Edikan Gold Mine

Ghana

Edikan Gold Mine (90%)

The Edikan Gold Mine (EGM) is a large-scale, low-grade open-pit operation located on the prolific Ashanti Gold Belt, Ghana, which has a gold endowment of more than 170 million ounces. Perseus developed the EGM, with first gold being produced in 2011 and the mine has since produced more than 1.4 million ounces of gold. Remaining Reserves total 1.39 million ounces of gold at a grade of 1.16g/t.

 

Edikan was Perseus’s first mining operation which commenced production in 2011. The EGM is located in south western Ghana within the Ashanti Gold Belt. Gold ore is sourced from several open-pit mines and processed through a centralised 6.5 million tonnes per annum processing facility which produces between 180,000 and 200,000 ounces of gold per annum at an average AISC of US$950 per ounce.

At Edikan, 98.5% of our employees are Ghanaian including 41% from the local communities, reflecting the deep knowledge and skill base within Ghana.

Strong community relations are managed through regular communication, various committees and involvement in many community projects and activities. Perseus established the Edikan Trust which also funds community-initiated projects.

Exploration and mining studies at Esuajah South and Esuajah Gap are ongoing and have potential to extend the current six-year mine plan. 

In 2019, Perseus signed an option agreement with local Ghanaian company, Adio-Mabas Ghana Ltd, to acquire the 23.85sq km Agyakusu Prospecting License, PL 2/177, that adjoins Perseus’s Edikan mining leases, and is located between 2km and 8km from the Edikan processing facility. Exploration success at Agyakusu could potentially extend Edikan’s mine life.

Edikan Key Points

  • Economically attractive – US$950 per ounce all-in site cost and US$264M after tax cashflow at a gold price of US$1,250 per ounce
  • Technically robust – operating and processing costs and parameters known, resource/mill reconciliation performance well understood
  • Minimal incremental capital – all major capital works complete only incremental TSF lifts remaining
  • Mineral Resources of 3.0 million ounces including 1.39 million ounces of Ore Reserves with a grade of 1.16g/t
  • Potential to extend current, 6 year, mine plan through near mine exploration and inclusion of known Resources and Reserves into the mine plan
  • Delivering significant value to Perseus’s shareholders from strong ongoing cash flows