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Press release from CNW Group

Perseus Mining Limited - RESOURCE UPGRADE - Edikan Gold Mine, Ghana

Thursday, December 22, 2011

Perseus Mining Limited - RESOURCE UPGRADE - Edikan Gold Mine, Ghana05:39 EST Thursday, December 22, 2011NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESPERTH, Western Australia, Dec. 22, 2011 /CNW/ - Perseus Mining Limited ("Perseus" or the "Company") (TSX & ASX: PRU) ("Perseus") is pleased to release an updated resource estimate for the Edikan Gold Mine ("EGM") in Ghana, West Africa.Highlights954,000oz increase in Measured and Indicated ("M&I") mineral resources at EGMM&I mineral resources at EGM now 143.9Mt, containing 5.3Moz of gold Perseus's total M&I mineral resources increased to 184.5Mt containing 6.7Moz of goldPerseus's total Inferred mineral resources increased 76,000oz to 76.9Mt containing 2.3Moz of gold.A maiden Resource estimate has been declared for the Bokitsi depositDrilling is continuing on deposits the subject of the upgrade, assays results for 50 holes pendingRevised reserve estimate based on the new resource models expected to be completed in March 2012.  Perseus's current Reserve base stands at 3.9Moz of gold.Esuajah North resource upgrade will be completed in March 2012 following completion of a large drilling program.Further resource upgrades at EGM planned for 2012Upcoming resource upgrade at Company's Côte d'Ivoire projects planned for June Quarter 2012Mark Calderwood, Managing Director's Comments"We achieved another significant increase in Measured and Indicated resources at EGM even though assay results from 50 drill holes within the current resource upgrade areas are pending.  The historic high conversion rate for Inferred resources augurs well for future upgrades to Measured and Indicated resources.""The Esuajah North resource upgrade will be completed in March 2012 following completion of a large drilling program.  Thirteen holes remain to be drilled and assays for an additional 52 holes are pending.""The Company continues its excellent track record of growing its Measured & Indicated resources organically at an average rate of 1.4Moz per annum over the past four years, and strong upside potential remains.""The Company plans to ramp up exploration drilling on a number of new targets at EGM and elsewhere in Ghana and Côte d'Ivoire during 2012."EGM Resource Estimate Drilling on the Fetish deposit during the past two years has grown the deposit, with significant potential remaining to further expand the resource. Measured and Indicated resources at Fetish have increased 62% to 29.4Mt at 1.0g/t Au for 972,000 ounces, while Inferred resources reduced by 31% to 7.5Mt at 1.0g/t Au for 248,000  ounces.  Results for 15 drill holes are still pending and drilling at Fetish will continue into 2012.Infill drilling at Chirawewa enabled an initial Indicated resource estimate and an increase in total resources.  A more comprehensive drill-out of Chirawewa will be undertaken after the deposit is dewatered to allow better access to the pit floor.  This drilling, proposed for 2012, is in addition to results currently pending for 14 drill holes. Initial Indicated resources at Chirawewa are 4.5Mt at 1.1g/t Au for 167,000 ounces and Inferred resources increased 22% to 8.7Mt at 0.9g/t Au for 249,000 ounces.Limited additional exploration drilling and grade control drilling on the Abnabna-Fobinso deposit during 2011 significantly improved the understanding of mineralisation controls of the resource model and resulted in an increase in resources notwithstanding the 2.6Mt of ore mined to 30 November 2011. Measured and Indicated resources at Abnabna-Fobinso increased 8% to 72.6Mt at 1.1g/t Au for 2,515,000 ounces, while Inferred resources increased 109% to 11.1Mt at 1.0g/t Au for 362,000 ounces.  Subsequent to the resource cut-off date, a 42-hole drill program has commenced at Abnabna-Fobinso targeting conversion of Inferred resources within or near the base of the current pit design.  To date 15 holes have been completed and results are pending.The Bokitsi deposit is a new addition to the resource inventory.  