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News Article | May 11, 2017
Site: globenewswire.com

ST. PETER PORT, Guernsey, May 11, 2017 (GLOBE NEWSWIRE) -- Avnel Gold Mining Limited (“Avnel” or the “Company”) (TSX:AVK) is reporting that it has filed its unaudited Interim Consolidated Financial Statements and the related Management Discussion & Analysis (“MD&A”) for the three-month period ended March 31, 2017 on SEDAR. In March 2016 a positive Feasibility Study for the Kalana Main Project was completed and the related environmental and social impact assessment (the “ESIA”) and associated environmental and Social Management Plan (the “ESMP” have been approved by the Malian authorities. The approval of the ESIA was the key government approval required to advance the Kalana Main Project towards construction as the Kalana Exploitation Permit was awarded to Avnel in 2003 with an initial term of 30 years plus two ten year extensions. The Company continues to advance the Kalana Main Project towards a construction decision through its 80% ownership in Société d’Exploitation des Mines d’Or de Kalana, S.A. (“SOMIKA”). In January 2017 the company announced the results of an Optimisation of the Feasibility Study (see Kalana Main Project Optimisation below). The results enhanced the financial parameters for the project and reduced the execution risk for construction and operations. An engineering procurement and construction (the ”EPC”) Contract for the construction of the gold plant and associated infrastructure has been awarded to a Joint Venture of two international engineering companies namely DRA Mineral Services and Group Five. The EPC Contract has improved the construction period by 3 months and the fixed cost is within the Feasibility Study capex. A Power Supply Contract has been negotiated with an international power provider, subject to final documentation. The hybrid power plant will utilise solar and fossil fuels, reducing annual fuel consumption with financial and environmental benefits. The company issued a request for tender to international contract mining companies for the mining of the Kalana Main Project. Assuming positive results the project, financials will be enhanced and the execution risk reduced. The company advanced the resettlement action plan (the “RAP”) of impacted persons resulting from the future operation. Final urban planning approval for the extension of Kalana Town is expected by Quarter 3, 2017 and this will allow construction of new housing and public infrastructure to commence when funding is available. The RAP Commission to oversee the process was established by the Malian authorities and will implement the plan in consultation with all stakeholders according to Malian legislation and IFC Performance Standards. The Company is committed to construct and operate the Project in compliance with Malian legislation, the Equator Principles and IFC Performance Standards. Resources are being applied to the health, safety and environmental policies and systems to meet this commitment. Discussions are ongoing with banks and other financial institutions to provide financing for the development of the Kalana Main Project. The Company anticipates that the Kalana Main Project will be sufficiently advanced to consider a construction decision in 2017, subject to the availability of adequate financing on a timely basis. With respect to operations at the small, Soviet-era, underground mine (the “Kalana Mine”), gold production in the quarter to March 31, 2017 was 1,765 ounces. The Company continues to sustain operations to partially offset the cost of providing underground access to facilitate due diligence activities necessary to secure mine development financing. The continued operation of the underground mine also helps to maintain socio-economic stability in the local community as the workforce prepares to transition to activities related to the construction and operation of the proposed Kalana Main Project. The Company intends to sustain operations for as long as it is economically feasible and safe to do so, without incurring any significant capital expenditures, until such a time as the Company is able to commence construction of the Kalana Main Project. The directors recognise the continuing requirement for short term funding, working capital purposes, and in the longer term to build the proposed open pit mine operations of the Company which are dependent upon its ability to raise adequate financing. The directors believe that the required financing will be raised and in conjunction with management are actively pursuing various financing options with the major shareholders and are engaged in ongoing discussions with banks, financial institutions and other mining companies regarding proposals for financing. While these discussions are ongoing, it cannot be guaranteed that such financing will be available on a timely basis or on acceptable terms. In preparation for the approval to commence construction of the Kalana Main Project, a number of activities have progressed during the first quarter 2017: Located less than 3 km northeast of the Kalana Main Project and the milling facilities proposed in the OFS and the Feasibility Study, the Kalanako prospect is an old area of traditional mining activity. Several mineralised trends have been established from RC and diamond drilling at Kalanako, resulting in a single northwest-southeast corridor of 1,500 meters by 250 meters. These mineralised zones are typically less than 10-20 meters wide and appear to be steeply dipping to the East, often contain high-grade intercepts near surface (i.e. in the weathered zone). The depth of saprolite and saprock is between 70 m and 130 m, much deeper than that observed at the Kalana deposit. Diamond drilling at Kalanako intersected numerous high strain zones, packets of densely laminated quartz veins or vein stockwork with sulphides and locally highly altered and mineralised felsic intrusive rocks. Mineralisation is associated with these felsic intrusive rocks or quartz stockwork that occur along northwest-southeast striking shear zones, parallel or less than 10° in azimuth from the main IP boundary between a low and a high IP gradient domain. The March 2015 MRE for the Kalanako deposit was based upon information from 46 diamond drill holes and 232 RC drillholes. Historical drill-hole intersection were independently summarised and press-released in October 2016. A maiden Inferred In Situ Mineral Resource for Kalanako has been reported, which is summarised in the subsection titled “Mineral Resource Estimates”. An infill drilling programme of 8,635 meters has been successfully achieved in December 2016, on time and on budget and with an excellent productivity and safety record (no Lost Time Injury). This programme was focused on Kalanako's saprolite and saprock weathered domains, a depth considerably deeper than observed at Kalana Main (drillhole depth of 50-175 meters). A large part of the Kalanako prospect remains undrilled. The drilled portion of Kalanako is located at the central part of a 5 km long geophysical structure defined as a contact between low and high IP gradient domains. Kalanako is open on strike. Some large collapses above old artisanal underground developments in the north and more modern artisanal pits in the south, highlights the continuity of the mineralisation along the main northwest-southeast structure. Future drilling campaigns would target extensions along strike following our low-risk infill programme. Metal revenues decreased to $2,400,000 in the quarter to March 31, 2017 from $3,251,000 in the quarter to March 31, 2016. The decrease in revenue is a result of a 27% decrease in ounces sold from 2,696 ounces in the quarter to March 31, 2016 relative to 1,956 ounces in quarter to March 31, 2017, that was partly offset by a 2% increase in the realised average sales price of gold from $1,203 per ounce in the quarter to March 31, 2016 to $1,224 per ounce in the quarter to March 31, 2017. Total expenses remained at $3,800,000 in the quarter to March 31, 2017 compared to $3,811,000 in the quarter to March 31, 2016. Operating costs per ounce of gold sold for the quarter to March 31, 2017 increased from $832 per ounce to $1,311 per ounce resulting from reduced production. Avnel recorded a net loss of $3,548,000 ($0.008 attributable loss per share) for the quarter ended March 31, 2017 compared to a net loss of $745,000 ($0.001 attributable loss per share) in the quarter to March 31, 2016. Included in the quarter to March 31, 2017 is a loss on the fair value of derivative financial instruments of $2,012,000, compared to a loss of $175,000 in the quarter to March 31, 2016. The fair value accounting gains reported have no cash effect on the Company. As compared to the balance sheet as at December 31, 2016, Avnel’s cash and cash equivalents as at March 31, 2017 increased by $7,055,000 from $3,720,000 to $10,775,000 arising from cash proceeds from the exercise of warrants of $10,205,000, offset by cash used in operations of $2,721,000 and cash used in investing activities of $456,000. There was a working capital surplus of $12,927,000 as at March 31, 2017 compared to a working capital surplus of $8,336,000 as at December 31, 2016. Total assets increased from $24,815,000 as at December 31, 2016 to $32,549,000 at March 31, 2017. Total provisions increased from $3,653,000 as at December 31, 2016 to $3,707,000 at March 31, 2017. Total stockholders’ equity increased to $44,567,000 as at March 31, 2017 from $34,494,000 as at December 31, 2016. ABOUT AVNEL GOLD Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in south-western Mali in West Africa. The Company’s strategic objective is to develop the Kalana Main Project into an open-pit mining operation through its 80% ownership in SOMIKA. A secondary objective of the Company is to explore the remainder of the 387 km2 Kalana Exploitation Permit to discover new mineral deposits. For further information, please contact: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release. This news release includes certain “forward-looking statements”. All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Avnel Gold’s expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled “Risk Factors” in Avnel Gold’s most recently completed Annual Information Form, which is available on SEDAR (www.sedar.com). Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Except where indicated, the disclosure contained or incorporated into this news release of an economic, scientific or technical nature, has been summarised or extracted from the National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical report titled “NI43-101 Technical Report on Kalana Main Project”, dated effective 1 April 2016 (the “Kalana Technical Report”), prepared by Snowden Mining Industry Consultants (Pty) Ltd. (“Snowden”), Denny Jones Ltd (“Denny Jones”), DRA Projects SA (Pty) Ltd (“DRA”) and Epoch Resources (Pty) Ltd (“Epoch Resources”). The Kalana Technical Report was prepared under the supervision of Mr. Allan Earl (Executive Consultant – Mining Engineering of Snowden), Mr. Ivor Jones (Executive Consultant – Applied Geosciences of Denny Jones), Mr. Glenn Bezuidenhout (Principal Process Engineer of DRA), Mr. Sybrand van der Spuy (Civil Engineer of DRA), Mr. Guy Wiid (Principal Consultant – Tailings and Waste Rock Facilities of Epoch Resources), and Mr. Stephanus (Fanie) Coetzee (Principal Consultant – Environmental and Social of Epoch Resources), all of whom are independent “Qualified Persons” as such term is defined in NI 43-101. Readers should consult the Kalana Technical Report to obtain further particulars regarding the Kalana Project, which contains the Kalana Main Project, the Kalana Mine, plus a number of mineral exploration prospects. The Company filed the Kalana Technical Report in support of the Feasibility Study and the ESIA on SEDAR on May 6, 2016. Avnel’s interim consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”) and the accounting policies adopted in accordance with IFRS. Management uses both IFRS and non-IFRS measures to monitor and assess the operating performance of the Company’s operations. Management uses certain non-IFRS performance measures to provide additional information, as the Company believes that certain investors use these measures to assess gold mining companies. These non-IFRS performance measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-IFRS performance measures do not have standardised definition under IFRS and therefore may not be comparable to similar measures presented by other organizations: “Cost per Tonne Milled” is calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the period. Management uses this measure as a possible indication of the mining and processing efficiency of the mine. “Cash Operating Cost” is calculated as reported production costs, which includes costs such as mining, processing, administration, non-site costs (transport and refining of metals, and community and environmental), less royalties paid. These costs are then divided by the number of ounces produced to arrive at “Cash Operating Cost per Ounce Produced” and are divided by the number of ounces sold to arrive at “Cash Operating Cost per Ounce Sold”, after taking into account certain inventory movements. These terms are commonly used by gold mining companies to assess the level of gross margin available to the company, typically by subtracting Cash Operating per Ounce Sold from the average per ounce price realised during the period. These terms are also often used as an indication of a mining company’s ability to generate cash flow from operations. “On-site All-in Sustaining Cost” is defined in the PEA by Snowden as mine site cash operating costs, which includes costs such as mining, processing, administration, but excludes non-site costs (transport and refining of metals and royalties), plus sustaining capital costs, which includes community, environmental, and closure costs. These costs are then divided by the number of ounces of expected production to arrive at “On-site All-in Sustaining Cost per Ounce”.


