Ayanfuri Gold Project Feasibility Study Confirms Robust Economics by kvc89466

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									                                                                                                                ASX RELEASE
                                                                                                                       30 July 2009

              ASX : PRU                                   Ayanfuri Gold Project Feasibility Study
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              Börse Frankfurt: P4Q
                                                              Confirms Robust Economics
              Issued Shares: 298.5M     The Directors of Perseus Mining Ltd (ASX Code: PRU) (“Perseus”) are pleased to announce the
              Unlisted Options: 11.8M
                                        results of the Definitive Feasibility Study (“the DFS”) for the Ayanfuri Gold Project in Ghana.
                                        The DFS, managed by Mintrex, confirms the attractive project economics previously indicated by
              Cash at bank              earlier studies.
              (June 09) $78M

              Resources:                Highlights of the DFS include:
                                               220,000ozpa production for the first four years
              6Moz                             Initial 10 year mine life
                                               EBITDA for first three years aggregate US$284M
              Ivory Coast
              1.0Moz                           Payback period of 1 year 7 months at US$850 gold price
              Market Cap
              Per resource oz
                                        Significantly, only 2.5Moz of Measured & Indicated resources from three of the eight deposits
              US$27                     with resources at Ayanfuri were considered for the estimation of the maiden 2.1Moz Proven and
                                        Probable Reserves. A Phase 2 feasibility study is now underway to incorporate the remaining
                                        3.2Moz of resources with the view to increasing reserves, the mine life and the project economics.

                                        This two-stage approach has been adopted in order to fast track the development process for the
                                        first ten years of mine life. Perseus is now seeking the necessary mining approvals based on the
                                        completed DFS while completing infill drilling where necessary on remaining resources which the
                                        Company expects will result in a reserve upgrade and support increased throughput scenarios.

                                        The Company believes there is significant additional upside potential at Ayanfuri with scope for
                                        expanded throughput and gold production within a short time after project commissioning.

                                                 Key Parameters of the Ayanfuri Definitive Feasibility Study

                                                 Gold Production
                                                    Year One                   230,000 oz
                                                    Years 1-4 (average)        220,000 oz
                                                    Years 1-10 (average)       192,000 oz
                                                    Reserves                   2.14 million oz (Proved and Probable Reserves)
                                                 Capital Costs and Operating Costs
                                                    Initial Capital Cost       US$147.9M (incl. contingency)
                                                    Plant Capacity             5.5 million tpa
                                                    Cash Operating Cost       US$392/oz (Year 1) US$494/oz (10 years)
                                                 Earnings Capability
                                                    EBITDA at US$850/oz        US$284M (first 3 years) US$685M (10 years)
                                                    EBITDA at US$950/oz        US$351M (first 3 years) US$872M (10 years)
                                                 Planned Timing of Development and Production
                                                     Construction start      Q1 2010
                                                     Gold Production         Q3 2011
                                                     Payback                 1yr 7mths (at US$850), 1yr 3mths (at US$950)
                                                     IRR                     50% (at US$850), 64% (at US$950)

                                                        Managing Director’s Comments

                        “With the completion of the DFS the Company has established the basis to proceed to mining
                        approval and financing of the maiden Reserve for the Ayanfuri Gold Project.”
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                        “We are assembling a highly experienced team to successfully transition from explorer to producer
                        and have the financial capacity to fast track the project implementation where possible.”

                        “Contingent on gaining the appropriate approvals, Perseus is targeting the commencement of
                        construction activities by early 2010, first gold pour by Q3 2011 and production of 230,000 ounces
                        in the first year, as well as the scope to expand this beyond 300,000oz+ p.a. later with modest
                        additional capital expenditure. We believe Ayanfuri’s resource base of 5.3Moz resource base will
                        easily support a higher level of production, particularly given the exploration upside.”

                        “We have commenced an upgrade study to be undertaken in parallel to project implementation. The
                        ‘Phase Two Upgrade’ study will focus on increasing reserves and throughput rates.”

                                                Figure 1: Location Ayanfuri Gold Deposits.

                        Outline of the DFS

                        The Project comprises the development of an open cut mining operation, a process plant and related
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                        infrastructure to mine and process ore from defined reserves from a number of associated gold deposits.

                        The DFS has as its basis an 18 million tonne per annum contract mining operation and a process plant with a
                        processing capacity of 5.5 million tonnes per annum (Mtpa) which provides an approximate 10 year life
                        based on the current reserves only.

