Perseus Mining shares up on increase in West African gold reserves

An update for Perseus Mining‘s (ASX: PRU; TSX: PRU) West African operations has increased resources and reserves by 6% at three of its gold mines.

The company operates the Sissingué and Yaouré mines in Côte d’Ivoire and Edikan in Ghana.

Proven and probable ore reserves are now estimated at 73.8 million tonnes at 1.45 grams gold per tonne for 3.4 million oz., up from the June 2022 estimate of 72.5 million grading 1.39 grams gold for 3.3 million ounces, Perseus said in a news release on Wednesday. That marks an increase after depletion of 192,000 oz. through organic growth over the past 12 months.

The company’s total measured and indicated resources are now estimated at 122.8 million tonnes grading 1.31 grams gold per tonne for 5.2 million oz., compared with the estimate in June 2022 of 132.9 million tonnes grading 1.19 grams gold for 5.1 million ounces.

At Yaoure, the completion of an underground feasibility study, combined with underground and open-pit definition drilling and studies, has converted inferred resources to indicated, Perseus said. It also increased the mine’s ore reserves by 5.5 million tonnes at 2.31 grams gold for 410,000 oz. after depletion, for a total of 37.2 million tonnes at 1.73 grams gold for 2.1 million oz., which will significantly increase the mine life.

The company also operates Meyas Sand gold project in Sudan.

Shares of Perseus rose by as much as 4.8% Thursday to $1.52 apiece, valuing the company at about $2 billion. Its shares traded in a 52-week window of $1.15 and $2.30.