Modern Mining March 2020

GOLD

Meanwhile, 0,5% of future revenue from Yaouré will be paid to the Community Development Fund (CDF) which is managed by the Comité de Développement Local Minier (CDLM) which com- prises government and community representatives. Project in detail Yaouré was acquired in April 2016 when Perseus took over Amara Mining PLC. Perseus completed a definitive feasibility study (DFS) in October 2017, demonstrating that the project had strong eco- nomics with an internal rate of return (IRR) of 27% and a 32-month payback period at a gold price of US$1 250/oz. Since the completion of the DFS, Perseus has completed a FEED study, contracted Lycopodium to construct the plant, secured funding, obtained the exploitation permit and commenced construction. Yaouré holds three exploration permits in a region covering 360 km². The exploitation permit PR397 covers a 53 km² area. Perseus owns a 90% interest in Perseus Mining Yaouré SA, owner of Yaouré, with the other shareholder being the government of Côte d’Ivoire with a 10% free carried interest. Proved and probable ore reserves total 27-mil- lion t, grading 1,8 g/t gold containing 1,56-million oz of gold inclusive of 2,1-million oz of Measured and Indicated Resources, as at 30 June 2019. Yaouré’s life of mine gold production totals 1,4-million oz at an AISC of US$759/oz over 8,5 years. Exploration potential is significant including an initial underground Inferred Resource of 595 koz grading 6,2 g/t gold. Yaouré lies within the eastern half of the infor- mally named Bouflé greenstone belt in central Côte d’Ivoire. The belt is a north-north-east-trending assemblage of Palaeoproterozoic volcanic, sedimen- tary and intrusive rocks of the Birimian Supergroup. Geology and mining The CMA zone is a relatively continuous 20 – 45 m thick fault zone featuring quartz-carbonate

community relations has been a key area of focus for Perseus. The project has strong community sup- port and Perseus anticipates that this will strengthen as development activities commence and greater benefits flow to the local population. The success- ful model for community engagement employed at Sissingué has been implemented at Yaouré. “The project currently employs approximately 1 300 to 1 500 people on site, 89% of whom are Ivorian and 54% from the local communities,” explains Grove. “We established a Community Consultation Committee, comprising representatives from all the affected villages, through which all local employment opportunities and communications are conducted.” Perseus is currently undertaking community and youth training programmes, including welding and heavy equipment operation. Most of these trainees have already gained employment on the construc- tion project. There are four directly affected communi- ties, namely Akakro, Angovia, Allahou Bazi and Kouakougnanou. No relocation was required for the development of the project as it lies within a pre- viously disturbed mining site. However, Perseus is finalising land and crop compensation payments ahead of commencing operations.

The tailing storage facility site has been fully cleared and grubbed.

The release of rooms in Perseus’ self-performed camp is due for the end of March this year.

20  MODERN MINING  March 2020