Slide 1: Yaouré Gold Project Investor Site Visit Presentation
For personal use only YAOURÉ GOLD PROJECT INVESTOR SITE VISIT PRESENTATION NOVEMBER 2018
Slide 2: Disclaimer
Disclaimer For personal use only 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, officer
Slide 3: Presentation Overview
PRESENTATION OVERVIEW For personal use only 1. History 2. Definitive Feasibility Study (“DFS”) Highlights 3. Front End Engineering Design (“FEED”) Study Review 4. Phase 8 Drilling 5. Underground Potential 6. Exploration Review 3
Slide 4: 1. History
For personal use only 1. HISTORY
Slide 5: Yaouré Project History
Yaouré Project History For personal use only • 1932: First gold discovered – Filon de Akakro; small scale mining • 1987-91: BRGM & discovery of CMA system • 1999-2003: Heap leach operation on CMA – 1.9Mt @ 3.9g/t producing 203koz gold Yaouré CMA North • 2004-07: Cluff Mining acquired Project and beg
Slide 6: 2. Definitive Feasibility Study Highlights
For personal use only 2. DEFINITIVE FEASABILITY STUDY HIGHLIGHTS Source: “Perseus Confirms Quality of Yaouré Gold Project” dated 3 November 2017
Slide 7: 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 with an accuracy of +/- 15% Technically robust - 3.3MTPA plant with average annual gold production of 215,000 ounces
Slide 8: Yaouré Geology
Yaouré Geology For personal use only • 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 t
Slide 9: 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 9
Slide 10: 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.
Slide 11: Metallurgical Testwork Program
Metallurgical Testwork Program For personal use only • 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 optimisat
Slide 12: 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
Slide 13: Comminution Circuit
Comminution Circuit For personal use only 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 Sissi
Slide 14: Processing Plant – Flowsheet
Processing Plant – Flowsheet For personal use only CYANIDE DETOX TANK 14
Slide 15: 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 Cost Area Unit Oxide/HL Transition CMA Y - Basalt Y - Granite LOM Total Labour $/t ore 2.36 2
Slide 16: Mining RFQ and Drill & Blast Assessment
Mining RFQ and Drill & Blast Assessment For personal use only • 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 mi
Slide 17: CMA Pit Cutback Designs
CMA Pit Cutback Designs For personal use only 17
Slide 18: Yaouré Pit Designs
For personal use only Yaouré Pit Designs 18
Slide 19: 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
Slide 20: 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
Slide 21: Infrastructure Layout
Infrastructure Layout For personal use only 21
Slide 22: Tailings Storage Facility
Tailings Storage Facility For personal use only • Total capacity 30Mt • TSF buttressed by a waste dump • Nominal height 80m • Clay lined TSF (revised in FEED) • CN detox in Capital Cost 22
Slide 23: 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 136L/s) • Pit dewatering of run-off and groundwater (Ave 45L/s) • Potable water from bores with filtration, chlorination a
Slide 24: Mining Schedule
Mining Schedule For personal use only • 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 24
Slide 25: 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 25
Slide 26: Gold Production
Gold Production For personal use only • 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 26
Slide 27: 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 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 Fi
Slide 28: 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
Slide 29: 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
Slide 30: 3. FEED Study Review
For personal use only 3. FEED STUDY REVIEW Source: “Perseus Completes Engineering and Design Study for Yaouré Gold Project” dated 11 October 2018
Slide 31: FEED Study - Highlights
FEED Study - Highlights For personal use only VALUE ENGINEERING ASSESSMENT & FEED • 0.4% Increase in Capital Cost from $262.7 M to $263.9 M • +/- 10% tolerance = lower cost risk • Base line schedule completed for Construction execution 21 months Critical Paths identified • Project Management Agr
Slide 32: FEED Study - Layout
FEED Study - Layout For personal use only 32
Slide 33: FEED Study - Isometric
FEED Study - Isometric For personal use only 33
Slide 34: DFS v FEED
DFS v FEED For personal use only 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
Slide 35: Indicative Project Timeline