                        The Company thanks Mintrex, a consulting division of Holtfreters Pty Ltd, (“Mintrex”) and the other
                        participants for their tireless efforts over the last six months and the delivery of the independent and high
                        quality document on time. A summary of the DFS technical components is appended to this announcement.

                                                         Table 1: Project Economics Snapshot

                            Gold price                          $US 850/oz              $US950/oz              $US850/oz
                                                                Base(3) Case            Base(3) Case           “In Pit Resource”(4)
                            Ore processed - tonnes @ g/t Au     55.5Mt @1.2g/t          55.5Mt @1.2g/t         59.3Mt @1.2g/t
                            Strip Ratio                         2.5:1                   2.5:1                  2.0:1
                            Capital Cost                        $US 147.9M              $US 147.9M             $US 147.9M
                            Mining Costs                        $9.99/t ore, $288/oz    $9.99/t ore, $288/oz   $9.34/t ore, $270/oz

                            Process Recovery                    90.4%                   90.4%                  90.4%
                            Processing Costs                    $5.31/t ore, $153/oz    $5.31/t ore, $153/oz   $5.31/t ore, $153/oz
                            Administration Costs                $0.95/t ore, $27/oz     $0.95/t ore, $27/oz    $0.95/t ore, $27/oz
                            EBITDA(1)                           US$685M                 US$872M                US$759M
                            IRR(6)                              50%                     64%                    50%
                            Payback period                      1 yrs 7 months          1 yrs 3 months         1 yr 5 months
                            Corporate Tax paid (Ghana)          $131M                   $177M                  US$149M
                            Royalties paid (State)(2)           $49M                    $55M                   US$52M
                            Cash Operating Cost/oz Av.(C1)      $494/oz                 $498/oz                $480/oz

                            1) EBITDA is earnings prior to interest, tax, depreciation and amortisation but includes refining costs and
                               Government royalties.
                            2) Royalties are based on the current industry rate of 3% payable to the Government of Ghana; no allowance has
                               been made for acquisition royalties totalling approximately 1.75%.
                            3) The Base Case reflects mining of three deposits only and a fixed 0.5g/t Au cut-off grade for ore. It treats
                               mined Inferred Resources as waste.
                            4) The In Pit Resource Case is the same as the Base Case apart from the inclusion of gold production from
                               Inferred Resources from within mined pits.
                            5) C1 definition includes operating costs, government royalties only and refining costs.
                            6) IRR is calculated at the commencement of production.

                        Figure 2: DFS Production and EBITDA Cash Flow.
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                        Ongoing Project Implementation and Procurement

                        The DFS confirms the robust nature of the Project and the excellent returns which can be expected. The
                        Company is well funded and will continue advancing the Project as fast as practicable, including
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                        investigating long lead item purchases during completion of financing arrangements and permitting.

                        The Company is forming the basis of a strong “owners team” to develop the Project while continuing to
                        enhance its economics.

                        The Project is expected to reach the commissioning stage within 21 months of the award of a provisional
                        construction contract and 18 months from permitting and access to site.


                        The Project is contained within mining leases valid until June 2010 and completion of the DFS will enable
                        finalisation of the mining lease extensions.

                        The draft Environmental Impact Statement is on track to be lodged in August 2009 and formal community
                        discussions are well advanced.

                        The Company has prepared a submission on the terms for a Stability Agreement with the Government of
                        Ghana, which sets out the main fiscal and ownership terms under which the mining operation will operate.
                        The Stability Agreement provide a finite framework in which the Company can operate for the first 15 years
                        of the mine’s operation.


                        There are a number of areas where the results projected in the DFS could be improved upon. These include:

                        Reserves - Existing pit designs include Inferred resources of about 3.8Mt at 1.03g/t Au containing 127,000
                        ounces of gold which is classified as mineralised waste in the DFS. In accordance with accepted practice,
                        only Measured and Indicated resources are included in mineable reserves, but work will be undertaken to
                        convert these in-pit Inferred resources, either prior to commencement of mining or as part of the grade
                        control process during the mining operation. The effect of including these resources as mined material is
                        shown in the US$850 “In Pit Resource” Case column in Table 1 (page 3).