News Article | May 11, 2017
Site: globenewswire.com

ST. PETER PORT, Guernsey, May 11, 2017 (GLOBE NEWSWIRE) -- Avnel Gold Mining Limited (“Avnel” or the “Company”) (TSX:AVK) is reporting that it has filed its unaudited Interim Consolidated Financial Statements and the related Management Discussion & Analysis (“MD&A”) for the three-month period ended March 31, 2017 on SEDAR. In March 2016 a positive Feasibility Study for the Kalana Main Project was completed and the related environmental and social impact assessment (the “ESIA”) and associated environmental and Social Management Plan (the “ESMP” have been approved by the Malian authorities. The approval of the ESIA was the key government approval required to advance the Kalana Main Project towards construction as the Kalana Exploitation Permit was awarded to Avnel in 2003 with an initial term of 30 years plus two ten year extensions. The Company continues to advance the Kalana Main Project towards a construction decision through its 80% ownership in Société d’Exploitation des Mines d’Or de Kalana, S.A. (“SOMIKA”). In January 2017 the company announced the results of an Optimisation of the Feasibility Study (see Kalana Main Project Optimisation below). The results enhanced the financial parameters for the project and reduced the execution risk for construction and operations. An engineering procurement and construction (the ”EPC”) Contract for the construction of the gold plant and associated infrastructure has been awarded to a Joint Venture of two international engineering companies namely DRA Mineral Services and Group Five. The EPC Contract has improved the construction period by 3 months and the fixed cost is within the Feasibility Study capex. A Power Supply Contract has been negotiated with an international power provider, subject to final documentation. The hybrid power plant will utilise solar and fossil fuels, reducing annual fuel consumption with financial and environmental benefits. The company issued a request for tender to international contract mining companies for the mining of the Kalana Main Project. Assuming positive results the project, financials will be enhanced and the execution risk reduced. The company advanced the resettlement action plan (the “RAP”) of impacted persons resulting from the future operation. Final urban planning approval for the extension of Kalana Town is expected by Quarter 3, 2017 and this will allow construction of new housing and public infrastructure to commence when funding is available. The RAP Commission to oversee the process was established by the Malian authorities and will implement the plan in consultation with all stakeholders according to Malian legislation and IFC Performance Standards. The Company is committed to construct and operate the Project in compliance with Malian legislation, the Equator Principles and IFC Performance Standards. Resources are being applied to the health, safety and environmental policies and systems to meet this commitment. Discussions are ongoing with banks and other financial institutions to provide financing for the development of the Kalana Main Project. The Company anticipates that the Kalana Main Project will be sufficiently advanced to consider a construction decision in 2017, subject to the availability of adequate financing on a timely basis. With respect to operations at the small, Soviet-era, underground mine (the “Kalana Mine”), gold production in the quarter to March 31, 2017 was 1,765 ounces. The Company continues to sustain operations to partially offset the cost of providing underground access to facilitate due diligence activities necessary to secure mine development financing. The continued operation of the underground mine also helps to maintain socio-economic stability in the local community as the workforce prepares to transition to activities related to the construction and operation of the proposed Kalana Main Project. The Company intends to sustain operations for as long as it is economically feasible and safe to do so, without incurring any significant capital expenditures, until such a time as the Company is able to commence construction of the Kalana Main Project. The directors recognise the continuing requirement for short term funding, working capital purposes, and in the longer term to build the proposed open pit mine operations of the Company which are dependent upon its ability to raise adequate financing. The directors believe that the required financing will be raised and in conjunction with management are actively pursuing various financing options with the major shareholders and are engaged in ongoing discussions with banks, financial institutions and other mining companies regarding proposals for financing. While these discussions are ongoing, it cannot be guaranteed that such financing will be available on a timely basis or on acceptable terms. In preparation for the approval to commence construction of the Kalana Main Project, a number of activities have progressed during the first quarter 2017: Located less than 3 km northeast of the Kalana Main Project and the milling facilities proposed in the OFS and the Feasibility Study, the Kalanako prospect is an old area of traditional mining activity. Several mineralised trends have been established from RC and diamond drilling at Kalanako, resulting in a single northwest-southeast corridor of 1,500 meters by 250 meters. These mineralised zones are typically less than 10-20 meters wide and appear to be steeply dipping to the East, often contain high-grade intercepts near surface (i.e. in the weathered zone). The depth of saprolite and saprock is between 70 m and 130 m, much deeper than that observed at the Kalana deposit. Diamond drilling at Kalanako intersected numerous high strain zones, packets of densely laminated quartz veins or vein stockwork with sulphides and locally highly altered and mineralised felsic intrusive rocks. Mineralisation is associated with these felsic intrusive rocks or quartz stockwork that occur along northwest-southeast striking shear zones, parallel or less than 10° in azimuth from the main IP boundary between a low and a high IP gradient domain. The March 2015 MRE for the Kalanako deposit was based upon information from 46 diamond drill holes and 232 RC drillholes. Historical drill-hole intersection were independently summarised and press-released in October 2016. A maiden Inferred In Situ Mineral Resource for Kalanako has been reported, which is summarised in the subsection titled “Mineral Resource Estimates”. An infill drilling programme of 8,635 meters has been successfully achieved in December 2016, on time and on budget and with an excellent productivity and safety record (no Lost Time Injury). This programme was focused on Kalanako's saprolite and saprock weathered domains, a depth considerably deeper than observed at Kalana Main (drillhole depth of 50-175 meters). A large part of the Kalanako prospect remains undrilled. The drilled portion of Kalanako is located at the central part of a 5 km long geophysical structure defined as a contact between low and high IP gradient domains. Kalanako is open on strike. Some large collapses above old artisanal underground developments in the north and more modern artisanal pits in the south, highlights the continuity of the mineralisation along the main northwest-southeast structure. Future drilling campaigns would target extensions along strike following our low-risk infill programme. Metal revenues decreased to $2,400,000 in the quarter to March 31, 2017 from $3,251,000 in the quarter to March 31, 2016. The decrease in revenue is a result of a 27% decrease in ounces sold from 2,696 ounces in the quarter to March 31, 2016 relative to 1,956 ounces in quarter to March 31, 2017, that was partly offset by a 2% increase in the realised average sales price of gold from $1,203 per ounce in the quarter to March 31, 2016 to $1,224 per ounce in the quarter to March 31, 2017. Total expenses remained at $3,800,000 in the quarter to March 31, 2017 compared to $3,811,000 in the quarter to March 31, 2016. Operating costs per ounce of gold sold for the quarter to March 31, 2017 increased from $832 per ounce to $1,311 per ounce resulting from reduced production. Avnel recorded a net loss of $3,548,000 ($0.008 attributable loss per share) for the quarter ended March 31, 2017 compared to a net loss of $745,000 ($0.001 attributable loss per share) in the quarter to March 31, 2016. Included in the quarter to March 31, 2017 is a loss on the fair value of derivative financial instruments of $2,012,000, compared to a loss of $175,000 in the quarter to March 31, 2016. The fair value accounting gains reported have no cash effect on the Company. As compared to the balance sheet as at December 31, 2016, Avnel’s cash and cash equivalents as at March 31, 2017 increased by $7,055,000 from $3,720,000 to $10,775,000 arising from cash proceeds from the exercise of warrants of $10,205,000, offset by cash used in operations of $2,721,000 and cash used in investing activities of $456,000. There was a working capital surplus of $12,927,000 as at March 31, 2017 compared to a working capital surplus of $8,336,000 as at December 31, 2016. Total assets increased from $24,815,000 as at December 31, 2016 to $32,549,000 at March 31, 2017. Total provisions increased from $3,653,000 as at December 31, 2016 to $3,707,000 at March 31, 2017. Total stockholders’ equity increased to $44,567,000 as at March 31, 2017 from $34,494,000 as at December 31, 2016. ABOUT AVNEL GOLD Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in south-western Mali in West Africa. The Company’s strategic objective is to develop the Kalana Main Project into an open-pit mining operation through its 80% ownership in SOMIKA. A secondary objective of the Company is to explore the remainder of the 387 km2 Kalana Exploitation Permit to discover new mineral deposits. For further information, please contact: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release. This news release includes certain “forward-looking statements”. All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Avnel Gold’s expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled “Risk Factors” in Avnel Gold’s most recently completed Annual Information Form, which is available on SEDAR (www.sedar.com). Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Except where indicated, the disclosure contained or incorporated into this news release of an economic, scientific or technical nature, has been summarised or extracted from the National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical report titled “NI43-101 Technical Report on Kalana Main Project”, dated effective 1 April 2016 (the “Kalana Technical Report”), prepared by Snowden Mining Industry Consultants (Pty) Ltd. (“Snowden”), Denny Jones Ltd (“Denny Jones”), DRA Projects SA (Pty) Ltd (“DRA”) and Epoch Resources (Pty) Ltd (“Epoch Resources”). The Kalana Technical Report was prepared under the supervision of Mr. Allan Earl (Executive Consultant – Mining Engineering of Snowden), Mr. Ivor Jones (Executive Consultant – Applied Geosciences of Denny Jones), Mr. Glenn Bezuidenhout (Principal Process Engineer of DRA), Mr. Sybrand van der Spuy (Civil Engineer of DRA), Mr. Guy Wiid (Principal Consultant – Tailings and Waste Rock Facilities of Epoch Resources), and Mr. Stephanus (Fanie) Coetzee (Principal Consultant – Environmental and Social of Epoch Resources), all of whom are independent “Qualified Persons” as such term is defined in NI 43-101. Readers should consult the Kalana Technical Report to obtain further particulars regarding the Kalana Project, which contains the Kalana Main Project, the Kalana Mine, plus a number of mineral exploration prospects. The Company filed the Kalana Technical Report in support of the Feasibility Study and the ESIA on SEDAR on May 6, 2016. Avnel’s interim consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”) and the accounting policies adopted in accordance with IFRS. Management uses both IFRS and non-IFRS measures to monitor and assess the operating performance of the Company’s operations. Management uses certain non-IFRS performance measures to provide additional information, as the Company believes that certain investors use these measures to assess gold mining companies. These non-IFRS performance measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-IFRS performance measures do not have standardised definition under IFRS and therefore may not be comparable to similar measures presented by other organizations: “Cost per Tonne Milled” is calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the period. Management uses this measure as a possible indication of the mining and processing efficiency of the mine. “Cash Operating Cost” is calculated as reported production costs, which includes costs such as mining, processing, administration, non-site costs (transport and refining of metals, and community and environmental), less royalties paid. These costs are then divided by the number of ounces produced to arrive at “Cash Operating Cost per Ounce Produced” and are divided by the number of ounces sold to arrive at “Cash Operating Cost per Ounce Sold”, after taking into account certain inventory movements. These terms are commonly used by gold mining companies to assess the level of gross margin available to the company, typically by subtracting Cash Operating per Ounce Sold from the average per ounce price realised during the period. These terms are also often used as an indication of a mining company’s ability to generate cash flow from operations. “On-site All-in Sustaining Cost” is defined in the PEA by Snowden as mine site cash operating costs, which includes costs such as mining, processing, administration, but excludes non-site costs (transport and refining of metals and royalties), plus sustaining capital costs, which includes community, environmental, and closure costs. These costs are then divided by the number of ounces of expected production to arrive at “On-site All-in Sustaining Cost per Ounce”.


