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Press release from CNW Group

Ghana Exploration Update - Drill Results Highlight Resource Potential

Sunday, July 24, 2011

Ghana Exploration Update - Drill Results Highlight Resource Potential22:55 EDT Sunday, July 24, 2011/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/PERTH, Western Australia, July 25, 2011 /CNW/ - Perseus Mining Limited (ASX: PRU) (TSX: PRU) is pleased to announce continuing significant drill intercepts from the Fetish and Esuajah North deposits within the Company's Central Ashanti Gold Project ("CAGP") in Ghana.Highlights Significant results at Fetish since the June 14 update include:EFRDD014-  48m at 6.7g/t Au uncut (includes 2m at 123.5g/t Au) from 128m, including 6m at 45.3g/t Au uncut,from 164mEFRDD017 -55.7m at 6.8g/t from 106m, including4m at 39.8g/tAuand 4m at 39.5g/t AuEFRDD013 -70m at 1.8g/t from 134m and 10m at 3.2g/t Aufrom 209mEFRDD019 -24m at 6.3g/t from 68m, including 4m at 28.1g/t Aufrom 68m  Drilling at the Esuajah North deposit on the CAGP has also returned significant results, including:  ENDD007-28m at 5.0g/t Au uncut (includes 1m at 114g/t Au)from 197m, 24m at 1.4g/t from 235m and 8m at 1.3g/t Au from 269m  ENDD017 -24m at 6.4g/t Au from 117m, including 9m at 16.0g/t from 132m, and 6m at 5.6g/t Au from 152mENDD009 -15m at 2.4g/t from 254m, 12m at 2.5g/t from 287m and 13m at 1.6g/t Au from 316mRefer to Table 1 for details of the interceptsPerseus Managing Director, Mark Calderwood's CommentsWe continue to achieve significant results in Ghana, with Fetish shaping up to be another large deposit within the CAGP. A total of 33,000m of drilling has been completed since the last resource estimate for this deposit, and given the success at Fetish, the drill program has been expanded by a further 12,000m." "In addition, previously announced drilling at other prospects near Fetish, including Bokitsi South and Chirawewa, produced significant gold intercepts.""Slow assay turn-around still remains a significant frustration to exploration planning and the Company is looking into options to improve turn-around period."The high-grade intercepts at Fetish over recent months are infill and extensional holes from the upper western lode and from the northern end of the deposit. These two areas contained mostly Inferred resources, so this recent drilling can be expected to expand and upgrade the Fetish resource, which currently comprises Indicated resources of 17.4Mt at 1.1g/t Au containing 597,000 ounces of gold and Inferred resources of 8.0Mt at 1.4g/t Au containing 360,000 ounces of gold, both at a 0.4g/t lower cut-off.The two main zones of mineralisation at Fetish, which are largely granite, dominate a 40-200m wide and 500m long zone. Half of the 123 drill holes completed since the last resource estimate were drilled to more than 200m vertical depth.The Esuajah North deposit is a 400m by 100m low-grade deposit which contains some higher-grade zones.  Infill drilling to provide a better understanding of the distribution of the higher-grade zones and to convert Inferred resources to the Indicated and Measured categories is progressing well.Perseus is continuing active and systematic infill and exploration drill programs across the CAGP, with 48,417m drilled in the June Quarter.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 about 220,000 ounces of gold in year 1 and to increase this to about 280,000 ounces per annum in year 2.Perseus is now also planning the development of its Tengrela Gold Project in Côte d'Ivoire, with production targeted for 2013. Tengrela has the potential to become a significant contributor to the Company's goal to develop into a 400,000 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.Table 1: CAGP, Ghana, Fetish & Esuajah North Infill and Extensional Drilling           HoleDepositEastNorthDepthAzm.Incl.FromToWidthAu  (m)(m)(m)(°)(°)(m)(m)(m)g/tFBDD128Fobinso2752014205383.58180-64238265272.1      incl.245246132.4       30431062.0EFRDD013Fetish31315220230.490-50134204701.8      incl.167170316.6       209219103.2      incl.211212111.2EFRDD014Fetish31305180180.5390-45128176486.7      incl.164170645.3      incl.1641662123.5EFRDD016Fetish3125518031590-58230257271.2       265282171.0       294308141.1EFRDD017Fetish3132519932790-61106161.7*55.76.8      incl.110114439.8      and126130439.5EFRDD019Fetish31265180123270-636892246.3      incl.6872428.1ENDD007Esuajah