Exploration Success for Perseus in Ghana

Figure 1.1

Edikan Gold Project – Regional Geology, Tenements and Prospects

Figure 1.2

Nkosuo Prospect – Drilling and Results. Locations of Sections 1-3 shown.

Figure 1.3

Nkosuo Prospect – Drill Section 1

Figure 1.4

Nkosuo Prospect – Drill Section 2

Figure 1.5

Nkosuo Prospect – Drill Section 3

PERTH, Western Australia, Oct. 13, 2021 (GLOBE NEWSWIRE) — Perseus Mining Limited (ASX/TSX: PRU) is pleased to provide details of recent successful exploration activities at its Edikan Gold Mine in Ghana.

HIGHLIGHTS

• Impressive drilling results have been recorded by Perseus at the Nkosuo prospect (previously referred to as “Breman”) on the Agyakusu Prospecting Licence, just seven kilometres from the mill at Edikan.
• Drill results that demonstrate strong potential for shallow, granite-hosted open-pitable gold resources, include:
  • NKS0001RC:        32m @ 2.61 g/t from 23m
  • NKS0002RD:        37m @ 1.10 g/t from 12m
  • NKS0002RD:        5m @ 21.22 g/t from 229m
  • NKS0004RD:        100m @ 1.82 g/t from 50m
  • NKS0005RD:        11m @ 1.59 g/t from 82m
  • NKS0005RD:        31m @ 1.12 g/t from 117m
  • NKS0005RD:        15m @ 1.48 g/t from 152m
  • NKS0006RD:        13m @ 1.54 g/t from 66m
  • NKS0007DD:        31m @ 1.26 g/t from surface
  • NKS0007DD:        21.50m @ 1.32 g/t from 75m
  • NKS0007DD:        19m @ 1.29 g/t from 111m
  • NKS0008RD:        75.20m @ 2.71 g/t from 42m
  • NKS0013RC:        45m @ 1.97 g/t from 41m
  • NKS0014RC:        13m @ 1.28 g/t from 54m
  • NKS0014RC:        17m @ 2.18 g/t from 85m
  • NKS0015RD:        15m @ 1.17 g/t from 22m
  • NKS0015RD:        70m @ 1.30g/t from 87m
  • NKS0018RD:        4m @ 10.22 g/t from 212.4m
  • NKS0019RD:        22m @ 2.30 g/t from 5m
  • NKS0019RD:        18m @ 1.91 g/t from 69m
  • NKS0019RD:        37.5m @ 1.12 g/t from 107.5m
  • NKS0020RD:        7m @ 2.78 g/t from 56m
  • NKS0021RD:        30m @ 1.21 g/t from 1m
  • NKS0021RD:        40m @ 0.91 g/t from 120m
  • NKS0026RC:        25m @ 0.96 g/t from 23m
• Early indications suggest Nkosuo hosts near-surface, granite-hosted gold mineralisation similar in style to that mined in Edikan’s Fobinso and Abnabna (“AG”) pits.
• Resource definition drilling is in progress. Perseus expects to complete a maiden Mineral Resource estimate in the March 2022 quarter. Edikan’s mine life is currently forecast to end in FY2025 however, this discovery at Nkosuo has the potential to extend the mine life well beyond that date.

Perseus’s Managing Director and CEO Jeff Quartermaine said:

“With our three gold mines now in operation and Perseus moving closer by the day to achieving our goal of producing 500,000 ounces of gold per year, we have turned our sights to finding ways of sustaining this level of gold production from our operations out to the end of the decade and beyond.

Our exploration programme at Nkosuo has so far, returned impressive results that demonstrate the potential of this prospect to add to Edikan’s mine life with further drilling. We are particularly encouraged by similarities between the Nkosuo deposit and the Fobinso and Abnabna deposits which we’ve already successfully mined and processed at Edikan.

While we are working towards completing a maiden Mineral Resource estimate for Nkosuo in early CY2022, we intend to continue exploring on the Agyakusu, Agyakusu-DML and Domenase exploration licence areas, all of which are under option to Perseus and all of which are located within trucking distance of our Edikan mill.”