News Article | May 11, 2017
Site: globenewswire.com

ST. PETER PORT, Guernsey, May 11, 2017 (GLOBE NEWSWIRE) -- Avnel Gold Mining Limited (“Avnel” or the “Company”) (TSX:AVK) is reporting that it has filed its unaudited Interim Consolidated Financial Statements and the related Management Discussion & Analysis (“MD&A”) for the three-month period ended March 31, 2017 on SEDAR. In March 2016 a positive Feasibility Study for the Kalana Main Project was completed and the related environmental and social impact assessment (the “ESIA”) and associated environmental and Social Management Plan (the “ESMP” have been approved by the Malian authorities. The approval of the ESIA was the key government approval required to advance the Kalana Main Project towards construction as the Kalana Exploitation Permit was awarded to Avnel in 2003 with an initial term of 30 years plus two ten year extensions. The Company continues to advance the Kalana Main Project towards a construction decision through its 80% ownership in Société d’Exploitation des Mines d’Or de Kalana, S.A. (“SOMIKA”). In January 2017 the company announced the results of an Optimisation of the Feasibility Study (see Kalana Main Project Optimisation below). The results enhanced the financial parameters for the project and reduced the execution risk for construction and operations. An engineering procurement and construction (the ”EPC”) Contract for the construction of the gold plant and associated infrastructure has been awarded to a Joint Venture of two international engineering companies namely DRA Mineral Services and Group Five. The EPC Contract has improved the construction period by 3 months and the fixed cost is within the Feasibility Study capex. A Power Supply Contract has been negotiated with an international power provider, subject to final documentation. The hybrid power plant will utilise solar and fossil fuels, reducing annual fuel consumption with financial and environmental benefits. The company issued a request for tender to international contract mining companies for the mining of the Kalana Main Project. Assuming positive results the project, financials will be enhanced and the execution risk reduced. The company advanced the resettlement action plan (the “RAP”) of impacted persons resulting from the future operation. Final urban planning approval for the extension of Kalana Town is expected by Quarter 3, 2017 and this will allow construction of new housing and public infrastructure to commence when funding is available. The RAP Commission to oversee the process was established by the Malian authorities and will implement the plan in consultation with all stakeholders according to Malian legislation and IFC Performance Standards. The Company is committed to construct and operate the Project in compliance with Malian legislation, the Equator Principles and IFC Performance Standards. Resources are being applied to the health, safety and environmental policies and systems to meet this commitment. Discussions are ongoing with banks and other financial institutions to provide financing for the development of the Kalana Main Project. The Company anticipates that the Kalana Main Project will be sufficiently advanced to consider a construction decision in 2017, subject to the availability of adequate financing on a timely basis. With respect to operations at the small, Soviet-era, underground mine (the “Kalana Mine”), gold production in the quarter to March 31, 2017 was 1,765 ounces. The Company continues to sustain operations to partially offset the cost of providing underground access to facilitate due diligence activities necessary to secure mine development financing. The continued operation of the underground mine also helps to maintain socio-economic stability in the local community as the workforce prepares to transition to activities related to the construction and operation of the proposed Kalana Main Project. The Company intends to sustain operations for as long as it is economically feasible and safe to do so, without incurring any significant capital expenditures, until such a time as the Company is able to commence construction of the Kalana Main Project. The directors recognise the continuing requirement for short term funding, working capital purposes, and in the longer term to build the proposed open pit mine operations of the Company which are dependent upon its ability to raise adequate financing. The directors believe that the required financing will be raised and in conjunction with management are actively pursuing various financing options with the major shareholders and are engaged in ongoing discussions with banks, financial institutions and other mining companies regarding proposals for financing. While these discussions are ongoing, it cannot be guaranteed that such financing will be available on a timely basis or on acceptable terms. In preparation for the approval to commence construction of the Kalana Main Project, a number of activities have progressed during the first quarter 2017: Located less than 3 km northeast of the Kalana Main Project and the milling facilities proposed in the OFS and the Feasibility Study, the Kalanako prospect is an old area of traditional mining activity. Several mineralised trends have been established from RC and diamond drilling at Kalanako, resulting in a single northwest-southeast corridor of 1,500 meters by 250 meters. These mineralised zones are typically less than 10-20 meters wide and appear to be steeply dipping to the East, often contain high-grade intercepts near surface (i.e. in the weathered zone). The depth of saprolite and saprock is between 70 m and 130 m, much deeper than that observed at the Kalana deposit. Diamond drilling at Kalanako intersected numerous high strain zones, packets of densely laminated quartz veins or vein stockwork with sulphides and locally highly altered and mineralised felsic intrusive rocks. Mineralisation is associated with these felsic intrusive rocks or quartz stockwork that occur along northwest-southeast striking shear zones, parallel or less than 10° in azimuth from the main IP boundary between a low and a high IP gradient domain. The March 2015 MRE for the Kalanako deposit was based upon information from 46 diamond drill holes and 232 RC drillholes. Historical drill-hole intersection were independently summarised and press-released in October 2016. A maiden Inferred In Situ Mineral Resource for Kalanako has been reported, which is summarised in the subsection titled “Mineral Resource Estimates”. An infill drilling programme of 8,635 meters has been successfully achieved in December 2016, on time and on budget and with an excellent productivity and safety record (no Lost Time Injury). This programme was focused on Kalanako's saprolite and saprock weathered domains, a depth considerably deeper than observed at Kalana Main (drillhole depth of 50-175 meters). A large part of the Kalanako prospect remains undrilled. The drilled portion of Kalanako is located at the central part of a 5 km long geophysical structure defined as a contact between low and high IP gradient domains. Kalanako is open on strike. Some large collapses above old artisanal underground developments in the north and more modern artisanal pits in the south, highlights the continuity of the mineralisation along the main northwest-southeast structure. Future drilling campaigns would target extensions along strike following our low-risk infill programme. Metal revenues decreased to $2,400,000 in the quarter to March 31, 2017 from $3,251,000 in the quarter to March 31, 2016. The decrease in revenue is a result of a 27% decrease in ounces sold from 2,696 ounces in the quarter to March 31, 2016 relative to 1,956 ounces in quarter to March 31, 2017, that was partly offset by a 2% increase in the realised average sales price of gold from $1,203 per ounce in the quarter to March 31, 2016 to $1,224 per ounce in the quarter to March 31, 2017. Total expenses remained at $3,800,000 in the quarter to March 31, 2017 compared to $3,811,000 in the quarter to March 31, 2016. Operating costs per ounce of gold sold for the quarter to March 31, 2017 increased from $832 per ounce to $1,311 per ounce resulting from reduced production. Avnel recorded a net loss of $3,548,000 ($0.008 attributable loss per share) for the quarter ended March 31, 2017 compared to a net loss of $745,000 ($0.001 attributable loss per share) in the quarter to March 31, 2016. Included in the quarter to March 31, 2017 is a loss on the fair value of derivative financial instruments of $2,012,000, compared to a loss of $175,000 in the quarter to March 31, 2016. The fair value accounting gains reported have no cash effect on the Company. As compared to the balance sheet as at December 31, 2016, Avnel’s cash and cash equivalents as at March 31, 2017 increased by $7,055,000 from $3,720,000 to $10,775,000 arising from cash proceeds from the exercise of warrants of $10,205,000, offset by cash used in operations of $2,721,000 and cash used in investing activities of $456,000. There was a working capital surplus of $12,927,000 as at March 31, 2017 compared to a working capital surplus of $8,336,000 as at December 31, 2016. Total assets increased from $24,815,000 as at December 31, 2016 to $32,549,000 at March 31, 2017. Total provisions increased from $3,653,000 as at December 31, 2016 to $3,707,000 at March 31, 2017. Total stockholders’ equity increased to $44,567,000 as at March 31, 2017 from $34,494,000 as at December 31, 2016. ABOUT AVNEL GOLD Avnel Gold is a TSX-listed gold mining, exploration and development company with operations in south-western Mali in West Africa. The Company’s strategic objective is to develop the Kalana Main Project into an open-pit mining operation through its 80% ownership in SOMIKA. A secondary objective of the Company is to explore the remainder of the 387 km2 Kalana Exploitation Permit to discover new mineral deposits. For further information, please contact: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this news release. This news release includes certain “forward-looking statements”. All statements, other than statements of historical fact, included in this release, including the future plans and objectives of Avnel Gold, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Avnel Gold’s expectations include, among others, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of gold and silver, as well as those factors discussed in the section entitled “Risk Factors” in Avnel Gold’s most recently completed Annual Information Form, which is available on SEDAR (www.sedar.com). Although Avnel Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Except where indicated, the disclosure contained or incorporated into this news release of an economic, scientific or technical nature, has been summarised or extracted from the National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical report titled “NI43-101 Technical Report on Kalana Main Project”, dated effective 1 April 2016 (the “Kalana Technical Report”), prepared by Snowden Mining Industry Consultants (Pty) Ltd. (“Snowden”), Denny Jones Ltd (“Denny Jones”), DRA Projects SA (Pty) Ltd (“DRA”) and Epoch Resources (Pty) Ltd (“Epoch Resources”). The Kalana Technical Report was prepared under the supervision of Mr. Allan Earl (Executive Consultant – Mining Engineering of Snowden), Mr. Ivor Jones (Executive Consultant – Applied Geosciences of Denny Jones), Mr. Glenn Bezuidenhout (Principal Process Engineer of DRA), Mr. Sybrand van der Spuy (Civil Engineer of DRA), Mr. Guy Wiid (Principal Consultant – Tailings and Waste Rock Facilities of Epoch Resources), and Mr. Stephanus (Fanie) Coetzee (Principal Consultant – Environmental and Social of Epoch Resources), all of whom are independent “Qualified Persons” as such term is defined in NI 43-101. Readers should consult the Kalana Technical Report to obtain further particulars regarding the Kalana Project, which contains the Kalana Main Project, the Kalana Mine, plus a number of mineral exploration prospects. The Company filed the Kalana Technical Report in support of the Feasibility Study and the ESIA on SEDAR on May 6, 2016. Avnel’s interim consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board (“IASB”) and the accounting policies adopted in accordance with IFRS. Management uses both IFRS and non-IFRS measures to monitor and assess the operating performance of the Company’s operations. Management uses certain non-IFRS performance measures to provide additional information, as the Company believes that certain investors use these measures to assess gold mining companies. These non-IFRS performance measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-IFRS performance measures do not have standardised definition under IFRS and therefore may not be comparable to similar measures presented by other organizations: “Cost per Tonne Milled” is calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the period. Management uses this measure as a possible indication of the mining and processing efficiency of the mine. “Cash Operating Cost” is calculated as reported production costs, which includes costs such as mining, processing, administration, non-site costs (transport and refining of metals, and community and environmental), less royalties paid. These costs are then divided by the number of ounces produced to arrive at “Cash Operating Cost per Ounce Produced” and are divided by the number of ounces sold to arrive at “Cash Operating Cost per Ounce Sold”, after taking into account certain inventory movements. These terms are commonly used by gold mining companies to assess the level of gross margin available to the company, typically by subtracting Cash Operating per Ounce Sold from the average per ounce price realised during the period. These terms are also often used as an indication of a mining company’s ability to generate cash flow from operations. “On-site All-in Sustaining Cost” is defined in the PEA by Snowden as mine site cash operating costs, which includes costs such as mining, processing, administration, but excludes non-site costs (transport and refining of metals and royalties), plus sustaining capital costs, which includes community, environmental, and closure costs. These costs are then divided by the number of ounces of expected production to arrive at “On-site All-in Sustaining Cost per Ounce”.


