Sissingué Gold Project
The Sissingué Gold Project is part of the 876sq km Tengrela Gold Project in Côte d’Ivoire and is located 150km south-south-east of the Morila gold mine (7Moz) and 65km west-north-west of Tongon deposit (4.3Moz).
In August 2012, the Côte d’Ivoire government announced the grant of an Exploitation Permit to a Côte d’Ivoire subsidiary of Perseus (Occidental Gold SARL) for the development of the Company’s Sissingué gold deposit.
Resources
While Sissingué is not as advanced as our EGM project in Ghana, drill results have highlighted the significant potential of the project. Sissingué has recorded spectacular results such as 6m at 476g/t Au, 6m at 429g/t Au, 22m at 72.1g/t Au and 8m at 65.7g/t Au. Mineralisation remains open to the north, south and at depth.
An updated Mineral Resource estimate for Sissingué was prepared by Widenbar and Associates in the March Quarter 2013 in accordance with the 2004 JORC Code. There is 0.66Moz of gold reserves, 0.925Moz in the Measured and Indicated categories and 0.29Moz of Inferred gold.
We are targeting a significant increase in the resources at Tengrela during 2012 and beyond, aiming to complete 200,000m of drilling this year. Infill drilling at Sissingué has returned results of 58m @3.1g/t Au, 10m @ 4.9g/t Au and 2.2m at 26.7g/t Au. Recent results from exploration drilling across Tengrela prospects have included 4m @ 33.5 g/t Au at Sissingué East, 14m @ 5.9g/t Au at Podio, 4m @ 10.0g/t Au at Sissingue North and 4m @ 10.0g/t Au from Zing.. Previous results include 37m @ 5.5g/t Au and 36.4m @ 4.0g/t Au at Sissingué, and an intercept of 2m @ 60.6g/t Au at Kanakono, less than 100m from a previous near-surface intercept of 4m @ 42.6g/t Au.
The Podio and Sissingué East prospects are also significant discoveries. Drilling programs at Wora and other prospects are planned to begin in coming months.
Production Strategy
A definitive feasibility study (DFS) for Sissingue was completed in November, 2010 and showed the Sissingué deposit has the potential to become a contributor in our goal to become a 400,000ozpa gold producer by 2013.
Highlights of the Tengrela Feasibility Study included:
- Initial Probable Ore Reserve of 657,000oz of gold (using US$950oz gold price for pit design)
- Production of 340,000oz of gold in first two years of a six-year mine life
- Production planned to commence in 2013 with 178,000 ounces of gold produced in 2013 and 162,000 ounces in 2014
- Cash costs (C1) in the first two years of US$421/oz, with mine life average cash costs of US$505 per oz
- EBITDA of US$221M for first two years of production at US$1,100oz gold price
- Start-up capital cost of US$109 million paid back in 12 months at US$1,100 gold price
- Drilling will continue to expand resources at Sissingué while exploring additional prospects.
