Perseus gets Côte d’Ivoire OK to build gold mine

[Ben Graham]

Perseus Mining (ASX, TSX: PRU) said it’s received presidential approval to develop and operate Côte d’Ivoire’s first underground mine.

Côte d’Ivoire President Alassane Ouattara signed the decree authorizing construction of the CMA project at the Yaouré gold mine on Thursday, Perseus said Friday in a statement. This follows the approval of an environmental and social impact assessment and the issuance of a first decree by the country’s environment minister in May. The mine is about 50 km northwest of the political capital Yamoussoukro.

“Receiving the presidential decree authorising the development of Côte d’Ivoire’s first underground mine is a major milestone for Perseus, allowing us to immediately proceed with the cutting of portals and ultimately gaining access to further important ore sources for processing through the Yaouré processing facility,” CEO and managing director Jeff Quartermaine said in the statement.

Yaouré, one of three African mines now operated by Perseus, will be a major part of the company’s efforts to boost annual gold output about 6.6% to as many as 530,000 oz. by the end of 2030. The mine is expected to account for about one-third of Perseus’ total gold production of 2.6 million to 2.7 million oz. over the period. Perseus, which also operates in Ghana, is building a fourth mine in Tanzania that’s expected to produce first gold in 2027.

Shares of Perseus rose 2.1% to C$3.90 Friday morning in Toronto, giving the company a market value of about C$5.3 billion. The stock has traded between C$2.16 and C$3.98 in the past year.

Extended life

Byrnecut, the company’s mining contractor, has begun commissioning the equipment that will allow crews to start developing declines at the mine. Based on current mineral resources and ore reserves, the construction of an underground operation below the open pit will extend Yaouré’s life until at least 2035, Perseus said.

“While receipt of the formal authorisation comes later than originally planned, the delay has allowed us time to complete all infrastructure works required to support the operation as well as ensure that Byrnecut’s underground equipment is available and commissioned ready for immediate commencement of mining operations,” Quartermaine added.

First ore

Perseus made a final decision to proceed with the $170 million underground project in January. First ore production is planned for January 2026, while commercial production is scheduled for March 2027.

Yaouré is poised to produce between 870,000 and 905,000 oz. by the end of 2030 at an average all-in sustaining cost of $1,480-$1,580 per oz., according to a presentation posted on the company’s website.

Measured and indicated resources at Yaouré as of June 30 are estimated at 54.1 million tonnes grading 1.49 grams gold per tonne for contained metal of 2.59 million oz. gold, Perseus says on its website. This includes 7.4 million tonnes grading 4.16 grams gold, for contained metal of 966,000 oz., in the CMA underground area.

A further 16.9 million tonnes of material grading 1.8 grams gold, containing 982,000 oz. of gold, are classified as inferred resources. This includes 4.7 million tonnes grading 3.4 grams gold, for contained metal of 514,000 oz., in the CMA underground area.