N.2175740030990-59197225285.0      incl.1981991114.0       235259241.4       26927781.3ENDD009Esuajah N.21607160419.690-5523424391.5       278302241.0       317329121.0       355381261.0ENDD011Esuajah N.2306726020087-557998191.0       12113092.1      incl.126127111.4       140172321.2ENDD012Esuajah N.2310718025190-554858101.0       82102201.8      incl.101102111.3       116132161.9      incl.117118113.1       164188241.0       211224131.7ENRDD009Esuajah N.21957240362.890-55254269152.4      incl.258259124.1       287299122.5      incl.291292110.4       316329131.6ENDD016Esuajah N.2231718032690-55209239301.9      incl.216217111.3       256266101.5ENDD017Esuajah N.2220734027890-55117141246.4      incl.132141916.0       15215865.6      incl.15415739.9ENDD018Esuajah N.2225726028790-55183210271.6      incl.201207115.1       222235131.0Notes 1)     Most 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)     RC precollar through hanging wall was sampled at 1m intervals and composited to 4m and analysed by 50gm fire assay by ALS Ghana Limited in Ghana.6)   Only holes with combined intercepts of greater than 40 gram metres included.7)  The type of analytical or testing procedures utilized and sample size and the quality assurance program and quality control measuresare consistent with those described in the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 30, 2011.8) The true width of intercepts from recent drilling at Fobinso ranges from 70-80% of the intercept width.9)   The true width of intercepts from recent drilling at Fetish ranges from 45-75% of the intercept width.10)The true width of intercepts from recent drilling at Esuajah North ranges from 60-75% of the intercept width.  Table 2: Recent Anomalous Exploration Intercepts, CAGP, Ghana           HoleDepositEastNorthDepthAzm.Incl.FromToWidthAu  (m)(m)(m)(°)(°)(m)(m)(m)g/tBKRC027Bokitsi S.2760444078270-55485463.1BKRC030Bokitsi S.2758400078270-553652162.3BKRC031Bokitsi S.2764404084270-55546063.0BKRDD024Bokitsi S.28203960130270-55959725.5CHRC116Chirawewa3970432080270-551618215.4CHRC117Chirawewa3850436080270-551834161.0CHRC118Chirawewa3890436080270-55012121.2CHRC120Chirawewa3970436080270-55666826.0CHRC122Chirawewa4010484095270-559294210.2CHRC125Chirawewa3924466060270-551040301.1CHRC126Chirawewa4039488090270-55010101.4CHRC127Chirawewa4110432090270-557290181.7ENS074Esuajah N.136076459090-60566042.9ENS092Esuajah N.323881206190-601628121.2       526081.6RCFB008Fobinso WD280601382090180-604844.9RCFB066Fobinso289601408050180-604847.3Notes1)     All CHRC and BKRC are RC holes.2)     All BKRDD holes are core holes.3)     RC holes were sampled at 1m intervals and composited to 2m intervals.4)     Core holes were sampled at 1m intervals.5)     Oxide samples or low sulphur fresh rock samples were analysed using 50grm fire assays by Intertek Minerals Limited in Ghana.6)     High sulphide content samples were analysed using 25gram fire assays by Intertek Minerals Limited in Ghana.7)     RC samples were analysed by 50gm fire assay by ALS Ghana limited in Ghana.8)     Only holes with combined intercepts of greater than 10 gram metres are included.9)     The true width of intercepts from recent drilling at the new Chirawewa South zone is currently unknown. The true width of intercepts along the Bokitsi zone is about 80-95% of the intercept width.10) The type of analytical or testing procedures utilized and sample size and the quality assurance program and quality control measuresare consistent with those described in the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 30, 2011.  Table 3: Fetish Indicated Resource Summary (0.4g/t Au Cut-off)DepositMeasured ResourcesIndicated ResourcesTotal Measured andIndicated ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesFetish   17.41.1597,00017.41.1597,000Table 4: Fetish Inferred Resource Summary (0.4g/t Au Cut-off)DepositInferred ResourcesHigh GradeInferred ResourcesLow GradeTotal Inferred ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesFetish5.51.7310,0002.50.650,0008.01.4360,000The 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 May 30, 2011 and the technical report entitled "Technical Report - Tengrela Gold Project, Ivory Coast" dated December 22, 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, 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 Nathan Ryan at telephone +61 3 9622 2159 or email (media) Rebecca Greco at telephone +1 416 822 6483 or email (Toronto)