Slide 1: Yaouré Gold Project Investor Site Visit Presentation
YAOURÉ GOLD PROJECT INVESTOR SITE VISIT PRESENTATION MAY/JUNE 2019
Slide 2: Disclaimer
Disclaimer Disclaimer No representation or warranty, express or implied, is made by Perseus that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Perseus, its directors, officers, employees, advisers
Slide 3: Yaouré Gold Project - Next Mine
YAOURÉ GOLD PROJECT - NEXT MINE Economically attractive - IRR of 27% and 32 month payback period at US$1,250/oz gold Technically robust - 3.3Mtpa plant with average annual gold production of 215,000 ounces at an AISC of US$734/oz for first 5 years Excellent location - Close to excellent existing inf
Slide 4: Presentation Overview
PRESENTATION OVERVIEW 1. Project History 2. Definitive Feasibility Study 3. Front End Engineering and Design 4. Development Update 5. Underground Potential 6. Exploration Review 4
Slide 5: 1. Project History
1. PROJECT HISTORY
Slide 6: Yaouré Project History
Yaouré Project History 1932: First gold discovered – Filon de Akakro, small scale mining 1987-91: BRGM, discovery of CMA system 1999-2003: CMA heap leach operation 1.9Mt @ 3.9g/t for 203koz 2004-07: Cluff Mining acquired Project, exploration of Yaouré Yaouré CMA North 2008-11: Cluff heap leach opera
Slide 7: 2. Definitive Feasibility Study (DFS)
2. DEFINITIVE FEASIBILITY STUDY (DFS) Source: “Perseus Confirms Quality of Yaouré Gold Project” dated 3 November 2017
Slide 8: Overview
Overview Positive DFS completed at end of October 2017 confirming Yaouré is: ✓ Economically very attractive – IRR of 27% & 32 month payback period at US$1,250 with an accuracy of +/- 15% ✓ Technically robust - 3.3MTPA plant with average annual gold production of 215,000 ounces at an AISC of US$734/o
Slide 9: Yaouré Geology
Yaouré Geology • Predominantly basalt with mafic intrusives • Basalts intruded by quartz and feldspar porphyries • Several large sub-vertical granodiorite intrusives within in the Yaouré Zone • Volcanoclastic and volcano-sedimentary rocks unconformably overly the volcanics to the north • Au minerali
Slide 10: Yaouré Resource Model
Yaouré Resource Model • MIK estimates of recoverable proportions above a series of cut-off grades • Incorporates block support and information effect adjustments • Controlled by geological domains of similar tenor and spatial continuity US1,200 design US$1,800 shell M+I+I 10
Slide 11: Mineral Resource Estimate
Mineral Resource Estimate YAOURÉ MINERAL RESOURCES 7,8 Indicated Measured + Indicated Inferred Deposit Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Deposit Type Mt g/t gold koz Mt g/t gold koz Mt g/t gold koz CMA1,2,3,4,6 Open Pit 24.8 1.81 1,440 24.8 1.81 1,440 16.0 1.2 600 Yaouré1,2
Slide 12: Metallurgical Testwork Program
Metallurgical Testwork Program • Comminution (SMC, Ai, BWI and RWI): – 18 x variability samples, 5 x composite samples • Flowsheet Development – Grind optimisation P80 53µm to 106µm, Gravity, Leach – Mineralogy (QEMSCAN) – Cyanide/Oxygen/Air/Pre-oxidation/Lead Nitrate optimisation • Ancillary Testwo
Slide 13: Metallurgical Recovery
Metallurgical Recovery • Ex-pit recovery in excess of 90% • Heap leach recovery 83-85% Ore Source and Rock Type Units Heap Leach Oxide Transition Fresh (100 x (Au - (0.095 x Au0.94) - CMA - Granodiorite % - 92% 90% 0.011) / Au)% (100 x (Au - (0.095 x Au0.94) - CMA – Basalt/Volcanoclastic % - 92% 90%
Slide 14: Comminution Circuit
Comminution Circuit Ore Type Unit Grinding Power • 75 μm grind • Yaouré fresh ores harder Oxide kW/t 8.2 Transition kW/t 16.3 – More power, higher cost, lower CMA Basalt kW/t 23.1 throughput rate Yaouré Basalt kW/t 31.2 • CMA 3.3Mtpa (417tph) Yaouré Granodiorite kW/t 28.2 Sissingué kW/t 22.2-25.5 •
