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Press release from CNW Group

Construction Update CAGP, Ghana

Tuesday, March 29, 2011

Construction Update CAGP, Ghana00:02 EDT Tuesday, March 29, 2011/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/Another Significant Project Milestone AchievedPERTH, Western Australia, March 29 /CNW/ - Perseus Mining Limited (ASX/TSX: PRU) ("Perseus") is pleased to announce that the major SAG mill segments and primary crusher are in place at the Central Ashanti Gold Project ("CAGP") in Ghana.Recent construction progress includes the lift and assembly of the SAG mill shell, heads and main drives which have a total 14 megawatts of installed power. Ring gear segments will be installed shortly for the 34 foot diameter SAG mill.Installation of the 54-inch gyratory primary crusher is nearly complete.  Mechanical component installation, piping installation and electrical cabling is also advancing well throughout the rest of the plant.  Dam earthworks have also progressed significantly during the last month with the process water and cyanide tailings storage facility dams embankments at full height. Perseus staff are working from the newly completed mine site offices.The mining ramp-up is progressing, with three excavators now mining waste. Near surface ore block units identified with grade control drilling have been mined. The ROM pad and crusher retaining wall is at full height and mined waste is being used to expand the ROM pad foot-print.With the excellent progress made to date on the process plant construction and infrastructure development, the Company remains confident that gold production will commence on schedule in the September 2011 quarter.Mark Calderwood, Managing Director's Comments"The SAG mill and primary crusher are the largest components of the process facility. Their installation represents a significant milestone in the construction process." "The rapid progress achieved in the process facility construction and the fact that major items are now installed or on site provide us with increasing confidence we will start production in Q3 this year."Mark CalderwoodManaging DirectorAbout Perseus Mining LimitedPerseus 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, Perseus is on track to become a producer by the third quarter of 2011 at its Central Ashanti Gold Project (CAGP) in Ghana.  The Company plans to produce at the initial rate of 220,000 ounces of gold in year and plans to increase this to about 300,000 ounces per annum by 2013.Perseus is now also planning the development of its Tengrela Gold Project in Côte d'Ivoire, with production targeted for late 2012 or early 2013. Tengrela has the potential to become a significant contributor to the Company's goal to develop into a 450,000 ounce per year gold producer by 2013.Perseus will continue its strategy of rapidly increasing its resource and reserve base during the development of the CAGP and Tengrela.In addition to its projects in Ghana and Côte d'Ivoire, Perseus retains a 23.9 per cent stake in Manas Resources Limited (ASX: MSR) which it spun off in 2008 as a focused Kyrgyz Republic gold explorer and developer. Perseus also has a 19% stake in, as well as a strategic alliance with, Burey Gold Limited (ASX: BYR), a listed exploration company focused on Guinea, West Africa.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' 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, Côte d'Ivoire'' dated December 22, 2010 in relation to 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, and development of a mine at Tengrela .  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.  For further information: To discuss any aspect of this announcement, please contact: Mark Calderwood at telephone +61 8 9240 6344 or email calderwoodm@perseusmining.com Nathan Ryan at telephone +61 420 582 887 or email nathan.ryan@nwrcommunications.com.au Rebecca Greco at telephone +1 416 822 6483 or email fighouse@yahoo.com (Toronto)