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Perseus Looking to Upgrade Resources Near Edikan Gold Mine

It will be interesting to see what the final reserve grade is for Bokitsi. At a time when companies are trying desperately to lower cash costs and turn a profit in hard times, a higher grade resource may be just what the doctor ordered.

[box type=”info” align=”aligncenter” ]Disclaimer: This is an editorial review of a public press release and not an endorsement. It may include opinions or points of view that may not be shared by the companies mentioned in the release. The editorial comments are highlighted so as to be easily separated from the release text and portions of the release not affecting this review may be deleted. [/box]

PERTH, WESTERN AUSTRALIA–(Marketwired – June 19, 2014) –

Perseus Mining Limited (“Perseus” or the “Company”) (TSX:PRU)(ASX:PRU) is pleased to provide details of high grade gold intercepts recorded during recent drilling on the Bokitsi South Deposit at its Edikan Gold Mine (EGM) in Ghana, West Africa.

BKRC070 13m at 5.7g/t Au from 75m including 5m at 12.5g/t Au from 77m
BKRC074 15m at 4.2g/t Au from 44m including 2m at 11.6g/t Au from 56m
BKRC077 9m at 6.8g/t Au from 53m including 2m at 12.1g/t Au from 55m
BKRC078 11m at 7.4g/t Au from 40m including 4m at 14.3g/t Au from 40m
BKRC079 10m at 6.7g/t Au from 66m including 3m at 12.3g/t Au from 71m
BKRC081 20m at 8.6g/t Au from 67m including 3m at 30.5g/t Au from 67m and 4m at 11.4g/t Au from 79m


[box type=”note” align=”aligncenter” ]Perseus Mining is a West African gold miner based out of Perth, Australia. The company currently operates two projects, the Edikan Gold Mine (EGM) and an advanced stage exploration project known as the Tengrela Project. The company has begun testing for high grade mineralization on it’s Bokitsi deposit south of the EGM mine.   [/box]

Bokitsi South is the first of a number of targets to be drill tested with the aim of identifying high grade mineralisation that can be included in mill feed for the EGM processing plant. The programme included 37 RC drill holes totalling 2,973 metres and to date results have been received for 15 of the 37 holes. Three of the holes were diamond core tailed due to the presence of water, but otherwise the predominantly RC drilling program was conducted with dry samples.

[box type=”note” align=”aligncenter” ]The company is utilizing RC drilling, a rapid, cost effective drilling method for prospecting the surface. This method of drilling is also useful to quickly evaluate any high grade mineralization which can be readily processed at their facility. Since some of the holes flooded with water, the drilling was continued using diamond core drilling.

Water can be a major problem in mines and significant resources are expended on dewatering. While it’s not always possible, mapping subsurface water flow and developing a mine plan that minimizes the effect of water can be a useful endeavour. Often, specialized pumps are sufficient to keep a mine high and dry, but in some situations artificial ground freezing is used to keep the water table at bay. [/box]

Map of local prospects near Perseus Limited's Edikan gold mine
Map of local prospects near Perseus Limited’s Edikan gold mine

This drilling programme targeted areas containing Inferred Mineral Resources at Bokitsi South, as well as testing the southern extent of the lode. When all drill results from the programme are available, they will be incorporated into a revised calculation of the Mineral Resources at Bokitsi South which will be published early in the September 2014 QuarterA maiden Mineral Reserve estimate for the Bokitsi South deposit based on the updated Mineral Resource data is expected to be released late in the September 2014 Quarter.

[box type=”note” align=”aligncenter” ] Perseus has been methodically expanding its resources near Edikan, extending the proposed mine life and project value. They are currently reporting ~5.7 million ounces measured and indicated grading at 1.1 g/t with a cut-off between 0.4 and 0.5 g/t. Infill drilling at Bokitsi South will improve confidence the resources and eventually allow the company to upgrade it to a reserve. [/box]

Perseus Managing Director, Jeff Quartermaine’s Comments
“The in-fill drill results achieved at Bokitsi South are very encouraging in our quest to delineate high grade mineralisation to enhance the grade of mill feed at our Edikan Gold Mine.
“While work remains to be completed to confirm the exact impact of the recent results on delineating a Mineral Reserve at Bokitsi South, it would be reasonable to assume that the impact will be positive and that a case could be made for bringing forward the development of the Bokitsi South deposit in our Life of Mine Plan. The fact that the mineralisation is located within 5 kilometres of our processing plant at Edikan is an added bonus.”

