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Perseus announced the discovery of significant mineralized granite body at its Esuajah Gap prospect. The company believes it could extend the life of mine of its Edikan gold mine.
Perseus Mining (TSX:PRU, ASX:PRU) is attempting to extend the six year mine life of its Edikan gold mine by increasing drilling activities.
On Tuesday (November 20), the miner announced the discovery of significant mineralized granite body on its Esuajah Gap prospect.
The drilling results revealed that the Esuajah Gap discovery exhibits similarities to both the Esuajah North and Esuajah South deposits. Esuajah South has an open pit ore reserve of 391,000 ounces of gold, while prior to mining, Esuajah North’s ore reserves accumulated in 475,000 ounces of the yellow metal.
“The Esuajah Gap discovery resulted from a conceptual targeting exercise over the mine area and highlights the potential for further discoveries and is encouraging for the prospects of extending the mine life at Edikan,” Perseus stated in a press release.
The recent diamond drilling results from the Esuajah Gap deposit include 26 meters at 1.11 grams per tonne (g/t) gold, 13.7 meters at 2.32 g/t gold, 29 meters at 1.21 g/t gold and 13 meters at 2.65 g/t gold and 29.5 meters at 1.44 g/t gold.
Commenting on the results, Jeff Quartermaine, managing director, stated, “[w]e now have sufficient data to delineate a cross section of the Esuajah Gap mineralization that has revealed encouraging similarities to the Esuajah North and South ore bodies that flank the prospect.”
“Proved and probable reserves that are not part of Edikan’s current life of mine plan, opens up the possibility of a future joint development of the two deposits and a material extension to the life of mine,” he added.
Edikan was Perseus’ first gold-mining operation, with operations commencing January 2012. Since commercial production began, more than 1,400,000 ounces of gold have been recovered.
In the miner’s most recent quarterly results, the company reported that it had achieved gold production of 72,477 ounces at an all-in sustaining cost of US$950 per ounce.
Perseus remains on track to achieve target production and costs for the December 2018 half year.
As of 11:20 a.m. EST on Tuesday, Perseus was down 1.37 percent, trading at C$0.36.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article. Â