Indicative Project Timeline For personal use only MILESTONES DESCRIPTION KEY DATE Exploitation Permit 2018 Award Crusher/Mill Contracts Project Approval Board (Strategy Session) November 2018 04-2019 EPC Contract Completed December 2018 Perseus Strategy Session Project Approval Finance (Banks) Janua
Slide 36: Critical Path
Critical Path For personal use only • Exploitation Permit • Design, Construction and Supply Agreements • Bulk Earthworks • Tender and Procurement of Mills • Bulk earthworks – TSF (Seasonal Construction) and Process Plant. • Delivery of the mills. • Installation of mills. • Mill area electrical and I
Slide 37: Early Works
Early Works For personal use only EARLY WORKS ADVANTAGES Description Required Advantage Fence Straight after EP Security/Delineation Diversion Road During Fence installation Replacement Earthworks – Entry As soon as construction begins Upgrade current entry road and community goodwill Roads Camp - C
Slide 38: Revised LOM Inputs Following FEED Study
Revised LOM Inputs Following FEED Study For personal use only • 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 • Processin
Slide 39: LOM Update – Next Steps
LOM Update – Next Steps For personal use only • Update resource model • Update reserve model • Update financial model • Market update of Mineral Resource, Ore Reserve and LOM Plan • Aim for completion in November 39
Slide 40: 4. Phase 8 Drilling
For personal use only 4. PHASE 8 DRILLING
Slide 41: Resource Definition Target Areas
Resource Definition Target Areas For personal use only Intent to: • Convert Inferred to Indicated Resources • Increase confidence immediately next to pit • Sterilise areas of infrastructure • Identify areas for future drilling 41
Slide 42: CMA Pit South Results
CMA Pit South Results For personal use only Hole Intercept CMA Pit South YRC1205D 4m @ 4.88g/t Au from 170m YRC1208D 3m @ 6.31g/t Au from 131m and 9m @ 7.26g/t Au from 139m YRC1209D 3m @ 7.32g/t Au from 162m and 10m @ 7.24g/t Au from 173m YRC1210D 6m @ 7.95g/t Au from 171m YRC1220 26m @ 6.35g/t Au f
Slide 43: CMA Pit North Results
CMA Pit North Results For personal use only Hole Intercept CMA Pit North YRC1223D 14m @ 5.9g/t Au from 208m, including 8m @ 9.65g/t Au from 213m 7m @ 3.51g/t Au from 153m and 12m @ 3.6g/t Au from 218m, YRC1229D including 4m @ 6.89g/t Au from 224m YRC1231D 10m @ 2.2g/t Au from 97m YRC1241D 8m @ 4.56g
Slide 44: Yaouré Pit South Results
Yaouré Pit South Results For personal use only Hole Intercept Yaouré Pit South YRC1249 4m @ 13.1g/t Au from 3m, including 2m @ 24.4g/t Au from 3m YRC1263 14m @ 2.1g/t Au from 10m, including 2m @ 11.1g/t Au from 22m YRC1282 12m @ 2.36g/t Au from 114m YRC1297 10m @ 16.2g/t Au from, 23m including 1m @
Slide 45: Y2 South Pit Results
Y2 South Pit Results For personal use only Hole Intercept Y2 South YRC1300 5m @ 4.77g/t Au from 51m YRC1306 5m @ 11g/t Au from 18m, including 1m @ 35.9g/t Au from 19m YRC1308 8m @ 2.74g/t Au from 32m YRC1311 8m @ 4.58g/t Au from 62m, including 2m @ 10.7g/t Au from 66m YRC1317 4m @ 4.94g/t Au from 81
Slide 46: Sterilisation Drilling
Sterilisation Drilling For personal use only • Drilling completed – Aim to sterilise areas required for infrastructure • All assays received • Some areas sterilised, others not • Further targets identified from latest & previous drilling – CMA South, Angovia 2, Y2 North – Yaouré Pit (inaccessible ar
Slide 47: Sterilisation Plant Site
Sterilisation Plant Site For personal use only Point Hole From To Length Au g/t 1 YAC0754 20 32 12 1.42 2 YAC0767 12 16 4 3.66 3 YAC0105 30 31* 11 1.04 4 YAC0768 40 48 8 1.24 5 YAC0775 50 50* 10 1.96 6 YAC0773 16 20 4 3.62 7 “ 48 50* 2 7.75 8 YAC0771 40 44 4 3.58 9 YRC1198 90 98* 8 3.86 10 YAC1069 5
Slide 48: 5. Underground Potential
For personal use only 5. UNDERGROUND POTENTIAL Source: “Perseus Mining Completes Scoping Study for Potential Underground Mine at Yaouré” dated 5 November 2018
Slide 49: Yaouré Underground Scoping Study
Yaouré Underground Scoping Study For personal use only • Identified the CMA Footwall lode has best UG potential • Estimated Inferred Mineral Resource specific to UG mining • Completed Scoping Study which shows potential viability • Identified drilling and studies required for Prefeasibility • Cost o
Slide 50: Resource Estimation
Resource Estimation For personal use only • CMA Footwall Lode focus of UG Scoping Study • 83 Holes intersect Footwall Lode – ~ 50m x 50m spacing – Sufficient for Inferred Resources • Open north, south, down dip 50
Slide 51: Inferred UG Mineral Resource Estimate
Inferred UG Mineral Resource Estimate For personal use only • 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$1,800/oz