                        Under the two-phased approach designed to fast track the Ayanfuri feasibility process, only three of the eight
                        resource areas defined by Perseus are included in the DFS, resulting in the exclusion of approximately 50%
                        of total resources at Ayanfuri. Pit optimisation work indicates potential to significantly increase gold

                        Mining Selectivity - No attempt has been made to apply a selective mining approach to the resource block
                        models, such that entire primary blocks of 20m x 20m x10m or 10m x 20m x10m are either assumed to be
                        mined and processed, or considered waste. Grade control may enable processing of a reduced number of
                        tonnes at increased grades, thereby reducing processing costs.

                        Mining Costs - Five mining contractors provided mining, load and haul rates for the DFS, reflecting the
                        current competitive market situation. The median price was used for mining costs in the DFS, and given the
                        level of competition it is quite possible that mining costs as finally negotiated will be lower than those
                        adopted in the feasibility study. It is also likely that the Phase 2 feasibility upgrade will justify increased
                        material movement rates, which could facilitate reduced unit rates for mining at that stage.

                        Milling – The mining schedule allows for additional stockpiling of ore in early years, so there will be surplus
                        ore feedstock available should the process plant prove capable of treating ore at throughput rates in excess of
                        “name plate” capacity

                        Next Steps
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                        The DFS will be used as the basis for negotiations with the Government of Ghana and financiers and to
                        facilitate all necessary approvals. Concurrent with the approval process every effort will be made to
                        improve on the project economics through negotiations with engineers, suppliers and contractors, and where
                        appropriate long lead items will be locked in to avoid project delays.

                        Mark Calderwood
                        Managing Director

                        To discuss any aspect of this announcement, please contact:
                        Robert Williams at telephone +61 2 9332 4448 or email robert.williams@farrington.com.au (media)
                        Mark Calderwood at telephone +61 8 9240 6344 or email calderwoodm@perseusmining.com

                        The information in this report relating to mineral reserves at the Abnabna-Fobinso, Esuajah North and Fetish deposits is based on
                        information compiled by Mr Brad Marwood, who is a Mining Engineer and a full time employee of Corporate Mining Resources Pty
                        Ltd. Mr Marwood is a Member of The Australasian Institute of Mining and Metallurgy and 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’. Mr Marwood 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 mineral resources at the Abnabna-Fobinso, Chirawewa, Esuajah North, Esuajah South,
                        Mampon, Fetish and Dadieso deposits is based on resource estimates that have been compiled by Mr Paul Payne, who is the
                        Manager Mining Consulting WA for and a full time employee of Runge Limited. Mr Payne is a Member of The Australasian Institute
                        of Mining and Metallurgy and 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’. Mr Payne and Runge Ltd consent to
                        the inclusion in this report of the matters based on their information in the form and context in which it appears. Mr Payne and
                        Runge Ltd have not been involved in the preparation of any other part of this report.

                        The information in this report that relates to exploration results and mineral resources for the Ataasi deposit 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’.
                        Mr Calderwood consents to the inclusion in this report of the matters based on his information in the form and context in which it

                        APPENDIX 1: SUMMARY OF DFS COMPONENTS

                        DFS Participants
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                        Corporate Mining Resources Pty Ltd (Brad Marwood) was responsible for the overall Feasibility co-
                        ordination and computation of Reserves.

                        Mintrex, as manager of the independent study, used internal and independent participants to complete the
                        DFS. Each is considered competent in its respective discipline and where applicable has recent experience
                        in West Africa. Other independent participants to the DFS included:

                        Mintrex - DFS manager, process design, infrastructure cost, implementation and organisation
                        Runge Limited - geology and resources, pit optimisations
                        Coffey Mining - geotechnical, hydrogeology, hydrology, TFS designs, mining costs and scheduling
                        John Nolan Consulting - Pit, waste dump and haul road design
                        Metallurg Pty Ltd - Metallurgical management
                        AMMTEC Ltd - Metallurgical test-work
                        Montessura Holdings Pty Ltd - Metallurgical review & specialist float, crusher designs
                        BEC Engineering - Electrical engineering
                        Dr Edward Watkins – Environment, community and sustainability matters
                        Tagit Consult - Environmental baseline and EIS scoping
                        Southern Mining Consultants Pty Ltd – Preparation of financial models and economic assessment

                        Independent Mining Industry expert Runge Limited (“Runge”) has estimated resources on eight deposits
                        identified by Perseus at Ayanfuri, three of which were selected for inclusion in the DFS.

