200,000 oz/gold

Production Capacity

13 years

Life of Mine

3.34 million oz/gold

M&I RESOURCES*

2.85 million oz/gold

P&P Reserves*

Block 14 Project – Sudan

70% owned by Perseus

The Block 14 Gold Project, located in northern Sudan, has the potential to be a valuable large, long-life gold mine for Perseus. Perseus acquired Block 14 in May 2022 and over the coming year will complete infill drilling, revisit the feasibility study and engineering, prepare its own resource and reserve estimate, and complete a FEED study in readiness for a final investment decision in 2023.

*The estimates set out above are foreign estimates as defined in the ASX Listing Rules which are not reported in accordance with the JORC Code and are historical estimates as defined in Canadian National Instrument 43-101. A competent person/qualified person has not done sufficient work to classify the estimates as mineral resources or ore reserves in accordance with the JORC Code or as current mineral resources and mineral reserves in accordance with NI43-101.

There is no certainty that after further evaluation and/or further exploration work that the estimates will be able to be reported as mineral resources and ore reserves in accordance with the JORC Code.
Perseus is not treating the estimates as current estimates.

Project Overview

The Block 14 Gold Project sits on the Arabian-Nubian Shield (ANS), close to Sudan’s northern border near Egypt, around 900 kilometres north of the capital Khartoum. The exploration license covers two main deposits – Galat Sufar South and Wadi Doum – and covers 1,000 square kilometres. Perseus has a 70% interest in the project, with the Government of Sudan holding a 20% stake and Meyas Nub, a local Sudanese enterprise, holding a 10% stake.

Although Sudan is one of the largest producers of gold in Africa, much of this is driven through unregulated, artisanal mining. The country is relatively under explored using modern exploration techniques. Perseus considers there to be significant exploration potential in the region and sees opportunity in being one of the first to develop a large-scale, long life commercial gold mine in Sudan.

The Project has strong support from the Sudanese government and is fully permitted, including the Mining Lease, Royalty Agreement and Water Permit.

Over the next 12 months, Perseus will be conducting infill drilling, revisiting the Feasibility Study and Engineering, and preparing its own resource and reserve estimates before preparing a FEED study to enable a final investment decision in 2023.

PROJECT LOCATION MAP

2012

Joint venture agreement signed with Meyas Nub, Orca holding 70% interest Galat Sufar South (GSS) deposit discovered Exploration drilling campaign kicked off by Orca to refine understanding of resource and reserves

2014

Maiden Resource reported for GSS

2015

Updated Resource incorporating the Wadi Doum deposit

2016

Preliminary economic assessment published

2017

Water resource discovered

2018

Block 14 Feasibility Study released by Orca

2020

Feasibility Study Revised by Orca

2022

Perseus Acquisition of Orca Gold and the Block 14 Project Future

2022

Pre-commitment funding for drilling to further firm up resource and assist in finalising study

2023

Preparation of FEED study for final investment decision

Geology

The geology of Block 14 is dominated by two distinct geological domains ‐ the andesite dominated Gabgaba terrain of the Arabian Nubian Shield (ANS) to the east and the marine sediments of the Keraf Suture in Western Gabgaba, separated by the Eastern Gabgaba Fault System (EGFS). The central part of the licence is dominated by the Northern Gabgaba Graben, a downthrown portion of the Keraf that has been infilled by recent clastic sediments.

The geological framework of the Gabgaba terrain is relatively simple – the andesitic sequence is un-foliated and preserves its original mineralogy and textures and does not display evidence of folding. Where recognised, the primary layering in the volcano‐sedimentary rocks is east‐west.

The Keraf sediments are a thick sequence of folded / thrusted marine sediments dominated by pelites, marls and limestone units, with localised occurrences of coarser grained siliciclastic sediments. This is a significant geological formation in the region occurring along the length of the Keraf Suture. The Galat Sufar Andesite domain is an anomalous inlier of andesitic volcanic rocks within the thick sequence of Keraf sediments. It is interpreted as a doubly plunging antiform created by complex inference folding, which exposes the andesitic volcanic‐sedimentary rocks underlying the shallow marine sediments. It is within this andesite domain that the Galat Sufar South deposit is located.