Indicated resources at Bokitsi total 2.6Mt at 2.5g/t Au containing 212,000 ounces of gold and Inferred resources are 1.6Mt at 1.7g/t Au containing 89,000 ounces of gold.  Results are pending for an additional six drill holes.The resource estimates are tabled below and notes to the estimates are contained in Appendix 1.Reserve Estimate EGMIn the new year the Company will undertake new pit designs at Abnabna-Fobinso, Fetish, Bokitsi and the yet to be remodelled, Esuajah North resource. Pit designs and a reserve estimate for Chirawewa will be delayed until later in the year, following the planned extensive drill programs.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 the region.  Perseus recently became a producer at its Edikan Gold Mine in Ghana, and plans to produce at the rate of about 220,000 ounces of gold in the next 12 months, increasing to about 280,000 ounces per annum in 2013.  Details of the project and latest published mine plan are set out in the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 30, 2011.Perseus is also planning the development of its Sissingué Gold Mine, part of the Tengrela Gold Project in Côte d'Ivoire, with first 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 annum gold producer during 2013.   Details of the Tengrela project are set out within "Technical Report - Tengrela Gold Project, Côte d'Ivoire" dated December 22, 2010."Perseus will continue its strategy of rapidly increasing its resource and reserve base during the ramp-up of the Edikan Gold Mine and development of the Sissingué Gold Project.The information in this report that relates to the mineral resources is based on information compiled by Mr Aaron Green, who is a Member of The Australian Institute of Geoscientists.  Mr Green is a full-time employee of Runge Limited.  Mr Green 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 Green consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information in this report that relates to exploration results, is based on information compiled by Mr Kevin Thomson, who is a Member of Association of Professional Geoscientists of Ontario (a Recognised Overseas Professional Organisation ('ROPO') included in a list promulgated by the ASX from time to time) .  Mr Thomson is a full-time employee of the Company.  Mr Thomson 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 Thomson consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Thomson verified the data disclosed, including sampling, analytical and test data underlying the information contained herein. For a description of Perseus' data verification process, quality assurance program and quality control measure applied, the type of  analytical or testing procedures utilized, sample size, name and location of testing laboratories, 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 any known environmental, political, legal, title, or other risks that could materially affect the potential development of the mineral resources or reserves, 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, Côte d'Ivoire'' dated December 22, 2010 in relation to the Edikan Gold Mine (formerly 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 the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, that the Edikan Gold Mine will achieve commercial production without material delay, development of a mine at Tengrela, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, 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 are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. 