BACKGROUND

Following the successful commissioning of its third operating mine, Yaouré, in December 2020, Perseus Mining Limited (ASX/TSX: PRU) has committed to a comprehensive organic growth programme, aimed at discovering sufficient incremental Ore Reserves at each of its three operating mines to maintain its total annual production level at 500,000 ounces of gold per year through to the end of the decade and beyond.

Results from its recent exploration activities adjacent to Edikan demonstrate outstanding potential to grow its gold inventory at the mine through further drilling success.

The 23.85km2 Agyakusu prospecting licence, 2-8km NNW of Edikan, is currently held by Ghanaian company Adio-Mabas Ghana Ltd, however Perseus secured an option to acquire the Exploration Licence in November 2019 (see ASX announcement 4 November 2019). Since acquiring the option on the licence area, Perseus has conducted soil sampling and airborne geophysical surveys whilst negotiating access from farmers to drill the granite hosted Nkosuo gold prospect (formerly known as the Breman prospect). Access to the area for drilling was achieved in June this year, with drilling commencing immediately afterwards.

NKOSUO EXPLORATION DRILLING

Exploration drilling commenced at the Nkosuo prospect on the Agyakusu permit on 1st July 2021 (Figures 1 and 2). Up to 30 September 2021, a total of 7,801 metres had been drilled in 13 Reverse Circulation (“RC”), eight diamond (“DD”) holes (including five metallurgical holes) and 26 RC pre-collared diamond holes (“RD”). Drilling was conducted on a nominal 80 x 80 metre grid to scope out the extent and overall geometry of the host granite and contained mineralisation, locally infilled to 40 x 40 metres. Results received to date have been highly encouraging, indicating strong potential for shallow open-pitable gold resources just seven kilometres from the Edikan mill.

The mineralisation at Nkosuo is hosted by a NNE-trending granitic plug extending at least 600m in strike, with widths ranging up to 200m. Results to date indicate the strongest mineralisation is focused in the northern 300m section of the intrusive. The granite body dips at around 700 to the west in the northern part of the intrusion, steepening to near vertical towards the south. Drilling has defined the northern limits of the ore body but it remains open to the south, though narrowing to around 100m. Mineralisation within the granite consists of variably intense quartz stockwork veining with associated quartz-carbonate-sericite alteration. The veining and alteration are accompanied by 1-2% disseminated and selvage pyrite and arsenopyrite, with better gold grades generally associated with higher concentrations of arsenopyrite. The enclosing Birimian metasediments are devoid of mineralisation. Overall, the Nkosuo mineralisation bears strong similarities to the western granite-hosted deposits at Edikan such as Fobinso and Abnabna.

Better intercepts from the Nkosuo drilling are shown below in Table 1 with a complete summary included in Appendix 2 – Table 1.

Table 1: Intercepts from Agyakusu Prospecting Licence – Nkosuo Prospect
(Based on lower cut-off of 0.5 g/t Au with maximum 2m internal waste <0.5 g/t)

Drill results available to date from the Nkosuo drilling indicate an Exploration Target of 10 to 15 Mt grading 0.9 to 1.1 g/t gold for 275 to 500 koz contained gold.

The Exploration Target is based on the drill hole assay data available on 28 September 2021 (Table 2) and the current understanding of mineralisation geometry and style. Being conceptual in nature, it takes no account of geological complexity, possible mining method or metallurgical recovery factors. The Exploration Target was estimated to enable an early assessment of the discovery’s potential to add to Edikan’s mine life.

The potential quantity and grade of the Exploration Target is conceptual in nature and therefore is an approximation. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in estimation of a Mineral Resource. The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code.