Galat Sufar South

The GSS deposit is located in the central portion of the Galat Sufar Andesite Domain. The GSS deposit is located just south of the contact between marine sediments to the north (a remnant of the Keraf sediments) and an andesitic volcanic sequence to the south. The andesitic sequence is heterogeneous comprising lava flows, pyroclastic deposits and primary volcanic breccias.

Of importance to deposit formation, the andesite sequence contains a discrete 80 to 200 metre wide volcaniclastic‐sedimentary horizon which contains dioritic sills / dykes. Mineralisation and alteration are concentrated in this unit, which is bordered to the north and south by increasingly unaltered andesitic flows and further volcaniclastics.

The host unit has been sequentially and intensely altered by the addition of albite, sericite, silica and lastly carbonate. Alteration grades from largely unaltered andesitic lavas and volcaniclastic host rocks to strongly altered and foliated silica – sericite schists in which the protolith cannot be identified. Pyrite is by far the most dominant sulphide with chalcopyrite, sphalerite, galena, tennantite / tetrahedrite occasionally seen in core and confirmed in petrological investigation. Gold is fine grained, typically less than 40 μm. With 95% of the gold being free gold, the remainder occurs as petzite. The gold contains ± 20% silver.

The dominant foliation at the prospect scale (S1) is pervasively developed throughout the GSS deposit area. It is sub‐vertical and strikes towards the NW (330° ‐ 340°) at moderate to high angles to the orientation of the mineralised unit.

Wadi Doum (WD)

The main, high-grade mineralization at WD outcrops at the base of a hill and is hosted by a strongly sulphidic volcaniclastic unit, which is in contact with a distinct rhyolite unit to the immediate east. The volcanoclastic unit dips at an angle of 20° to the southwest. This rhyolite is bounded to the east by a dacitic unit intruded by syn‐tectonic syenite / potassium altered diorite body which forms the summit of the main hill.

These lithologies are cut by thin (less than 0.75 cm), late, un‐mineralized felsic and mafic dykes. In contrast to the volcaniclastics, the rocks on the hill dip 75° to the east. Mineralization on the hill is associated with stringer zones within the syenite and in places smaller shears.

The high-grade mineralization is hosted within the volcanoclastic units which are confined by late felsic and mafic dykes. The mineralization is divided into a western volcaniclastic unit characterized by a dark colour caused by very fine-grained sulphides ( greater than 10 to 15%), which contains some of the best intercepts and a central unit of paler, sulphide rich felsic volcaniclastics which contain deformed sulphide veinlets and a lower grade footwall unit of largely un‐deformed felsic volcaniclastics. The dominant sulphide is pyrite (85% in Qemscan analysis) with the remainder comprising a mix of sphalerite, galena, chalcopyrite and freibergite.

Alteration is confined to sericitisation within the felsic volcanics and a wider halo of carbonate alteration. Silicification is noticeably absent or weak within the high-grade part of the deposit (hence its location at the base of the hill.

The area is dominated by a strong and pervasive, north‐south trending schistosity, which is largely followed by the late dykes. The high-grade mineralization often appears un‐affected by structure, whereas the mineralization hosted by the syenite on and around the summit of the hill does appear structurally controlled.

Resources

Orca Gold updated the Mineral Resource Estimate in September 2018, verified by independent consultant MPR Geological Consultants of Perth, Western Australia.

RESOURCES* Mt Au g/t ,000 oz

Indicated

79.9
1.30
3,342

Inferred

18.5
1.2
711
*Notes:
  1. Mineral Resources are as defined by the 2014 CIM Definition Standards for
  2. Mineral Resources and Mineral Reserves
  3. Mineral Resources are inclusive of Mineral Reserves
  4. Mineral Resources are reported above a cut-off grade of 0.6g/t
  5. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
  6. Mineral Resources were estimated as of 29 January 2018
  7. Mr N Johnson was the Independent Qualified Person for Resource estimation being an employee of MPR Geological Consultants

The Mineral Resource has been estimated using the results of 111,761 metres of drilling in 756 holes completed between November 2012 and August 2018.

