The studies confirm the cost estimates in Yaouré’s October 2017 definitive feasibility study (“DFS”) that demonstrated the quality and strength of Yaouré, Perseus’s planned third mine.
The Yaouré DFS reported that the project is:
Economically attractive – IRR of 27% with a 32-month payback period at a US$1,250 /ounce gold price;
Technically robust – 3.3MTPA plant with average annual gold production of 215,000 ounces at an AISC of US$734/oz for first 5 years of production;
Readily financeable – capital cost estimate of US$263 million and robust cash flows to service debt; and
Able to be extended beyond its initial 8.5-year mine life through near mine opportunities to expand Mineral Resources and Ore Reserves mineable using both open pit and underground mining techniques.
Independent consultant Lycopodium Minerals Pty Ltd started the VEA and FEED Study in June 2018 and completed on time and on budget on October 6, 2018.
Lycopodium is well qualified to undertake the studies having played a critical role in the successful engineering, procurement and construction of several high-profile West African gold mines in the last three years, including Perseus’s Sissingué Gold Mine that was successfully developed and commissioned in early 2018.
The scope of the VEA included the evaluation of opportunities to improve plant design and optimise the estimated capital expenditure. The FEED study focussed on progressing the design of the processing plant and infrastructure to enable a detailed capital cost estimate to be prepared to a level of accuracy of +/- 10%.
Based on the FEED study, the total capital cost estimate for the development of Yaouré is US$264m (including a contingency allowance of approximately 8%) which is within 0.5% of the DFS estimate. The FEED capital cost estimate breakdown is as shown in Table 1 below.
The FEED study assumes that the process plant is developed under an Engineering, Procurement and Construction (“EPC”) contract. Based on our current plans, first gold is expected to be produced at Yaouré in December 2020.
Source: Company Press Release
