Perseus Mining Limited · ASX:PRU

Perseus Mining — Technical Presentation (November 2017)

47 slides from Perseus Mining's technical presentation, Nov 3, 2017

  1. Slide 1: Yaouré Gold Project Definitive Feasibility Study Market Presentation

    For personal use only Yaouré Gold Project Definitive Feasibility Study Market Presentation 3 Nov 2017

  2. Slide 2: Overview

    Overview For personal use only 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  Technically robust - 3.3MTPA plant with average annual gold production of 215,000 ounces at an AISC of US$734/oz for

  3. Slide 3: DFS Completed in 4 Stages

    DFS Completed in 4 Stages For personal use only • Stage 1 – Review & revision of parameters – Option identification & data requirements • Stage 2 – Initial data collection and option evaluation – Shortlist options & data requirements • Stage 3 – Final data collection and option evaluation – Final Pr

  4. Slide 4: Perseus Drilling Program

    Perseus Drilling Program For personal use only • Multiple objectives • Increasing confidence • Reducing risk • Clearing infrastructure • Identify opportunities Drilling Type Metres # Holes Ave Hole Hole Depth Colour Resource Definition Drilling 34,807 364 96 Grade Control Drilling 12,709 417 30 Geot

  5. Slide 5: Resource Drilling – Total Metres

    Resource Drilling – Total Metres For personal use only Metres of drilling Phase Type No. Holes Auger RAB AC RC Diamond Total BRGM RC 82 - - - 5,082 - 5,082 1998 - 2001 Diamond 2 - - - - 155 155 Subtotal 84 - - - 5,082 155 5,237 Cluff RC 676 - - - 45,645 - 45,645 2005 - 2007 Diamond 62 - - - - 6,483

  6. Slide 6: Hole Locations and Geological Domains

    Hole Locations and Geological Domains For personal use only • Infill drilling sufficient for delineation of Indicated Resources • Hole spacing: – CMA and Yaoure 25m x 50m – Drilled in $1,200 pit shell • Previous spacing considered too wide to define Indicated • Prospective areas also targeted • Doma

  7. Slide 7: Section Through Geological Domains

    Section Through Geological Domains For personal use only • Drill orientation predominantly east to west • Optimum for CMA and Y structures (majority of mineralisation) • Oblique to S structures (Drilling ~45° to mineralisation) 7

  8. Slide 8: Yaouré Resource Model

    Yaouré Resource Model For personal use only • 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 8

  9. Slide 9: Mineral Resource Estimate

    Mineral Resource Estimate For personal use only Indicated Resources Inferred Resources Deposit Deposit Quantity Grade Gold Quantity Grade Gold Type Mt g/t gold Moz Mt g/t gold Moz CMA Open Pit 24.8 1.81 1.44 16 1.2 0.6 Yaouré Open Pit 16.5 0.81 0.43 30 0.9 0.9 Sub-Total Open Pit 41.3 1.41 1.87 46 1.

  10. Slide 10: Metallurgical Testwork Program

    Metallurgical Testwork Program For personal use only • Comminution (SMC, Ai, BWI and RWI): – 18 x variability samples (7 in CMA, 6 Yaouré granodiorite, 5 Yaouré basalt) – 5 x composite samples (CMA, Yaouré granodiorite, Yaouré basalt S, Yaouré basalt Y, Oxide) • Flowsheet Development – Grind optimis

  11. Slide 11: Metallurgical Testwork Program

    Metallurgical Testwork Program For personal use only • Ancillary Testwork: – Oxygen uptake – Viscosity – Sequential CIP – Cyanide detoxification – Air /SO2 and Hydrogen peroxide – Thickening • Heap Leach – Standard flowsheet test on each of 5 heap leach composites • Leach Variability – 78 samples: 1

  12. Slide 12: Grind Optimisation

    Grind Optimisation For personal use only Testwork Gravity/Leach Tests at 5 grind sizes: • P80 = 105μm • P80 = 90μm • P80 = 75μm • P80 = 63μm • P80 = 53μm Recovery increases with decreasing grind (Note PFS covered P80 = 250μm – 75μm) Financial Evaluation • Gold = $1,200/oz • Test data (recovery and r

  13. Slide 13: Cyanide Consumption

    Cyanide Consumption For personal use only • Ore is typically “clean” no major cyanide consumers • 78 leach tests – Average consumption = 0.23kg/t – Maximum consumption = 0.39kg/t – Minimum consumption = 0.07kg/t • Operating costs use following additions: – 0.43kg/t for CIL (ensures sufficient free c

