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Press release from CNW Group

WEST AFRICAN EXPLORATION UPDATE

Wednesday, October 06, 2010

WEST AFRICAN EXPLORATION UPDATE00:22 EDT Wednesday, October 06, 2010/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/Accelerated Exploration Delivers New DiscoveriesPERTH, Western Australia, Oct. 6 /CNW/ - Perseus Mining Limited (ASX/TSX: PRU) is pleased to provide an exploration update on the Company's gold projects in Ghana and Côte D'Ivoire, West Africa. << ------------------------------------------------------------------------- Highlights - Several potentially significant new discoveries made at the Tengrela Gold Project in Côte D'Ivoire, including: Podio - First pass RC drilling returned several high-grade intercepts over 1.5km strike including 8m at 30.0g/t, 4m at 13.0g/t and 2m at 21.0g/t Au. Sissingue - Reconnaissance drilling returned 5m at 18.5g/t Au at East the bottom of a 77m deep hole, 650m east of the main zone at Sissingue. Papara - 12m at 5.0g/t Au in RAB drilling. - Deeper core drilling results from the Sissingue deposit included: Hole SD112 - 72.8m at 3.2g/t, 23.7m at 3.2g/t and 19.5m at 1.5g/t Au, and Hole SD113 - 51m at 4.1g/t and 13m at 2.4g/t Au. - The large Kanadi gold in soil anomaly on the Mbengue permit, in Côte D'Ivoire, is awaiting final approval to allow drilling to commence. - Infill resource drilling results from the Central Ashanti Gold Project ("CAGP") in Ghana included: Esuajah - 81m at 2.8g/t, 70m at 2.4g/t and 55m at 2.6g/t Au. South Fetish - 15m at 5.2g/t, 3m at 30.9g/t, 3m at 23.0g/t, 54.5m at 1.6g/t, 16m at 3.0g/t Au. Fobinso - 67m at 1.8g/t and 35m at 3.4g/t Au. - Significant intercepts from the Kwatechi exploration licence in Ghana, where recent early RC drilling returned 10m at 3.2g/t and 2m at 45.8g/t Au. ------------------------------------------------------------------------- ------------------------------------------------------------------------- Perseus Managing Director, Mark Calderwood's Comments "The Company has managed to complete 50,000m of drilling over the past two months, taking our total in the past seven months to 176,000m." "The assay flow from our increased exploration efforts is paying dividends, with several new potentially significant discoveries to add to two discoveries made last quarter." "The Company is now in a position to step up drilling to enable timely follow-up drilling of the large number of deposits and prospects identified to date." ------------------------------------------------------------------------- >> Locations of the Company's mineral permits and significant intercepts referred to in this News Release are provided in figures contained in a filing available at www.sedar.com and the Company's website, www.perseusmining.com.Perseus is continuing active and systematic infill and exploration drill programs on the Central Ashanti Gold Project in Ghana and the Tengrela Gold Project in Côte D'Ivoire, to test a number of targets and to facilitate a number of resource and reserve upgrades during the next 12 months. A total of 28,162m and 22,411m of drilling was undertaken in August and September respectively.Podio, Tengrela Gold Project, Côte D'IvoireThe Podio prospect covers about 2km strike of the highly prospective 8km long Podio-Zing corridor. Initial RC drilling results have returned a number of narrow high grade intercepts over an open strike of 1.5km. Mineralisation is associated with quartz veining and pyrite within a zone of discrete EM anomaly ('low').Table 4 below contains a summary of the anomalous to significant intercepts.Drilling is also scheduled to commence over an area of extensive ancient workings at Zing when weather conditions improve.Podio and Zing are located 49km and 44km respectively SSW of the mill site proposed in the feasibility study presently being undertaken for the Sissingue Deposit. The relatively high grades encountered at Podio would support moderate to long distance haulage.Sissingue East, Tengrela Gold Project, Côte D'IvoireSignificant bottom of hole gold mineralisation was intercepted in wide spaced exploratory air core drilling 650m east of the main zone at Sissingue. The geology is sandstones with ~5% quartz veining with limonite and is proximal to the margin of a circular IP anomaly interpreted as an intrusive body. Significantly, the mineralisation was discovered in an area of low gold in soil anomalism, highlighting the potential along the belt between Papara and Podio. Results for SAC005 are summarised in Table 4 below.Papara, Tengrela