Reserves

Orca Gold updated the Block 14 Mineral Reserve in November 2018. The Mineral Reserve estimate is reported using topographic surfaces with no allowance for depletion by historic artisanal mining, which is considered to have a minor impact on the reported estimate.

RESERVES* Mt Au g/t ,000 oz

Probable

79.9
1.11
2,854
*Notes:
  1. Mineral Reserves are as defined by the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves
  2. Mineral Resources are inclusive of Mineral Reserves
  3. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability
  4. Mineral Reserves were estimated as of 7 November 2018
  5. Mr C Reardon was the Independent Qualified Person for reserves being an employee of Deswik Europe Ltd

The estimates set out above are foreign estimates as defined in the ASX Listing Rules which are not reported in accordance with the JORC Code and are historical estimates as defined in Canadian National Instrument 43-101. A competent person/qualified person has not done sufficient work to classify the estimates as mineral resources or ore reserves in accordance with the JORC Code or as current mineral resources and mineral reserves in accordance with NI43-101.

There is no certainty that after further evaluation and/or further exploration work that the estimates will be able to be reported as mineral resources and ore reserves in accordance with the JORC Code.

Perseus is not treating the estimates as current estimates.

Sustainable Development

The Block 14 project will be developed in alignment with Perseus’s Sustainable Development Framework. We believe – and are committed to demonstrating – that responsible gold mining can play a progressive role in the sustainable development of emerging markets, such as Sudan, and deliver sustainable returns to all stakeholders.

We seek to work as a trusted partner with community and government, respecting local culture and managing risks and opportunities associated with our activities to deliver enduring prosperity and lasting benefits through employment, education and training, social investment and community development, providing opportunities for local businesses, and improvement of social infrastructure. These include:

  • Workforce: If developed, there will be a range of employment opportunities over the course of the development and future operation of the project. We will seek to maximise employment of Sudanese people in line with our local employment commitments.
  • Local Procurement: If developed, there will be a range of opportunities for Sudanese businesses over the course of the development and future operation of the project. Perseus will seek to put procurement programs in place to maximise local and regional content by creating partnerships and prioritising local businesses, supporting their sustainable growth and capacity building.
  • Economic Contribution: Beyond the benefits provided through employment, capacity building and local procurement, Perseus’s economic contribution to our host countries includes payment of local salaries, taxes, and royalties. In the case of the Block 14 Project, the Sudanese Government holds a 20% stake in project and will benefit from any future project revenue.
  • Community: Perseus will continue to work with Meyas Nub Multi-Activities Co Ltd. (Meyas-Nub), the local partner in Sudan and a 10%-owner of the Block 14 Gold Project. Meyas-Nub is a local Sudanese company based in Abu Hamad area in the River Nile State. The company has supported Orca Gold’s exploration of the Block 14 concession and is also engaged in agricultural and mining activities in the region.

Opportunities for community investment will be reviewed during the FEED study, with a focus on advancement of the United Nations Sustainable Development Goals and enduring and sustainable benefits. Find out more about our Community Approach in our Sustainable Development section.

  • Water: The Project has a 980 square kilometre permitted fresh groundwater resource, 90 kilometres from the Company’s concession, with Measured Water Resource of 80-100Mm3. Based on studies completed to-date, around 12,500m3/day of water is required for the life of mine, and the water resource is sufficient to support a mill throughput of 6.0Mtpa.

Find out more about our approach to Environment and Responsible Operations in our Sustainable Development Section.