  14. Slide 14: Leach Variability

    Leach Variability For personal use only Ore Type No of Tests Head Grade Gravity Recovery Recovery @ 36 Hours Cyanide Consumption / Samples Average Range Average Range Average Range Average Range Oxide¹ 10 2.06 0.64 - 4.11 26.8 6.6 - 73.4 95.3 89.1 - 98.9 0.31 0.25 - 0.37 Transition 8 3.7 1.17 - 10.1

  15. Slide 15: Heap Leach Evaluation

    Heap Leach Evaluation For personal use only Tonnes: CMA 1 0.42 Mt CMA 2 0.75 Mt CMA 3 0.59 Mt Cluff 2.05 Mt E Global 0.26 Mt Reserve: CMA1, CMA2 and E Global are included in the reserve of: 1.4Mt @ 1.14g/t for 52Koz 15

  16. Slide 16: Metallurgical Recovery

    Metallurgical Recovery For personal use only • 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/Volc

  17. Slide 17: Comminution Circuit

    Comminution Circuit For personal use only • Fresh ore is hard Ore Type Unit Grinding Power • Fine grind required • More power than Sissingué and Edikan Oxide kW/t 8.2 – 40% more than Sissingué (106μm grind) Transition kW/t 16.3 – 48-173% more than Edikan (250μm grind) CMA Basalt kW/t 23.1 Yaouré Bas

  18. Slide 18: Processing Plant – Flowsheet

    Processing Plant – Flowsheet For personal use only CYANIDE DETOX TANK 18

  19. Slide 19: Processing Plant – General Specifications

    Processing Plant – General Specifications For personal use only Parameter Unit Value Processing Rate Mt/y 2.5-3.3 Comminution Circuit Type SABC Gravity Circuit Batch Centrifugal with ILR and EW Leach Circuit Hybrid CIL No. of leach tanks 1 No. of adsorption tanks 6 Residence time h 30 Sparging air o

  20. Slide 20: Processing Plant – Equipment Summary

    Processing Plant – Equipment Summary For personal use only Parameter Unit Value Comment Primary Crusher Jaw Metso C140, 800mm top size Crushed Ore Stockpile Conical 24h live and 72h total SAG Mill¹ Grate Disch 8.35m dia x 4.35m EGL Installed Power kW 6,000 Pinion power (nom/max) 4,391/5,700 Speed %N

  21. Slide 21: Processing Plant Layout

    Processing Plant Layout For personal use only 21

  22. Slide 22: Processing Cost Estimate

    Processing Cost Estimate For personal use only • Costs are based on experience from Edikan and Sissingué – Recent contract awards – Operating experience • Costs also from Yaouré specific testwork and quotes • Power $0.128/kWh, Diesel $0.57/L Cost Area Unit Oxide/HL Transition CMA Y - Basalt Y - Gran

  23. Slide 23: Mining RFQ and Drill & Blast Assessment

    Mining RFQ and Drill & Blast Assessment For personal use only • Two stage RFQ process completed with 5 contractors • Drill and blast cost – High powder factors – 5m blasting in ore and adjacent waste – 10m blasting in bulk waste away from ore • Rehandle and grade control based on Edikan/Sissingué 23

  24. Slide 24: Mining Equipment Selection (from RFQ)

    Mining Equipment Selection (from RFQ) For personal use only • Mixed excavator fleet – 100-140 tonne excavator for ore – 200-300 tonne excavator for bulk waste • 100 tonne haul truck (equivalent of Cat 777) – 24 – 30 trucks • Ancillary gear: – Dozers (equivalent of Cat D9R) – Batter excavator – Grade

  25. Slide 25: CMA Pit Cutback Designs

    CMA Pit Cutback Designs For personal use only 25

  26. Slide 26: Yaouré Pit Designs

    For personal use only Yaouré Pit Designs 26

  27. Slide 27: Ore Reserve Estimate

    Ore Reserve Estimate For personal use only Probable Reserve Deposit Deposit Quantity Grade Gold Type Mt g/t gold Moz CMA Open Pit 20.7 1.97 1.31 Yaouré Open Pit 4.7 1.04 0.15 Sub-Total Open Pit 25.3 1.80 1.47 Heap Leach 6 Stockpile 1.4 1.14 0.05 Total 26.8 1.76 1.52 Notes: 1. Numbers are rounded and

  28. Slide 28: Cost/Oz for Components of Ore Reserve

    Cost/Oz for Components of Ore Reserve For personal use only Deposit Mining Processing Gold Cost/oz Costs Costs Production US$ M US$ M koz US$/oz CMA Stage 1 132 120 405 621 CMA Stage 2 146 125 392 689 CMA Stage 3 188 124 386 810 Yaoure North 47 70 112 1,040 Yaoure South 13 16 27 1,065 CMA 1 Heap Lea