News Article | November 10, 2016
Site: www.marketwired.com

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 9, 2016) - Monument Mining Limited (TSX VENTURE:MMY)(FRANKFURT:D7Q1) ("Monument" or the "Company") is pleased to announce Proven and Probable Mineral Reserves at its 100% owned Selinsing operating gold mine, including the adjacent Buffalo Reef deposit in Pahang State, Malaysia. All Mineral Reserves and Mineral Resources were estimated by Snowden Mining Industry Consultants Pty Ltd ("Snowden") as Independent qualified person defined under NI 43-101 standards. The complete NI 43-101 Technical Report as a result of the Pre-Feasibility Study is expected to be filed shortly under www.sedar.com. The President and CEO Robert Baldock commented, "We are excited to see that the new NI 43-101 Mineral Reserve allows Selinsing Gold Mine to operate with sustainable production for years to come. The Company has adopted the bio-leaching approach as its economic baseline for the sulphide gold production while continuing its Intec test works. We expect the economics to be further optimized by the potential of Intec technology and other alternatives with large sulphide exploration potential." The Mineral Reserves were estimated at June 30, 2016, and comprise 235 koz of gold from 3,882 kilotonnes (kt) of ore at a diluted grade of 1.88 grams of gold per tonne (g/t) from the Selinsing and Buffalo Reef/Felda deposits, along with a further 44 koz of gold from 2,335 kt of ore from stockpiles at a grade of 0.59 g/t Au. The total Mineral Reserve is 279 koz of gold from 6,217 kt of ore at a grade of 1.40 g/t Au. The Probable Mineral Reserves are within newly estimated Indicated Resources of 200 koz of gold from 3,220 kt of material at a grade of 1.93 g/t Au at the Selinsing deposit, and 240 koz of gold from 4,330 kt of material at a grade of 1.73 g/t Au at the Buffalo Reef/Felda deposit. Indicated Mineral Resources are inclusive of Probable Mineral Reserves. The Proven Mineral Reserves comprise entirely Measured Mineral Resources from stockpiles of 44 koz of gold from 2,335 kt at a grade of 0.59 g/t Au. The Inferred Resource at Selinsing is an additional 65 koz of gold from 550 kt of material at a grade of 3.67 g/t Au, whereas for Buffalo Reef/Felda the Inferred Resource is an additional 212 koz of gold from 3,810 kt of material at a grade of 1.74 g/t Au. The tables below (1, 2, 3 and 4) summarize the newly estimated Mineral Reserves and Mineral Resources by area and ore type, all expressed in metric tonnes and Troy ounces (1 ounce = 31.1035 g). A map showing the area locations as follows (Figure 1): To view Figure 1. Location Map of Selinsing and Buffalo Reef Properties, please visit: http://media3.marketwire.com/docs/1075677_fig1.pdf. The updated Mineral Reserve was estimated using an average gold price of US$1,255 per ounce. To identify the Selinsing and Buffalo Reef Ore Reserve a process of: ore dilution application, Whittle pit optimization, staged pit design, production scheduling and mine cost analysis was undertaken. Significant sulphide Mineral Reserves were identified following a metallurgical engineering investigation by Lycopodium Minerals Pty Ltd. The mining method is conventional open pit drill and blast, load and haul on a 2.5 m mining flitch with a 10 m high blasting bench, reflective of semi-selective mining. The excavator bucket size of 2.3 m3 is matched to this selectivity. A waste ore stripping ratio of approximately 6 was identified for mining. Overall, block dilution has reduced the recovered ounces by approximately 10% and marginally increased the ore tonnage processed. Estimated Mineral Resources were limited to within a pit shell based on a gold price of US$1,776/oz to define the potential for identification of Mineral Resources. Mining and stockpiling of Buffalo Reef oxide material started in November 2012 and processing of this material at the Selinsing processing plant commenced in early March 2013. Mineral Reserves were then estimated by Snowden Mining Industry Consultants as shown in Table 1. Table 1. Selinsing and Buffalo Reef/Felda Mineral Reserves as at June 30, 2016 Snowden has verified the drill hole data used to support the technical and scientific information in this news release, including the sampling, sample security, analytical techniques, original assay certificates, and Quality Assurance/Quality Control procedures and has determined that CIM and NI 43-101 Industry Standards have been sufficiently followed. Snowden constructed a 3D model of the mineralized bodies using modeling software and estimated the June 30, 2016 Selinsing and Buffalo Reef/Felda Resources and Reserves. Table 2 Selinsing Mineral Resource statement, reported inclusive of Mineral Reserves, depleted for mining to end of June 2016 Table 3 Buffalo Reef/Felda Mineral Resource statement, reported inclusive of Mineral Reserves, depleted for mining to end of June 2016 Exploration at Selinsing and Buffalo Reef primarily comprised diamond and RC drilling. In addition trenching, channel samples and pit mapping were also used to help guide exploration works. Assays received up to the cut-off date of February 24, 2016 were considered for modelling. The majority of drill holes have been accurately collar surveyed and most of diamond holes have been surveyed downhole. Sample recovery for diamond drilling conducted by Monument at both Selinsing and Buffalo Reef can be considered good and should provide samples suitable for resource estimation. Half core diamond samples and riffle split RC samples formed the bulk of the samples used in the resource modelling. The majority of samples were analyzed for gold, arsenic, silver and antimony. Gold was analyzed primarily by fire assay using a 50 g charge with an atomic absorption spectroscopy (AAS) finish. The RC and diamond drilling completed by Monument after 2007 includes independent QAQC samples with the sample batches, the results of which show reasonable precision and analytical accuracy have been achieved. Assay data in the database have been verified by Snowden with a random selection of original lab reports, with no major discrepancies identified. The drillhole logging and assay data was used as the main basis for the geological interpretation. The gold mineralization was interpreted on 20m spaced east-west sections as a series of wireframe solids, based on a nominal threshold of 0.15 g/t Au along with the geological logging. The drillhole data was composited downhole prior to running the estimation process using a 1.5 m compositing interval to minimize any bias due to sample length. Variograms have been modelled and the gold grade estimated by ordinary kriging with top-cuts as appropriate for the Buffalo Reef/Felda deposits, whereas for the Selinsing deposit, due to the strongly skewed nature of the gold grades, multiple indicator kriging (MIK) was used to estimate the block gold grades. A parent block size of 10 mE by 20 mN by 2.5 mRL was used to construct a block model for the Selinsing deposit, whereas an 8 mE by 20 mN by 2.5 mRL parent block size was used for the Buffalo Reef/Felda deposit. A slightly smaller block size of 8 mE was selected for Buffalo Reef due to the more selective nature of the geological interpretation and to ensure reasonable volume resolution. A three-pass search strategy was utilized for all grade estimates with the same search neighborhood parameters applied to all domains. Over 2,600 bulk density measurements were taken by Monument in the Selinsing and Buffalo Reef/Felda deposits using the Archimedes Principle, with wax-coating used to account for the porosity. Default bulk density values were assigned to the model blocks based on the oxidation state, separately for waste and mineralized zones. The Mineral Resource estimate has been validated against the input samples, and classified as a combination of Indicated and Inferred Resources in accordance with CIM guidelines. The Mineral Resources have been depleted for all mining as at the end of June 2016. Mineral Reserves for the stockpiles, based on end of month surveyed volumes and grade control during mining informing the grade, at the Selinsing Project (including ore mined from the Selinsing and Buffalo Reef pits), as at the end of June 2016, are summarized in Table 4. The stockpile resources are classified as Measured Resources in their entirety with a 100% conversion of the stockpile Measured Resources to Proven Mineral Reserves; as such, Table 4 also applies for the stockpile Measured Resource statement. Table 4 Stockpile Proven Mineral Reserves, as at end of June 2016 The updated mineral resource estimate incorporates a new property-wide resource block model, which includes a total of 126 new surface diamond and RC drilling results for 18,639.8m at Selinsing since the last resource estimate completed in 2012. In the same period, a total of 522 drill holes were completed for 47,673.4 m at the Buffalo Reef deposit, including the Felda area. Drill hole assays received as of February 24, 2016 were used in this Resource and Reserve update along with the June 30, 2016 mine face positions as surveyed by Monument. Exploration has continued at Selinsing and Buffalo Reef after June 2016, focused on defining mineralization at depth below the existing pits, within gap zones in between the known resources that contain little drill hole information, and to convert inferred materials to indicated and/or measured materials. Also metallurgical drilling has been completed, aiming to get sulphide material to be used in metallurgical testwork. The 2016 Selinsing and Buffalo Reef/Felda Mineral Resources were estimated by John Graindorge, an employee of Snowden, who is the independent Qualified Person for the June 30, 2016 Mineral Resources as defined by NI 43-101. The 2016 Selinsing and Buffalo Reef Mineral Reserves were estimated by Frank Blanchfield, an employee of Snowden, who is the independent Qualified Person for the June 30, 2016 Mineral Reserves as defined by NI 43-101. Snowden is preparing an updated NI 43-101 Technical Report entitled "Selinsing Gold Mine and Buffalo Reef project" which will include these new resource and reserve results. The Phase IV plant expansion is required to process refractory sulfide materials. The flotation-bioleach sulphide treatment process has been reviewed and used for Phase IV plant expansion by Snowden in its upcoming NI43-101 technical report, based on Monument's estimated EPCM (Engineering, Procurement, Construction and Management) expenditure and "Selinsing Phase IV PFS Capex and Opex Revision" recently produced by Lycopodium with a significant reduction in capital and operation expenditure from the original cost that is described in the existing NI43-101 Technical Report produced by Practical Mining and filed on SEDAR in May 2013. The Phase IV plant and mining expansion, as estimated in the NI 43-101 Technical Report, has a capital cost of US$39.5 million dollars, provides a US $23.1M NPV, and 34.8% rate of return. The Selinsing Gold Mine was originally developed on the basis of treating oxide ore via conventional crushing and ball milling followed by gravity recovery of free gold and cyanidation of gravity concentrate. Gravity tails are subjected to conventional CIL. Final gold recovery from carbon strip solution and gravity concentrate leach solution is by electrowinning onto stainless steel cathodes. In 2009 mining operations commenced at Selinsing. Since then, Monument developed an open pit mine and construction of a 1,200 tpd gold treatment plant in three phases. During 2011, Monument Mining Limited (MML) engaged Inspectorate Exploration and Mining Services Ltd of Vancouver (Inspectorate), Canada to carry out a metallurgical test program on a selection of diamond drill core material collected from the Buffalo Reef deposit at its Selinsing operation in Malaysia. The gold extraction from sulphides at Selinsing has been assessed in the engineering study ultimately prepared for MML by Lycopodium of Brisbane, Australia and reported by Lycopodium in "Selinsing Phase IV Study", February 2013. The Mineral Resources and Mineral Reserves identified above have been estimated in accordance with the standards adopted by the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Council in November 2010, as amended, and prescribed by the Canadian Securities Administrators' National Instrument 43-101 Standards of Disclosure for Mineral Projects. John Graindorge and Frank Blanchfield, of Snowden Mining Industry Consultants, have reviewed and approved the contents of this news release, and are the independent Qualified Persons for this news release. Monument Mining Limited (TSX VENTURE:MMY)(FRANKFURT:D7Q1) is an established Canadian gold producer that owns and operates the Selinsing Gold Mine in Malaysia. Its experienced management team is committed to growth and is advancing several exploration and development projects including the Mengapur Polymetallic Project, in Pahang State of Malaysia, and the Murchison Gold Projects comprising Burnakura, Gabanintha and Tuckanarra in the Murchison area of Western Australia. The Company employs approximately 240 people in both regions and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighboring communities. The Company has also been seeking potential opportunities for larger resources in other countries. FOR FURTHER INFORMATION visit the company web site at www.monumentmining.com. "Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." This news release contains forward-looking information and forward-looking statements about Monument (together referred to herein as "forward-looking statements"). Forward-looking statements are statements that are not historical facts and include statements regarding: expected operations, mining and processing rates at the Company's Selinsing gold mine; exploration and development plans for the Selinsing and Buffalo Reef projects; costs, timing, value and rate of return for the Phase IV plant expansion; and other plans and expectations of the Company described herein. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These risks and certain other factors include: the Company's expectations in connection with its exploration, development and expansion projects; the impact of general business and economic conditions; changes in project parameters as plans continue to be refined; costs of future activities; capital and operating expenditures; success of exploration activities; the estimated cash cost per ounce of gold production and the estimated cash flows which may be generated from the operations; mining or processing issues; currency exchange rates; government regulation of mining operations; environmental risks; general economic factors and other factors that may be beyond the control of Monument. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including the risks factors listed above, other risks inherent in the mining industry and other risks described in the management discussion and analysis of the Company, which is available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except as required by applicable securities laws.


