Perseus Mining's Increased Mineral Resources & Ore Reserves Across African Gold Operations

• Perseus Mining reports increase in total Measured and Indicated Mineral Resources to 115.9 Mt at 1.31 g/t gold, containing 4.9 Moz, compared to the June 2023 estimate of 122.8 Mt grading at 1.31 g/t Au for 5.2 Moz of gold.
• The group's Proved and Probable Ore Reserves now stands at 64.9 Mt at 1.39 g/t gold, containing 2.9 Moz.
• Significant growth is also expected at the company's Yaouré Gold Mine, including new Zain 1 deposit and CMA underground potential.
• Continued success in replacing depleted reserves is the focus through exploration and development, gaining strong foundation for future production growth and mine life extension across all operations.

Perseus Mining Limited (ASX:PRU) is an Australian-based gold producer, developer, and explorer operating three gold mines across two West African countries. With a focus on responsible and sustainable mining practices, Perseus has established itself as a significant player in the region's gold industry. The company's flagship operations include the Edikan Gold Mine in Ghana, and the Sissingué and Yaouré Gold Mines in Côte d'Ivoire. Perseus's strategy revolves around optimizing existing operations, developing new projects, and exploring for future growth opportunities to create value for shareholders and local communities alike.

Mineral Resource & Ore Reserve Update: Growth and Operational Excellence

Perseus Mining's latest Mineral Resource and Ore Reserve update, as of June 30, 2024, demonstrates the company's continued success in growing its asset base and replacing depleted reserves. The report highlights the robust nature of Perseus's operations and the potential for future expansion across its portfolio.

Group Mineral Resources

The company reported total Measured and Indicated Mineral Resources of 115.9 million tonnes (Mt) grading 1.31 grams per tonne (g/t) gold, containing 4.9 million ounces (Moz) of gold. This represents a slight decrease from the previous year's estimate of 122.8 Mt at 1.31 g/t for 5.2 Moz, primarily due to mining depletion and updated resource models. However, the overall grade remains consistent, indicating the quality of the company's assets.

Additionally, Inferred Mineral Resources stand at 24.1 Mt grading 1.6 g/t gold for 1.3 Moz, showing an increase in both tonnage and contained ounces compared to the previous year. This growth in Inferred Resources provides a pipeline for potential future conversion to higher confidence categories.

Group Ore Reserves

Perseus's Group Proved and Probable Ore Reserves now stand at 64.9 Mt at 1.39 g/t gold, containing 2.9 Moz of gold. While this represents a decrease from the previous year's 73.8 Mt at 1.45 g/t for 3.4 Moz, it's important to note that this change accounts for mining depletion and reflects the company's ability to replenish a significant portion of its reserves through exploration and development activities.

Yaouré Gold Mine: The Growth Engine

The Yaouré Gold Mine in Côte d'Ivoire continues to be a standout performer for Perseus, with several notable developments:

• Zain 1 Deposit: The discovery and initial Ore Reserve estimate for the Zain 1 deposit adds 1.5 Mt at 1.12 g/t gold for 52,000 ounces to the Yaouré inventory. This near-surface deposit, located between the CMA pit and the processing plant, demonstrates the potential for continued resource growth through targeted exploration.
• CMA Underground Potential: The CMA underground project shows promise, with an updated Ore Reserve of 4.5 Mt at 3.52 g/t gold for 507,000 ounces. While this represents a reduction from previous estimates, it reflects a more robust and potentially more profitable underground mining scenario.
• Open Pit Reserves: The CMA and Yaouré open pits continue to provide a solid foundation, with combined Probable Ore Reserves of 19.9 Mt at 1.43 g/t gold for 918,000 ounces.