Table 2: Nkosuo assays available on 28 September 2021

The Exploration Target is defined by:

• A wireframe of the host granite body used to limit the extent of interpreted mineralisation volume
• Drill sample intervals composited to uniform 2m down-hole lengths with composite gold grades capped at 10g/t
• Gold grades estimated by inverse distance squared weightings (IDW) into parent blocks with dimensions 20m east x 20m north x 10m elevation using a 50m east x 100m north x 100m elevation search ellipsoid with a minimum of four samples required to make an estimate
• Estimates informed only by samples within the granite
• Parent blocks sub-blocked against the granite wireframe and interpreted weathering surfaces using a minimum 5m east x 5m north x 2.5m elevation sub-block to reliably estimate the mineralisation volume
• Densities for weathered, transition and fresh rock assumed to be 1.8, 2.1 and 2.7 tonnes per cubic metre
• Sub-blocks grading greater than 0.4g/t gold and to a maximum vertical depth of approximately 170 metres.

FORWARD PROGRAMME

• Drilling now underway at Nkosuo will focus on closing up the current hole spacing to 40 x 40 metres and ultimately to 20 x 20 metres to support a Mineral Resource estimate to be undertaken in the March 2022 quarter.
• Metallurgical testwork and geotechnical drilling is about to commence so the Ore Reserve potential can be evaluated early in the September Quarter of 2022. In anticipation that this work will lead to a positive outcome the Company is in the process of exercising its option over the Agyakusu permit. Early work to meet the requirements of the ESIA process is also being planned.
• Exploration more broadly at Edikan will focus on prospective opportunities identified on adjacent tenements, including the Agyakusu DML permit, where soil geochemical sampling has identified strong gold-in-soil anomalies along strike from the Nkosuo prospect, and the Domenase permit to the north of Nkosuo.

This announcement has been approved for release by Perseus’s Managing Director and Chief Executive Officer, Jeff Quartermaine.

COMPETENT PERSON STATEMENT:

The information in this report and the attachments that relate to exploration drilling results and the Nkosuo Exploration Target on the Agyakusu permit is based on, and fairly represents, information and supporting documentation prepared by Dr Douglas Jones, a Competent Person who is a Chartered Professional Geologist. Dr Jones is the Group General Manager Exploration of the Company. Dr Jones has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ and to qualify as a “Qualified Person” under National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Dr Jones consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

CAUTION REGARDING FORWARD LOOKING INFORMATION:

This report contains forward-looking information which is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Assumptions have been made by the Company regarding, among other things: the price of gold, continuing commercial production at the Yaouré Gold Mine, Edikan Gold Mine and Sissingué Gold Mine without any major disruption due to the COVID-19 pandemic or otherwise, the receipt of required governmental approvals, the accuracy of capital and operating cost estimates, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used by the Company. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of current exploration, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company’s publicly filed documents. The Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable. Assumptions have been made regarding, among other things, the Company’s ability to carry on its exploration and development activities, the timely receipt of required approvals, the price of gold, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers should not place undue reliance on forward-looking information. Perseus does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

APPENDIX 1 – FIGURES

Figure 1.1: Edikan Gold Project – Regional Geology, Tenements and Prospects
https://www.globenewswire.com/NewsRoom/AttachmentNg/f55bf378-435a-4726-8484-f1c5282d7c4d

Figure 1.2: Nkosuo Prospect – Drilling and Results. Locations of Sections 1-3 shown.
https://www.globenewswire.com/NewsRoom/AttachmentNg/77393025-223e-4f97-8c4b-e2bf45380e5b

Figure 1.3: Nkosuo Prospect – Drill Section 1
https://www.globenewswire.com/NewsRoom/AttachmentNg/1db067b1-cc66-4cb3-b3d1-a2b73601a732

Figure 1.4: Nkosuo Prospect – Drill Section 2
https://www.globenewswire.com/NewsRoom/AttachmentNg/eb7f1cda-a4f7-45cd-9851-ae41227c8f25 

Figure 1.5: Nkosuo Prospect – Drill Section 3
https://www.globenewswire.com/NewsRoom/AttachmentNg/631f6e22-88b3-4f6d-a7a7-bf76171b8506

APPENDIX 2 – SIGNIFICANT INTERCEPTS

Table 1: Nkosuo drill holes and significant assays

APPENDIX 3 – JORC TABLES NKOSUO PROPERTY

JORC 2012 Table 1 – Section 1 sampling techniques and data

(Criteria in this section apply to all succeeding sections)

JORC 2012 Table 1 – Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)