                        Following an infill drilling program completed in April 2009, Runge revised its resource estimates on the
                        Abnabna and AF-Gap deposits, resulting in the conversion of 868,000 ounces to Measured resource status
                        and in a slight increase in total Measured and Indicated resources, as presented in Tables 4 and 5.
                        Details of pit optimisations completed by Runge were announced on 20 April 2009. Economic pit shells
                        were developed for seven deposits at Ayanfuri.
                        Coffey Mining undertook a geotechnical study to determine suitable pit slopes and compiled the mining
                        capital and operating cost estimate. John Nolan Consulting and Perseus engineering staff undertook pit and
                        waste dump design and pit scheduling.
                        The Abnabna-Fobinso, Fetish and Esuajah North deposits were selected for pit design. Detailed designs
                        have been completed for all scheduled pit excavations and waste dump areas.
                        All Inferred resources were treated as waste in the DFS.
                        Mining operations will be by open cut method using conventional excavator/truck mining techniques. The
                        Reserve of 55.5Mt at 1.2g/t Au is detailed in Table 6.

                        The process adopted to recover gold involves gravity separation and flotation at a coarse grind size to
                        produce a high grade free milling concentrate and a disposable “clean sandy tails” product, then fine
                        grinding of the concentrate followed by conventional CIL treatment. A 5.5Mtpa primary processing plant
                        utilising gravity separation, flotation and CIL processes has been designed.
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                        Testwork on representative samples was completed by AMMTEC under the management of Metallurg Pty
                        Ltd and Montessura Holdings.
                        Ore hardness for the primary ore is considered moderate, and was confirmed to be amenable to semi-
                        autogeneous grinding (“SAG”).
                        Metallurgical testwork indicates that a combination of gravity and flotation to separate a low mass, high
                        grade concentrate with concentrate regrind and cyanide leaching results in high gold recoveries.
                        An optimum primary grind size of 80% passing 212µm and a concentrate regrind size of 80% passing 45µm
                        were selected based on comprehensive metallurgical testwork. Predicted metallurgical recoveries vary
                        depending on the ore type and are summarised in the following table.

                                                      Table 2: Predicted Overall Gold Recovery

                                             Primary                    Primary
                                Ore Type     Abnabna                    Esuajah      Transitional      Oxide        Average
                                             -Fobinso                    North
                                 % Gold
                                Recovery         91           93           93            79-81              66        90.4

                                 % of
                                                 51           21           17              8                2         100

                        Process Plant
                        The process plant is based on a typical gold process flowsheet consisting of primary crush, SAG, gravity,
                        flotation and CIL leach. The major components of the plant design are:

                        •   Primary gyratory crusher and 40,000t open stockpile followed by a single stage SAG mill with two
                            5250 kW drives, and pebble crusher to achieve a design grind of 80% passing 212 microns.
                        •   Gravity circuit on cyclone underflow consisting of two centrifugal concentrators and an Intensive Leach
                            Reactor for the gravity concentrate.
                        •   Rougher Flotation Circuit consisting of seven naturally aspirated tank cells.
                        •   Concentrate thickener followed by regrind of concentrates to a design grind of 80% passing 45 microns.
                        •   CIL circuit comprising one pre-leach tank and six adsorption tanks.
                        •   Stripping plant, including a 5 tonne Anglo-American elution circuit with elution column, 4
                            electrowinning cells, smelting furnace and a carbon regeneration kiln.
                        •   Separate tailing storage dams for each of the clean flotation tail (“FTSF”) and the CIL tail (CTSF).
                        The process plant and associated infrastructure has an annual average demand of 19.5 kWh/t of ore
                        processed, requiring an annual average supply of 12.20 MW or 107 GWh per year.

                        Project infrastructure includes an allowance for the refurbishment of the existing accommodation facilities,
                        provision of a 4 km 161 kV power line and associated 161/11 kV substation, site roads and buildings,
                        construction of two tailings facilities, process water supply and a stream diversion channel.
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                        The DFS also allows for the construction of suitable buildings to support the operation, including an
                        administration office, laboratory, workshop, warehouse, plant maintenance office and process plant
                        Project power supply will come from Ghana’s electricity grid as the plant site is about 4km from GRIDCo’s
                        161kV powerline from Dunkwa to Asawinso.
                        The primary process water supply for the project will be obtained by recovering water captured in the FTSF
                        located in the valley to the east of the project area. However, initial raw water supply will be obtained from
                        dewatering the Abnabna and Fobinso pits, providing 1,540,000 cubic metres.