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DISCLAIMER

The Information in this section in relation to the Block 14 Project is contained in a technical report (“Feasibility Study”) entitled “Feasibility Study, NI 43-101 Technical Report, Block 14 Gold Project, Republic of Sudan” prepared by Lycopodium Minerals Pty Limited on behalf of Orca Gold Inc effective as at 31 August 2020. As such, any mineral resource and ore/mineral reserve estimates included in this section are foreign estimates as defined in the ASX Listing Rules and historical estimates as defined in Canadian National Instrument NI43-101 and are not reported as current Perseus estimates.

The Feasibility Study includes key assumptions for commodity prices, gold mining and processing costs, and there have been no material changes in assumptions. The Feasibility Study in its current form is considered to be a comprehensive compilation of all available data applicable to the estimation of mineral resources and ore/mineral reserves. A summary of key assumptions and methods used to prepare the estimates include:

– Resource Estimation calculated using the Multiple Indicator Kriging method

– Economic assumptions include (i) a US$1,350/oz gold price, (ii) US$19.78/tonne average total cash cost, (iii) US$21.99/t average all in sustaining cost, (iv) 82% metallurgical recoveries, and (v) a 7% government royalty

– The estimates are based on 66,819 metres of RC drilling in 520 drill holes plus 21,531 metres of core drilling in 88 drill holes at Gulat Sufar South deposit and 13,835 metres of RC drilling in 114 drill holes plus 1,852 metres of core drilling in 8 drill holes at Wadi Doum deposit.

The estimates have not been superseded by any later estimates and Perseus is not in possession of any new information. Perseus believes the categories of the CIM compliant mineral resource estimation reported under NI 43-101 are similar to the JORC Code (2012 edition) classifications. They are a ‘qualifying foreign estimate’ as that term is defined in Chapter 19 of the ASX Listing Rules.

Perseus considers the estimates to be material to Perseus, given its intention, through the acquisition of Orca to contribute funding to continued exploration activity and advancement of the asset through additional drilling, future mineral resource estimation updates and economic studies.

Perseus also believes that the estimates are relevant to Perseus’s shareholders as they provide an indication of the mineralisation and the potential of the Block 14 Project at the time of the acquisition of Orca.

Based on the information received by Perseus to date in relation to the Block 14 Project, physical inspection of the project sites, discussions with Orca’s technical and administrative personnel and assessment of the key criteria as defined in Table 1 of the JORC Code 2012, the reliability of the estimates has been addressed in the due diligence completed by Perseus and their independent geological consultants. Perseus therefore believes that the estimates are sufficiently reliable with estimation methodologies and data compilation work acceptable for methodologies used at the time of their estimation to provide the basis for a decision to assess the property to have merit for further exploration expenditure.

The estimates are not reported in accordance with the JORC Code and a competent person has not done sufficient work to classify the estimates as mineral resources and ore reserves in accordance with the JORC Code.

There is no certainty that after further evaluation and/or further exploration work that the estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code.

Perseus intends to undertake an evaluation of the data and initiate further exploration work planned for the Block 14 Project to underpin its own mineral resource and ore/mineral reserve estimate in accordance with the JORC Code and NI43-101 that will include selective infill drilling to increase confidence in estimates of resources at depth and convert proximal Inferred Mineral Resources to Indicated category. Perseus also intends to undertake a review of the capital and operating costs to be consistent with latest market conditions, complete additional geotechnical, hydrological and metallurgical studies to further optimise infrastructure and mine design, review water supply and power options, including the use of renewable solar energy, complete further TSF studies to optimise design and maximise water recovery, optimise grind size and CIL recovery methods, complete further sterilisation drilling in the areas of infrastructure as part of a Front End Engineering and Design (FEED) Study to reduce risk and/or improve technical and financial outcomes. The FEED Study is expected to take 9 months to be completed and cost approximately $3M.

It will take approximately 12 months to complete our own resource and reserve estimates and cost approximately $15M. The work is expected to be completed simultaneously with the FEED study with later completion, as the work is not expected to materially impact the design of key infrastructure resulting from the FEED Study.