  29. Slide 29: Mining Schedule

    Mining Schedule For personal use only • Heap Leach mined first along with CMA CB1 then CB2 and CB3 • Then Yaoure in 2 stages (north and south) • Low grade stockpiles rehandled from year 6 29

  30. Slide 30: Vertical Rate of Advance

    Vertical Rate of Advance For personal use only • Mining rate generally around 5m/month • 2 cutbacks progress at the same time in CMA • Pit mining completed in 6 years then continue with stockpile rehandle only 30

  31. Slide 31: Tonnes and Grade Processed

    Tonnes and Grade Processed For personal use only • 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 31

  32. Slide 32: Gold Production

    Gold Production For personal use only • Gold Production 150koz in Yr 1 then average 230koz/year for next 4 years • Start with HL then high grade CMA processed for first 5 years • Lower grade stockpiles and Yaouré ore from Year 6 to 9 32

  33. Slide 33: Surface Water Management

    Surface Water Management For personal use only • Detailed design complete – Runoff diversion – Sediment dams • No surface pumping required • Pit dewatering requirements estimated 33

  34. Slide 34: Groundwater Management

    Groundwater Management For personal use only • Groundwater model based on mining Pit Groundwater Inflows (In-Pit Sumps) and Dewatering Bore sequence • Drawdown of village wells assessed • Inflows into pit and from bores determined • Pumping requirements designed and costed • No impact from Lake Koss

  35. Slide 35: Geotechnical Design

    Geotechnical Design For personal use only • Structural assessment completed • Weathering profile carefully logged • Slope dewatering consistent with hydrology • Presplit/trim blast CMA east/north walls • Walls are steep due to high quality rock mass Bench height Batter slope Berm width Inter-ramp Mi

  36. Slide 36: Infrastructure and Utilities

    Infrastructure and Utilities For personal use only • 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 su

  37. Slide 37: Infrastructure Layout

    Infrastructure Layout For personal use only 37

  38. Slide 38: Tailings Storage Facility

    Tailings Storage Facility For personal use only • Total capacity 30 Mt • TSF buttressed by a waste dump • Nominal height 80m • Clay lined TSF • CN detox allowed for 38

  39. Slide 39: Water Supply and Balance

    Water Supply and Balance For personal use only • Overall water balance is negative • Water storage dam required in dry season (800k m³) • Water extracted from Bandama River – Max ~ 140L/s in dry season with high oxide in feed • Pit dewatering of run-off & groundwater (Ave 45L/s) • Potable water from

  40. Slide 40: Geochemistry (Waste Characterization)

    Geochemistry (Waste Characterization) For personal use only • Geochemical analysis of waste, ore & tailings not problematic • Vast majority of waste rock acid consuming or non acid forming • Low risk of significant acid generation from waste rock • Closure costs for basic cover systems sufficient 40

  41. Slide 41: G&A Cost Estimate

    G&A Cost Estimate For personal use only • Costs are based on experience from Edikan and Sissingué – Recent contract awards, operating experience • Costs also from Yaouré specific quotes • Includes labour, Abidjan office, insurances, minor contracts, community, security, OHS&E, vehicles, HR • $3.45/t

  42. Slide 42: Development Capital Estimate

    Development Capital Estimate For personal use only 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

  43. Slide 43: Sustaining Capital Estimate

    Sustaining Capital Estimate For personal use only • 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 Modific

  44. Slide 44: Annual Costs and Physicals

    Annual Costs and Physicals1 For personal use only Unit -1.5 -1 1 2 3 4 5 6 7 8 9 LOMP Ore mined Mt - - 2.75 4.38 4.37 3.35 6.64 3.83 - - - 25.3 2 Waste Mined M - - 29.08 23.84 24.33 25.49 22.01 8.93 - - - 133.7 Total mined Mt - - 31.84 28.22 28.71 28.84 28.65 12.77 - - - 159.0 Strip ratio t:t - - 10

  45. Slide 45: Gold Price Sensitivities

    Gold Price Sensitivities For personal use only Gold Price IRR1 Payback NPV (US$ million) (US$/oz) (%) (Months) NPV5 NPV10 1,100 15 44 111 50 1,150 19 39 160 90 1,200 23 35 210 130 1,250 27 32 259 170 1,300 30 30 302 205 1,350 33 28 351 245 1,400 36 26 400 284 1 After ta x, ungea red, rea l i nterna

  46. Slide 46: Near-mine Potential

    Near-mine Potential For personal use only Magazine • Numerous targets identified Plant Site • Some close to infrastructure • Some targets could Govisou Zone North convert Inferred to Indicated Angovia 2 • Some targets could add resources CMA South and/or reserves • Prioritised program Kongonza SE pl

  47. Slide 47: Disclaimer and competent person statement

    Disclaimer and competent person statement For personal use only • 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 developme

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