                        Reliability of power supply

                        Electricity supplies in Ghana were an issue between August 2006 and October 2007, causing some mines to
                        install their own diesel generation to maintain plant availability. The 2006-2007 power shortage was caused
                        by drought conditions leading to low water levels in Lake Volta and reduced hydroelectric capacity,
                        technical difficulties at the Aboadze Thermal Plant and unavailability of supply from Ivory Coast. With
                        improved management of the water levels and other technical issues resolved, hydroelectric power supplies
                        are expected to be secure, even in the event of future droughts. This is assisted by the installation or planned
                        installation of a number of other power sources in Ghana, including new hydro and thermal power

                        In terms of the transmission and distribution system, the 161kV system at Dunkwa is very secure, being part
                        of a ring system feeding the country. The Company’s electrical engineering consultants, BEC Engineering,
                        consider that there should be very high power availability, obviating the need for an on-site standby power
                        generation facility capable of running the entire plant. Nevertheless, a small standby generator is considered
                        appropriate to cater for emergency power requirements such as tank agitators, tailings pumps and

                        Operating Costs

                        The operating costs have been estimated from a variety of sources including:
                        •   First principle estimates;
                        •   Consumable consumption rates as provided by Metallurg;
                        •   Power and grinding media consumption as provided by Orway Mineral Consultants (OMC);
                        •   Quotations for the supply of consumables and services;
                        •   Mining and ore rehandling costs as applied from recent quotations from contractors with West African
                            experience, with a median price being adopted;
                        •   Advice from Perseus and other sources within the mining industry in Ghana; and
                        •   Mintrex database of costs from similar sized and located operations.

                        Costs are presented in United States dollars (US$) and are based on prices obtained during the second
                        quarter 2009. Exchange rates were applied as set out in the capital costs section below. Current prices
                        were used and no escalation or de-escalation allowance has been made. Rehabilitation, bullion transport and
                        refining costs and Ghana corporate overhead costs were included, but financing and exploration costs were

                        Mining contractor negotiations and schedule optimisation have been recognised as areas where the project
                        economics can be improved. The Company is also commencing an “owners study” to evaluate potential
                        mining cost reductions.

                        Capital Costs
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                        The capital cost estimate has been prepared and is presented in United States dollars as at the second quarter
                        2009 to an accuracy level of +/-15%. All pricing assumes new equipment. Initial post-DFS estimate
                        enquiries by Perseus suggests that strong market competitive tension could lead to cost reductions in a
                        number of areas.

                        Table 3 summarises the capital cost estimate for the Project, including contingencies.

                        A year-by-year estimate of sustaining capital expenditure, totalling US$14.8M, has been included in the DFS
                        financial analysis.

                        The source data was collected in United States Dollars, Ghanaian Cedi, Euro, South African Rand and
                        Australian Dollars, as appropriate. Exchange rates used to develop the costs are as follows:

                        • Ghanaian Cedi (GHS) = $0.68 USD
                        • Euro (EUR) = $1.40 USD
                        • Australian Dollar (AUD) = $0.81 USD
                        • South African Rand (ZAR) = $0.125 USD

                                                    Table 3: Capital Cost Summary, US$M

                                        Main Area                                                   Jan 09       DFS
                                        Primary ore throughput rate (Mtpa)                             4.5        5.5
                                        Treatment Plant Costs                                         72.8       65.8
                                        Infrastructure                                                16.7       25.3
                                        EPCM Management Costs                                         12.2       12.7
                                        Total                                                        101.7       103.8

                                        Owner’s Costs(1)                                              12.8       32.7
                                        Contingency                                                   11.4       11.4
                                        Heap Leach Plant                                               8.4        -
                                        Total – Owner’s Costs                                         134.4      147.9

                                     1) The increase in Owner’s Costs is mainly attributed to advanced waste
                                        movement to balance out material movement over extended periods
                        Economic Assessment
                        A summary of the economic assessment of the project is set out in Table 1 on page 3. This economic
                        assessment allows for current Ghanaian taxes, royalties, government charges and fees.
                        Amendments to January 2009 Feasibility Update

                        The DFS has incorporated a number of changes to those proposed in the Company’s 12 January 2009
                        feasibility update including:

                        1.   The 4.5Mtpa flotation-CIL circuit and 1.4Mtpa heap leach operation have been replaced by a proposal
                             for a 5.5Mtpa flotation-CIL operation. While eliminating the heap leach component reduces projected
                             throughput slightly and delays the commencement of revenue generation, it simplifies the operation
                             and provides for a more environmentally friendly process, which should in turn facilitate timely
                             environmental approvals.
                        2.   Capital costs have increased by US$13.5 million primarily due to an increase in waste pre-strip to
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                             ensure smoother material movement during the mining operation.