News Article | December 15, 2016
Site: www.marketwired.com

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Perseus Mining Limited (TSX:PRU) (ASX:PRU) wishes to provide an update on recent events associated with its West African gold production and project development activities. The capital investment programme that Perseus has undertaken at Edikan during the last two years, that has been a major factor in elevating the mine's AISC during this period, is now largely complete. Since 1 October 2016: Notwithstanding improvements in mill and crusher performance since the completion of the remedial works in October 2016, the shortfall of gold production due to the extended shutdown has not been recovered in December 2016 to date and as a result of this, combined with lower than forecast head grade of processed ore, gold production from Edikan in the December 2016 quarter will be lower than expected. As a consequence, production for the December 2016 Half Year will be below previous guidance of 80,000 to 100,000 ounces, and is now expected to be between 70,000 and 80,000 ounces. Production guidance for the June 2017 Half Year of 125-145,000 ounces of gold remains unchanged at this time. As a result of the expected reduction in gold production, it is anticipated that Edikan's AISC (which includes production costs plus royalties plus all sustaining and development capital costs) for the December Half Year will increase on a per ounce basis and may fall outside of the cost guidance range. The AISC for the December 2016 Half Year is now forecast to be between US$1,550 to US$1,650 per ounce. Work on the Yaouré DFS currently remains on track for completion in mid-2017, but achievement of this target is contingent on the timely completion of a 42,000 metre Mineral Resource definition drilling programme, the commencement of which has been delayed pending agreement of compensation arrangements for landowners who will be potentially impacted by the proposed development. Discussions with landowners have been constructive to date with a specially constituted Landowner Compensation Committee, comprising representatives of landowners, the Company and the government in place. It is expected that a mutually satisfactory solution will be reached in time for drilling to commence prior to the end of December 2016. The terms of Exploration Permits 168 and 397, the two tenements in which the Yaouré gold deposits are located, have been extended for a period of two years from 1 December 2016. It is expected that within this two year period, Perseus will complete a DFS for Yaouré, negotiate a Mining Convention and will have applied for and been granted an Exploitation Permit for the development of Yaouré. The initial estimate of Mineral Resources for the Tengréla Gold Project (or Sissingué as it is now known) was prepared in July 2010 by mining consultants Runge Limited ("Runge") in accordance with the 2004 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code). As a part of Perseus's strategic review of Sissingué completed in early 2015, Snowden were tasked with revising a preliminary Mineral Resource estimate prepared by them in June 2013 in accordance with the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC Code) and the CIM Definition Standards (CIM, 2005), taking into account newly acquired mining and metallurgical data. The results of this estimate, that was prepared as at October 2014, were as follows: This Mineral Resource estimate was used by Perseus as a basis for estimating an Ore Reserve and preparing a DFS for Sissingué in April 2015. Based on this DFS, Perseus decided, subject to financing, to proceed with the full scale development of Sissingué. In anticipation of discussions with prospective debt financiers, Perseus undertook a review of the drill database that was used by both Runge and Snowden as a basis for the previous Mineral Resource estimates for Sissingué. This internal review identified a number of wet RC drill holes with possible downhole contamination that could potentially cause overstatement of the gold grade in specific holes or parts of holes. To determine the impact of the contaminated drill results on the Sissingué Mineral Resource estimate, Perseus undertook a drilling programme comprising 64 holes for 6,587 metres of diamond drilling programme. This programme and associated assaying was recently completed and Snowden has reviewed both the new and old drill data, and confirmed that contamination had occurred in some previous RC drill holes. The contaminated data were withdrawn from the drill database and replaced with the new diamond drilling data. Snowden was then requested to re-estimate the Mineral Resource using the updated drill database. The revised Mineral Resource estimate prepared by Snowden was reported in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Refer to Appendix 1 of the full press release on www.perseusmining.com or www.sedar.com for Snowden's assessment of the JORC Table 1 assessment criteria. The Mineral Resource estimate is summarised in the following table that reports the Mineral Resources by category and area, above a 0.6 g/t gold cut-off grade. The classification categories of Inferred, Indicated and Measured under the JORC Code (2012) are equivalent to the CIM categories of the same name (CIM, 2010). In summary, the updated global Measured and Indicated Mineral Resource for Sissingué is now estimated as 13.0 Mt grading at 1.6 g/t gold, containing 700 kozs of gold. A further 0.9 Mt of material grading at 1.9 g/t gold and containing a further 58 kozs of gold are classified as Inferred Resources. Details of these estimates are shown below in Table 2. Notes: Mineral Resources are inclusive of Ore Reserves. Mineral Resources are reported to two significant figures. Rounding may cause minor discrepancies in the table. Oxide includes small portions of laterite (115 kt total). The Sissingué deposit is defined by a 4 km long and up to 1.5 km wide gold-in-soil anomaly situated on the Syama-Boundiali Greenstone Belt. Rocks encountered in outcrops and drilling comprise predominantly north-northeast striking, steeply west dipping and isoclinally folded metasedimentary rocks (sandstones, mudstones and subordinate conglomerates) of the Birimian Supergroup. The metasedimentary rocks are cross cut by a swarm of narrow porphyritic dykes (sub-metre to several metres thick) that trend obliquely to the sedimentary package northwest with sub-vertical or steep to moderate dips towards the east. The area of the main Sissingué resource also features two irregularly shaped granitic bodies that appear to pre-date intrusion of the porphyritic dykes. Gold mineralisation at Sissingué is hosted by the porphyritic dykes, by the granitoid rocks and by coarser grained beds (sandstones and conglomerates) in the metasedimentary rocks proximal to the intrusive bodies. Mineralisation occurs as disseminations of pyrite and lesser arsenopyrite in sericite-carbonate alteration zones. Highest gold grades are typically associated with spaced quartz-carbonate veins and increased concentrations of arsenopyrite. The input dataset used for the Sissingué Mineral Resource estimate contained 1,654 reverse circulation (RC) drill holes for 122,889 m, 379 diamond drill holes for 77,055 m and 18 diamond drill holes with RC pre-collars for 2,163 m. RC drilling (5 1/4" diameter) was usually 80 m or less in depth. Generally RC holes have only the collar azimuth and inclination measured. Diamond drilling was HQ diameter in weathered rock and NQ in fresh rock. All diamond holes are downhole surveyed at 30 m intervals. 43 holes were oriented by core spear and 217 holes were oriented by an "AceTool" device. The steep nature of the mineralisation and sometimes limited drill access meant that holes were at a moderate to low angle to the mineralisation. True thickness of intersections is typically half the downhole thickness. All RC samples were collected at the drill site at 1 m intervals and split using a multi-stage riffle splitter. Each two consecutive samples were composited (where applicable) in one bag. Sample weights were nominally 2.5 kg and 5 kg for 1 m and 2 m samples respectively. Diamond core was sawn in half using a motorised diamond blade saw, with the right half sent for assaying and the left half stored in core trays for reference. 1 m samples were taken in fresh material and 1.5 m in oxide and transition. Both core and RC samples followed a sample preparation path involving drying, crushing and grinding. Samples were pulverised with a ring mill and thoroughly mixed on a rolling mat ("carpet roll"), and then 200 g of sub-sample was collected. Internal laboratory checks required at least 90% of the pulp passing -75 microns. A 40 g to 50 g charge was produced for subsequent analysis of gold by fire assay. Perseus observed that core and RC samples showed very acceptable recoveries. Some RC samples at depth were identified as having downhole contamination and resultant smearing of grades as a result of wet drilling in 'sticky' material, with the samples being 'hung up' in the cyclone and subsequently contaminating later samples. As a result of this, all RC holes in the pit area were reviewed and any suspected of containing smeared assays were removed from the dataset prior to estimation. Approximately 5% of RC samples were removed due to suspected downhole contamination. In addition, 2016 drilling focused on diamond drill holes to confirm areas with RC drilling in the core of the deposit. With the exception of the issue noted above, Snowden and Perseus consider the sub-sampling is appropriate and representative. Three analytical laboratories have been used to assay samples from the Sissingué project: ALS Chemex Laboratories (Bamako, Mali), Intertek Minerals Ltd (Tarkwa, Ghana), and Bureau Veritas Minerals Laboratory (Bamako, Mali and Abidjan, Côte d'Ivoire). Two types of analysis for gold were performed, a standard fire assay using a 40 g to 50 g sub-sample, and BLEG (bulk leach extractable gold) bottle roll using a 1 kg sub-sample. Both methods were read by AAS with a detection limit of 0.01 g/t Au. The first 26 RC holes were analysed by bottle roll, however, analysis of the tails showed that, on average, 20% of the gold was not recovered with this method. Subsequently, almost all samples were analysed by fire assay. In total, 3,168 RC samples and 154 diamond core samples (from 2 drill holes) were analysed by bottle roll. Certified reference material (blanks and standards) were submitted into the sample stream at a rate of 1 in 20 to 25 samples (1 in 50 prior to 2008). Duplicate samples of RC chips were taken at a rate of 1 in 25. QAQC shows no bias, but only moderate reproducibility, particularly at high grades. This is as expected given the nugget mineralisation. The Mineral Resource was estimated using ordinary kriging and multiple indicator kriging using CAE Studio (Datamine) software. Estimation was constrained within mineralisation envelopes (wireframes) based on geological logging and grade thresholds. The three main host lithologies are granite, porphyritic dykes and sediments. Where geological contacts were not clearly controlling the distribution of mineralisation, a grade cut-off of 0.3 g/t Au was used to construct domain boundaries. Analysis of the global grade distribution shows that there is a natural change in grade population at around 0.3 g/t Au. Due to the highly skewed nature and mixed populations evident in the granites and sediments, multiple indicator kriging (MIK) was used to estimate gold grades. Ordinary kriging with top cuts was used to estimate the lower grade dyke domains. A dynamic anisotropy approach was used, whereby the true dip and azimuth of the mineralised lodes was estimated into each block in the model and the search and variogram orientations were locally adjusted to reflect the geological orientation. This method allows the estimate to better reflect the changing orientation and undulating nature of some of these dykes along strike. Parent block dimensions of 10 mE by 10 mN by 5 mRL were used for estimation. All samples were composited to 2 m prior to estimation. The Sissingué Mineral Resource has been classified in the Measured, Indicated and Inferred categories, in accordance with the 2012 JORC Code and the CIM Definition Standards (CIM, 2005). A range of criteria has been considered in determining this classification including geological and grade continuity, data quality and drill hole spacing. The key classification criteria are described as follows: The reporting cut-off is based on optimisation studies carried out by Perseus as part of the 2010 Feasibility Study, which have suggested that the deposit can be economically extracted at a gold cut-off in the range 0.4 g/t to 0.6 g/t. Trial open pit optimisation was run on the 2014 Mineral Resource in Whittle at a USD2,400 gold price (approximately double the current spot price) to define the base of potentially economic open-pittable material for the Mineral Resource. The metallurgical work carried out to date indicates that gold can be satisfactorily recovered from Sissingué ore using conventional CIL extraction techniques. The work is considered sufficient to determine that the Sissingué resource represents a deposit capable of economic extraction. In conjunction with the re-estimation of the Sissingué Mineral Resource, Snowden was also requested to estimate the Mineral Resources contained in the Bélé mineral deposit that was drilled with a series of RC and diamond drill programmes during the period from 2013 to 2016. Snowden's resource estimate was prepared in accordance with the 2012 JORC Code. (Refer to Appendix 2 of the full press release on www.perseusmining.com or www.sedar.com for Snowden's assessment of the JORC Table 1 assessment criteria. The Mineral Resource estimate is summarised in the following table that reports the Mineral Resources by category and area, above a 0.8 g/t gold cut-off grade. The Inferred classification category under the JORC Code (2012) is equivalent to the CIM category of the same name (CIM, 2010). The Bélé deposit comprises two main areas of mineralisation: Bélé East and Bélé West. In summary, the global Inferred Mineral Resource for Bélé East and West is estimated as 5.2 Mt grading 1.6 g/t gold, containing 260 Kozs of gold. Details of these estimates are shown below in Table 3. Notes: Mineral Resources are inclusive of any Ore Reserves. Mineral Resources are reported to two significant figures. Rounding may cause minor discrepancies in the table. The Bélé gold deposits are located within a north-westerly striking splay off the Syama-Boundiali Greenstone Belt. At Bélé, Birimian aged rocks comprise a sequence of metasedimentary rocks and subordinate mafic volcanics that have been intruded by a nearly circular granitoid body approximately 4 km in diameter. The sequence has also been intruded by numerous felsic dykes of various compositions. Gold mineralisation at both Bélé East and Bélé West is associated with deformation zones developed at and adjacent to the margins of the granitoid intrusion. Gold is associated with disseminated pyrite and lesser pyrrhotite hosted by both mafic and felsic lithologies where they feature chlorite-sericite-calcite alteration. Vein-hosted mineralisation is rare. Bélé West mineralisation is interpreted to extend around 1 km in strike, 140 m across strike and to a depth of 150 m. Bélé East mineralisation extends around 500 m along strike, 150 m across strike and to a depth of 170 m. The currently defined mineralisation in both areas is open at depth but appears to be closed out along strike. The Bélé drill hole data includes RC, diamond and aircore drill holes. Aircore drill holes were used as a guide to interpretation but were not used for estimation due to the poor quality of aircore samples. Drilling includes 834 aircore drill holes for 22,103 m, 257 RC drill holes for 21,763 m and 23 RC drill holes with diamond tail for 3,374.72 m. RC drilling (5 1/4" diameter) was usually 80 m or less in depth. Generally RC holes only have the collar azimuth and inclination measured. Diamond drilling was NQ diameter in fresh rock only. All diamond holes are downhole surveyed at 30 m intervals. Downhole surveys were conducted by the drill contractors using a FlexIT tool. Orientation of drill holes is approximately perpendicular to the strike of the geology and mineralisation at Bélé West. At Bélé East, drill holes are angled to cross the steep dip of the geological domains. At Bélé East, 12 early RC holes have been drilled along exploration fences oriented towards the east and hence sub-parallel to the mineralisation. Three of these holes intercepted significant mineralisation. These intercepts have been verified by holes drilled in the opposite direction. All RC samples were collected at the drill site at 1 m intervals and split using a multi-stage riffle splitter. Each two consecutive samples were composited (where applicable) in one bag. Sample weights were nominally 2.5 kg and 5 kg for 1 m and 2 m samples respectively. Diamond core was sawn in half using a motorised diamond blade saw, with the right half sent for assaying and the left half stored in core trays for reference. 1 m samples were taken in fresh material and 1.5 m in oxide and transition. Both core and RC samples followed a sample preparation path involving drying, crushing and grinding. Samples were pulverised with a ring mill and thoroughly mixed on a rolling mat ("carpet roll"), and then 200 g of sub-sample was collected. Internal laboratory checks required at least 90% of the pulp passing -75 microns. A 40 g to 50 g charge was produced for subsequent analysis of gold by fire assay. Perseus observed that core and RC samples showed very good recoveries. Given the issues with downhole contamination in the RC drilling at the nearby Sissingué deposit, there is currently diamond drilling underway at Bélé to confirm the RC results. This drilling is expected to be completed at the end of 2016. With the exception of the potential issue noted above, Snowden and Perseus consider the sub-sampling is appropriate and representative. All sample preparation and assaying was carried out by Bureau Veritas Minerals Laboratory (BVML), an independent commercial laboratory in Abidjan, Côte d'Ivoire with the head office in Paris, France. Two types of analysis for gold were performed, a standard fire assay using a 40 g to 50 g sub-sample, and BLEG bottle roll using a 1 kg sub-sample. Both methods were read by AAS with a detection limit of 0.01 g/t Au. The first 13 RC holes were assayed by 1 kg 24-hour bottle roll, with all subsequent diamond core and RC samples assayed by 50 g fire assay. Certified reference material (blanks and standards) were submitted into the sample stream at a rate of 1 in 20 to 25 samples. One to two duplicate samples of RC chips were taken from each drill hole. QAQC shows no bias and overall assaying quality is considered adequate by Perseus. Snowden has not independently reviewed the QAQC for Bélé. The Mineral Resource was estimated using CAE Studio (Datamine) software. Estimation was constrained within mineralisation envelopes (wireframes) defined based on a nominal 0.2 g/t Au to 0.5 g/t Au cut-off together with the geological logging and lithology interpretation. The cut-off used for the interpretation is observed as a population change in the global log-probability plot. The mineralisation domains were used as hard boundaries to control estimation. Estimation of gold grades was carried out using ordinary kriging with top cuts applied to limit the influence of outliers. Parent blocks of 10 mE by 10 mN by 5 mRL in Bélé West and 10 mE by 10 mN by 10 mRL in Bélé East were derived from a kriging neighbourhood analysis together with the geometry of the orebody. Dynamic anisotropy was used for estimation, whereby the local dip and azimuth of the mineralised lodes was estimated into each block in the model and the search and variogram orientations were locally adjusted to reflect the geological orientation. This method allows the estimate to better reflect the changing orientation and undulating nature of the lodes. The Bélé Mineral Resource has been classified as an Inferred Mineral Resource, in accordance with the 2012 JORC Code and the CIM Definition Standards (CIM, 2005). The Mineral Resource has been reported by resource classification and weathering above a 0.8 g/t Au cut-off. The reporting cut-off is based on preliminary engineering work which indicates a 0.75 g/t Au to 0.85 g/t Au cut-off will be applicable for mining, depending on the degree of weathering. The metallurgical work carried out to date indicates that gold can be satisfactorily recovered from Bélé ore using conventional CIL extraction techniques as per the nearby Sissingué deposit. The work is considered sufficient to determine that the Bélé resource represents a deposit capable of economic extraction. As shown above, at this stage Snowden has classified all of the Bélé Mineral Resources as Inferred until a comprehensive assessment of the drill data is completed to confirm its veracity. Further core drilling is currently in progress at the Bélé East and Bélé West deposits to infill the Mineral Resource to allow Measured and Indicated Mineral resources to be defined, to validate the existing RC drill data and to complete some extensional drilling. It is expected that this drilling will be completed by the end of December 2016. The Mineral Resource estimate will then be updated and an initial Ore Reserve estimate for the Bélé deposits is expected to be produced in the first quarter of 2017. Metallurgical test work has been completed on the Bélé ore types, with recoveries and costs expected to be similar to those for the Sissingué ore types. Based on the above estimates, it is apparent that the gold content of the Measure and Indicated Mineral Resource at Sissingué has been reduced by approximately 180,000 ounces or 20% as a result of a decision to discount a quantity of drill results due to drill hole contamination. However, depending on the conversion rate of the Bélé Inferred Mineral Resource into Measured and Indicated categories, the combined Measured and Indicated Mineral Resource for Sissingué plus Bélé and may be very similar to the original Sissingué Measured and Indicated Mineral Resource estimate of 880,000 ounces. Based on preliminary optimisation studies on the Sissingué Mineral Resource, it appears likely that the approximately 20% metal shortfall in the Mineral Resource will translate to a reduction in the Sissingué Ore Reserve of a similar order of magnitude, although until detailed mine planning based on recently tendered mining costs and other revised mining and processing parameters is completed, this assessment cannot be confirmed. In addition to the drilling programmes that are currently in progress at Bélé East and Bélé West, drilling of two more exploration targets located on the Sissingué exploitation permit area, namely Papara and Katara, is also planned for the March 2017 quarter. These drilling programmes are aimed at delineating additional Mineral Resources and Reserves that can be economically processed through the Sissingué processing facility in due course. Perseus has previously announced that the Company intended to fund the development of Sissingué using a mix of US$60 million of project debt finance and US$40 million of internally generated cash and existing cash reserves. Given the uncertainty associated with the Sissingué Ore Reserve created by the re-estimation of the Sissingué Mineral Resource as described above, Perseus has decided to reduce the level of project debt finance that is sought to finance the construction of Sissingué with the balance of development funding to come from internal sources including cash flow and cash reserves. To date, the development of Sissingué is currently running in accordance with the master schedule and in line with budget. To the end of November 2016, US$38.8 million had been spent, leaving approximately US$70.8 million of the total budget of US$109.6 million (inclusive of all early works and holding costs) to be spent. Detailed engineering is largely complete as is the procurement of all long lead items of plant and equipment. The construction team has mobilised to site and works are underway on the pouring of concrete works associated with the plant as well as the installation of underground services. The proportion of development works being managed by Perseus's in-house construction team is also underway with works on the construction of the airstrip, tailings dam and mine camp well advanced. To accommodate the planned change in funding mix, Perseus, in conjunction with its major contracting group, Lycopodium, and its in-house construction team has reassessed its engineering, procurement and construction schedule and has implemented a plan to manage project development expenditure to align more closely with the Company's available funding capacity. As a result of the above, the projected date of production of first gold from Sissingué has been moved back approximately 4 months from October 2017 to the end of February 2018. Based on the gold price of US$1,178.10/ounce and an A$:US$ exchange rate of 0.7452 as at 30 November 2016, the total value of available cash and bullion on hand at 30 November 2016 was $84.3 million. This sum is A$52.6 million less than the balance of cash and bullion as at 30 September 2016 and largely reflects heavy capital investment at both Edikan and Sissingué as well as the production shortfall at Edikan during the period. At the date of this Market Release, Perseus had no debts other than creditors that are payable in the ordinary course of business. At 30 November 2016, gold forward sales contracts were in place for 176,880 ounces of gold at US$1,280 per ounce. This includes 100,000 ounces of hedging at an average price of US$1,307 per ounce that is specifically earmarked to support the proposed debt financing of the Sissingué development. Production targets for the EGM 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 Company confirms that all material assumptions underpinning those production targets, or the forecast financial information derived from those production targets, in its market release dated 19 April 2016 and its 2016 Financial Statements released on 29 August 2016 continue to apply and have not materially changed. Refer "Technical Report - Central Ashanti Gold Project, Ghana" dated 30 May 2011. Steffen Brammer and Paul Thompson, each of whom is a Qualified Person as defined in NI 43-101 and an employee of the Company, have approved the inclusion of technical and scientific information in this report. The information in this report and the attachments that relates to the 2016 SGM and Bélé Mineral Resource estimates is based on information compiled by Lynn Olssen a Competent Person who is a Chartered Professional (Geology) and a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM), and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Ms Olssen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and a Qualified Person as defined in NI43-101.Ms Olssen has no economic, financial or pecuniary interest in the company. Ms Olssen consents to the inclusion in this report of the matters based on her information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report. 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 Sissingué and/or Yaouré, 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.