Gold Project, Côte D'IvoireDrilling over the large Papara prospect is starting to provide some continuity of drill results. Over recent months there have been several modest intercepts of 5g/t to 10g/t within an area of interest which is about 2.5km by 1km. The recent intercept is summarized in Table 4 below.Kanadi, Côte D'IvoireThe large Kanadi gold in soil anomaly on the 913 sq km Mbengue permit in Côte d'Ivoire is now awaiting final approval for drilling to commence. The 5.6km by 2.2km anomaly is situated approximately 7.5 km north of Randgold's 4.3Moz Tongon gold project, which is in the final stages of construction and is due to commence production later this year.Mark CalderwoodManaging DirectorAbout Perseus Mining LimitedPerseus Mining Limited (ASX/TSX: PRU) has forged a reputation as one of the West Africa's most successful gold explorers. Focused on under-explored gold belts in West Africa, Perseus is on track to become a producer during 2011 at its Central Ashanti Gold Project in Ghana. It is also working on a definitive feasibility study at its Tengrela Gold Project in Côte d'Ivoire, subject to which production is targeted for late 2012.The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Mark Calderwood, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Calderwood is a Director and full-time employee of the Company. Mr Calderwood has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'") and to qualify as a "Qualified Person" under National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). Mr Calderwood consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. For a description of Perseus's data verification process, quality assurance and quality control measures, the effective date of the mineral resource and mineral reserve estimates contained herein, details of the key assumptions, parameters and methods used to estimate the mineral resources and reserves set out in this report and the extent to which the estimate of mineral resources or mineral reserves set out herein may be materially affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues, readers are directed to the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated November 30, 2009 and the technical report entitled "Technical Report - Tengrela Gold Project, Ivory Coast" dated September 02, 2010 in respect of the Central Ashanti Gold Project and the Tengrela Gold Project, respectively.Caution Regarding Forward Looking Information: This report contains forward-looking information which is based on assumptions and judgments of management regarding future events and results. Such forward-looking information, includes but is not limited to information with respect to future exploration and drilling, procurement of financing, procurement of necessary regulatory approvals, the development of a mine at the Central Ashanti Gold Project, completion of a definitive feasibility study at Tengrela and development of a mine at Tengrela subject to the results of that study .Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, , changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents.. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company's ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws. << Table 1: CAGP, Ghana, Infill and Extensional Drilling ------------------------------------------------------------------------- Hole Deposit East North Depth Azm. Incl. From To Width Au (m) (m) (m) degr- (degr- (m) (m) (m) g/t ees) ees) ------------------------------------------------------------------------- ABDD185 Abnabna 26160 13880 406 180 -63 282 298 16 1.0 321 331 10 3.9 incl. 326 329 3 10.3 349 368 19 1.1 375 391 16 1.5 401 404 3 5.3 ------------------------------------------------------------------------- ABDD187 AF Gap 26220 13865 356.5 180 -61 304 305 1 12.4 312 352 40 1.0 ------------------------------------------------------------------------- ABRDD426 AF Gap 26249 13820 288.3 180 -60 227 240 13 1.0 271 281 10 2.6 ------------------------------------------------------------------------- CHDD003 Chira- 4335 4540 323 270 -50 128 136 8 1.4 wewa 156 167 11 1.2 242 243 1 10.0 278 281 3 3.6 ------------------------------------------------------------------------- AKRDD243 Esua- 1800 6280 325 90 -58 219 300 81 2.8 jah S incl. 281 289 8 10.2 and 293 295 2 11.2 ------------------------------------------------------------------------- AKRDD244 Esua- 1799 6280 370 90 -65 224 294 70 2.4 jah S incl. 249 250 1 15.5 and 282 285 3 12.9 317 342 25 1.8 incl. 338 339 1 12.0 ------------------------------------------------------------------------- AKRDD245 Esua- 1759 6280 420.3 90 -65 277 288 11 3.7 jah S incl. 285 286 1 12.1 306 327 21 3.0 incl. 323 325 2 16.1 338 393 55 2.6 incl. 368 369 1 17.8 ------------------------------------------------------------------------- AKRDD246 Esua- 1680 6292 579.2 90 -65 397 464 67 1.7 jah S incl. 420 421 1 13.2 and 463 464 1 23.5 508 518 10 1.0 525 528 3 4.8 incl. 525 526 1 15.0 534 545 11 1.2 549 570 21 2.6 ------------------------------------------------------------------------- ESDD001 Esua- 1829 6180 256 90 -63 165 181 16 2.7 jah S incl. 179 180 1 10.6 190 245 55 2.1 incl. 218 219 1 17.3 ------------------------------------------------------------------------- EFDD003 Fetish 3374 5140 169 270 -55 32 75 43 1.4 incl. 42 43 1 13.5 82 89 7 1.6 106 125 19 1.0 141 155 14 1.4 163 168 5 2.3 ------------------------------------------------------------------------- EFDD007 Fetish 3410 5180 184.33 270 -55 31 43 12 1.2 48 55 7 1.7 74.5 99 24.5 1.1 128 135 7 2.3 ------------------------------------------------------------------------- EFDD009 Fetish 3543 5160 380 270 -56 167 173 6 5.5 incl. 169 170 1 14.5 213 223 10 1.6 234 236 2 11.3 ------------------------------------------------------------------------- EFDD011 Fetish 3530 5320 395 270 -55 278 313 35 1.2 320 333 13 1.2 ------------------------------------------------------------------------- EFDD015 Fetish 3332 5462 175 270 -50 136 160 24 2.2 incl. 136 137 1 18.7 ------------------------------------------------------------------------- EFDD016 Fetish 3459 5220 270 270 -50 81 82 1 11.3 251 254 3 30.9 incl. 251 252 1 60.8 ------------------------------------------------------------------------- EFDD017 Fetish 3500 5220 310 270 -50 136 161 25 1.2 179 199 20 1.1 208 219 11 1.0 ------------------------------------------------------------------------- EFDD018 Fetish 3540 5220 347 270 -55 210 224 14 2.2 252 259 7 1.6 310 319 9 1.2 ------------------------------------------------------------------------- EFDD019 Fetish 3499 5100 300 270 -55 179 191 12 1.3 226 245 19 1.6 incl. 229 230 1 13.0 ------------------------------------------------------------------------- EFDD022 Fetish 3449 5140 260 270 -55 90 103 13 1.6 154 174 20 1.5 incl. 155 156 1 17.5 179 186 7 1.5 ------------------------------------------------------------------------- EFDD025 Fetish 3117 5320 130 270 -56 86.5 89.5 3 23.0 ------------------------------------------------------------------------- EFDD029 Fetish 3370 5460 210 270 -50 176 191 15 5.2 incl. 176 178 2 13.9 and 182 183 1 10.5 and 190 191 1 21.9 ------------------------------------------------------------------------- EFDD024 Fetish 3489 5243 300.5 270 -55 115 125 10 3.0 incl. 117 118 1 10.4 130 145 15 1.0 156 157 1 29.5 201 202 1 14.5 229 230 1 13.7 268 290 22 1.9 ------------------------------------------------------------------------- EFDD027 Fetish 3530 5240 325 270 -55 164 188 24 2.0 incl. 186 187 1 11.2 281 282 1 13.1 295 309 14 1.0 ------------------------------------------------------------------------- EFDD030 Fetish 3425 5220 305.6 270 -50 241 261 20 1.6 264 278 14 1.0 ------------------------------------------------------------------------- EFDD031 Fetish 3491 5180 311 270 -55 121 136 15 1.8 143 153 10 1.0 238 259 21 1.0 276 287 11 1.3 ------------------------------------------------------------------------- EFDD035 Fetish 3366 5140 235 270 -50 41.5 96 54.5 1.6 180 181 1 24.9 196 212 16 3.0 incl. 196 197 1 10.7 and 198 199 1 12.2 ------------------------------------------------------------------------- FBDD087 Fobinso 27400 14083 271.6 179 -59 139 173 34 1.2 179 220 41 1.4 incl. 207 208 1 18.2 249 251 2 6.8 ------------------------------------------------------------------------- FBDD090 Fobinso 27320 14097 265.35 180 -50 178 245 67 1.8 incl. 195 196 1 17.7 and 198 199 1 11.1 ------------------------------------------------------------------------- FBDD093 Fobinso 27460 14095 271.9 180 -60 138 150 12 1.9 179 191 12 1.1 213 233 20 1.0 ------------------------------------------------------------------------- FBDD094 Fobinso 27140 14000 185 180 -50 117 139 22 1.1 ------------------------------------------------------------------------- FBDD095 Fobinso 27140 14040 218 180 -50 145 171 26 1.2 179 185 6 2.3 ------------------------------------------------------------------------- FBDD097 Fobinso 27460 14135 328 180 -60 168 190 22 2.1 incl. 189 190 1 21.7 ------------------------------------------------------------------------- FBDD098 Fobinso 27180 14084 280 179 -58 196 231 35 3.4 incl. 198 201 3 16.9 and 212 217 5 6.