Perseus Mining's Final Investment Decision: A Game Changer for Yaouré CMA Underground Project

Perseus Mining Limited (ASX/TSX:PRU) has taken a significant step towards expanding its operations in West Africa with the announcement of a Final Investment Decision (FID) for the CMA underground project at the Yaouré Gold Mine in Côte d’Ivoire. This strategic move is set to extend the mine's operational life, increase production, and generate substantial cash flow for the company.

The FID, taken in consideration of the Ministry of Mines, Petroleum and Energy’s in-principle approval for the project, marks a critical milestone in the development of the CMA underground project. The commencement of this work is 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 Sangafowa Coulibaly’s announcement.

Following the FID, Perseus has appointed the Australian specialist underground mining contractor, Byrnecut, as the primary mining contractor for the project. Byrnecut will be responsible for training Ivorian miners in the skills and disciplines of underground mining, particularly safe working practices. This appointment aligns with Perseus Mining's commitment to sustainable development and local capacity building in West Africa.

The CMA underground project is expected to significantly impact Perseus Mining's long-term production profile and cash flow. The combined Measured and Indicated Mineral Resource 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. 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.

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.

The approved capital for the development of the CMA Underground is $124.6M, which aligns with previously communicated cost estimates provided to the market in September 2023 and August 2024. The majority of this capital expenditure is scheduled for FY26 and FY27 as underground development commences. As of January 28, 2025, the Company has incurred $4.1M towards progressing the project, including upgrades to camp facilities and mine services.

The CMA underground project aligns with Perseus Mining's overall growth strategy and commitment to sustainable development in West Africa. The project extends the mine life, diversifies mining methods, contributes to local economic development, aligns with government agendas, and demonstrates prudent capital allocation. By taking the FID, Perseus Mining has positioned itself to capitalize on the long-term strategic benefits of the CMA underground project while balancing immediate impacts and long-term growth.

In conclusion, Perseus Mining's Final Investment Decision on the CMA underground project at the Yaouré Gold Mine in Côte d’Ivoire is a strategic move that sets the stage for long-term production profile and cash flow growth. The project aligns with the company's commitment to sustainable development and local capacity building in West Africa, positioning Perseus Mining for continued success in the region.