Perseus Mining Limited: Activity Report for June 2017 quarter

PERTH, WESTERN AUSTRALIA--(Marketwired - July 18, 2017) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Perseus Mining Limited ("Perseus" or the "Company") (TSX:PRU)(ASX:PRU) reports on its activities for the three month period ended June 30, 2017 (the "Quarter"). An executive summary is provided below. However, full details of activities in the June Quarter, including reconciled production and all-in site cash costs, are included in the Company's June 2017 Quarterly Activity Report released to the market on July 18, 2017. The full report is available for download from www.perseusmining.com, www.asx.com.au and www.sedar.com.

Perseus has delivered another strong operating performance during the Quarter providing further compelling evidence it is on track to deliver material production and earnings growth in the short to medium term.

Edikan Gold Mine ("Edikan") Operations

• Quarterly gold production at the Edikan Gold Mine in Ghana ("Edikan") was 6% higher than the March 2017 quarter and 32% higher for the June 2017 Half Year, relative to the December 2016 Half Year.
  
  
• Half year gold production and all-in site costs ("AISC") were in line with the mid-point of respective guidance ranges.

Edikan Key Performance Indicators

Sissingu?(C) Gold Mine ("Sissingu?(C)")

• Development of Sissingu?(C) is on schedule and on budget with the first gold pour planned for March 2018 quarter.
  
  
• Sissingu?(C)'s development cost to complete of US$47.8 million is fully funded by US$40 million of project debt finance and US$7.8 million of existing cash.

Yaour?(C) Gold Project ("Yaour?(C)")

• The Definitive Feasibility Study ("DFS") for Yaour?(C) advanced on all fronts and is on schedule for completion in the December 2017 quarter.
  
  
• Preliminary DFS results confirm key project parameters are either in line with or better than those forecast by Perseus's due diligence study of Yaour?(C) completed prior to its acquisition in April 2016.

Corporate

• At 30 June 2017, the Company held cash and bullion on hand of A$43.0 million, an undrawn line of credit of US$40 million and an outstanding bank debt of US$15 million.

Outlook for Operations in financial year ending June 30, 2018 ("FY2018")

• Looking forward to FY2018, Perseus will continue producing gold from Edikan and from the end of the March quarter 2018, gold is also forecast to be produced from Sissingu?(C), the Company's second operation, once commissioning of the process plant is completed.
  
  
• Total production and AISC guidance for the Perseus Group for FY2018 is as follows:

FY2018 Group Production and Cost Guidance

PROGRAM FOR SEPTEMBER 2017 QUARTER

Edikan

• Produce gold at a total all-in site cost that is in line with December 2017 Half Year guidance;
• Continue to implement practices aimed at improving mine to mill reconciliation;
• Continue training of operating and maintenance staff;
• Continue to implement business improvement initiatives across all departments at Edikan; and
• Assess exploration targets and prepare drill programmes for targets identified by the recent review of geological datasets relating to the Edikan mining leases.

Sissingu?(C)

• Continue construction of Sissingu?(C) in line with schedule and budget;
• Drawn down debt under the project debt facility; and
• Continue drilling at the Papara prospect and the Katara prospect with the aim of determining the potential for additional Mineral Resources which could be processed at the Sissingu?(C) processing facility.

Yaour?(C)

• Advance work on preparing a bankable DFS for Yaour?(C), including:
  • Complete the drilling program required to generate information needed for DFS purposes;
  • Complete the metallurgical test work program to be used for optimisation of the process flow sheet and project scale; and
  • Prepare final Mineral Resource estimates that can then be used to determine the optimised mining schedule and Ore Reserve estimate.

Jeff Quartermaine, Managing Director and Chief Executive Officer

Competent Person Statement:

All production targets for Edikan and Sissingu?(C) referred to in this report are underpinned by estimated Ore Reserves which have been prepared by competent persons in accordance with the requirements of the JORC Code.

The information in this report in relation to Edikan Mineral Resource and Ore Reserve estimates was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on February 21, 2017. The Company confirms that it is not aware of any new information or data that materially affect the information in that market release and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in "Technical Report - Central Ashanti Gold Project, Ghana" dated May 30, 2011 continue to apply.

The information in this report that relates to Mineral Resources for Sissingu?(C) was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on December 15, 2016. The information in this report that relates to Mineral Resources for B?(C)l?(C) was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on February 20, 2017. The information in this report that relates to Ore Reserves for the Sissingu?(C) and B?(C)l?(C) was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on March 31, 2017. The Company confirms that it is not aware of any new information or data that materially affect the information in that market release and that all material assumptions underpinning those estimates and the production targets, or the forecast financial information derived therefrom, continue to apply and have not materially changed. The Company further confirms that material assumptions underpinning the estimates of Ore Reserves described in "Technical Report - Sissingu?(C) Gold Project, C??te d'Ivoire" dated May 29, 2011 continue to apply.

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 Sissingu?(C) and/or Yaour?(C), 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.