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: EGM, Abnabna-Fobinso, Measured and Indicated Mineral Resources (>0.8g/t Au(1))    DepositMeasured ResourcesIndicated ResourcesTotal Measured and Indicated ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide0.61.526,0000.41.418,0001.01.444,000Transition0.51.524,0000.31.415,0000.81.539,000Primary28.61.51,373,0008.41.3349,00037.01.51,722,000Total(2)29.61.51,423,0009.11.3382,00037.81.51,805,000Notes1     Reported at 0.8g/t cut-off  above -100mRL and 1.2g/t below -100mRL.2     Rounding applied to totals.3     Excludes ROM ore stockpilesTable 2: EGM, Abnabna-Fobinso, Measured and Indicated Mineral Resources (>0.4g/t Au(1))    DepositMeasured ResourcesIndicated ResourcesTotal Measured and Indicated ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide0.91.134,0000.91.027,0001.81.060,000Transition0.81.230,0000.61.021,0001.41.151,000Primary47.71.21,786,00021.70.9618,00069.31.12,404,000Total(2)49.41.21,850,00023.20.9666,00072.61.12,515,000Notes1     Reported at 0.4g/t cut-off above -100mRL and 0.8g/t below -100mRL.2     Rounding applied to totals.3     Excludes ROM ore stockpilesTable 3: EGM, Abnabna-Fobinso, Inferred Mineral Resources    Deposit>0.8g/t Au(1)0.4g/t-0.8g/t Au(2)Total Inferred ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide0.041.32,0000.030.78000.081.03,000Transition0.031.21,0000.020.63000.051.02,000Primary3.01.3124,0008.00.9228,00011.01.0358,000Total(3)3.11.3127,0008.00.9229,00011.11.0362,000Notes1     Reported at 0.8g/t cut-off above -100mRL and 1.2g/t below -100mRL.2     Reported at 0.4-0.8g/t cut-off above -100mRL and 0.8-1.2g/t below -100mRL.3     Rounding applied to totals.Table 4: EGM, Fetish, Measured and Indicated Mineral Resources (>0.8g/t Au)    DepositMeasured ResourcesIndicated ResourcesTotal Measured and Indicated ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide0.011.12000.11.14,0000.11.14,000Transition0.051.02,0000.61.427,0000.71.429,000Primary4.31.2167,00011.31.4518,00015.61.4685,000Total(1)4.41.2481,00012.01.4549,00016.41.4718,000Notes1     Rounding applied to totals.Table 5: EGM, Fetish, Measured and Indicated Mineral Resources (>0.4g/t Au)    DepositMeasured ResourcesIndicated ResourcesTotal Measured and Indicated ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide0.010.93000.20.96,0000.20.96,000Transition0.10.83,0001.01.135,0001.11.137,000Primary8.70.9252,00019.41.1677,00028.11.0929,000Total(1)8.80.9255,00020.61.1717,00029.41.0972,000Notes1     Rounding applied to totals.Table 6: EGM, Fetish, Inferred Mineral Resources    Deposit>0.8g/t Au(1)0.4g/t-0.8g/t Au(2)Total Inferred ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide0.031.82,000   0.031.82,000Transition0.12.28,000   0.12.28,000Primary5.11.2194,0002.20.645,0007.31.0238,000Total(1)5.31.2204,0002.20.645,0007.51.0248,000Notes1     Rounding applied to totals.Table 7: EGM, Chirawewa, Measured and Indicated Mineral Resources (>0.8g/t Au)    DepositMeasured ResourcesIndicated ResourcesTotal Measured and Indicated ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide   0.031.08000.031.0800Transition   0.71.332,0000.71.332,000Primary   2.21.5105,0002.21.5105,000Total(1)   3.01.4137,0003.01.4137,000Notes1     Rounding applied to totalsTable 8: EGM, Chirawewa, Measured and Indicated Mineral Resources (>0.4g/t Au)    DepositMeasured ResourcesIndicated ResourcesTotal Measured and Indicated ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide   0.030.99000.030.9900Transition   1.11.138,0001.11.138,000Primary   3.41.2128,0003.41.2128,000Total(1)   4.51.1167,0004.51.1167,000Notes1     Rounding applied to totals.Table 9: EGM, Chirawewa, Inferred Mineral Resources    Deposit>0.8g/t Au(1)0.4g/t-0.8g/t Au(2)Total Inferred ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide0.011.13000.020.54000.030.7700Transition0.21.480000.40.56,0000.60.815,000Primary3.61.3148,0004.50.686,0008.20.9233,000Total(1)3.81.3157,0004.90.692,0008.70.9249,000Notes1     Rounding applied to totalsTable 10: EGM, Botiksi, Measured and Indicated Mineral Resources (>0.8g/t Au)    DepositMeasured ResourcesIndicated ResourcesTotal Measured and Indicated ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide & Laterite   0.021.71,0000.021.71,000Transition   0.32.223,0000.32.223,000Primary   2.22.6186,0002.22.6186,000Total(1)   2.62.6210,0002.62.6210,000Notes1     Rounding applied to totalsTable 11: EGM, Bokitsi, Measured and Indicated Mineral Resources (>0.4g/t Au)    DepositMeasured ResourcesIndicatedResourcesTotal Measured and Indicated ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide & Laterite   