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Press release from CNW Group

Sissingué Gold Project Exploitation Permit

Friday, August 10, 2012

Sissingué Gold Project Exploitation Permit06:36 EDT Friday, August 10, 2012NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESPERTH, Western Australia, Aug. 10, 2012 /CNW/ - Perseus Mining Limited ("Perseus" or the "Company") (TSX & ASX:PRU) advises that on Wednesday, 8 August 2012, the Côte d'Ivoire government announced the grant of an Exploitation Permit ("EP") to a Côte d'Ivoire subsidiary of Perseus (Occidental Gold SARL) for the development of the Company's Sissingué gold deposit, part of the Tengrela Gold Project, in northern Côte d'Ivoire.Perseus expects to receive a copy of the exploitation permit within a few days after normal registration procedures are completed.In late 2010, Perseus published the results of a Feasibility Study ("FS") for the development of the Sissingué gold deposit (Perseus 85%; Government and local partner - 15%).  This study defined the following key parameters:Initial Probable Ore Reserve of 657,000oz of gold (using US$950 gold price pit design).Production of 340,000oz (3.5Mt at 3.3g/t) of gold in first two years of a six year mine life.Cash costs in the first two years of US$421/oz, with mine life average cash costs of US$505 per oz.Start-up capital cost of US$115 million plus a further $33 million capital expenditure over the remaining life of mine including expenditure on a HV power line costing an estimated US$28 million in year 1.Following the release of the FS, progress towards development of the Sissingué Gold Project "(SGP") was temporarily interrupted by political unrest in Côte d'Ivoire, however, since stability was restored in mid 2011, the permitting process has progressed methodically and efficiently, taking less than 12 months from start to finish.Since the FS was published the Company has undertaken a significant amount of additional drilling in the vicinity of the Sissingué gold deposit and a large amount of additional drill data has accumulated. This data is currently being incorporated into an updated Mineral Resource model which will then be used for detailed mine planning purposes. Perseus is planning to release the updated Mineral Resource model and mine plan by the end of 2012.  Concurrently a detailed review of operating and capital cost estimates is currently being undertaken to take account of any market changes since the FS was prepared.Perseus Managing Director, Mark Calderwood's Comments"We are delighted to hear that the Exploitation Permit for the Sissingué Gold Project has been granted and we are now looking forward to moving ahead with the development of our second producing gold mine at Sissingué.  We will be making a formal decision to commit to full development once the terms of the Exploitation Permit and details of relevant fiscal terms are confirmed and at that time we will provide a further update on the project.""Assuming that final preparations for the development come together as planned, we would expect to commission the Sissingué Gold Mine in late 2013, and by 2014 Perseus will be producing in the order of 400-450,000 ounces of gold per year, firmly entrenching us in the ranks of mid-tier gold producers."While the government has been considering the EP application, Perseus has also been active in off-site preparations.  All environmental approvals for mine development, mining and production have been secured.Plant Design & TenderingAustralian engineering firm, GR Engineering Services ("GRES"), in conjunction with Perseus's Projects Team, has completed the process portion of the Sissingué plant design and about 90% of the total detailed design.  Letters of intent have been issued for major equipment and tender packages for fabrication and construction works are being prepared.Early WorksTender enquiries for early works have been issued and responses have been received.  Physical work on site will start in coming weeks  once crop compensation has been be paid to farmers impacted by the proposed development.Nearly 60% of the SAG mill supply contract value has been invoiced in accordance with the achievement of milestones set out in the contract with Outotec Pty Ltd. Delivery of the SAG mill's components is scheduled to commence this month.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.  In August 2011 Perseus became a producer at its Edikan Gold Mine (previously known as the Central Ashanti Gold Project) in Ghana.   Details of the project and mine plan are set out in the technical report entitled "Technical Report - Central Ashanti Gold Project, Ghana" dated May 30, 2011.Perseus is now also planning the development of its Sissingué Gold Project, part of the Tengrela Gold Project in Côte d'Ivoire, with production targeted for late 2013 or early 2014. 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 2014.  Details of the project are set out within "Technical Report - Tengrela Gold Project, Ivory Coast" 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.October 2010 Mineral Reserve Estimate - Sissingue Deposit Probable Ore ReserveTypeTonnesAuAu Mtg/tKozOxide/Transition3.42.1224Primary6.32.1433Total9.72.1657The 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 Charted Professional 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 Edikan Gold Mine (formerly 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 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, continuing commercial production at the Edikan Gold Mine without any major disruption, 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.SOURCE: Perseus Mining LimitedFor further information: To discuss any aspect of this announcement, please contact: Mark Calderwood at telephone +61 8 6144 1700 or email Nathan Ryan at telephone +61 3 9622 2159 or email (media) Rebecca Greco at telephone +1 416 822 6483 or email (Toronto)