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Notes (1) All holes were core drilled through the mineralised zone. (2) Core holes sampled at 1m intervals. (3) Oxide samples or low sulphur fresh rock samples analysed using 50grm fire assays by independent laboratory, Intertek Minerals Limited in Ghana. (4) High sulphide content samples analysed using 25gram fire assays by Intertek Minerals Limited in Ghana. (5) Only holes with combined intercepts of greater than 40 gram metres included. (6) The type of analytical or testing procedures utilized and sample size and the quality assurance program and quality control measures are consistent with those described in the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated November 30, 2009. (7) The true width of intercepts from recent drilling at Esuajah South ranges from 55-80% of the intercept width. (8) The true width of intercepts from recent drilling at Abnabna-AF Gap- Fobinso ranges from 58-82% of the intercept width, averaging about 70%. (9) The true width of intercepts from recent drilling at Fetish ranges from 75-85% of the intercept width. (10) The true width of intercepts from recent drilling at Chirawewa ranges from 47-77% of the intercept width. Table 2: Recent Anomalous Exploration Intercepts on Dadieso, Dunkwa, and Kwatechi in Ghana ------------------------------------------------------------------------- Hole Deposit East North Depth Azm. Incl. From To Width Au (m) (m) (m) degr- (degr- (m) (m) (m) g/t ees) ees) ------------------------------------------------------------------------- NBRC025 Boki- 2750 4080 90 270 -55 36 48 12 2.4 tsi S ------------------------------------------------------------------------- NBRC026 Boki- 2799 4040 90 270 -55 72 82 10 3.3 tsi S ------------------------------------------------------------------------- NBRC027 Boki- 2779 4000 90 270 -55 54 68 14 2.4 tsi S ------------------------------------------------------------------------- DKRC097 Dadieso -380 -9720 70 92 -50 30 44 14 2.0 ------------------------------------------------------------------------- DKRC100 Dadieso -320 -9660 80 270 -50 32 56 24 2.6 incl. 48 50 2 10.7 ------------------------------------------------------------------------- KTRC052 Kwat- 64170 82700 80 92 -60 12 14 2 4.6 echi 18 20 2 6.0 ------------------------------------------------------------------------- KTRC056 Kwat- 64140 82800 80 92 -60 38 56 18 1.6 echi ------------------------------------------------------------------------- KTRC063 Kwat- 64280 82600 80 90 -60 32 42 10 3.2 echi ------------------------------------------------------------------------- KTRC065 Kwat- 64010 83000 80 90 -60 0 2 2 5.1 echi ------------------------------------------------------------------------- KTRC070 Kwat- 64000 83100 71 90 -60 12 22 10 1.2 echi ------------------------------------------------------------------------- KTRC071 Kwat- 63960 83100 80 90 -60 6 8 2 8.3 echi 18 20 2 45.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Notes (1) All holes are RC holes. (2) RC holes samples sampled at 1m intervals and composited to 2m intervals. (3) Oxide samples or low sulphur fresh rock samples analysed using 50grm fire assays by Intertek Minerals Limited in Ghana. (4) High sulphide content samples analysed using 25gram fire assays by Intertek Minerals Limited in Ghana. (5) Only holes with combined intercepts of greater than 10 gram metres included. (6) The true width of intercepts from recent drilling at the Dadieso deposit, Kwatechi and Dunkwa liecnses is currently unknown. The true width of intercepts along the Bokitsi zone is about 70% of the intercept width. (7) The type of analytical or testing procedures utilized and sample size and the quality assurance program and quality control measures are consistent with those described in the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated November 30, 2009. Table 3: Significant Intercepts Sissingue Gold Deposit, Côte D'Ivoire ------------------------------------------------------------------------- Hole Deposit East North Depth Azm. Incl. From To Width Au (m) (m) (m) degr- (degr- (m) (m) (m) g/t ees) ees) ------------------------------------------------------------------------- SD112 Sissi- 806678 1154137 173.7 271 -56 6.7 79.5 72.8 3.2 ngue incl. 13.7 25.2 11.5 8.7 95.1 96.1 1 9.5 109 132.72 23.72 3.2 incl. 116 117 1 27.0 and 132 132.72 0.72 15.4 136.5 156 19.5 1.5 ------------------------------------------------------------------------- SD113 Sissi- 806521 1154100 206.7 89 -50 104 155 51 4.1 ngue incl. 