0.021.61,0000.021.61,000Transition   0.42.024,0000.42.024,000Primary   2.22.6186,0002.22.6186,000Total(1)   2.62.5212,0002.62.5212,000Notes1     Rounding applied to totals.Table 12: EGM, Bokitsi, Inferred Mineral Resources     Deposit>0.8g/t Au(1)0.4g/t-0.8g/t Au(2)Total Inferred ResourcesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesTonnesMtAug/tAuOuncesOxide & Laterite0.021.38000.040.67000.060.82,000Transition0.31.817,0000.30.65,0000.61.222,000Primary1.02.066,000   1.02.066,000Total(1)1.32.083,0000.30.66,0001.61.789,000Notes1     Rounding applied to totalsTable 13: Total Mineral Resources (Including Reserves) Deposit (cut-off g/t Au) Measured IndicatedInferred  Tonnes(million)g/tAuOuncesAu(,000)Tonnes(million)g/tAuOuncesAu(,000)Tonnes(million)g/tAuOuncesAu(,000)EGM-(previouslyCAGP) (1) >0.8g/t  41.01.52,05741.71.51,94424.81.41,095EGM (1)0.4g/t - 0.8g/t 25.50.754135.70.673128.80.7663Grumesa (2)>0.4 (3)    25.10.647116.40.5247Tengrela(4) >1.0g/t 0.93.2909.12.57063.31.7171Tengrela(4) 0.5-1.0g/t 0.040.815.50.81343.60.786Totals >0.8g/t(1.0g/t Tengrela) 41.9 1.6 2,14750.81.6 2,65028.1 1.41,266Totals >0.4g/t(0.5g/t Tengrela) 67.41.22,689 117.11.13,98676.90.92,262Notes1     Last updated in December 2011.2     Last updated in December 2010. 3     Primary reported above a 0.4g/t Au cut-off, oxide/transition report above a 0.2g/t Au cut-off.4     Last updated in November 2010.5     The Company holds 90% of EGM (formally CAGP), 90% of Grumesa and 85% of Tengrela after allowing for Government equity at mining stage.Table 14: Total Mineral Reserves  Deposit ProvenProbableTotalTonnes(million)g/tAuOuncesAu (,000)Tonnes(million)g/tAuOuncesAu (,000)Tonnes(million)g/tAuOuncesAu (,000)EGM >0.4g/t  (1,2)47.71.31,97439.21.01,30086.91.23,273Tengrela >0.55g/t  (3)   9.72.16579.72.1657Total 47.7 1.31,97448.91.31,95796.6 1.33,930 Notes1     >0.4g/t Au cut-off for Abnabna-Fobinso, >0.5g/t Au cut-off for all other deposits.2     Last updated in December 2010.3     Last updated in November 2010.APPENDIX 1: Notes on the Abnabna-Fobinso, Fetish, Chirawewa and Bokitsi Mineral Estimates, EGM1)     The Mineral Resource estimate for the Abnabna-Fobinso,  Fetish, Chirawewa and Bokitsi gold deposits of the Edikan Gold Mine ("EGM") was completed in December 2011 by Runge Ltd for Perseus Mining Ltd.2)     The deposits are located within altered Lower Proterozoic Biriman (2.17-2.18 billion years) granitoid and meta-sediments.  The granitoid hosted deposits range from 200 to 400m strike and 10 to 150m in width.  The granitoids appear to be pervasively mineralised (0.1g/t to 2g/t) with higher grades associated with sheeted quartz veining.  Meta-sediment hosted mineralisation is associated veining within 5m to 50m wide shear zones.3)     The drill database for Abnabna-Fobinso contains 918 Reverse Circulation ("RC") drill holes totalling 70,040m, 681 diamond drill holes totalling 149,243m and 2,476 Grade Control ("GC") drill holes totalling 51,994m.  Sample recovery is considered to have been to industry standard for RC, diamond cored and GC drilling.4)     The drill database for Fetish contains 207 Reverse Circulation ("RC")  drill holes totalling 14,716m and 237 diamond drill holes totalling 61,916m.  Sample recovery is considered to have been to industry standard for both RC and diamond cored drilling.5)     The drill database for Chirawewa contains 278 Reverse Circulation ("RC") drill holes totalling 22,728m and 69 diamond drill holes totalling 11,919m.  Sample recovery is considered to have been to industry standard for both RC and diamond cored drilling.6)     The drill database for Bokitsi contains 98 RC drill holes totalling 9,016m and 48 diamond drill holes totalling 6,907m.  Sample recovery is considered to have been to industry standard for both RC and diamond cored drilling.7)     Pre 2006 RC drilling was routinely analysed for gold using a 0.5kg 24hr bulk cyanide leach method.  2006 to 2007 RC drill samples were analysed by 1kg 24hr bulk cyanide leach method with the tails of all samples with assays greater than 0.5g/t being fire assayed.  