West Africa has emerged as a gold mining region of significant interest for Western Australian junior gold explorers such as Perseus Mining Ltd.
West Africa has emerged as a gold mining region of significant interest for Western Australian junior gold explorers such as Perseus Mining Ltd.
The Balcatta-based gold company is in the midst of developing several gold projects, of which two are located in Ivory Coast and in Ghana, West Africa, a region the company believes possesses untapped “world class” gold deposits.
Perseus Mining managing director Mark Calderwood told WA Business News the company was currently completing a 15,000 meter drilling campaign at the Grumesa and Ayanfuri projects in Ghana to expand its existing resource base.
“We currently have a resource of 1.4 million ounces, which we will increase to two million ounces in the next twelve months,” he said.
Earlier this year, Perseus was granted an option to acquire Ayanfuri, which has indicated gold resources of 268,000 ounces and inferred resources of approximately 276,000 ounces.
The mine previously produced over 300,000 ounces, and Perseus has commenced feasibility work based on the construction of a two million tonne per annum CIL plant on the existing mining leases.
Feasibility work is expected to be completed around mid next year.
Mr Calderwood said the advantages of mining in Ghana were its stability as a democratic country and its strong mining history, which has resulted in the development of significant infrastructure throughout the country.
Perseus’ third West African project, Tengrela, is located on the border of Mali and the Ivory Coast, covers 65 kilometres strike of the Syama gold belt and includes nine strong gold anomalies.
Mr Calderwood said drilling had commenced on three of the nine anomalies, with hits on every traverse from the 12 kilometres of strike already tested.
“We have just started RC drilling now, so we are still a couple of years off [from production],” he said.
“But that doesn’t worry us because from a geologist’s point of view…this area is renowned for big deposits.”
The company expects to have two rigs in operation at the Tengrela project by the end of October, with 6,000 metres per month planned to be drilled.
Perseus’ total resource base has increased from 0.45 million ounces a year ago, to two million ounces in September 2006, and is targeting a further increase to three million ounces by March 2007.
The company also has a number of gold projects in the Kyrgyz Republic in central Asia, with Tolubay being its leading project in the region.
Perseus is one of a handful of WA based small to medium sized juniors developing projects in West Africa, with the likes of Adamus Resources Ltd, Azumah Resources, Gryphon Minerals and the larger Equigold and Resolute Mining also focusing their attention in this region.
Recently, Gryphon commenced its first drill program at the Banfora Gold Project, located in Burkina Faso. The company made a private placement to raise $500,000 to be used in funding the exploration.
Meanwhile, the gold reserve base for Equigold’s Bonikro Project in the Ivory Coast has increased from 690,000 ounces to 780,800 ounces (Equigold’s share) as a result of the re-optimisation of the pit design.