                        3.   Per ounce recovered mining costs have increased from $197/oz to $288/oz, largely due to:

                             a) The DFS adopts the median quotation from mining contractors and no negotiations on rates have
                                occurred to date;

                             b) An increase in the waste:ore strip ratio from 1.9:1 to 2.5:1, which is largely due to the treatment of
                                3.8Mt of Inferred Resources containing 127,000 ounces of gold as waste instead of ore in the DFS
                                whereas it was assumed to be processed in the January feasibility update. The benefit of
                                processing the ore containing 127,000 oz of gold is shown in the right hand column (“in-pit
                                resource case”) of Table 1; and

                             c) A 10% decrease in average grade due to larger pits taking in lower grade material and the
                                exclusion of some high grade material for the Phase 1 study. This material will be considered in
                                the Phase 2 upgrade study.

                        Environment and Community

                        In accordance with Ghanaian environmental legislation Perseus is preparing an Environmental Impact
                        Assessment in order to obtain an Environmental Permit for the Project. To date, an approved Scoping Report
                        and an environmental baseline study have been completed. The latter has assessed the atmospheric, land-use
                        (archaeological, flora and fauna, soils and land use), surface water and groundwater hydrology and quality
                        and socio-economic characteristics of the Project area. The proposed development can be described as a
                        “brownfields” site as a result of previous mining activity between November 1994 and February 2002.

                        Perseus is committed to developing and implementing an Economic and Social Development Program
                        (ESDP) that is consistent with internationally accepted principles for sustainable development. This includes
                        a commitment to treating all affected parties with dignity and respect and ensuring that all processes relating
                        to such development will be transparent, fair and equitable.

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                        Figure 3: Proposed plant layout

                                                          magenta >2g/t Au
                                                          red 0.7-2.0g/t Au
                                                          yellow 0.4-0.7g/t Au
                                                          grey <0.4g/t Au

                        Figure 4: Abnabna – AF Gap pits

                                                magenta >2g/t Au
                                                red 0.7-2.0g/t Au
                                                yellow 0.4-0.7g/t Au
                                                grey <0.4g/t Au
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                        Figure 5: Fobinso pit

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                        Figure 6: Process Flow Diagram

                           Table 4: Mineral Resources (Gold) - Ayanfuri Gold Project - High Grade (prior to reserves)
                                                       Measured                             Indicated                              Inferred                               Total
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                          Deposit           Tonnes       g/t    Ounces          Tonnes         g/t       Ounces       Tonnes         g/t       Ounces        Tonnes       g/t      Ounces
                                           (million)    Au       Au            (million)       Au         Au         (million)       Au         Au          (million)     Au        Au
                          North(1)                                               10.1           1.2       373,000          2.6        1.0        80,000        12.6       1.1       453,000
                          South(3)                                                6.0           1.9       359,000          3.9        2.1       260,000         9.9       1.9       619,000
                          Fetish(1)                                              12.0           1.3       484,000          5.5        1.7       310,000        17.6       1.4       795,000
                          Fobinso(4)          15.9       1.5       783,000       12.7           1.4       559,000         6.4         1.3       261,000        35.0       1.4     1,603,000
                          Ataasi(2)                                               0.3           2.6        29,000         0.2         2.8        18,000         0.5       2.7        47,000
                          Chirawewa(6)                                                                                    5.6         1.2       214,000         5.6       1.2       214,000
                          Mampon(6)                                                                                       3.1         1.4       142,000         3.1       1.4       142,000
                          Dadieso(6)                                                                                      2.9         1.7       156,000         2.9       1.7       156,000
                          Totals              15.9       1.5       783,000       41.1           1.4     1,804,000        30.2         1.5     1,441,000        87.3       1.4     4,028,000