News Article | February 19, 2017
Site: www.marketwired.com

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Marketwired / Perseus Mining Limited (ASX:PRU)(TSX:PRU) recently completed a re-estimation of Mineral Resources for the Bélé mineral deposit on the Mahalé Exploration Licence ("Bélé") that is located within trucking distance of Perseus's currently developing Sissingué Gold Mine in Côte d'Ivoire ("Sissingué"). Details are as follows: In conjunction with the recent re-estimation of the Sissingué Mineral Resource, Snowden was requested to estimate the Mineral Resources contained in the Bélé mineral deposit that was drilled with a series of RC and diamond drill programmes during the period from 2013 to 2016. Since then, further drilling has been completed at Bélé and Snowden has reviewed this additional data and updated their earlier Mineral Resource estimate. The revised global Mineral Resource estimate prepared by Snowden was reported in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Refer to Appendix 1 of the full press release available on www.perseusmining.com and www.sedar.com for MPR's assessment of the JORC Table 1 assessment criteria. The Mineral Resource estimate is summarised in the following table that reports the Mineral Resources by category and area, above a 0.8 g/t gold cut-off grade. The Indicated and Inferred classification categories under the JORC Code (2012) are equivalent to the CIM category of the same name (CIM, 2014). The Bélé deposit comprises two main areas of mineralisation: Bélé East and Bélé West. In summary, the updated global Indicated Mineral Resource for the Bélé deposit is now estimated as 1.90 Mt grading at 2.0 g/t gold, containing 130,000 ounces of gold. A further 0.42 Mt of material grading at 1.8 g/t gold and containing a further 25,000 ounces of gold are classified as Inferred Resources. Details of these estimates are shown below in Table 1. The Bélé gold deposits are located within a north-westerly striking splay of the Syama-Boundiali Greenstone Belt. At Bélé, Birimian aged rocks comprise a sequence of metasedimentary rocks and subordinate mafic volcanics that have been intruded by a nearly circular granitoid body approximately 4 kilometres in diameter. The sequence has also been intruded by numerous felsic dykes of various compositions. Gold mineralisation at both Bélé East and Bélé West is associated with deformation zones developed at and adjacent to the margins of the granitoid intrusion. Gold is associated with disseminated pyrite and lesser pyrrhotite hosted by both mafic and felsic lithologies where they feature chlorite-sericite-calcite alteration. Vein-hosted mineralisation is rare. Bélé West mineralisation is interpreted to extend around 1 kilometre in strike, 50 metres thickness (comprising several lodes up to 20 metres thick each) and to a depth of 150 metres. Bélé East mineralisation extends around 500 metres along strike, 130 metres thickness (comprising several lodes up to 20 m thick each) and to a depth of 170 metres. The currently defined mineralisation in both areas is open at depth but appears to be closed out along strike. The Bélé drill holes data includes reverse circulation ("RC"), diamond and air core ("AC") drill holes. AC drill holes were used as a guide to interpretation but were not used for grade estimation due to the poor quality of AC samples. Drilling used for the Mineral Resource includes 274 RC drill holes for 21,937 metres, 54 diamond drill holes for 2,599 metres and 47 RC drill holes with diamond tails for 5,431 metres. Nominal drill holes spacing over the resource area is predominantly 20 metres by 40 metres to 40 metres by 40 metres at Bélé West and 20 metres by 20 metres at Bélé East. Data spacing is sufficient to establish grade and geological continuity appropriate to the resource estimation procedures and classifications applied. Notes: Mineral Resources are inclusive of any Mineral Reserves. Mineral Resources are reported to two significant figures. Rounding may cause minor discrepancies in the table. RC drilling (5 1/4" diameter) was usually 80 metres or less in depth. Generally RC holes only have the collar azimuth and inclination measured. Diamond drilling was carried out using HQ in oxide and transitional rock and NQ diameter in fresh rock. All diamond holes are downhole surveyed at 30 m intervals. Downhole surveys were conducted by the drill contractors using a FlexIT tool. Orientation of drill holes is approximately perpendicular to the strike of the geology and mineralisation at Bélé West. At Bélé East, drill holes are angled to cross the steep dip of the geological domains. At Bélé East, 12 early RC holes have been drilled along exploration fences oriented towards the east and hence sub-parallel to the mineralisation. Three of these holes intercepted significant mineralisation. These intercepts have been verified by holes drilled in the opposite direction however, they have been removed from the database for estimation to ensure no bias occurs due to the orientation. All RC samples were collected at the drill site at 1 m intervals and split using a multi-stage riffle splitter. Each two consecutive samples were composited (where applicable) in one bag. Sample weights were nominally 2.5 kg and 5 kg for 1 metre and 2 metre samples respectively. Diamond core was sawn in half using a motorised diamond blade saw, with the right half sent for assaying and the left half stored in core trays for reference. One metre samples were taken in fresh material and 1.5 metres in oxide and transition. Both core and RC samples followed a sample preparation path involving drying, crushing and grinding. Samples were pulverised with a ring mill and thoroughly mixed on a rolling mat ("carpet roll"), and then 200 grams of sub-sample was collected. Internal laboratory checks required at least 90% of the pulp passing -75 microns. A 40 to 50 grams charge was produced for subsequent analysis of gold by fire assay. RC samples were weighed at 1 metre intervals and recoveries back-calculated using nominal hole diameter and expected density values. Recoveries average between 60% and 75% in strongly weathered material depending on rock type, around 75% in the transition zone and >85% in fresh rock. Recovered length of diamond samples were measured in the core trays. The overall recovery of 93% is considered good, although Snowden notes that the recovery is lower in the oxide and transitional materials. No apparent relationship exists between sample recovery and grade for diamond drilling. Some RC samples at depth were identified as having downhole contamination and resultant smearing of grades as a result of wet drilling in 'sticky' material, with the samples being 'hung up' in the cyclone and subsequently contaminating later samples. This issue appears to only occur in a few drill holes and is not as prevalent as what was seen at the nearby Sissingué deposit. As a result of this, all RC holes in the pit area were reviewed and any suspected of containing smeared assays were removed from the dataset prior to estimation. 277 metres from four RC drill holes (<1% of the samples) were removed due to suspected downhole contamination. In addition, 2016 drilling focused on diamond drill holes to confirm areas with RC drilling in the core of the deposit. With the exception of the issue noted above, the sub-sampling is considered appropriate and representative. All analytical work up till March 2016 was carried out by independent, commercial laboratory Bureau Veritas Minerals Laboratory ("BMVL") in Abidjan, Côte d'Ivoire. Analytical work for the recent drill holes program between November 2016 and January 2017 was carried out by independent, commercial laboratory Actlabs Burkina Faso SARL ("Actlabs") in Ouagadougou, Burkina Faso. Two types of analysis for gold were performed, a standard fire assay using a 40 g to 50 g sub-sample, and BLEG bottle roll using a 1 kilogram sub-sample. Both methods were read by atomic absorption spectroscopy ("AAS") with a detection limit of 0.01 g/t Au. The first 13 RC holes were assayed by 1 kilogram 24-hour bottle roll, with all subsequent diamond core and RC samples assayed by 50 gram fire assay. As part of the 2016 drilling program, several RC drill holes with suspected downhole smearing due to contamination at Bélé East were twinned with diamond drill holes. As a result, the suspect RC drill holes were removed as discussed previously. Between one and two field duplicates were taken for each RC hole, preferably within mineralised intervals. The results of duplicate analysis show no bias, but only moderate repeatability. Field duplicates of diamond core were not taken as 1/4 core is considered inappropriate for comparison. Coarse crush and pulp duplicates were taken for RC and diamond samples during the recent drilling program and show good precision. Certified reference material (blanks and standards) were submitted into the sample stream at a rate of 1 in 20 to 25 samples. Review of the standards results indicates that Actlabs tends to under call the gold standards for low grade samples by around 5% to 10%. As a result, umpire analysis was carried out on two batches using BMVL. The umpire results show that BMVL reports the low grade standards accurately. BMVL reports around a 5% to 10% higher gold grade for the low grade samples between 0.3 and 0.8 g/t gold. Results are comparable at all other grade ranges. As a result of the above analysis, Snowden considers the Actlabs results acceptable for resource estimation, with the acknowledgement that the low grade samples are slightly conservative. Given the Mineral Resource reporting cut-off of 0.8 g/t gold, this should not have a material impact on the Mineral Resource. With the exception of the item above, the QA/QC shows acceptable precision and no bias. Overall assaying quality is considered adequate. The Mineral Resource was estimated using CAE Studio (Datamine) software. Estimation was constrained within mineralisation envelopes (wireframes) defined based on a nominal 0.2 g/t gold to 0.5 g/t gold cut-off together with the geological logging and lithology interpretation. The cut-off used for the interpretation is observed as a population change in the global log-probability plot. The mineralisation domains were used as hard boundaries to control estimation. Estimation of gold grades was carried out using ordinary kriging with top cuts applied to limit the influence of outliers. Parent blocks of 10 mE by 10 mN by 5 mRL were derived from a kriging neighbourhood analysis together with the geometry of the orebody. Dynamic anisotropy was used for estimation, whereby the local dip and azimuth of the mineralised lodes was estimated into each block in the model and the search and variogram orientations were locally adjusted to reflect the geological orientation. This method allows the estimate to better reflect the changing orientation and undulating nature of the lodes. The resultant estimate contains less tonnes at a higher grade within the main domains compared to the previous estimate. This is a result of the additional data allowing for a more locally accurate estimate. Application of the constraining pit shell has removed the deeper portions of the Inferred Resource, together with some blocks at the northern and southern extents. This has resulted in an overall reduction in tonnes and ounces compared to the previous Mineral Resource. The Bélé Mineral Resource has been classified as an Indicated and Inferred Mineral Resource, in accordance with the 2012 JORC Code and the CIM Definition Standards (CIM, 2005). A range of criteria has been considered in determining this classification including geological continuity, data quality, drill holes spacing, estimation properties including kriging neighbourhood analysis to determine the appropriate block size and search strategy, and potential for economic extraction. The above parameters were used in combination to guide the manual digitising of strings on drill sections to control the classification. Typically Indicated Resources are defined in areas of 20 metres by 20 metres drilling at Bélé East and 40 metres by 40 metres drilling at Bélé West which shows more continuity in grade. Trial optimisation was run at a US$2,400 gold price to define the base of potentially mineable material by open pit mining. The Mineral Resource has been reported by resource classification and weathering above a 0.8 g/t gold cut-off. The reporting cut-off is based on preliminary engineering work which indicates a 0.75 g/t gold to 0.85 g/t gold cut-off will be applicable for mining, depending on the degree of weathering. The metallurgical work carried out to date indicates that gold can be satisfactorily recovered from Bélé ore using conventional CIL extraction techniques as per the nearby Sissingué deposit. The work is considered sufficient to determine that the Bélé resource represents a deposit capable of economic extraction. As previously noted, the Bélé Mineral Resources are located on the Mahalé exploration permit, approximately 40 kilometres from the proposed processing plant for Sissingué and subject to confirmation of its feasibility, it is intended that this material will be processed in due course through the Sissingué process facility. The combined Sissingué and Bélé Mineral Resource is as shown in Table 2 below: This combined Mineral Resource compares favourably to the Measured and Indicated Mineral Resource that contained 880,000 ounces of contained gold on which Sissingué's April 2015 Definitive Feasibility Study and subsequent development decision was based. Work is currently in progress on estimating Ore Reserves for both Sissingué and Bélé based on the revised Measured and Indicated Mineral Resource estimates and a Life-of-Mine Plan for a project encompassing both the Sissingué and Bélé Mineral Resources is expected to be completed by the end of the March 2017 quarter. The information in this report and the attachments that relates to the Bélé Mineral Resource estimate is based on information compiled by Lynn Olssen a Competent Person who is a Chartered Professional (Geology) and a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM), and a full time employee of Snowden Mining Industry Consultants Pty Ltd. Ms Olssen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and a Qualified Person as defined in NI43-101.Ms Olssen has no economic, financial or pecuniary interest in the company. Ms Olssen consents to the inclusion in this report of the matters based on her information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report. The information in this report that relates to Mineral Resources for the Sissingué Gold Project (SGP) was first reported by the Company in compliance with the JORC Code 2012 and NI43-101 in a market announcement released on 15 December 2016. The Company confirms that it is not aware of any new information or data that materially affects the information in that market announcement and that all material assumptions and technical parameters underpinning the estimates in that market announcement continue to apply and have not materially changed. 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 Sissingué and/or Yaouré, 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.


NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Perseus Mining Limited (ASX:PRU)(TSX:PRU) recently completed a re-estimation of Mineral Resources and Ore Reserves at its Edikan Gold Mine in Ghana ("Edikan"). Details are as follows: To view Graph 1: Change in Edikan's Ore Reserves - June 2016 to December 2016, please visit the following link: http://media3.marketwire.com/docs/Graph1_Change-in-Edikan.pdf The global Mineral Resource estimate is prepared in accordance with the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Refer to Appendices 1, 2 and 3 to the full press release available on www.perseusmining.com and www.sedar.com for the JORC Table 1 criteria for open pit, underground and heap leach resources, respectively. The Mineral Resource estimate is summarised in the following table that reports the Mineral Resources by category, deposit and deposit type. The classification categories of Measured, Indicated and Inferred under the JORC Code are equivalent to the CIM categories of the same name (CIM, 2010). In summary, the updated global Measured and Indicated Mineral Resource for Edikan is now estimated as 155.8 Mt grading at 1.0g/t gold, containing 5,011 kozs of gold as shown in Table 1. A further 30.0 Mt of material grading at 0.9 g/t gold and containing a further 899 kozs of gold are classified as Inferred Resources. Details of these estimates are shown below in Table 2. Whereas all previous estimates of Mineral Resources at Edikan have been prepared using the OK estimation method, the updated Mineral Resource estimate is based on MIK estimating techniques for all deposits other than the Esuajah South deposit and Heap Leach where the OK estimation method has continued to be used. Comparisons of the updated Edikan Mineral Resource models against ore delineated by grade control during the last three months of calendar 2016 and in January 2017 indicate that the updated Resource estimates are likely to be more reliable predictors of ore tonnes and grades than were the previous Resource models and this should result in a closer correlation between forecasts and actual gold production going forward. When compared to an Open Pit Mineral Resource estimate calculated at the same date, using the OK method (which has been traditionally used at Edikan), the revised MIK based Mineral Resource estimate includes: A direct comparison of Mineral Resource estimates using the two alternative techniques is shown in Table 3 below. Table 3: Edikan's Open Pit Mineral Resource Estimates using MIK and OK estimation techniques The Edikan gold deposits occur near the western flank of the Ashanti Greenstone Belt in south-western Ghana. Mineralisation is hosted by Palaeoproterozoic aged rocks of the Birimian Supergroup. Structurally controlled gold mineralisation occurs in two principal modes: disseminated pyrite-arsenopyrite mineralisation associated with quartz veining and sericite alteration hosted by granitoids and shear-zone hosted mineralisation associated with pyrite-arsenpoyrite mineralisation in and adjacent to quartz veins in deformed, fine-grained metasedimentary rocks. The strike lengths of the individual deposits range from approximately 300 metres (Esuajah South) to more than 2 kilometres (Abnabna-AF Gap-Fobinso). Granite-hosted mineralisation is developed over widths of up to 150 metres; shear hosted mineralisation in metasedimentary rocks is typically 10-30 metres wide. Resource definition drilling has defined mineralisation to depths ranging from approximately 130 metres (Chirawewa South) to more than 550 metres (AF Gap, Esuajah South). Edikan Mineral Resources are delineated by Reverse Circulation ("RC") and diamond core drill holes undertaken by previous operators Cluff Mining Plc and Ashanti Goldfields Corporation, and by Perseus. Estimates of those portions of the in situ resources remaining at 31 December 2016 are informed almost entirely by Perseus drilling and the majority of data informing the estimates derive from samples of half NQ diameter diamond core. Drill hole collar locations have been surveyed by qualified surveyors. Perseus diamond core holes were down-hole surveyed at nominal 30 metre intervals. Orientation of drill holes at each of the deposits is approximately perpendicular to the strike of mineralisation. With the exception of Esuajah South, the interpreted geometries and continuities of mineralisation underpinning the resource estimates have been confirmed by grade control drilling and mine exposures. RC drill samples were collected at drill sites at 1 metre intervals and split using multi-stage riffle splitters. For the majority of Perseus's drilling, each two consecutive samples were composited into one sample for assaying. Sample weights were nominally 2.5 kilograms and 5 kilograms for 1 metre and 2 metre samples respectively. Diamond core was sawn in half using a diamond blade saw, with the right-hand half sent for assaying and the left-hand half stored in core trays for reference. Samples were normally taken at 1 metre intervals. Core recoveries from Perseus diamond drilling were measured and averaged in excess of 90% with no significant issues noted. RC samples were logged visually for recovery, moisture and contamination. RC sample recoveries were not quantitatively measured. Considering that the bulk of estimated remaining resources at Edikan are informed by diamond core samples, sample recovery is not considered to be a significant risk to the reliability of the estimates. All sample preparation and assaying was carried out by commercial laboratories; no sample preparation was undertaken by Perseus. Samples collected by Perseus were variously assayed by Transworld Laboratories, Tarkwa, Intertek Laboratories (Gh) Ltd (formerly TWL), Tarkwa, and ALS, Kumasi. Approximately 5% of samples were assayed by 24 hour cyanide bottle roll with atomic absorption spectroscopy ("AAS") finish. All other RC samples and diamond half core samples were analysed by 50 gram Fire Assay and AAS finish. Sample preparation typically comprised drying, crushing to -2millimetres and pulverising of a 200 gram subsample. Internal laboratory checks required at least 90% of the pulp passing -75 microns. Perseus's quality assurance and quality control "QAQC" procedures included submission of field duplicates (RC only) inserted at 1 in 25, certified blanks inserted at 1 in 20, certified standards at 1 in 20, internal laboratory standards, duplicates and repeats. Geological logging of lithology and weathering were considered in conjunction with gold grades of 2 metre composited sample intervals to delineate mineralised domains at each of the deposits within which the tenor and spatial trends of mineralisation are similar. Grade control sampling and exposures of and host rocks within the open pits currently being mined confirm the geometry of the mineralisation. MIK with block support adjustment was used to estimate gold resources into blocks with dimensions of 20 metres (east) by 20 metres (north) by 5 metres (elevation), is considered appropriate given the spacing of data available to inform the estimates and the mining bench height presently used at Edikan. MIK of gold grades used indicator variography based on the 2 metre resource composite sample grades. Gold grade continuity was characterised by indicator variograms at 14 indicator thresholds spanning the global range of grades in each of the mineralised domains. The effect of extreme gold grades on the conditional statistics of data informing each of the estimation domains was considered. The effect of extreme grades on estimates was modified by composites being ignored domain during the generation of the indicator statistics, and by selection of the median instead of the mean for the highest indicator threshold. Block support adjustments were derived from the variogram of gold grades in each of the mineralised domains. The selective mining unit was assumed to be in the general range 6mE by 10mN by 2.5mRL, reflecting the scale of mining presently employed at Edikan. Additional adjustments for the "Information Effect" have been applied, based on high quality grade control sampling at 8mE x 8mN x 1m consistent with current practices at Edikan, to arrive at the final Mineral Resource estimates. The Mineral Resource estimates can be reasonably expected to provide appropriately reliable estimates of potential mining outcomes at the assumed selectivity without application of additional mining dilution or mining recovery factors. Compositing and wire-framing were performed using Micromine software. Exploratory data analysis, variogram calculation and modelling, and resource estimation were performed using FSSI Consultants (Australia) Pty Ltd (FSSI) GS3M software. The Mineral Resource estimates for Abnabna - AFGap - Fobinso, Fetish, Chirawewa and Esuajah North were compared to recent mine site grade control outcomes. The grade control modelling undertaken for validation was performed using the MP3 grade control software. The mined tonnes and grade of ore for the four months to January 2017 compared favourably. Confidence categories have been applied to the estimates of Mineral Resource on a block-by-block basis based on the number and location of data used to estimate proportions and gold grade of each block. This is based on the principle that larger numbers of samples, which are more evenly distributed within the search neighbourhood, will provide a more reliable estimate. Generally, Measured resources are informed by drilling at approximately 20 metre x 20 metre spacing or closer, Indicated resources are informed by drilling spaced at up to 40 metre x 40 metre and Inferred resources are on the peripheries of drilling to a maximum distance of approximately 40 metres. The Mineral Resource classification also considered the quality of the data collected (geology, survey and assaying data), the density of data, the confidence in the geological models and mineralisation model, and the grade estimation quality. The cut-off grade of 0.4g/t gold for the stated open pit Mineral Resource estimates reflects economic parameters deriving from current and anticipated mining practices at Edikan. Wireframes were constructed using cross sectional interpretations based on geological contacts and a nominal 0.2g/t gold cut-off grade. Samples within the wireframes were composited to even 1 metre intervals. A 40g/t gold top cut was applied to composite values in the granite mineralisation. Top cuts of between 15g/t gold to 30g/t gold were applied to selected sediment lodes. Top cuts were based on statistical analysis of composite data. A Surpac block model was used for the estimate with a parent block size of 10 metre (North) by 10 metre (East) by 10 metre vertical with sub-cells of 2.5 metre by 2.5 metre by 2.5 metre. OK grade interpolation was used for the granite mineralisation with an oriented search ellipse based on interpreted controls on mineralisation. A first pass radius of 30 metres was used with a second pass radius of 60 metres and a third pass radius of 240 metres. Greater than 86% of the blocks were filled in the first two passes. An 'ellipsoid' search method was used. Inverse distance squared grade interpolation was used for the sediment-hosted mineralisation with an oriented search ellipse based on individual lode geometry. A first pass radius of 30 metres was used with a second pass radius of 60 metres and a third pass radius of 180 metres. Greater than 92% of the blocks were filled in the first pass. An 'ellipsoid' search method was used. The deposit was classified as Measured, Indicated and Inferred Mineral Resource based on data quality, drill hole spacing, and continuity of mineralisation. The portion of the granite where the drill spacing was 20 metres by 20 metres or less and demonstrating good lode and grade continuity supported by high kriging efficiencies was classified as Measured Mineral Resource. The portion of the deposit where the drill spacing was generally greater than 20 metres by 20 metres but still demonstrated good lode and grade continuity was classified as Indicated Mineral Resource. The portion of the deposit classified as Inferred Mineral Resource includes areas where the drill spacing was greater than 40 metres by 40 metres and the zones of mineralisation within the adjacent sediments that are defined by limited drilling. The Mineral Resource estimate has been constrained by the wire-framed mineralisation envelopes, is undiluted by external waste and reported above a 0.7g/t gold cut-off grade. The cut-off grade reflects economic parameters deriving from anticipated underground mining practices, costs and recoveries from the Feasibility Study. The heap leach mineral resource quoted herein comprises only material contained in the "Africa Heap". The Africa Heap comprises approximately 55% of the total volume of heap leach material remaining after processing of oxide ores by previous operators Cluff Mining Plc and Ashanti Goldfields Corporation between 1994 and 2001 and is defined by geographic limits. The Africa Heap has been sampled by 338 vertical RC and air core ("AC") drill holes at a nominal spacing of 20 metres x 20 metres. Hole depths varied from 18 metres to 45 metres. Drill hole collar locations were accurately surveyed by Perseus qualified mine surveyors. RC and AC samples were subsampled at the drill sites using a multi-tier riffle splitter. The Mineral Resource estimate is informed by 7,584 samples collected over 1 metre intervals and 1,632 samples assayed as 5 metre composite samples. Samples from the first 27 RC and first 27 AC holes were analysed for gold only by 24 hour bottle roll cyanide leach with AAS finish at Intertek Minerals Ltd in Tarkwa, Ghana. For all subsequent RC and AC holes, gold was assayed by Fire Assay with AAS finish at either Intertek Minerals Ltd or at ALS Minerals in Kumasi, Ghana. Certified reference materials and blanks were submitted at a rate of one standard or blank for every 15 samples. Field duplicate splits were taken at a nominal rate of one duplicate per drill hole. Average gold grade of the Africa Heap was estimated by a number of methods including Inverse Distance Squared weighting, OK, Simple Kriging and Sequential Gaussian Simulation. All methods resulted in essentially identical estimates of average grade. The volume of the Africa Heap has been estimated by generating two triangulated surfaces: a topographic surface based on approximately 2,300 surveyed spot heights and drill hole collar locations and a bottom surface based on depths at which drill holes penetrated the plastic liner at the base of the heap. The volume was adjusted for depletion by illegal mining carried out between the date of the topographic survey and November 2015, the affected volume being estimated from aerial photography. A dry in-situ density estimate of 1.32 t/m3 was assigned to the heap leach pad material. Density values and moisture content were determined by independent consultants in August 2015 from 30 test pits, and a mean value was applied to the Mineral Resource. The Mineral Resource is classified as Indicated, based on drill and sample density, accurate and detailed surface survey of the heaps and the close match of average grades derived from the various estimation methods. There has been no cut-off grade applied to derive the Heap Leach Mineral Resource. It is assumed that it is not feasible to selectively mine higher grade portions of the material. Mineral Resources contained in stockpiles are based on volume estimates based on ground survey data, loose bulk densities derived over time by reconciliation of volumes mined (at in situ densities) to stockpile movements and volumes, and estimates of stockpile grades based on predicted grades of mined material transferred onto stockpiles and material depleted by processing. Closing stockpiles at 31 December 2016 were estimated to be: Stockpile tonnes and grade estimates are considered sufficiently accurate to support classification as Measured Mineral Resources. The updated Ore Reserve is summarised below in Table 4 and is based on the Edikan Mineral Resources as at 31 December 2016 and updated pit optimisation, design and scheduling of the Open Pit resources and a new Esuajah South Ore Reserve based on underground mining methods. All Ore Reserves are reported in accordance with the JORC Code. Refer to Appendices 1 and 2 to the full press release available on www.perseusmining.com and www.sedar.com for the JORC Table 1 assessment criteria. The Ore Reserve estimate is summarised in the following table that reports the Ore Reserves by category, deposit and type, above variable cut-off grades. The classification categories of Proved and Probable under the JORC Code are equivalent to the CIM categories of the same name (CIM, 2010). Table 4: Edikan's Proved and Probable Ore Reserves as at 31 December 2016 Proven and Probable Ore Reserves are found within the economic limits of six discrete open pits, an underground project and stockpiles that have been designed based on Measured and Indicated Mineral Resources that incorporated all available Resource in-fill drilling results, a gold price of US$1,200/oz and mining, processing and general and administration costs derived from recent operating experience. When compared to Edikan's most recently published Ore Reserve estimate as at 30 June 2016, and after taking into account ore depletion plus the addition of Ore Reserves contained in the decommissioned heap leach stockpiles created by prior owners of the mine and not previously accounted for by Perseus, the gold contained in the updated Ore Reserve estimate has changed by less than 5% or 99kozs of gold. As shown below in Table 5 and in the waterfall graph below, the following changes have occurred: Table 5: Comparison of Proved and Probable Ore Reserves as at 31 December & 30 June 2016 It is assumed all the Heap Leach material is mined and fed to the processing plant during the mine life and all the material is rehandle on the ROM stockpile. The ROM stockpiles that existed at 31 December 2016 are all fed to the processing plant over the mine life and associated rehandle costs for all material is allowed for. Ore Reserves have been classified based on the underlying Mineral Resources classifications and the level of detail in the mine planning. The Mineral Resources were classified as Measured, Indicated and Inferred. The Ore Reserves, based only on the Measured and Indicated Resources, have been classified as Proven and Probable Ore Reserves, respectively. The Ore Reserve is classified as Proved and Probable in accordance with the JORC Code, corresponding to the Mineral Resource classifications of Measured and Indicated and taking into account other factors where relevant. The deposit's geological model is well constrained. The Ore Reserve classification is considered appropriate given the nature of the deposit, the moderate grade variability, drilling density, structural complexity and mining history. Therefore it was deemed appropriate to use Measured Mineral Resources as a basis for Proven Reserves and Indicated Mineral Resources as a basis for Probable Reserves. No Inferred Mineral Resources were included in the Ore Reserve estimate. Mr Gary Brabham, FAusIMM, MAIG, has compiled and reviewed the consolidated information on the Mineral Resources in this report and compiled the information in the attachment in Appendix 1, Sections 1 and 2 of JORC Table 1 relating to the results of exploration and resource definition drilling for the Open Pit Mineral Resources of the Edikan Gold Mine. The Open Pit Mineral Resources have previously been reported by Perseus in NI43-101 technical reports filed with Canadian authorities and available on SEDAR. Mr Gary Brabham is the Group Geologist for Perseus Mining Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and a Qualified Person as defined in NI43-101. Mr Brabham consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report. Mr Nicolas Johnson, MAIG, who is an employee of MPR Geological Consultants Pty Ltd, has compiled the information in the attachment in Appendix 1, Section 3 of JORC Table 1 which relate to the Open Pit Mineral Resources of the Edikan Gold Mine. Mr Johnson has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person, as defined in the JORC Code. Mr Johnson has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report. Mr Joe McDiarmid, who is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy, and is an employee of RungePincockMinarco Limited has compiled the information in the attachment in Appendix 1, Section 4 of JORC Table 1 which relate to the Open Pit Ore Reserves of the Edikan Gold Mine. Mr Joe McDiarmid has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person, as defined in the JORC Code 2012. Mr McDiarmid has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report. Mr Shaun Searle, who is a Member of the Australasian Institute of Geoscientists and is an employee of RungePincockMinarco Limited has compiled the information in the attachment in Appendix 2, Section 1, 2 and 3 of JORC Table 1 which relate to the Esuajah South Mineral Resource of the Edikan Gold Mine. Mr Searle has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code. Mr Searle has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report. Mr Allan Earl, who is a Member of the Australasian Institute of Mining and Metallurgy and is an employee of Snowden Mining Industry Consultants Pty Ltd., has compiled the information in the attachment in Appendix 3, Section 4 of JORC Table 1 which relate to the Esuajah South Ore Reserve of the Edikan Gold Mine. Mr Earl has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012. Mr Earle has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report. Mr Steffen Brammer, who is a Member of the Australasian Institute of Mining and Metallurgy and is an employee of Perseus Mining Limited has compiled the information in the attachment in Appendix 2, Sections 1 and 2 and Appendix 3, Section 1, 2 and 3 of JORC Table 1 which relate to the Esuajah South and Heap Leach Mineral Resource of the Edikan Gold Mine, respectively. Mr Brammer has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report. Mr Paul Thompson, who is a Fellow of the Australasian Institute of Mining and Metallurgy and is an employee of Perseus Mining Limited has compiled and reviewed the consolidated information on the Ore Reserves in this report. Mr Thompson has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and a Qualified Person as defined in NI43-101 and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears and has approved the inclusion of technical and scientific information in this report. 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 Sissingué and/or Yaouré, 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.