Edikan Gold Mine: Steady Performance

The Edikan operation in Ghana maintains its position as a cornerstone asset for Perseus:

• Mineral Resources: Total Measured and Indicated Resources of 51.5 Mt at 1.04 g/t gold for 1.7 Moz, with an additional 6.4 Mt at 1.5 g/t gold for 317,000 ounces in the Inferred category.
• Ore Reserves: Proved and Probable Reserves of 25.4 Mt at 1.11 g/t gold for 909,000 ounces, providing a solid base for continued production.
• Nkosuo Deposit: The Nkosuo satellite deposit contributes significantly to Edikan's future, with Probable Reserves of 13.6 Mt at 0.92 g/t gold for 402,000 ounces.

Sissingué Gold Mine: Maximizing Value

The Sissingué operation, including the Bagoé Project, continues to deliver value:

• Mineral Resources: Total Measured and Indicated Resources of 8.7 Mt at 1.57 g/t gold for 441,000 ounces, with a small Inferred Resource of 0.2 Mt at 1.4 g/t gold for 11,000 ounces.
• Ore Reserves: Proved and Probable Reserves of 4.3 Mt at 1.82 g/t gold for 254,000 ounces, reflecting the higher-grade nature of this operation.
• Satellite Deposits: The inclusion of reserves from the Bagoé Project (Antoinette, Juliette, and Veronique deposits) adds to the life-of-mine plan for Sissingué.

Exploration & Growth Potential

Perseus's success in organic growth is evident through its exploration activities:

• Near-Mine Exploration: Continued focus on near-mine exploration has yielded results, such as the Zain 1 deposit at Yaouré and the ongoing evaluation of the CMA underground potential.
• Regional Exploration: The company maintains an active regional exploration program across its tenements in both Ghana and Côte d'Ivoire, aiming to discover new deposits and extend the life of existing operations.
• Project Pipeline: With a mix of open pit and underground opportunities, Perseus is well-positioned to sustain and potentially grow its production profile in the coming years.

Operational and Financial Implications

The updated Mineral Resource and Ore Reserve estimates have several implications for Perseus's operations and financial outlook:

• Production Sustainability: The ability to replace depleted reserves, particularly at Yaouré, demonstrates the company's potential to maintain its production profile in the medium term.
• Cost Management: With a focus on higher-grade deposits and potential underground operations, Perseus may be able to optimize its cost structure and maintain competitive all-in sustaining costs (AISC).
• Capital Allocation: The company will need to balance investment in exploration and development of new deposits with returns to shareholders and maintenance of existing operations.
• Mine Life Extension: The addition of new reserves and resources, particularly at satellite deposits, provides opportunities to extend the life of mines across the portfolio.

Environmental, Social, & Governance (ESG) Considerations

Perseus continues to emphasize responsible mining practices. The company reports no significant environmental issues that would impede continued operations or development of new projects. For community relations, ongoing engagement with local communities and stakeholders remains a priority, with community development initiatives in place across all operations. Perseus maintains transparency in its reporting and adheres to international standards for resource and reserve estimation, including JORC Code 2012 and NI 43-101 compliance.

Key Takeaways

For investors considering Perseus Mining, the latest Mineral Resource and Ore Reserve update presents a compelling case for the company's future prospects:

• Asset Quality: The consistent grades across the portfolio and the addition of new, higher-grade deposits demonstrate the quality of Perseus's asset base.
• Growth Potential: With significant exploration success and a pipeline of development projects, Perseus is well-positioned for future growth.
• Operational Expertise: The company's ability to consistently replace depleted reserves and optimize operations showcases its operational capabilities.
• Geographic Diversification: Operating across two countries in West Africa provides some mitigation against country-specific risks.
• Financial Strength: While not directly addressed in the resource update, Perseus's track record of profitability and strong balance sheet support its ability to fund future growth initiatives.

In conclusion, Perseus Mining's latest update reinforces its position as a leading mid-tier gold producer in West Africa. The company's ability to grow its resource base organically, coupled with its operational expertise and strategic focus on high-quality assets, provides a solid foundation for sustainable long-term value creation. While the gold mining industry faces ongoing challenges, including price volatility and operational risks, Perseus appears well-equipped to navigate these challenges and capitalize on opportunities for growth. For investors seeking exposure to the gold sector with a balance of current production and future potential, Perseus Mining presents an attractive proposition worth further consideration.