Slide 15: Processing Plant – Flowsheet
Processing Plant – Flowsheet CYANIDE DETOX TANK 15
Slide 16: Processing Cost Estimate
Processing Cost Estimate • Costs are based on experience from Edikan and Sissingué – Recent contract awards – Operating experience • Costs also from Yaouré specific testwork and quotes Cost Area Unit Oxide/HL Transition CMA Y - Basalt Y - Granite LOM Total Labour $/t ore 2.36 2.36 2.36 3.20 3.11 2.4
Slide 17: Mining RFQ and Drill & Blast Assessment
Mining RFQ and Drill & Blast Assessment • Two stage RFQ process with 7 mining contractors – 5 quotes received within +/-10% of total cost • Drill and blast cost – High powder factors – 5m blasting in ore and adjacent waste – 10m blasting in bulk waste away from ore • Average mining cost $3.31/t • Te
Slide 18: CMA Pit Cutback Designs
ee CMA Pit Cutback Designs Ove: CMA Cutbacks Cutback 1 Cutback 2 Cutback 3
Slide 19: Yaouré Pit Designs
Yaoure Pit Designs OPvessecs YAOURE SARL Yaoure Cutbacks Yaoure North Yaoure South yee
Slide 20: Ore Reserve Estimate
Ore Reserve Estimate 4,5 YAOURÉ ORE RESERVES as at 30 June 2018 Proved Probable Proved + Probable Quantity Grade Gold Quantity Grade Gold Quantity Grade Gold Deposit Deposit Type Mt g/t gold koz Mt g/t gold koz Mt g/t gold koz CMA1,2 Open Pit 20.7 1.97 1,310 20.7 1.97 1,310 Yaouré1,2 Open Pit 4.7 1.
Slide 21: Infrastructure and Utilities
Infrastructure and Utilities • Workforce – 257, plus further 470 contract personnel (3 shifts) – 144 person camp (116 ex-pat and senior staff) • Power Supply – 25.8MW Installed, 17.8MW Max demand, 16MW Ave demand – 6.5km 225 kV line from Kossou Sub to site • Water demand and supply – Top up water ~1
Slide 22: Infrastructure Layout
Infrastructure Layout Allahou Bazi Angovia N'da Koffi Yobouekro Akakro. Google Earth Kouakougnanou Powerline Water Pipeline Bandama _ River, Lake Kossou Kossou) Dan Kossou
Slide 23: Tailings Storage Facility
Tailings Storage Facility • Total capacity 30Mt • TSF buttressed by a waste dump • Nominal height 80m • Clay lined TSF (revised in FEED) • CN detox in Capital Cost 23
Slide 24: Water Supply and Balance
Water Supply and Balance • Overall water balance is negative • Water storage dam required in dry season (800k m³) • Water extracted from Bandama River (Max 136L/s) • Pit dewatering of run-off and groundwater (Ave 45L/s) • Potable water from bores with filtration, chlorination and UV sterilization pl
Slide 25: Mining Schedule
Mining Schedule • Heap Leach mined first along with CMA CB1 then CB2 and CB3 • Then Yaouré pit in 2 stages (north and south) • Low grade stockpiles rehandled from year 6 25
Slide 26: Tonnes and Grade Processed
Tonnes and Grade Processed • Head grade 1.7g/t in year 1 then average 2.4g/t for 4 years • Tonnage ramp up allowed for in first year • Throughput rate varied based on material type • Lower grade stockpiles processed from year 6 26
Slide 27: Gold Production
Gold Production • Gold Production 150koz in Year 1 then averages 230koz/year for next 4 years • Start with heap leach then high grade CMA processed for first 5 years • Lower grade stockpiles and Yaouré ore from Year 6 to 9 27
Slide 28: G&A Cost Estimate
G&A Cost Estimate • Costs are based on experience from Edikan and Sissingué – Recent contract awards, operating experience • Costs also from Yaouré specific quotes Cost Area Unit Total LOM Labour US$ M 29.0 Adibjan Office US$ M 0.6 Site Offices US$ M 3.6 Insurances US$ M 8.4 Financial US$ M 1.6 Gove
Slide 29: Development Capital Estimate
Development Capital Estimate Cost Excluding Contingency Total Cost Component Contingency US$ M US$ M US$ M Distributables 26.2 3.2 29.4 Treatment Plant 69.7 7.5 77.2 Reagents & Services 9.9 1.4 11.3 Infrastructure 49.2 4.8 54 Mining 17.9 0.2 18.1 Management 17.7 1.9 19.6 Owners Costs 48.3 4.8 53.2 T