Slide 52: Scoping Study – Mining Method
Scoping Study – Mining Method For personal use only • Modified Room & Pillar • Used successfully elsewhere • Most development on ore • 30m crown pillar below pit 52
Slide 53: Scoping Study – Mining Layout
Scoping Study – Mining Layout For personal use only • 3 Points of pit access • Scoping studies for: – Geotechnical – Hydrogeological – Mining – Metallurgy • Other areas considered: – Vent circuit – Support infrastructure 53
Slide 54: Yaouré Underground – Next Steps
Yaouré Underground – Next Steps For personal use only • Review optimum point for switch from open pit to underground • Incorporate Stage 8 Drilling into evaluation • Review current drilling and PFS cost estimate • Optimise timing for commencement of drilling and PFS PFS Component US$ '000 Geological
Slide 55: 6. Exploration Review
For personal use only Yaouré Gold Project 6. Exploration Review
Slide 56: Cautionary Statement
Cautionary Statement For personal use only 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 director
Slide 57: Yaouré - Regional Geology and Targets
Yaouré - Regional Geology and Targets For personal use only Mafic intrusives Basalts Tarkwaian sediments – magnetic Tarkwaian sediments – non-magnetic Granodiorite & Tonalite Intrusive – granodiorite? Andesitic to Dacitic volcaniclastics Mafic dyke Fault – probable, inferred, uncertain Sayikro 5km 5
Slide 58: BRGM Exploration
For personal use only BRGM Exploration 58
Slide 59: Geology
Geology For personal use only • Two main mineralised systems: Volcaniclastic basin Andesite mass flows, dacite, clastic fan deposits CMA & Yaouré – “CMA” & “Y-type” structures - N-S- Quartz Porphyry Granodiorite trending thrusts Basalt – “S-type” structures - SW-NE- trending conjugated strike-slip f
Slide 60: CMA Mineralisation – Section 775285mN
CMA Mineralisation – Section 775285mN For personal use only • 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 Al
Slide 61: CMA Mineralisation
CMA Mineralisation For personal use only 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 an
Slide 62: Yaouré Mineralisation- Section 777285mN
Yaouré Mineralisation- Section 777285mN For personal use only 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)?
Slide 63: Yaouré Mineralisation
Yaouré Mineralisation For personal use only Y structures – typically massive S structures – typically laminated Quartz molybdenite vein in granodiorite visible gold common 63
Slide 64: Yaouré Near Mine Targets
Yaouré Near Mine Targets For personal use only • “High-prospectivity corridors” interpreted from geophysics and soil CMA NE geochemistry • Priority targets include: GOVISOU – Extensions of the CMA and basin boundary to the NE and NW AKAKRO – Govisou SAYIKRO – Sayikro KKG – Kongonza and SE trend AKAS
Slide 65: CMA North East
CMA North East For personal use only YAC1208 YAC1232 •Possible splays from CMA structure extending YAC1212 7m @ 1.46 g/t YAC1108 5m @ 3.00 g/t From 35m 6m @ 0.43 g/t Inc. 2m @ 7.98 g/t From 30m YAC1205 17m @ 1.09 g/t From 45m beneath thick (up to 20m) transported laterite From 0m YAC1099 5m @ 1.24 g
Slide 66: CMA North East - Line Section
CMA North East - Line 7 Section For personal use only 66
Slide 67: CMA North East – Line Section
CMA North East – Line 11 Section For personal use only • NE-oriented mineralised bodies, shallowly dipping towards SE….possible thrust stacking • Highlights include 14m @ 2.49 g/t under 12m-thick duricrust • Further drilling underway to better define structural continuity 67
Slide 68: Sayikro – Auger Geochemisty
Sayikro – Auger Geochemisty For personal use only YAG0454 2m @ 7.68 g/t •Prospect defined from regolith interpretation (From 4m) using DTM and airborne mag/rad. •Artisanal workings and gold-in-soil anomalism YAG0514 2m @ 41.03 g/t in erosional/residual regimes. (From 0m) •Possible converging extensi
Slide 69: Exploration Targets – Regional
Exploration Targets – Regional For personal use only • Soil geochemistry used almost exclusively in targeting • Geophysics acquired (mags, spec) and Akasou interpreted, with ‘high-prospectivity corridors’ defined • Numerous geochem targets and artisanal sites not followed up with drilling so far • S
Slide 70: Yaouré Exploration Summary
Yaouré Exploration Summary For personal use only • Despite a long exploration history, significant exploration upside remains at Yaouré • No drilling outside of immediate mine environs and extensions • Geochemistry has been the main driver of exploration targeting to date – generally very effective,