Perseus' Ghana mine costs fall 23%

Further studies into processing methods at Perseus Mining's Ayanfuri gold project in Ghana has reduced capital costs by 23 per cent to $192 million with project payback to take about one year.

The company said studies investigated the introduction of another processing method, a flotation circuit that heap leaches the gold, in addition to a 4.5 million tonne per annum conventional carbon-in-leach mill.

The addition of a 1.4mtpa heap leach mill allows for gold to be treated nine months before the completion of the main processing plant, Perseus said.

Some $US13 million in cash flow is projected from the heap leach operation by the completion of the main plant.

Cash costs in the first year are expected to be $US268 per ounce and then an average of $US355/oz over 10 years. Cash costs were previously pegged at $US430/oz.

The capital cost of the project is estimated to be at $US134 million ($A192 million), down from the previous estimate of $US175 million ($A250 million).

Perseus said it will take around one year to payback the project, compared to a two-year and one month payback period when estimates first came out in October.

Shares in Perseus were up 3.5 cents to 48c at 14:19 AEDT.