After acquiring the tenure in mid 2006, we have increased gold resources from less than 1Moz to 3.4Moz of Indicated and 2.7M oz of Inferred resources by April 2009.

The project has significant upside for further resource growth and we aim to complete over 100,000m of drilling on the CAGP during 2010 to significantly expand both the reserves and resources. We aim to add 500,000 ounces each year for the foreseeable future as well as making at least one new discovery each year.

We are planning to complete the next significant resource upgrade for the CAGP in Q3 this year. 

A detailed feasibility study completed in July 2009 estimated:

• initial proven and probable gold reserves of 2.13 million ounces;
• production averaging 220,000oz p.a. in the first four years;
• cash costs (including government royalties) of US$494 per ounce.

This feasibility study was based on mining three of the eight resource areas at CAGP. Drilling is under way to enable completion of a phase 2 feasibility study upgrade, which will include all of the resource areas on the CAGP. 

We remain on target to commence production in 2011. We have received the necessary environmental permits, which have allowed site works to commence. We will soon be in a position to provide an update to the project development timeline.

We have mandated Macquarie Bank and Credit Suisse to jointly provide a project loan facility and gold hedging facility for the CAGP. We have received a joint mandate letter accompanied by an indicative letter of offer for a US$85 million project loan facility and minimum 150,000 oz gold hedging facility, in addition to the gold put options previously acquired by Perseus for the CAGP.

The offer is subject to the usual conditions for a financing of this nature, including completion of due diligence and the requirement to negotiate final commercial terms acceptable to the parties.

We have received two 15 year mining leases covering a total area of 93.13sq km and employed key operational personnel.

The CAGP mining leases are underlain by Birimian metasediments and metavolcaniclastics which are intruded by intermediate granitoids.  The adjoining exploration licences cover a broader section of Ashanti belt lithologies including Birimian metasediments, metavolcaniclastics, volcanics and Tarkwaian epiclastics and intrusives.