Perseus Mining Ltd has declared commercial production at its Sissingué Gold Mine in Côte d’Ivoire, which has been completed ahead of schedule. Mill throughput rates, gold recovery rates, grade reconciliation, mining rates exceed the criteria established by Perseus to define ‘commercial production’ and the mine was cash flow positive on 31 March 2018.
Perseus has designated 1 April 2018 as the first day of commercial production at Sissingué.
All capital and operating costs incurred up to this date, net of revenue earned, will be capitalised for accounting purposes.
The capital cost of the development of the Sissingué mine and infrastructure, excluding early works but including the cost of operations readiness initiatives, is forecast at US$106.7 million, in line with budget.
According to the company, transformation of Perseus from a single mine, single country operation into a multi-mine, multijurisdictional business has occurred and the company is well positioned to achieve its goal of producing more than 500 000 oz of gold/yr from its three West African operations, namely Edikan, Sissingué and Yaouré.
In the shorter term, at the end of the March 2018 quarter, the Perseus group is on track to achieve production guidance for the Half Year and full financial year to 30 June 2018 of 140 – 160 000 oz and 250 – 285 000 oz respectively.
Perseus’s Managing Director and CEO, Jeff Quartermaine, commented: “Reaching commercial production at our Sissingué Gold Mine in Côte d’Ivoire is a very important milestone for Perseus as we now have a second, high quality cash flow stream that materially reduces our reliance on our Edikan Mine in Ghana for cash generation.”
“Cash flows from both operations will be deployed to partially fund the Yaouré Gold Mine, our third planned operation, the development of which is scheduled to start later this year, now that Sissingué is successfully up and running,” he added.
Read the article online at: https://www.globalminingreview.com/exploration-development/04042018/sissingu-gold-mine-commercial-production-commences/