calderwood's Comments
"It is an excellent result for the Company to be debt free within one year of declaring commercial production. Subject to approval of a development decision on the Sissingué project, the Company will draw on the line of credit at some point next year for capital expenditure requirements."
"After a record month of gold production in October, we are working to resolve the problem with the crusher. The crusher manufacturer is actively assisting with the understanding of the abnormal issues over the past few months and a management plan moving forward.
About Perseus Mining Limited
Perseus Mining Limited (ASX/TSX: PRU) has forged a reputation as one of West Africa's most successful gold explorers focused on under-explored gold belts in West Africa. In August 2011 Perseus became a producer at its Edikan Gold Mine in Ghana. Details of the project and mine plan are set out in the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 30, 2011.
Perseus will make a final development decision in respect of its Sissingué Gold Project, part of the Tengrela Gold Project in Côte d'Ivoire, when clarity of the fiscal regime which will be applied to the project is achieved. Production from Sissingué could start in early 2014 subject to achieving such fiscal certainty. Sissingué and the broader Tengrela Gold Project have the potential to become a significant contributor to the Company's goal to develop into a 400,000-ounce per annum gold producer during 2014. Details of the project are set out within "Technical Report - Tengrela Gold Project, Ivory Coast" dated December 22, 2010.
SOURCE Perseus Mining Limited