Slide 30: Sustaining Capital Estimate
Sustaining Capital Estimate • Costs are based on experience from Edikan and Sissingué – Recent contract awards, operating experience • Costs also from Yaouré specific quotes • Plant sustaining cost is 5% of development capital direct costs Cost Area Unit Total LOM Plant Modification US$ M 1.0 TSF Li
Slide 31: 3. Front End Engineering and Design Study (FEED)
3. FRONT END ENGINEERING and DESIGN STUDY (FEED) Source: “Perseus Completes Engineering and Design Study for Yaouré Gold Project” dated 11 October 2018
Slide 32: FEED Study - Highlights
FEED Study - Highlights FEED study completed 11 October 2018 VALUE ENGINEERING ASSESSMENT & FEED • 0.4% Increase in Capital Cost from $262.7m to $263.9m (increased to US$265m) • +/- 10% tolerance = lower cost risk • Base line schedule completed for Construction execution ➢ 21 months ➢ Critical Paths
Slide 33: FEED Study - Layout
FEED Study - Layout wen Sg] J_ Saves \ 38 |=
Slide 34: FEED Study - Isometric
FEED Study - Isometric OPerssetss YAOURE SARL
Slide 35: DFS v FEED
DFS v FEED MAJOR CHANGES DFS Description Impact Bulk Site Earthworks Plant Layout Optimised to contours Primary Crushing & Electrical Bulks CV01 consolidated and reduced by approx. 350m Reclaim/Emergency Feed Bin Emergency Feeder moved reducing concrete/electrical Pre-Leach/CIL Tanks increased in vo
Slide 36: Revised LOM Inputs Following FEED Study
Revised LOM Inputs Following FEED Study • Throughput rates for oxide/transition increased to 3.8Mtpa • Additional testwork completed – Recovery for Yaouré fresh, and all oxide and transition slightly higher – CMA recovery slightly lower due to revised residence time • Processing costs – Oxide & tran
Slide 37: 4. Development Update
4. DEVELOPMENT UPDATE
Slide 38: Overview
OVERVIEW • Lycopodium Scope & Work • Owners Work ➢ Scope & Planning ➢ Team • Community • Risks & Mitigation 38
Slide 39: Lycopodium Scope
LYCOPODIUM SCOPE SCOPE & PLANNING • Total Project value US$265 million inclusive of contingency • Lycopodium portion US$128.5 million contract executed, fixed price • Lycopodium scope includes: • Process plant • Overland piping from river to plant to TSF and returns • 11kV site power reticulation •
Slide 40: Lycopodium – Completed to Date
LYCOPODIUM – COMPLETED TO DATE SCOPE & PLANNING - WORK TO DATE • Contract executed and kick-off 1st April 2019 • Project management team and discipline leads were mobilised onto the Project. • Project execution plans finalised • Initial design review for the primary crushing area held with Perseus •
Slide 41: Owners Work
OWNERS WORK SCOPE & PLANNING – WORK TO DATE • Project management convention with CIE completed • Lycopodium contract negotiated and team locked in • Fencing procured • Land compensation underway • Earthwork companies shortlisted • Camp construction strategy finalised and constructors shortlisted • W
Slide 42: Schedule
SCHEDULE SCOPE & PLANNING – SCHEDULE – KEY MILESTONES DESCRIPTION TARGET COMMENT Award Lycopodium and Supply 1st April 2019 Completed Contract Earth Works Commence 25th June 2019 Construction Camp Available 23rd Aug 2019 Tents and senior portables Permanent Camp – Stage 1 21st Nov 2019 Permanent Cam
Slide 43: Owners Work
OWNERS WORK SCOPE & PLANNING - TEAM Project Sponsor Perseus Project Director Operation Maintenance Project Engineer Construction Readiness Systems (Perth Based) Manager Coordinator (Consultant) HR Superintendent Maintenance & Community Procurement & Security HSE Camp & Buildings Electrical & Comm’s
Slide 44: Community
COMMUNITY STRATEGY 5 affected communities – various sizes Kossou – geographically important 1. Communication and community engagement – short term mine objectives 2. Sustainable support through employment and supply chains i.e. newly registered entrepreneur and trucking association 3. Upskilling in
