Perseus Mining Limited (ASX/TSX: PRU) has released updated resource estimates for the Central Ashanti Gold Project and the Grumesa Gold Project, in Ghana and a reserve upgrade for the CAGP.
Highlights
- 1.4Moz (42%) increase in Measured and Indicated ("M&I") mineral resources in Ghana.
- Total M&I mineral resources at CAGP now 118Mt containing 4.3Moz of gold (38% increase) including reserves of 87Mt containing 3.3Moz of gold (1.2Moz or 54% increase)
- Total M&I mineral resources for all projects now totals 159Mt containing 5.7Moz of gold
- Total reserves for all projects now totals 97Mt containing 3.9Moz of gold
- Total Inferred mineral resources for all projects now 73Mt containing 2.2Moz of gold
- Only one new deposit at CAGP bought into reserve, additional Resource and Reserve upgrades scheduled for 2011 will incorporate results from current drilling programs on multiple deposits
Mark Calderwood, Managing Director's Comments
"Most of the increase in overall mineral resources at the CAGP is attributable to extensions at depth and along or across strike at Abnabna-Fobinso and Esuajah South. Importantly, conversion of Inferred mineral resources to Measured and Indicated status from infill drilling remains high at approximately 100%. This is a positive reflection of the overall predictability of these gold deposits."
"The 1.2Moz added to ore reserves at Abnabna-Fobinso and Esuajah South this year is unlikely to be the last upgrade for these deposits as the Company continues to drill and evaluate both deeper open pit and bulk underground mining options."
"The planned 2011 round of resource and reserve upgrades will be focussed on a number of other deposits drilled over the past 12 months. Drilling of these deposits is continuing, with nine rigs currently working on the CAGP."
"It now appears that five separate zones at the CAGP each contain, or are likely to contain, more than 1Moz of gold resources - Abnabna, AF Gap, Esuajah South, Esuajah North and Fetish. In addition, there are a number of significant but underexplored other contenders for inclusion in this list."
"The Company has an excellent track record of growing its M&I Resources organically at an average rate of 1.6Moz per annum over the past three years and reserves at about 2.0Moz per annum over the past two years."
CAGP Resource Estimate
Extensive drilling on the Abnabna-Fobinso and the Esuajah South deposits during the past 18 months has enabled the re-estimation of mineral resources for those deposits.
The most significant change in the resources at Abnabna-Fobinso has been the increase in Measured mineral resources from 20.0Mt at 1.3g/t Au in the 2009 estimate to 42.9Mt at 1.2g/t (a 91% increase in contained gold). Inferred mineral resources have decreased from 16.3Mt at 1.0g/t to 4.6Mt at 1.2g/t and Indicated mineral resources are approximately the same at 23.3Mt at 0.9g/t Au, compared to 20.3Mt at 1.1g/t Au in the 2009 estimate.
The Esuajah South deposit changed significantly, from 6.9Mt at 1.7g/t Au Indicated resources to 14.5Mt at 1.8g/t Au Measured and Indicated mineral resources containing 818,000 ounces (60% Measured), representing a 117% increase in contained gold. Inferred mineral resources decreased by 91,000 ounces from 5.6Mt at 1.8g/t Au to 5.3Mt at 1.3g/t Au. Significantly, most of the increase in resources is attributable to the granite body being wider at depth than previously expected, resulting in an average of 2,000 ounces of contained gold per vertical metre to -220mRL (360m vertical). Below that depth the resource is constrained by lack of drill data.
Reserve Estimate CAGP
New pit designs have been completed for the Abnabna-Fobinso deposits and an initial pit design was completed for the Esuajah South deposit. The limits of the pit designs were nominally based on US$1,000 gold price optimisation shells. The Whittle optimisation inputs were based on the 2009 feasibility study up dated to reflect changes in mill-expected throughput rates, operating costs, the mining contract and the Government royalty of 5%. Reserves are reported at a 0.4g/t Au (previously 0.5g/t Au) cut-off for Abnabna-Fobinso and 0.5g/t Au for Esuajah South.
Grumesa Resource Estimate
Further infill drilling was undertaken on the Kayeya gold deposit on the Grumesa Gold Project during 2008 resulting in a new mineral resource estimate being completed in December 2010.
The large, low-grade Kayeya gold deposit is amenable to low cost heap leach processing and the Company has applied for a Mining Lease with the aim of developing a modest satellite heap leach operation. Considerable potential exists for further resources, given that the upper 45m of the deposit as currently defined contains more than 12,000 ounces of gold per vertical metre and there is limited drilling below 45m. In addition, about a third of the deposit's 3sq km footprint remains under-explored.