Perseus Mining targets June for completion of Bagoé project feasibility study

PERSEUS Mining has targeted June next year for completion of a definitive feasibility study for Bagoé, a property 70km from its Sissingué mine in West Africa’s Cöte d’Ivoire.

Commenting on the prospect today after completing its acquisition, Perseus said Bagoé could provide additional mill feed for Sissingué, extending the mine life. Drilling is scheduled to begin next month.

“Perseus is now very keen to move forward to prove the financial viability of a development concept for the Bagoé Gold Project and if possible, increase the size of the mineable mineral resource,” said Jeff Quartermaine, MD of Perseus Mining in a statement.

Perseus bought Bagoé via the acquisition for A$60m in shares of Exore. Some 45 million Perseus shares were allocated to Exore shareholders, equal to about 4% of Perseus’ share capital, in a scheme of arrangement that was completed on September 25.

Prior to the transaction, Exore had also decided to buy out minority interests in Bagoe and another property, Liberty, at a cost of $4.5m.

“There is a good deal of work to be done in terms of exploration drilling, evaluation and licensing before the development of Bagoé becomes a proven concept, but we are very confident of achieving a positive outcome,” said Quatermaine.

Times are good for Perseus. The company moved into net cash at the close of its 2020 financial year owing to strong gold prices, especially in the second half, and significant mining cost reductions at its Edikan mine in Ghana.

As of June 30, net cash totalled $19.8m after outstanding debt of $217.7m was brought to account during the 12-month period – most of which was attached to the development of its $265m Yaouré project in Côte d’Ivoire.