Slide 45: Community
COMMUNITY WORK TO DATE • Livelihood restoration training being organised and implemented • Skills Matrix database finalised HR 15 FINANCE 14 DRIVER 9 HSE 3 1. 5 Affected Communities surveyed MASON 2 ELECTRICIAN 3 SECRETARY 8 ALLAHOU-BAZI 370 MECHANIC 4 ANGOVIA 493 STOREMAN 3 AKAKRO 145 ELECTRONICIAN
Slide 46: Project Risks
PROJECT RISKS • Community Issues – Employment levels, rates of pay etc. • Wet Weather • National Issues – e.g. October 2020 election • Transport and Logistics – Specifically Port container release times 46
Slide 47: 5. Underground Potential
5. UNDERGROUND POTENTIAL Source: “Perseus Mining Completes Scoping Study for Potential Underground Mine at Yaouré” dated 5 November 2018
Slide 48: Resource Estimation
Resource Estimation • CMA Footwall Lode focus of UG Scoping Study - completed • 3.0Mt @ 6.2g/t for 595koz Resource • 83 Holes intersect Footwall Lode • Resource open north, south, down dip 48
Slide 49: Inferred UG Mineral Resource Estimate
Inferred UG Mineral Resource Estimate • Inferred Resource of 3.0 million tonnes, grading 6.2 g/t gold and containing 595,000 ounces of gold at 2.0 g/t cut-off • Approximately 46% of the Inferred UG Mineral Resource lies between the base of the DFS pit design and the US$1,800/oz pit shell that constr
Slide 50: Scoping Study – Mining Method
Scoping Study – Mining Method • Modified Room & Pillar • Used successfully elsewhere • Most development on ore • 30m crown pillar below pit 50
Slide 51: Scoping Study – Mining Layout
Scoping Study – Mining Layout • 3 Points of pit access • Scoping studies for: – Geotechnical – Hydrogeological – Mining – Metallurgy • Other areas considered: – Vent circuit – Support infrastructure 51
Slide 52: Yaouré Underground – Next Steps
Yaouré Underground – Next Steps • Excellent potential to add resources • Excellent potential to produce Ore Reserve • Exploration program to determine scale of UG potential • Need to determine optimum pit/underground cut-off • Recommend staged implementation strategy – Stage 1 – identify resource po
Slide 53: Underground Strategy – Stage 1
Underground Strategy – Stage 1 • Drill 3 deep holes targeting down dip extension of CMA and Y- type mineralisation ($0.5M) – Identify thickness/grade tenor of CMA deeper down dip – Identify thickness/grade tenor of Y Structures below CMA – Provide reference points for HiSeis survey • Complete HiSeis
Slide 54: Drilling in Stages 1 and 2
Drilling in Stages 1 and 2 Stage 1 Drilling • 3 holes • 3,000m • $0.5M Stage 2 Drilling • 43 holes • 16,400m • $2.25M 54
Slide 55: Underground Strategy – Stage 2
Underground Strategy – Stage 2 • Drill potential CMA area defined in Stage 1 to Inferred – 100m x 100m spaced holes, 43 in total – 16,400m @ average $140/m = $2.25M • Convert Known CMA Inferred to Indicated and Probable Reserve – 115,000m of drilling – $15M total cost • Timing of work dependent on o
Slide 56: 6. Exploration Review
6. EXPLORATION REVIEW
Slide 57: Cautionary Statement
Cautionary Statement Disclaimer No representation or warranty, express or implied, is made by Perseus that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of Perseus, its directors, officers, employees
Slide 58: Yaouré - Regional Geology and Targets
Yaouré - Regional Geology and Targets Degbezere 58
Slide 59: BRGM Exploration
BRGM Exploration 218000 220000 222000 Filion de Akakro 218000 220000 222000 224000 BRGM Exploration Au traces 4 BRGM Au in soil > 200 ppb — Cluff Gold Exploration Au traces CP laterite
Slide 60: Geology
