Yaouré Gold Mine (90%)
The YGM is located in central Côte d’Ivoire, 40km for the capital Yamoussoukro and 6.5km from hydroelectric power and permanent water supplies at Kossou dam and Bandama River. A DFS completed by Perseus in 2017 demonstrated YGM to be an economic, robust and low-cost project. The Project returns an IRR 27% at a gold price of US$1250 per ounce and produces 215,000 ounces per annum at AISC of US$734 per ounce over the first 5 years of an initial, 8.5 year, mine plan.
Development of the YGM commenced in May 2019, using the same development teams (Perseus and Lycopodium) that delivered Sissingué ahead of time and on budget. Development is fully funded through a combination of corporate debt and cash.
Development is on time and on budget with first gold expected in December 2020.
The community engagement model successfully employed at Sissingué will be implemented at Yaouré during construction and into operations. Community consultation, skills assessments, training and employment committee establishment has commenced with 0.5% of the revenue generated by the YGM once in operation will be paid into a Community Development Fund.
The potential to add to the existing mine life at Yaouré is significant. Perseus completed an underground scoping study, in 2018, that clearly demonstrated the potential for underground mining from the base of the CMA open pit on a Resource of 595,000 ounces grading at 6.2g/t, which is open at depth and along strike. Exploration potential around the mine area and regionally is also very high.
Yaouré Key Points
- Economically attractive – NPV 10% US$ 170m, IRR of 27%, 32-month payback period and post development after tax cashflows of US$644m at a gold price of US$1,250 per ounce
- Technically robust – 3.3Mtpa plant with average annual gold production of 215,000 ounces at an AISC of US$734/oz for first 5 years
- Excellent location – 40km from the capital, close to existing infrastructure and skilled labour pool
- Modest capital cost of US$265 million, fully funded by a combination of corporate debt and cash
- Mineral Resources of 3.8 million ounces including 1.56 million ounces of Ore Reserves
- Potential to materially extend current, 8.5 year, mine plan:
- Highly prospective 360 km2 land package
- Underground Scoping Study demonstrated potential viability of underground mining
- Delivering significant value to Perseus’s shareholders from strong long-life cash flows