The Bokitsi sediment shear hosted mineralized zone extends along the western flank of the Fetish deposit to 1.5 kilometres to the south. Mineralisation is contained in a 5 to 25 metre wide shear zone in volcaniclastic sediments with silica-sericite alteration, quartz veining and 1 to 3% pyrite plus arsenopyrite. While the granite hosted deposits at Edikan tend to be wide and low grade, the sediment shear hosted deposits are narrower with significantly higher grade.

[box type=”note” align=”aligncenter” ]The Edikan Gold Mine is part of the Ashanti greenstone belt and the mineralization has been described to be hosted within structural corridors known as shear zones. When rocks are “sheared” due to high stresses, they may either break (brittle shear), bend like plastic (ductile shear) or both. Hot, gold-bearinghydrothermal fluids pass through the breaks, cracks and other weaknesses in the rock created by this shearing and may leave gold behind. In the EGM, the mineralization is restricted to the shear zones in volcanic sediments and it is also located as dispersed grains within granitic rocks.[/box]

Two discrete deposits have been delineated on the trend, including Bokitsi North which is located immediately west of the Fetish deposit and Bokitsi South. Oxide ore was mined from both deposits in the 1990s, with the Bokitsi South lode exploited by Ashanti Goldfields.

Metallurgical test work conducted on the Bokitsi South gold mineralised material indicates that it is amenable to processing through the EGM circuit at marginally lower recoveries than the Edikan granite orebodies.

The drilling program on Bokitsi South has infill-drilled the principal sulphide lode below the old oxide pit to a nominal 20m by 20m drill spacing and extended the drill testing to the south in order to expand and upgrade the Mineral Resource. Significant intercepts from all holes are listed in Table 1 of Attachment 1.

Table 1: Bokitsi South Resource Infill Drilling Results
Hole East North RL Depth Azm. Incl. From To Width Au
(m) (m) (mASL) (m) (°) (°) (m) (m) (m) g/t
BKRC068 2,807 4,400 157 115 307 -50 97 104 7 3.6
BKRC069 2,800 4,380 155 105 307 -55 92 96 4 9.2
incl. 92 94 2 17.7
BKRC070 2,786 4,340 156 95 307 -45 75 88 13 5.7
incl. 77 82 5 12.6
BKRC071 2,803 4,300 159 110 307 -55 91 100 9 2.1
BKRC072 2,808 4,260 157 110 307 -55 83 94 11 4.4
incl. 83 85 2 9.1
BKRC073 2,793 4,240 151 120 307 -50 56 82 26 1.6
92 94 2 2.9
BKRC074 2,770 4,220 149 72 307 -45 44 59 15 4.2
incl. 47 50 3 7.4
and 56 58 2 11.6
BKRC075 2,781 4,220 149 84 307 -55 32 33 1 9.5
53 60 7 5.4
incl. 54 56 2 12.4
63 66 3 8.6
incl. 64 65 1 17.6
BKRC076 2,819 4,220 153 100 307 -55 90 97 7 6.4
incl. 91 94 3 12.8
BKRC077 2,769 4,380 154 65 307 -45 53 62 9 6.8
incl. 55 57 2 12.1
BKRC078 2,759 4,400 155 60 307 -45 40 51 11 7.4
incl. 40 44 4 14.3
BKRC079 2,775 4,320 157 90 307 -45 66 76 10 6.7
incl. 71 74 3 12.3
BKRC080 2,774 4,280 154 120 307 -45 66 68 2 2.6
71 72 1 24.8
111 118 7 1.0
BKRC081 2,783 4,260 153 110 307 -45 45 47 2 1.5
67 87 20 8.6
incl. 67 70 3 30.5
and 79 83 4 11.4
BKRC082 2,774 4,240 150 112 307 -45 55 56 1 6.9
59 66 7 5.8
incl. 63 65 2 10.0
80 84 4 1.0


[box type=”note” align=”aligncenter” ]Bokitsi is one of the company’s smaller deposits, but it is their highest grade resource with an average grade of 2.6 g/t gold. Although these results represent only half of the drilling, they appear quite promising. It will be interesting to see what the final reserve grade is for Bokitsi. At a time when companies are trying desperately to lower cash costs and turn a profit in hard times, a higher grade resource may be just what the doctor ordered.

The company’s stock is currently trading at around $0.42, half way from it’s 52-week high of $0.81.


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