Only the recovered grades of the bulk cyanide leach method were used in the resource estimate.  2006 to 2008 diamond and 2008 RC drill samples were analysed by 50g fire assay method.  Standards, spikes, blanks and repeat samples have been randomly submitted during all drilling programs.  Sufficient QAQC and data validation has been carried out to verify the integrity of the assay data.8)     The relative position of all drill-hole collars is related back to the original mine grid using a total station theodolite.  Holes are considered to be accurate to within 1m horizontally and 0.5m vertically.  The surface topography of the deposits used for resource modelling was generated using lattice gridding of survey data points and is considered to be sufficiently accurate for the generation of an Indicated and Inferred mineral resource estimate.  For Abnabna-Fobinso the November 2011 end of month mine survey was used. Down hole surveying is routinely used in the deeper percussion drilling and diamond core holes.  The down-hole sample location data for the all zones is considered adequate to allow for the estimation of Measured mineral resources.9)     The Abnabna-Fobinso, Fetish, Chirawewa and Bokitsi deposits have been partially exploited by mining.10)     Drilling was carried out along north-south fences which were nominally spaced at 10m to 40m grid east intervals and at 10m to 40m centres.  All drill-holes were inclined at between 25° and 60° at grid east and west azimuths.  The gold value used for plotting and grade estimation was the first bulk cyanide leach determination or, in its absence, the first fire assay determination presented by the laboratory.11)     Bulk densities were adopted from the CAGP database comprising 956 bulk density determinations within the mineralised envelope recently conducted by Perseus.12)     Wireframes were constructed using cross sectional interpretations based on geology or a 0.2g/t Au cut-off grade.13)     Samples within the wireframes were composited to 1.0m intervals in the Fetish and Chirawewa deposits.  Various high grade cuts of between 10 to 25 g/t Au for Fetish and 10 to 20 g/t Au for Chirawewa were applied.14)     Samples within the wireframes were composited to 2.0m intervals in the Abnabna / AF-GAP / Fobinso deposits. Various high grade cuts of between 10 to 30g/t Au were applied.15)     Samples within the wireframes were composited to 2.0m intervals in the Bokitsi deposits. Various high grade cuts of 6g/t Au (Laterite) and 50g/t Au (Shear Zones) were applied.16)     Surpac block models were used for the estimate with block sizes determined from drill hole spacing and lode geometry.  Sub cells were used to ensure accurate volume representation of the mineralised lodes.17)     Ordinary Kriging (OK) Grade Estimation at Fetish:- A first pass radius of between 100m to 110m was used.  This was increased to 200m for the second pass.  A third and final pass was used on the blocks not filled in the first two passes and used a search radii of 400m.  Almost 99% of blocks filled in the first two passes.18)     Ordinary Kriging (OK) Grade Estimation at Chirawewa:- A first pass radius of between 50m to 70m was used.  This was increased to 100m and 140m in the second pass. A third and fourth pass was used in the blocks not filled in the first twp passes and used a search radii up to 400m. Almost 98% of blocks filled in the first two passes.19)     Ordinary Kriging (OK) Grade Estimation at Abnabna / AF-GAP / Fobinso:- A first pass radius of between 60m to 80m was used. A second pass radius up to 350m was used on the blocks not filled in the first pass and filled remaining blocks.  Almost 60% of blocks were filled in the first pass.20)     The Mineral Resource was classified as Measured, Indicated or Inferred based on the quality of the drilling data and the demonstrated geological and grade continuity defined by recent drill programs. 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 +0420 582 887 or email nathan.ryan@nwrcommunications.com.au Rebecca Greco at telephone +1 416 822 6483 or email fighouse@yahoo.com (Toronto)