Perseus gold project to cost $220m

Balcatta-based Perseus Mining Ltd has estimated capital costs for its gold project in Ghana to cost $220 million as the definitive feasibility study remains on track for completion in April next year.

The company today provided an update on its Ayanfuri gold project, saying there was potential to expand the operation with the inclusion of another three small deposits.

Currently the base case scenario for the project is a 10 year mine life with 196,000 ounces of gold produced each year in the first five years and 162,000oz produced in the following years.

Average cash costs have been pegged at $US430 per ounce while the project has an operating cash surplus of $US74 million per annum from years one to five at a gold price of $US850/oz.

The capital cost of the project is estimated at $US175 million ($A220 million) with a payback period of around two years.