105.5 108 2.5 12.9 and 119 120 1 78.4 178 191 13 2.4 incl. 189 190 1 18.9 ------------------------------------------------------------------------- SGC003 Sissi- 806650 1154470 50 270 -55 21 25 4 2.6 ngue 31 32 1 29.3 41 44 3 13.2 ------------------------------------------------------------------------- SGC004 Sissi- 806663 1154470 60 270 -55 26 33 7 20.5 ngue incl. 26 27 1 132.1 ------------------------------------------------------------------------- SGC005 Sissi- 806675 1154470 70 270 -55 10 11 1 13.3 ngue 19 25 6 1.6 35 36 1 24.1 ------------------------------------------------------------------------- SGC006 Sissi- 806688 1154470 80 270 -55 28 30 2 50.5 ngue incl. 28 29 1 82.6 35 47 12 1.9 65 80* 15 3.3 ------------------------------------------------------------------------- SGC011 Sissi- 806663 1154490 60 270 -55 6 7 1 57.5 ngue 9 24 15 1.6 28 37 9 1.1 ------------------------------------------------------------------------- SGC012 Sissi- 806675 1154490 70 270 -55 12 30 18 3.5 ngue incl. 26 30 4 9.0 55 69 14 3.3 ------------------------------------------------------------------------- Notes (1) SGC holes are reverse circulation drill holes, SD holes are core drill holes. (2) The type of analytical or testing procedures utilized and sample size and the quality assurance program and quality control measures are consistent with those described in the technical report entitled "Technical Report - Tengrela Gold Project, Ivory Coast" dated September 02, 2010. (3) Drill samples were assayed by 50g fire assays by Intertek Minerals Limited, an independent laboratory in Ghana. (4) True width of intercepts from the current program at the Sissingue deposits is about 55-77% of the intercept width. (5) * denotes open ended intercept. (6) Only holes from Sissingue with combined intercepts of greater than 40 gram metres included. Table 4: Significant Exploration Intercepts Tengrela Gold Project, Côte D'Ivoire ------------------------------------------------------------------------- Hole Deposit East North Depth Azm. Incl. From To Width Au (m) (m) (m) degr- (degr- (m) (m) (m) g/t ees) ees) ------------------------------------------------------------------------- SAC005 Siss East 807385 1154400 77 270 -60 72 77* 5 18.5 ------------------------------------------------------------------------- LLC055 LogBog 781120 1113600 90 90 -55 6 12 6 4.0 incl. 8 10 2 10.3 LLC067 LogBog 781080 1114240 94 90 -55 12 16 4 3.4 LLC071 LogBog 781205 1114240 90 90 -55 30 34 4 4.0 PRB225 Papara 799235 1174638 53 270 -60 36 48 12 5.0 ------------------------------------------------------------------------- PLC027 Podio 793720 1108800 99 90 -55 0 2 2 21.0 64 68 4 2.1 ------------------------------------------------------------------------- PLC039 Podio 793640 1108400 90 90 -55 20 22 2 2.5 34 36 2 2.5 ------------------------------------------------------------------------- PLC045 Podio 793480 1108160 90 90 -55 42 44 2 10.4 ------------------------------------------------------------------------- PLC048 Podio 793600 1108160 90 90 -55 24 26 2 4.0 50 54 4 13.0 incl. 52 54 2 22.2 86 90* 4 1.3 ------------------------------------------------------------------------- PLC057 Podio 793480 1107600 96 90 -55 52 60 8 30.0 incl. 56 58 2 114.1 ------------------------------------------------------------------------- PLC058 Podio 793520 1107600 90 90 -55 4 44 40 1.0 84 90* 6 1.1 ------------------------------------------------------------------------- WLC001 Zangui- nasso 793440 1112880 90 90 -55 0 2 2 8.0 ------------------------------------------------------------------------- Notes (1) All holes except PRB225 are reverse circulation drill holes, PRB225 is a RAB drill hole. (2) The type of analytical or testing procedures utilized and sample size and the quality assurance program and quality control measures are consistent with those described in the technical report entitled "Technical Report - Tengrela Gold Project, Ivory Coast" dated September 02, 2010. (3) Drill samples were assayed by 50g fire assays by Intertek Minerals Limited, an independent laboratory in Ghana. (4) The true width of intercepts from all new prospects is currently unknown. (5) * denotes open ended intercept. (6) Only holes with combined intercepts of greater than 10 gram metres included. >> For further information: Perseus Mining Limited, ABN 27 106 808 986, 30 Ledgar Road, Balcatta, Western Australia, 6021, PO Box 717, Balcatta, WA, 6914, Telephone: (618) 9240 6344, Facsimile: (618) 9240 2406, Email address: info@perseusmining.com, Website: www.perseusmining.com