Geology • Two main mineralised systems: Volcaniclastic basin Andesite mass flows, dacite, clastic fan deposits CMA & Yaouré Quartz Porphyry – “CMA” & “Y-type” structures - N-S- Granodiorite trending thrusts Basalt – “S-type” structures - SW-NE- trending conjugated strike-slip faults • Hosted by pill
Slide 61: CMA Mineralisation – Section 775285mN
CMA Mineralisation – Section 775285mN • Prominent deformation zone 221300mE W E • Ductile fabric and brittle fault cataclasites • Multi-stage quartz- carbonate veins ±tourmaline and pyrite alteration • Alteration zone averages 20m thick over 1,000m+ Au >0.4 g/t strike length Altered basalt Basalt •
Slide 62: CMA Mineralisation
CMA Mineralisation Foliated & Carbonate- Extensional multiphase • Multistage quartz carbonate ± Sericite-Tourmaline Quartz-carbonate veins tourmaline altered with disseminated pyrite • Strong, pervasive hydrothermal alteration featuring albite, sericite, pyrite +/- carbonate and silica • Clear demag
Slide 63: Yaouré Mineralisation- Section 777285mN
Yaouré Mineralisation- Section 777285mN W E • Brittle deformation of the granodiorite • Subparallel east- dipping “Y” structures • Subvertical cross- cutting “S” structures • Locally high grade • Bi-Te-Mo metal association – Reduced Basalt Intrusive Related Gold System (RIRG)? Au >0.4 g/t Granodiori
Slide 64: Yaouré Mineralisation
Yaouré Mineralisation Y structures – typically massive S structures – typically laminated Quartz molybdenite vein in granodiorite visible gold common 64
Slide 65: Yaouré Near Mine Targets
Yaouré Near Mine Targets • “High-prospectivity corridors” interpreted from geophysics and soil CMA NE geochemistry GOVISOU • Priority targets include: – CMA Underground extensions – Extensions of the CMA and basin AKAKRO boundary to the NE and NW SAYIKRO – Govisou KKG – Sayikro AKASOU – Akakro – Kon
Slide 66: CMA Underground
CMA Underground • Target CMA Footwall structure down dip, planned second half 2019 • HiSeis 3D survey to define structure at depth and target exploration drilling • Initial Acoustic Impedance studies indicates good seismic reflections characteristics for CMA structure • Stratigraphic holes to tie-in
Slide 67: CMA North East
CMA North East •Possible splays from CMA structure extending beneath thick (up to 20m) transported laterite cuirass – no surface geochemical signature •Over 20,000m aircore drilled to investigate bedrock mineralisation with limited RC and DD follow up •Gold mineralisation intersected in two broad se
Slide 68: Sayikro – Auger Geochemisty
Sayikro – Auger Geochemisty •Prospect defined from regolith interpretation using DTM and airborne mag/rad. •Artisanal workings and gold-in-soil anomalism in erosional/residual regimes. •Possible converging extensions of known Yaouré mineralised bodies (Y1, Y3 and CMA South). •Exceptionally high grad
Slide 69: Exploration Targets – Regional
Exploration Targets – Regional • Soil geochemistry used almost exclusively in targeting • Geophysics acquired (mags, spec) and Govisou interpreted, with ‘high-prospectivity corridors’ defined • Numerous geochem targets and artisanal sites not followed up with drilling so far • Soil anomalies now bei
Slide 70: Allekran – Auger Drilling
Allekran – Auger Drilling • Augering at Allekran returned values up to 3m @ 8.4 g/t (from 4m), 2m @ 1.4 g/t (from surface) and 1m @ 2.1 g/t (from 4m) • Gold occurs at the contact between tonalitic batholiths and basalts • Possibly sits on extension of CMA South West structure 70
Slide 71: Yaouré Exploration Summary
Yaouré Exploration Summary • Despite a long exploration history, significant exploration upside remains at Yaouré • No drilling outside of immediate mine environs and extensions • CMA mineralisation remains open at depth • Geochemistry has been the main driver of exploration targeting to date – gene