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Press release from CNW Group

Perseus Mining Limited - Commissioning Update Edikan Gold Mine, Ghana

Friday, November 11, 2011

Perseus Mining Limited - Commissioning Update Edikan Gold Mine, Ghana04:16 EST Friday, November 11, 2011NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESPERTH, Western Australia, Nov. 11, 2011 /CNW/ - Perseus Mining Limited (ASX/TSX: PRU) is pleased to provide an update on commissioning at its Edikan Gold Mine (EGM) in Ghana.The process plant has been performing to expectation during the commissioning stage with some further improvement in recoveries. Key commissioning statistics for October 2011 were:Throughput - 296,670 dry tonnes, September 331,700;Operating hours - 570 hours, September 570 hours;Gravity recovery - 25.9%, September 27.5%;Post gravity float recovery - 79.5% with a mass pull of 0.81%, September 77.2% with a mass pull of 1.9%;Overall calculated recovery - 79.5%, September 77.5%; andGold recovered - 8,230 ounces, September 8,960 ounces.Throughput rates and operating hours were below target due mainly to 139 hours of crusher down-time caused by oversize rock feed and tipping practices and 81 hours lost due to tails storage and process water pumping limitations.  The crusher issues have been addressed by modifying ore dumping procedures, adjusting blast patterns to provide increased rock fragmentation for optimal crusher throughput and modifications to the ROM bin, which are 50% complete.Plant throughput rates were also restricted due to the filling of Stage 1A of the tailings dam and redeployment of pumping and piping facilities to the larger Stage 1B section of the dam, together with some process water shortages caused by lightning strikes affecting pumping capacity.  Stage 2 of the tailings dam is well ahead of schedule.Recoveries continue to improve and are good considering the blend of lower recovery oxide and transition ore with the high recovery fresh ore and the interruptions to steady processing rates.Grade control drilled ore to date exceeds the reserve model estimate in terms of tonnes (+17%) and contained gold (+13%). Most of the excess contained ounces have come from AF-Gap, where mining is still in the oxide zone. Mill calculated head grades for the 721,000t treated to the end of October are higher than feed grade estimated by grade control (+7%).Despite unseasonably high rainfall of 315mm making October the wettest month this year, the mining contractor mined a total of 851,000Bcm compared to 924,000Bcm in September 2011.  Stockpiled ore tonnages have increased to about 1,200,000 tonnes grading 1.10g/t gold, comprising 380,000t of sulphide ore and 820,000t of oxide ore.Mark Calderwood, Managing Director's Comments"Recoveries are good, the reserve reconciliation is positive and, as we iron out 'teething' issues with the plant, we expect to increase mill operating hours and throughput rates.""Consumable levels remain low, with 0.06kg/t of cyanide and 0.78kg/t of steel balls consumed per tonne of ore feed."In addition to the previously announced appointments of a Chief Operating Officer and Deputy General Manager during the September quarter, Wayne Nicoletto commenced as General Manager for Edikan last week.  Wayne is a senior mining professional with 30 years industry experience in Africa (7 years), Australia, Canada and Central Asia.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 has joined gold producer ranks at its Edikan Gold Mine in Ghana.  The Company plans to produce at the initial rate of about 220,000 ounces of gold in the first 12 months of commercial production and to increase this to about 280,000 ounces per annum in the following year.Perseus is 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 in 2013.Perseus is pursuing its strategy of rapidly increasing its resource and reserve base at the Edikan Gold mine and Tengrela.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 commissioning and commercial production at Edikan Gold Mine 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)