Perseus Mining takes final investment decision on CMA underground project at Yaouré

Perseus Mining Limited (ASX/TSX:PRU) is pleased to advise that a Final Investment Decision (FID) has been taken, to develop the CMA underground project at the Yaouré Gold Mine in Côte d’Ivoire.

The FID took into consideration the Ministry of Mines, Petroleum and Energy’s in-principle approval for the project, as announced by Minister Sangafowa Coulibaly on 28 November 2024. This approval marks a critical step towards the start of the CMA underground project which is due to begin in mid-2025 with the development of the first portal.

The commencement of this work remains contingent on the approval of the project’s Environmental and Social Impact Assessment (ESIA) by the Ministry of Environment, Sustainable Development and Ecological Transition, which is currently underway, and the formal granting of a Ministerial Decree, foreshadowed in Minister Coulibaly’s announcement.

Following its FID, Perseus has appointed the Australian specialist underground mining contractor, Byrnecut, as the primary mining contractor for the project. Given that the CMA underground project will become Côte d’Ivoire’s first mechanised underground mine, an important element of Byrnecut’s role will be the training of Ivorian miners in the skills and disciplines of underground mining, particularly safe working practices. Byrnecut who has significant international experience, particularly in West Africa with experience operating in Ghana, Burkina Faso and Mali, is expected to mobilise on site at Yaouré by April 2025.

The combined Measured and Indicated Mineral Resource (per Perseus’s August 2024 ASX Release) for Yaouré is currently estimated at 55.6 Mt grading 1.52 g/t Au, containing 2.7 Moz of gold including 7.4 Mt grading 4.16 g/t Au, containing 0.966 Moz of gold associated with the CMA underground project. A further 17.4 Mt of material grading 1.7 g/t gold, containing 0.926 Moz of gold, including 4.5 Mt grading 3.5 g/t containing 0.51 Moz of gold associated with the CMA Underground Project, are classified as Inferred Mineral Resources (Tables 1 & 2). Total Ore Reserves for Yaouré are estimated at 35.2 Mt grading 1.53 g/t Au, containing 1.73 Moz of gold including 4.9 Mt at 3.51 g/t for 0.56 Moz associated with the CMA underground project (Table 3).

The CMA underground project, when combined with the open pit ore sources, based on the current estimate of Ore Reserves, will extend the Yaouré Gold Mine’s operational life until at least 2035. There is potential for further life extensions through additional discoveries of mineralisation down dip from the currently delineated mineralisation.

The move to underground operations allows further utilisation of the CMA deposit – which has proved to be a reliable foundation of the Yaouré operation to date. At steady state production rates, it is planned that underground ore will represent approximately 20% of the tonnes of ore mined on the site from both open cut and underground operations and will be mined at a rate 700-770kt per annum over the life of the currently defined underground operation. The average underground mining cost will be approximately US$75 per tonne of material mined and the underground operation will contribute close to half of the metal production at Yaouré, during this period.

Preparations for the commencement of underground operations is in progress with recruitment and onboarding of the CMA underground team. Work to establish surface infrastructure, including camp, electrical tie-in and maintenance areas to support the underground operations is progressing well. Open pit mining in the CMA pit has recently exposed the planned underground access locations, these areas are being prepared to make the initial excavation in Q1 FY26. The table below shows the project progress to date.

The approved capital for the development for the CMA Underground is $124.6M (including $2.6M of pre-approved funding). This funding allows for the investment in surface infrastructure servicing the underground operations, mobilisation of underground equipment (including relevant customs and duties payable), underground capital development and capitalised pre-production for the project. The approved budget aligns with the previously communicated cost estimates for the project provided to the market in September 2023 and August 2024.

The majority of the capital expenditure is scheduled for FY26 and FY27 as underground development commences. To date, the Company has incurred $4.1M towards progressing the project, including upgrades to camp facilities and mine services and the order of long lead items, in preparation for the mobilization of the underground contractor in Q1 FY26. The project remains on track with its planned timelines and budgetary requirements, and we look forward to providing further updates as development progresses.

Life of Mine Plans (LOMP) for Yaouré and the Perseus Group

As is Perseus’s normal practice, LOMPs for all of its operations are updated annually as part of its regular budgeting cycle. Typically, these plans are finalised early in the June Quarter of each year as a precursor to preparation of annual budgets for the following financial year commencing on 1 July.

In the June 2025 quarter, Perseus intends to publish consolidated group production and cost forecasts incorporating details from the updated LOMPs for each of its existing and planned mines including Yaouré which will for the first time include the CMA underground project, and the Nyanzaga Gold Mine which is also expected to receive an affirmative FID in the near future. The consolidated plan for the Perseus Group will confirm Perseus’s corporate plan to continue producing between 500-600,000 ounces of gold per year at a cash margin of not less than US$500 for each ounce of gold produced.

Perseus’s Managing Director and CEO, Jeff Quartermaine said:

“Perseus is proud to be playing a pioneering role in Côte d’Ivoire’s mining sector with our affirmative decision to invest in the development of the CMA underground project at our Yaouré Gold Mine. This investment decision reaffirms our commitment to being a long-term partner in the development and production of Minerals Resources in Côte d’Ivoire.

We are particularly grateful to his Excellency, the Minister of Mines, Petroleum and Energy, Monsieur Mamadou Sangafowa Coulibaly, for his continued support and leadership in bringing underground mining to Côte d’Ivoire.

While this represents a new phase for the Ivorian mining sector, members of our technical team have considerable individual experience operating mines in underground settings throughout the world, with a strong commitment to human and environmental safety as well as training of our Ivorian workforce.

Very importantly, with the inclusion of the CMA underground operation into the Yaouré mine LOMP, we will materially extend the life of this mine. Since producing first gold at Yaouré in December 2020 at the height of the COVID pandemic, Yaouré has been become the flagship operation of Perseus’s business and with the decision to proceed with the underground operation, we have ensure that this will continue to be the case for some time to come.”