Dominy S.C.,Snowden Mining Industry Consultants Pty Ltd | Dominy S.C.,Curtin University Australia | Dominy S.C.,University of Ballarat | Minnitt R.C.A.,University of Witwatersrand
8th International Mining Geology Conference 2011, Proceedings | Year: 2011

Grade control programs aim to deliver economic tonnes to the mill via accurate definition of ore and waste. The foundation of a successful program is high quality sampling supported by geology and a suitable data management and modelling system. Underground sampling methods include chip, channel and panel samples; grab/muck pile samples; and drill-based samples. Grade control strategy is related to mining method and orebody type. Sampling protocols must be designed to suit the style of mineralisation in question. Holistic studies focussing on ore mineralogy and gold particle deportment, size and distribution are required for sample collection and preparation protocol optimisation through 'Theory of Sampling' application. Where possible, such programs should be undertaken early in the life of a project. Appropriate assaying procedures are also required. Program implementation will require suitably skilled individuals to train and mentor staff, with ongoing Quality Assurance/Quality Control (QA/QC) monitoring and review will allow protocols and staff to be updated as required.


VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 14, 2016) - Monument Mining Limited (TSX VENTURE:MMY)(FRANKFURT:D7Q1) ("Monument") is pleased to announce that, further to its press release dated November 9, 2016, it has filed a technical report describing Proven and Probable Mineral Reserves at its 100% owned Selinsing operating gold mine, including the adjacent Buffalo Reef deposit in Pahang State, Malaysia. The technical report is titled "NI 43-101 Technical Report - Selinsing Gold Mine and Buffalo Reef Project" and dated December 14, 2016. It has been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and is authored by Frank Blanchfield, BE (Min Eng), FAusIMM, Principal Mining Engineer, Snowden Mining Industry Consultants Pty Ltd., the primary Qualified Person, and other independent Qualified Persons. The technical report is available on SEDAR under Monument's profile at www.sedar.com and is also available on Monument's website at www.monumentmining.com. Monument Mining Limited (TSX VENTURE:MMY)(FRANKFURT:D7Q1) is an established Canadian gold producer that owns and operates the Selinsing Gold Mine in Malaysia. Its experienced management team is committed to growth and is advancing several exploration and development projects including the Mengapur Polymetallic Project, in Pahang State of Malaysia, and the Murchison Gold Projects comprising Burnakura, Gabanintha and Tuckanarra in the Murchison area of Western Australia. The Company employs approximately 240 people in both regions and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighboring communities. The Company has also been seeking potential opportunities for larger resources in other countries. FOR FURTHER INFORMATION visit the company web site at www.monumentmining.com. "Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." This news release includes statements containing forward-looking information about Monument, its business and future plans ("forward-looking statements"). Forward-looking statements are statements that involve expectations, plans, objectives or future events that are not historical facts and include the Company's plans with respect to its mineral projects and the timing and results of proposed programs and events referred to in this news release. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". The forward-looking statements in this news release are subject to various risks, uncertainties and other factors that could cause actual results or achievements to differ materially from those expressed or implied by the forward-looking statements. These risks and certain other factors include, without limitation: risks related to general business, economic, competitive, geopolitical and social uncertainties; uncertainties regarding the results of current exploration activities; uncertainties in the progress and timing of development activities; foreign operations risks; other risks inherent in the mining industry and other risks described in the management discussion and analysis of the Company and the technical reports on the Company's projects, all of which are available under the profile of the Company on SEDAR at www.sedar.com. Material factors and assumptions used to develop forward-looking statements in this news release include: expectations regarding the estimated cash cost per ounce of gold production and the estimated cash flows which may be generated from the operations, general economic factors and other factors that may be beyond the control of Monument; assumptions and expectations regarding the results of exploration on the Company's projects; assumptions regarding the future price of gold of other minerals; the timing and amount of estimated future production; the expected timing and results of development and exploration activities; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; exchange rates; and all of the factors and assumptions described in the management discussion and analysis of the Company and the technical reports on the Company's projects, all of which are available under the profile of the Company on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.


Dominy S.C.,Snowden Mining Industry Consultants Pty Ltd | Dominy S.C.,Curtin University Australia | Murphy B.,Gekko Systems Pty Ltd | Gray A.H.,Gekko Systems Pty Ltd
GeoMet 2011 - 1st AusIMM International Geometallurgy Conference 2011 | Year: 2011

Gravity amenable gold ores are those that after comminution produce liberated particles, composites and/or carriers that can be recovered by gravity separation means. Recovery depends upon mineralisation type and the comminution and concentration method used. Any in situ ore with more than 20 per cent of gold greater than 100 μm in size is likely to have a strong gravity recoverable component. A less traditional approach is where the gold is sulfide-locked and the gold carrier plus any liberated gold is recovered via continuous gravity recovery following fine crushing. Specific tests are undertaken to determine the level of gravity amenable gold within a deposit. The principal methodology is the gravity recoverable gold (GRG) test, which consists of three sequential liberation and recovery stages. For continuous gravity recovery (CGR), the sample is fed over a laboratory Wilfley table to simulate continuous recovery of the gold. Tails from the feed can be progressively re-ground and re-tabled to develop a grade-recovery curve. Primary geology and gold particle size-distribution have a strong effect on the mass of sample required to provide representative results for both tests. Where low-grade ore contains very coarse gold, substantially larger sample masses are required. Experience has shown that GRG and CGR values can vary throughout an orebody, particularly within different geological-grade domains. A testing regime must consider sample frequency and support.

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