                           Table 5: Mineral Resources (Gold) - Ayanfuri Gold Project - Low Grade (prior to reserves)
                                                       Measured                             Indicated                              Inferred                               Total
                          Deposit           Tonnes       g/t    Ounces          Tonnes         g/t       Ounces       Tonnes         g/t       Ounces        Tonnes       g/t      Ounces
                                           (million)    Au       Au            (million)       Au         Au         (million)       Au         Au          (million)     Au        Au
                          North(5)                                                 10.1         0.6       206,000          6.7        0.6       133,000        16.8       0.6       339,000
                          South(7)                                                  0.9         0.6        18,000          1.7        1.0         55,000         2.6      0.8        73,000
                          Fetish(5)                                                 5.4         0.6       113,000          2.5        0.6         50,000         8.0      0.6       163,000
                          Fobinso(8)           4.1       0.6         85,000         7.6         0.6       148,000        10.0         0.8       253,000        21.7       0.7       486,000
                          Chirawewa(9)                                                                                    6.9         0.6       127,000         6.9       0.6       127,000
                          Mampon(9)                                                                                       3.7         0.6        67,000         3.7       0.6        67,000
                          Dadieso(9)                                                                                      0.3         0.6         6,000         0.3       0.6         6,000
                          Totals               4.1       0.6         85,000        24.0         0.6       485,000        31.9         0.7       691,000        60.0       0.7     1,261,000
                        1 Runge Ltd estimate Feb 2009 (Reported at 0.8g/t cutoff)                                           7 Runge Ltd estimate Feb 2009 (Reported 0.4-0.8g/t above -100mRL and 0.8-1.2g/t below -100mRL)
                        2 Perseus Mining Limited estimate May 2006 Estimate (Reported at 0.8g/t cutoff)                     8 Runge Ltd estimate May 2009 (Reported 0.4-0.8g/t above -100mRL and 0.8-1.2g/t below -100mRL)
                        3 Runge Ltd estimate Feb 2009 (Reported at 0.8g/t cutoff above -100mRL and 1.2g/t below -100mRL)    9 Runge Ltd estimate Mar 2009 (Reported 0.4-0.8g/t)
                        4 Runge Ltd estimate May 2009 (Reported at 0.8g/t cutoff above -100mRL and 1.2g/t below -100mRL)    * Rounding applied to totals
                        5 Runge Ltd estimate Feb 2009 (Reported 0.4-0.8g/t)
                        6 Runge Ltd estimate Mar 2009 (Reported 0.4-0.8g/t)

                         Table 6 Mineral Reserves (Gold) - Ayanfuri Gold Project
For personal use only

                                                      Proven                             Probable                               Total
                        Deposit           Tonnes       g/t     Ounces        Tonnes        g/t       Ounces        Tonnes       g/t      Ounces
                                         (million)     Au       Au          (million)      Au         Au          (million)     Au        Au
                        Fobinso             18.4      1.40     828,000        11.5        1.19       441,000          29.9     1.33     1,269,000
                        North                                                 11.9        1.01        387,000         11.9     1.01       387,000
                        Fetish                                                13.7        1.12        485,000         13.7     1.12       485,000
                        Totals              18.4      1.40     828,000        37.2        1.11      1,313,000         55.5     1.20     2,141,000
                        *Rounding applied to totals

                         Table 7: Summary of Mineral Reserve and Resources (Gold) - Ayanfuri Gold Project
                                                Proven & Probable                 Measured & Indicated                          Inferred                            Total
                        Deposit                     Reserves                           Resources (1)                           Resources (2)                      Resources
                                           Tonnes      g/t    Ounces          Tonnes      g/t        Ounces           Tonnes      g/t        Ounces    Tonnes        g/t       Ounces
                                          (million)   Au        Au           (million)    Au          Au             (million)    Au          Au      (million)      Au         Au
                        Fobinso              29.9      1.33     1,269,000
                        Esuajah South        11.9      1.01       387,000
                        Fetish               13.7      1.12       485,000
                        Additional HG                                          15.8         1.5         764,000        30.2       1.5     1,441,000     46.0         1.5      2,205,000
                        Additional LG                                          14.1         0.6         267,000        31.9       0.7       691,000     46.0         0.6       958,000
                        Totals               55.5      1.20     2,141,000      29.9         1.1       1,031,000        62.1       1.1     2,132,000     92.0         1.1      3,163,000
                        1 Measured and Indicated resources outside current pit designs
                        2 Inferred resources within and outside of current pit designs
                        * Rounding applied to totals


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