10/01/2019 - 12:55

Lycopodium wins $132m Perseus contract

10/01/2019 - 12:55

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Perseus Mining has awarded the engineering and supply contract at its Yaouré gold project, located in the West African country of Côte d’Ivoire, to fellow Perth-based company Lycopodium.

Lycopodium wins $132m Perseus contract
Peter De Leo is the managing director of Lycopodium.

Perseus Mining has awarded the engineering and supply contract at its Yaouré gold project, located in the West African country of Côte d’Ivoire, to fellow Perth-based company Lycopodium.

In a statement to the ASX, Lycopodium said the contract was worth an estimated $US95.1 million (approximately $132 million), running from the last part of this financial year to the first half of the 2021 financial year.

Awarding of the contract is subject to the finalisation of the formal contract documentation, full project funding, and receipt by Perseus of its exploitation permit.

Lycopodium worked with Perseus on a positive definitive feasibility study, released in November 2017, and front-end engineering and design released in October last year, for the project.

The definitive feasibility for the project revealed an ore reserve of 26.8 million tonnes, at 1.76 grams per tonne, containing 1.52 million ounces of gold.

The project’s average annual production is estimated to be 215,000 ounces for the first five years of operations, with average all-in site costs of $US734 (approximately $1,022) per ounce.

In addition, in 2016 Perseus awarded the engineering, procurement and construction contract at its Sissingué gold project in Côte D’Ivoire to Lycopodium.

The work was worth about $38.4 million.

Shares in Lycopodium fell 1.63 per cent to trade at $4.83 each at 2.50pm AEDT.

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