Ayanfuri

The 51,060 ha Ayanfuri gold project is located in the Central Ashanti region of Ghana, Africa some 320 km from the capital Accra and 107 km from the port of Takoradi.

Perseus Mining Ltd acquired the right to earn up to 83 percent interest in the property from Anglogold Ashanti.

The mine is a past producer and it had produced over 300,000 oz of gold from a shallow oxide heap leach operation which commenced in 1994. A Preliminary Economic Assessment was completed in September 2008 and a Definitive Feasibility Study is on track for completion by April 2009.

The plan envisages multiple open pits that are going to be developed in sequence. At a 0.55 g/t gold cut-off grade mining operations would result in 4.5 mtpa ore delivered to the processing plant.

Some 2.4 Mt of overburden and 370,000 t of ore are to be moved as pre-strip waste. Average waste to ore ratio was estimated at 1.8:1 for an average cost of US$8.11 per tonne of ore mined. It is a truck and shovels operation and is to be carried out by contract mining.

The base case gold plant design considers a primary crushing circuit, single stage SAG mill followed by gravity separation, CIL leaching, electrowinning and gold smelting.

The tails will be detoxified prior to release to storage. The reagent consumptions are believed to be low with clean tails being generated.

Cash operating costs would average $460 per ounce.